(a) Notwithstanding any other statute other than Section 996.480, the aggregate liability of a surety to all persons for all breaches of the condition of a bond is limited to the amount of the bond. Except as otherwise provided by statute, the liability of the principal is not limited to the amount of the bond.
§ 996.470.Liability of Surety On Bond
Title 14. Of Miscellaneous Provisions · Chapter 2. Bonds and Undertakings · Article 14. Liability of Principal and Sureties · Last amended 1994 · Last verified July 28, 2026
In one sentenceSection 996.470 caps a surety's total liability to everyone, for every breach, at the face amount of the bond unless § 996.480 applies, while leaving the principal's own liability unlimited absent a contrary statute, and it further trims the surety's exposure to whatever amount the statute required if the bond was set higher than necessary.
Full Text of § 996.470
(b) If a bond is given in an amount greater than the amount required by statute or by order of the court or officer pursuant to statute, the liability of the surety on the bond is limited to the amount required by statute or by order of the court or officer, unless the amount of the bond has been increased voluntarily or by agreement of the parties to satisfy an objection to the bond made in an action or proceeding.
(c) The liability of a surety is limited to the amount stipulated in any of the following circumstances:
(1) The bond contains a stipulation pursuant to Section 995.520 that the liability of a personal surety is limited to the worth of the surety.
(2) The bond contains a stipulation that the liability of a surety is an amount less than the amount of the bond pursuant to a statute that provides that the liability of sureties in the aggregate need not exceed the amount of the bond.
Plain-English Summary
This section is the general liability ceiling for a surety, and it cuts two ways. Subdivision (a) caps the surety's aggregate liability, to every person, for every breach of the bond's condition, combined, at the amount of the bond, with § 996.480's cost-and-interest add-on as the only exception. The principal gets no matching cap: unless some other statute limits it, the principal's liability isn't confined to the bond amount at all.
Subdivision (b) protects a surety on an oversized bond. If the bond was written for more than the statute, court, or officer required, the surety's liability is limited to the amount that was required, unless the parties themselves voluntarily raised the amount, or agreed to raise it, to answer an objection made in an action or proceeding.
Subdivision (c) recognizes two specific ways a bond can stipulate a lower liability figure than its face amount: a personal surety's liability limited to that surety's own net worth under § 995.520, or a liability figure set below the bond amount under a statute that allows the sureties' combined liability to fall short of the bond's stated amount.
Frequently Asked Questions
Is a surety's liability capped at the amount of the bond?
Generally, yes. Aggregate liability for all breaches to all persons is capped at the bond amount, except as § 996.480 provides.
Is the principal's liability also capped at the bond amount?
No, unless another statute says otherwise.
What if a bond was written for more than the law required?
The surety's liability is limited to the amount the law required, unless the parties voluntarily raised the amount to answer an objection.
Can a bond set a surety's liability below the bond's face amount?
Yes, in two situations: a personal surety's liability limited to net worth under § 995.520, or a statute allowing the sureties' aggregate liability to fall below the bond amount.
Amendment History
Amended by Stats. 1993, Ch. 527, Sec. 2. Effective January 1, 1994.
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: surety liability limited to bond amount californiacap on surety liability california