(a) If the principal does not give a new bond within 30 days after notice of cancellation or withdrawal is given, all rights obtained by giving the original bond immediately cease, any office for which the bond is given is vacant, any commission for which the bond is given is revoked, and any license or registration for which the bond is given is suspended.
§ 996.340.New Bond Not Timely Given After Notice; License Or Registration Suspended
Title 14. Of Miscellaneous Provisions · Chapter 2. Bonds and Undertakings · Article 13. Cancellation of Bond or Withdrawal of Sureties · Last amended 1983 · Last verified July 28, 2026
In one sentenceSection 996.340 provides that if the principal doesn't give a new bond within thirty days after a surety's notice of cancellation or withdrawal, every right the original bond conferred ends, any office held becomes vacant, any commission is revoked, and any license or registration is suspended until a new bond is given during that same license or registration period.
Full Text of § 996.340
(b) A person whose license or registration is suspended shall not operate or carry on business pursuant to the license or registration during the period of suspension. A license or registration that is suspended may be revived only by the giving of a new bond during the license or registration period in which the cancellation or withdrawal occurred.
Plain-English Summary
Missing the thirty-day window § 996.330 sets carries real consequences, and subdivision (a) lists them without much room for interpretation: every right the principal obtained by giving the original bond ends immediately, any office held under that bond becomes vacant, any commission is revoked, and any license or registration tied to the bond is suspended.
Subdivision (b) makes the license or registration consequence concrete. Someone whose license or registration is suspended this way can't operate or carry on business under it during the suspension. Reviving it takes more than waiting it out; it requires giving a new bond, and that new bond has to be given during the same license or registration period in which the cancellation or withdrawal happened.
Frequently Asked Questions
What happens if the principal doesn't give a new bond within thirty days of a cancellation notice?
All rights under the original bond cease, any office held becomes vacant, any commission is revoked, and any license or registration is suspended.
Can a person keep operating under a suspended license?
No. Section 996.340(b) bars operating or carrying on business under the license or registration during the suspension.
How does a suspended license or registration get reinstated?
By giving a new bond during the same license or registration period in which the cancellation or withdrawal occurred.
Amendment History
Amended by Stats. 1983, Ch. 18, Sec. 19. Effective April 21, 1983.
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 suspended bond cancellation californiareviving suspended license after bond cancellation