California Civil Code

§ 8728

CIV § 8728 Effective Jan 1, 2011Div. 4 · Title 2 · Part 6 · Ch. 7 · Art. 3

Statute text

The following provisions govern a deposit to or disbursement from a construction security escrow account under this chapter:

(a)Before the commencement of work the owner shall make an initial deposit to the account 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.

(b)If the contract provides for a retention to be withheld from a periodic payment to the direct contractor, the owner shall deposit to the account the amount withheld as retention at the time the owner makes the corresponding payment to the direct contractor from which the retention is withheld.

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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.