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§ 996.150.Surety Ordered Released From Liability

Title 14. Of Miscellaneous Provisions · Chapter 2. Bonds and Undertakings · Article 11. Release or Substitution of Sureties on Bond Given in Action or Proceeding · Enacted 1982 · no amendments on record · Last verified July 28, 2026

In one sentenceSection 996.150 limits the effect of a court-ordered release of a surety to what happens next, keeping the bond fully enforceable for liabilities and conduct that predate the release, freeing the released surety from anything after, and leaving the other sureties' obligations unchanged.

Full Text of § 996.150

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

If a surety is ordered released from liability on a bond:
(a) The bond remains in full force and effect for all liabilities incurred before, and for acts, omissions, or causes existing or which arose before, the release. Legal proceedings may be had therefor in all respects as though there had been no release.
(b) The surety is not liable for any act, default, or misconduct of the principal or other breach of the condition of the bond that occurs after, or for any liabilities on the bond that arise after, the release.
(c) The release does not affect the bond as to the remaining sureties, or alter or change their liability in any respect.

Plain-English Summary

A release under § 996.120 or § 996.140 isn't a clean erasure of the bond. Subdivision (a) keeps the bond in full force for every liability incurred, and every act, omission, or cause that existed, before the release; legal proceedings on those matters go forward exactly as if no release had ever happened.

Subdivision (b) draws the line forward from there: the surety owes nothing for the principal's misconduct, default, or any other breach of the bond's condition that happens after the release, and nothing for liabilities that first arise after that point.

Subdivision (c) protects the beneficiary's position against the remaining sureties. Releasing one surety doesn't touch the bond as it applies to the others, and doesn't change their liability in any way.

Frequently Asked Questions

Does releasing a surety erase liability for what already happened?

No. The bond remains in full force for liabilities incurred, and acts or omissions that existed, before the release.

Is the released surety liable for anything that happens after the release?

No. Section 996.150(b) frees the surety from any of the principal's conduct or any liability arising after the release.

What happens to the other sureties on the bond when one is released?

Nothing changes for them. The release doesn't affect the bond as to the remaining sureties or alter their liability.

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: effect of surety release california bondsurety liability after release