§ 995.710.Deposits Allowed, Exceptions

Title 14. Of Miscellaneous Provisions · Chapter 2. Bonds and Undertakings · Article 7. Deposit in Lieu of Bond · Last amended 2023 · Last verified July 28, 2026

In one sentenceSection 995.710 lets a principal deposit cash, government bonds or notes, certificates of deposit, savings accounts, investment certificates, or credit union share certificates with the officer instead of giving a bond, without prior court approval, in an amount or value at least equal to what an admitted surety insurer's bond would secure, except deposits made with the Secretary of State.

Full Text of § 995.710

Text sizeJump to: (a) (b) (c) (d) (e)

(a) Except as provided in subdivision (e) or to the extent the statute providing for a bond precludes a deposit in lieu of bond or limits the form of deposit, the principal may, without prior court approval, instead of giving a bond, deposit with the officer any of the following:

(1) Lawful money of the United States or a cashier's check, made payable to the officer, issued by a bank, savings association, or credit union authorized to do business in this state. The money shall be held in trust by the officer in interest-bearing deposit or share accounts.

(2) Bonds or notes, including bearer bonds and bearer notes, of the United States or the State of California. The deposit of a bond or note pursuant to this section shall be accomplished by filing with the court, and serving upon all parties and the appropriate officer of the bank holding the bond or note, instructions executed by the person or entity holding title to the bond or note that the treasurer of the county where the judgment was entered is the custodian of that account for the purpose of staying enforcement of the judgment, and that the title holder assigns to the treasurer the right to collect, sell, or otherwise apply the bond or note to enforce the judgment debtor's liability pursuant to Section 995.760.

(3) Certificates of deposit payable to the officer, not exceeding the federally insured amount, issued by banks or savings associations authorized to do business in this state and insured by the Federal Deposit Insurance Corporation.

(4) Savings accounts assigned to the officer, not exceeding the federally insured amount, together with evidence of the deposit in the savings accounts with banks authorized to do business in this state and insured by the Federal Deposit Insurance Corporation.

(5) Investment certificates or share accounts assigned to the officer, not exceeding the federally insured amount, issued by savings associations authorized to do business in this state and insured by the Federal Deposit Insurance Corporation.

(6) Share certificates payable to the officer, not exceeding the guaranteed or insured amount, issued by a credit union, as defined in Section 14002 of the Financial Code, whose share accounts are insured by the National Credit Union Administration or guaranteed or insured by any other agency that the Commissioner of Financial Protection and Innovation has not deemed to be unsatisfactory.

(b) The deposit shall be in an amount or have a face value, or, in the case of bonds or notes, have a market value, equal to or in excess of the amount that would be required to be secured by the bond if the bond were given by an admitted surety insurer. Notwithstanding any other provision of this chapter, in the case of a deposit of bonds or notes other than in an action or proceeding, the officer may, in the officer's discretion, require that the amount of the deposit be determined not by the market value of the bonds or notes but by a formula based on the principal amount of the bonds or notes.

(c) The deposit shall be accompanied by an agreement executed by the principal authorizing the officer to collect, sell, or otherwise apply the deposit to enforce the liability of the principal on the deposit. The agreement shall include the address at which the principal may be served with notices, papers, and other documents under this chapter.

(d) The officer may prescribe terms and conditions to implement this section.

(e) This section does not apply to deposits with the Secretary of State.

End

Plain-English Summary

Not everyone wants to pay a bonding company's premium. This section gives a principal a direct alternative: deposit qualifying security with the officer instead of obtaining a bond, and do it without asking the court's permission first -- unless the specific statute requiring the bond forbids a deposit or restricts what form it can take.

The list of acceptable deposits is deliberately broad: cash or a cashier's check held in an interest-bearing account, United States or California government bonds and notes (including bearer instruments, deposited through a documented custody arrangement with the county treasurer), federally insured certificates of deposit, savings accounts, investment certificates, and credit union share certificates. Whatever form the deposit takes, its amount or value must equal or exceed what the bond would have to secure if an admitted surety insurer wrote it.

The deposit also has to come with an agreement letting the officer collect, sell, or otherwise apply it if the principal's liability comes due, along with an address for service of notices -- the same mechanism § 995.760 later uses to enforce that liability. Subdivision (e) excludes one category outright: deposits made with the Secretary of State fall outside this section entirely.

Frequently Asked Questions

Does a principal need court approval to deposit cash instead of getting a bond?

No, § 995.710 lets the principal make the deposit without prior court approval, except as the specific bond statute otherwise limits.

What kinds of deposits qualify under this section?

Cash or a cashier's check, U.S. or California government bonds and notes, federally insured certificates of deposit, savings accounts, investment certificates, and qualifying credit union share certificates.

How much does the deposit have to be worth?

An amount or value equal to or exceeding what the bond would need to secure if given by an admitted surety insurer.

Does this section apply to deposits filed with the Secretary of State?

No, subdivision (e) excludes those deposits from this section.

Amendment History

Amended by Stats 2022 ch 452 (SB 1498),s 41, eff. 1/1/2023. Amended by Stats 2014 ch 305 (AB 1856),s 1, eff. 1/1/2015. Amended October 10, 1999 (Bill Number: AB 1672) (Chapter 892).

Source & verification. Section text is reproduced verbatim from the California Legislative Information. Enacted by the California Legislature. Last verified July 28, 2026. · Official source

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