If a ground for the objection is that the value of property or an interest in property on which the amount of the bond is based exceeds the value estimated in the bond:
§ 995.940.Value of Property Exceeds Value Estimated In Bond
Title 14. Of Miscellaneous Provisions · Chapter 2. Bonds and Undertakings · Article 9. Objections to Bonds · Enacted 1982 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 995.940 requires an objection based on undervalued property to state the beneficiary's own market-value estimate, and lets the principal accept that estimate and immediately file an increased bond, which skips the hearing on that ground and binds the beneficiary to the estimate.
Full Text of § 995.940
(a) The objection shall state the beneficiary's estimate of the market value of the property or interest in property.
(b) The principal may accept the beneficiary's estimate of the market value of the property or interest in property and immediately file an increased bond based on the estimate. In such case, no hearing shall be held on that ground for the objection, and the beneficiary is bound by the estimate of the market value of the property or interest in property.
Plain-English Summary
Some bond amounts are calculated from the value of specific property, and this section covers what happens when a beneficiary thinks that value was understated. The objection has to state the beneficiary's own estimate of the property's market value -- not just an assertion that the bond amount is too low.
The principal then has a shortcut available. Rather than litigating the value at a hearing, the principal can accept the beneficiary's estimate and file an increased bond based on it right away. Doing so skips any hearing on that particular ground for objection, but it also locks the beneficiary into that same estimate -- the beneficiary can't later argue the property is worth even more than what was proposed.
Frequently Asked Questions
What must an objection based on undervalued property include?
The beneficiary's estimate of the market value of the property or interest in property at issue.
Can the principal avoid a hearing on this kind of objection?
Yes, by accepting the beneficiary's stated estimate and immediately filing an increased bond based on it.
What happens to the beneficiary's estimate if the principal accepts it?
The beneficiary becomes bound by that estimate, and no hearing is held on that ground for the objection.
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: bond amount based on property value californiaincreased bond after objection california