Bảo hiểm & Quyền cầm giữCâu 1540 / 1605
The 125% bond required to accompany a stop payment notice served on a construction LENDER exists to:
a.Satisfy the workers' compensation requirement
b.Protect the lender against the risk that the claim is invalid, by guaranteeing the lender's costs if it wrongly withholds
c.Pay the contractor's insurance premium
d.Increase the claimant's recovery
Giải thích
The 125% bond (Civil Code §8532) that must accompany a bonded stop payment notice to a lender protects the lender if it withholds funds based on a claim that turns out to be invalid, covering the lender's potential damages and costs. It is a condition of obligating the lender to withhold.
Trích dẫn luật: Civ. Code §8506Luyện miễn phí toàn bộ 1605 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- A sole-owner contractor with no employees wants to avoid carrying workers' compensation insurance. Generally, the contractor may:
- To keep a mechanics lien alive beyond 90 days without immediately filing suit, a claimant and owner may agree to and record an:
- Which best explains why a general contractor requires each subcontractor to carry its OWN workers' compensation insurance?
- Which of the following parties is typically the OBLIGEE on a contractor's performance bond for a private project?
- The recorded mechanics lien must be served on the owner within what time relative to recording, along with the Notice of Mechanics Lien?
- A hold-harmless clause where a subcontractor agrees to indemnify the general contractor even for the GC's OWN active negligence is:
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Người kiểm duyệt Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — kiểm tra)