California Code of Regulations
Title 10 - Investment
Chapter 3 - Commissioner of Financial Protection and Innovation
Subchapter 2.6 - Franchises
Section 310.113.5 - Surety Bond in Lieu of Impound
In lieu of the imposition of an impound condition a franchiser may post a surety bond in such amount as shall be required by the Commissioner. Such bond shall be issued by a corporate surety admitted to transact business in the State of California, conditioned upon the completion by the franchiser of its obligations under the franchise contract to provide real estate, improvements, equipment, inventory, training or other items included in the offering. Where more than one franchise may at the same time be sold but unopened, the amount of the bond shall equal the aggregate liability to all such franchises in this state.
1. Amendment filed 10-28-82; effective thirtieth day thereafter (Register 82, No. 44).
Note: Authority cited: Section 31502, Corporations Code. Reference: Section 31113, Corporations Code.