SECTIONS 995.710-995.770 - California Statutes

CODE OF CIVIL PROCEDURE

SECTION 995.710-995.770

995.710. (a) Except as provided in subdivision (e) or to the extent
the statute providing for a bond precludes a deposit in lieu of bond
or limits the form of deposit, the principal may instead of giving a
bond, deposit with the officer any of the following:
(1) Lawful money of the United States. The money shall be
maintained by the officer in an interest-bearing trust account.
(2) Bearer bonds or bearer notes of the United States or the State
of California.
(3) Certificates of deposit payable to the officer, not exceeding
the federally insured amount, issued by banks or savings associations
authorized to do business in this state and insured by the Federal
Deposit Insurance Corporation.
(4) Savings accounts assigned to the officer, not exceeding the
federally insured amount, together with evidence of the deposit in
the savings accounts with banks authorized to do business in this
state and insured by the Federal Deposit Insurance Corporation.
(5) Investment certificates or share accounts assigned to the
officer, not exceeding the federally insured amount, issued by
savings associations authorized to do business in this state and
insured by the Federal Deposit Insurance Corporation.
(6) Certificates for funds or share accounts assigned to the
officer, not exceeding the guaranteed amount, issued by a credit
union, as defined in Section 14002 of the Financial Code, whose share
deposits are guaranteed by the National Credit Union Administration
or guaranteed by any other agency approved by the Department of
Financial Institutions.
(b) The deposit shall be in an amount or have a face value, or in
the case of bearer bonds or bearer notes have a market value, equal
to or in excess of the amount that would be required to be secured by
the bond if the bond were given by an admitted surety insurer.
Notwithstanding any other provision of this chapter, in the case of a
deposit of bearer bonds or bearer notes other than in an action or
proceeding, the officer may, in the officer's discretion, require
that the amount of the deposit be determined not by the market value
of the bonds or notes but by a formula based on the principal amount
of the bonds or notes.
(c) The deposit shall be accompanied by an agreement executed by
the principal authorizing the officer to collect, sell, or otherwise
apply the deposit to enforce the liability of the principal on the
deposit. The agreement shall include the address at which the
principal may be served with notices, papers, and other documents
under this chapter.
(d) The officer may prescribe terms and conditions to implement
this section.
(e) This section may not be utilized after January 1, 1999, for
deposits with the Secretary of State. Any principal who made a
deposit with the Secretary of State pursuant to this section prior to
January 1, 1999, may continue to utilize that deposit in lieu of a
bond pursuant to this section and the statute that prescribes a bond;
however, the deposit shall not be renewable pursuant to this
section.

995.720. (a) The market value of bearer bonds or bearer notes shall
be agreed upon by stipulation of the principal and beneficiary or,
if the bonds or notes are given in an action or proceeding and the
principal and beneficiary are unable to agree, the market value shall
be determined by court order in the manner prescribed in this
section. A certified copy of the stipulation or court order shall be
delivered to the officer at the time of the deposit of the bonds or
notes.
(b) If the bonds or notes are given in an action or proceeding,
the principal may file a written application with the court to
determine the market value of the bonds or notes. The application
shall be served upon the beneficiary and proof of service shall be
filed with the application. The application shall contain all of the
following:
(1) A specific description of the bonds or notes.
(2) A statement of the current market value of the bonds or notes
as of the date of the filing of the application.
(3) A statement of the amount of the bonds or notes that the
principal believes would be equal to the required amount of the
deposit.
(c) The application pursuant to subdivision (b) shall be heard by
the court not less than five days or more than 10 days after service
of the application. If at the time of the hearing no objection is
made to the current market value of the bonds or notes alleged in the
application, the court shall fix the amount of the bonds or notes on
the basis of the market value alleged in the application. If the
beneficiary contends that the current market value of the bonds or
notes is less than alleged in the application, the principal shall
offer evidence in support of the application, and the beneficiary may
offer evidence in opposition. At the conclusion of the hearing, the
court shall make an order determining the market value of the bonds
or notes and shall fix and determine the amount of the bonds or notes
to be deposited by the principal.

995.730. A deposit given instead of a bond has the same force and
effect, is treated the same, and is subject to the same conditions,
liability, and statutory provisions, including provisions for
increase and decrease of amount, as the bond.

995.740. If no proceedings are pending to enforce the liability of
the principal on the deposit, the officer shall:
(a) Pay quarterly, on demand, any interest on the deposit, when
earned in accordance with the terms of the account or certificate, to
the principal.
(b) Deliver to the principal, on demand, any interest coupons
attached to bearer bonds or bearer notes as the interest coupons
become due and payable, or pay annually any interest payable on the
bonds or notes.

995.750. (a) The principal shall pay the amount of the liability on
the deposit within 30 days after the date on which the judgment of
liability becomes final.
(b) If the deposit was given to stay enforcement of a judgment on
appeal, the principal shall pay the amount of the liability on the
deposit, including damages and costs awarded against the principal on
appeal, within 30 days after the filing of the remittitur from the
appellate court in the court from which the appeal is taken.

995.760. (a) If the principal does not pay the amount of the
liability on the deposit within the time prescribed in Section
995.750, the deposit shall be collected, sold, or otherwise applied
to the liability upon order of the court that entered the judgment of
liability, made upon five days' notice to the parties.
(b) Bearer bonds or bearer notes without a prevailing market price
shall be sold at public auction. Notice of sale shall be served on
the principal. Bearer bonds or bearer notes having a prevailing
market price may be sold at private sale at a price not lower than
the prevailing market price.
(c) The deposit shall be distributed in the following order:
(1) First, to pay the cost of collection, sale, or other
application of the deposit.
(2) Second, to pay the judgment of liability of the principal on
the deposit.
(3) Third, the remainder, if any, shall be returned to the
principal.

995.770. A deposit given pursuant to this article shall be returned
to the principal at the earliest of the following times:
(a) Upon substitution of a sufficient bond for the deposit. The
bond shall be in full force and effect for all liabilities incurred,
and for acts, omissions, or causes existing or which arose, during
the period the deposit was in effect.
(b) The time provided by Section 995.360 for return of a bond.
(c) The time provided by statute for return of the deposit.