(a) Whenever any lien or liens shall be claimed or recorded under the provisions of this chapter then the lessor or owner of the property on which the lien or liens are claimed or the contractor or subcontractor through whom such lien or liens are claimed, or either of them, may record a bond with the county recorder of the county in which the property is located as herein provided. Such bond shall describe the property on which lien or liens are claimed, shall refer to the lien or liens claimed in manner sufficient to identify them and shall be in an amount equal to 150 percent of the amount of the claimed lien or liens referred to and shall be payable to the party or parties claiming same. Such bond shall be executed by the party recording same as principal and by a corporate surety authorized to execute such bonds as surety and shall be conditioned substantially that the principal and surety will pay to the obligees named or their assigns the amounts of the liens so claimed by them with all costs in the event same shall be proven to be liens on such property.
§ 1203.60.Bond Given By Lessor Or Owner Or Contractor Or Subcontractor
Title 4. Of the Enforcement of Liens · Chapter 2.5. Oil and Gas Liens · Enacted 1959 · no amendments on record · Last verified July 29, 2026
In one sentenceSection 1203.60 lets a lessor, owner, contractor, or subcontractor record a corporate surety bond worth 150 percent of a claimed oil and gas lien, substituting the bond for the property so lien claimants can sue on the bond instead of foreclosing against the property itself.
Full Text of § 1203.60
(b) Such bond, when recorded, shall take the place of the property against which any claim for lien referred to in such bond is asserted. At any time within the period of time provided in Section 1203.61, any person claiming such lien may sue upon such bond but no action shall be brought upon such bond after the expiration of such period. One action upon such bond shall not exhaust the remedies thereon but each obligee or assignee of an obligee named therein may maintain a separate suit thereon in any court having jurisdiction.
Plain-English Summary
Recorded liens can tie up a leasehold's marketability, so this section gives the party against whom a lien is claimed a way to free the property while still protecting the lien claimant. The lessor, owner, contractor, or subcontractor through whom the lien is claimed can record a bond describing the property, identifying the lien or liens involved, and set at 150 percent of the claimed amount. A corporate surety authorized to write such bonds has to execute it alongside the principal, conditioned on paying the claimed liens with costs if they're proven valid.
Once recorded, the bond stands in for the property — the lien claimant's remedy shifts from the leasehold itself to a lawsuit on the bond. That lawsuit has to be filed within the same time period § 1203.61 sets for enforcing the lien itself; miss that window and the suit on the bond is barred. And because more than one person can hold a preferred interest in the same bond, one obligee suing doesn't exhaust the remedy for the others — each obligee or assignee can bring a separate action.
Frequently Asked Questions
How large does the substitute bond have to be?
150 percent of the amount of the lien or liens the bond refers to.
Who can record this bond?
The lessor or owner of the property, or the contractor or subcontractor through whom the lien is claimed.
What happens to the property once the bond is recorded?
The bond takes the place of the property -- a lien claimant sues on the bond instead of foreclosing against the leasehold.
Is there a deadline for suing on the bond?
Yes, the same period § 1203.61 provides for enforcing the underlying lien; no action on the bond may be brought after that period expires.
Amendment History
Added by Stats. 1959, Ch. 2020.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 29, 2026.
· Official source
Also known as: oil and gas lien release bond californiabonding off an oil and gas lien