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Bond Alternatives

Cash Deposit

A cash deposit can be filed in place of filing a required Contractor's Bond, Bond of Qualifying Individual, or Disciplinary Bond. The cash deposit must be in the form of a cashier's check, bank certified check, certificate of deposit, savings account passbook, savings and loan association investment certificate or share account, or credit union certificate for funds or share account, and must be filed with the CSLB's Headquarters office. A personal or business check cannot be accepted.

Alert symbol IMPORTANT: A cash deposit cannot be released until three (3) years after the expiration of the license period for which it provides coverage, or three (3) years after the date the license is officially inactivated in CSLB's records, whichever occurs first. Cash deposits are held in case a claim is filed against the deposit by a consumer. If CSLB is notified of a complaint relative to a claim against the cash deposit, the deposit will not be released until the complaint has been adjudicated.
Requirements for a Cashier's Check or Bank Certified Check:

Please note: Effective January 1, 2016, the required amount of a contractor’s bond will increase from $12,500 to $15,000. This change is the result of Senate Bill 467 (Hill). This increase also applies to cash deposits filed with CSLB in lieu of a contractor’s bond.

A contractor’s bond or cash deposit received at CSLB on or after January 1, 2016 must be in the required amount of $15,000. Any contractor’s bond or cash deposit received after December 31, 2015 in the amount of $12,500 cannot be processed.

The bond of qualifying individual will remain at $12,500.

  • The check must be in the amount of $12,500 for the Contractor's Bond and the Bond of Qualifying Individual. For a disciplinary bond, the check must be in the amount determined by the Registrar.
  • The check must state: "Payable to the Contractors State License Board."
  • The check must list the license number and exact business name as reflected in CSLB's records.
  • A check filed in place of a Bond of Qualifying Individual must list the qualifier's name.
Requirements for a Certificate of Deposit:
  • The certificate of deposit must be issued by a bank or savings and loan association doing business in California.
  • The certificate of deposit must be in the amount of $12,500 for the Contractor's Bond and the Bond of Qualifying Individual. For a disciplinary bond, the certificate of deposit must be in the amount determined by the Registrar.
  • The certificate of deposit must state: "Payable to the Contractors State License Board."
  • The certificate of deposit must list the license number and exact business name as reflected in CSLB's records.
  • A certificate of deposit filed in place of a Bond of Qualifying Individual must list the qualifier's name.
  • The certificate of deposit must list the issue date and a maturity date of not less than one year.
  • The certificate of deposit must state: "automatically renewable."
  • The certificate of deposit must state that any interest earned will be paid to the depositor.
  • The certificate of deposit must have a signature of a bank representative and the branch address on the face of the document.
  • The certificate of deposit cannot state that the certificate does not have to be presented to withdraw funds.
  • The certificate of deposit cannot have the word "Trustee" included with the name of the payee.
Requirements for a Savings Account Passbook, Savings and Loan Association Investment Certificate or Share Account, or Credit Union Certificate for Funds or Share Account:
  • The passbook or certificate must be issued by a bank, savings and loan association, or credit union doing business in California.
  • The passbook or certificate must be in the amount of $12,500 for the Contractor's Bond and the Bond of Qualifying Individual. For a disciplinary bond, the passbook or certificate must be in the amount determined by the Registrar.
  • The passbook or certificate must state: "Assigned to the Contractors State License Board."
  • The passbook or certificate must list the license number and exact business name as reflected in CSLB's records.
  • A passbook or certificate filed in place of a Bond of Qualifying Individual must list the qualifier's name.
  • The passbook or certificate must list the issue date and a maturity date of not less than one year.
  • The passbook or certificate must state: "automatically renewable."
  • The interest earned on the account must be paid to the assignor.
  • A completed assignment form (13B-26 for the Contractor's Bond and 13B-28 for the Bond of Qualifying Individual) must be attached to the passbook or certificate. The assignment form(s) can be obtained by calling the CSLB at 1-800-321-CSLB (2752).
  • The passbook or certificate cannot state that the certificate does not have to be presented to withdraw funds.
Keep records:
  • Keep accurate records on your financial institution. Remember, it is ultimately the responsibility of the contractor to make sure the board is notified immediately whenever a change occurs with their financial institution. These changes include but are not limited to any address change, name change, merger with another institution, or account number change.
References:
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