Insurance & LiensQuestion 1557 of 1605
After an owner records a lien release bond of 125%, an unpaid subcontractor who wants to be paid must now pursue:
a.The CSLB Recovery Fund
b.The surety on the release bond (and the principal), since the bond substitutes for the property
c.The construction lender's shareholders
d.The real property through foreclosure only
Explanation
When a lien release bond is recorded under Civil Code §8424, the bond substitutes for the property as security. The claimant's foreclosure remedy shifts to an action on the bond against the surety (and principal) rather than the real property.
Law Reference: Civ. Code §8424Practice all 1605 questions free — no signup required.
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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)