Business & LicensingQuestion 1393 of 1605
If a contractor cannot obtain a surety bond, what alternative does the license law permit to satisfy the bond requirement?
a.A signed promise from the customer
b.A letter from an attorney
c.A cash deposit with the Registrar in lieu of a bond
d.No alternative exists
Explanation
Under B&P Code sections 7071.6 and 7071.12, a contractor may deposit cash or its equivalent with the Registrar in lieu of a surety bond to satisfy the bonding requirement, in the same amount ($25,000).
Law Reference: B&P Code §7071.12Practice all 1605 questions free — no signup required.
Related questions on this topic
- A licensee must notify the Registrar of certain changes. Within how many days must a licensee report a change of business address?
- If a qualifying individual (RMO/RME) disassociates from a license, within how many days must the licensee notify the Registrar?
- After a qualifier disassociates, how long does the licensee generally have to replace the qualifying individual before the license is suspended or invalidated?
- Which fee is paid when a contractor renews an active license?
- A licensee wants to place a license on 'inactive' status. What is the effect of inactive status?
- A contractor advertises services. What must the advertisement generally include under the license law?
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)