California Civil Code

§ 8724

CIV § 8724 Effective Jan 1, 2011Div. 4 · Title 2 · Part 6 · Ch. 7 · Art. 3

Statute text

An irrevocable letter of credit under this chapter shall satisfy all of the following requirements:

(a)The letter of credit shall be issued by a financial institution, as defined in Section 5107 of the Financial Code, inuring to the benefit of the direct contractor.

(b)The letter of credit shall be in an amount not less than 15 percent of the contract price for the work of improvement or, if the work of improvement is to be substantially completed within six months after the commencement of work, not less than 25 percent of the contract price.

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Legislative history

Added by Stats. 2010, Ch. 697, Sec. 20. (SB 189) Effective January 1, 2011. Operative July 1, 2012, by Sec. 105 of Ch. 697 and by Section 8052.