A bond given as a condition of a license or permit shall be continuous in form, remain in full force and effect, and run concurrently with the license or permit period and any and all renewals, or until cancellation or withdrawal of the surety from the bond.
§ 995.440.Bond Given As Condition of License Or Permit
Title 14. Of Miscellaneous Provisions · Chapter 2. Bonds and Undertakings · Article 4. Approval and Effect · Enacted 1982 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 995.440 requires a bond given as a condition of a license or permit to be continuous in form, stay in full force and effect for the license or permit's entire term and any renewals, and remain effective until the surety cancels or withdraws from the bond.
Full Text of § 995.440
Plain-English Summary
License and permit bonds get their own continuity rule, separate from the multi-trigger termination scheme § 995.430 sets for bonds given in an action or proceeding. Under § 995.440, a bond given as a condition of a license or permit has to be continuous in form from the start.
That continuity carries through the entire life of the license or permit — the bond runs concurrently with the license or permit period, and with any and all renewals of it — and stays in full force and effect until the surety cancels the bond or withdraws from it.
This is the counterpart to the carve-out § 995.140(b) makes: because a license or permit bond doesn't count as a bond "given in an action or proceeding," it needed its own rule for how long it lasts, and this section supplies it.
Frequently Asked Questions
Does a license or permit bond expire the way an action-or-proceeding bond does?
No. Section 995.440 requires it to be continuous in form and remain in full force and effect through the license or permit's term and renewals.
What ends a license or permit bond's coverage?
Cancellation or withdrawal of the surety from the bond.
Why does this type of bond get a different rule than § 995.430's termination events?
Amendment History
Added by Stats. 1982, Ch. 998, Sec. 1.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as: license bond continuous coverage californiapermit bond requirements california