California · Civil Code
CIV §8710: An owner described in subdivision (a) of Section 8700 shall provide the direct contractor all of the following: (a) Security for the owner’s payment obligation pursuant to the contract.
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An owner described in subdivision (a) of Section 8700 shall provide the direct contractor all of the following: (a) Security for the owner’s payment obligation pursuant to the contract. The security shall be used only if the owner defaults on the payment obligation to the direct contractor. This subdivision does not apply to an owner that is the majority owner of the direct contractor. (b) A copy, certified by the county recorder, of any recorded mortgage or deed of trust that secures the construction loan of a lending institution for the work of improvement, disclosing the amount of the loan.
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