2010 California Code
Civil Code
Article 2. Security Requirement

8710.  An owner described in subdivision (a) of Section 8700 shall
provide the direct contractor all of the following:
   (a) Security for the owner's payment obligation pursuant to the
contract. The security shall be used only if the owner defaults on
the payment obligation to the direct contractor. This subdivision
does not apply to an owner that is the majority owner of the direct
contractor.
   (b) A copy, certified by the county recorder, of any recorded
mortgage or deed of trust that secures the construction loan of a
lending institution for the work of improvement, disclosing the
amount of the loan.


8712.  If an owner fails to provide or maintain the security
required by this chapter, the direct contractor may give the owner
notice demanding security. The notice shall comply with the
requirements of Chapter 2 (commencing with Section 8100) of Title 1.
If the owner does not provide or maintain the security within 10 days
after notice demanding security is given, the direct contractor may
suspend work until the owner provides or maintains the security.



8714.  It is against public policy to waive the provisions of this
chapter by contract.



8716.  This chapter does not affect any statute providing for
mechanics liens, stop payment notices, bond remedies, or prompt
payment rights of a subcontractor, including the direct contractor's
payment responsibilities under Section 7108.5 of the Business and
Professions Code.