2010 California Code
Probate Code
Article 3. Bonds Of Guardians And Conservators

PROBATE CODE
SECTION 2320-2335



2320.  (a) Except as otherwise provided by statute, every person
appointed as guardian or conservator shall, before letters are
issued, give a bond approved by the court.
   (b) The bond shall be for the benefit of the ward or conservatee
and all persons interested in the guardianship or conservatorship
estate and shall be conditioned upon the faithful execution of the
duties of the office, according to law, by the guardian or
conservator.
   (c) Except as otherwise provided by statute, unless the court
increases or decreases the amount upon a showing of good cause, the
amount of a bond given by an admitted surety insurer shall be the sum
of all of the following:
   (1) The value of the personal property of the estate.
   (2) The probable annual gross income of all of the property of the
estate.
   (3) The sum of the probable annual gross payments from the
following:
   (A) Part 3 (commencing with Section 11000) of, Part 4 (commencing
with Section 16000) of, or Part 5 (commencing with Section 17000) of,
Division 9 of the Welfare and Institutions Code.
   (B) Subchapter II (commencing with Section 401) of, or Part A of
Subchapter XVI (commencing with Section 1382) of, Chapter 7 of Title
42 of the United States Code.
   (C) Any other public entitlements of the ward or conservatee.
   (4) On or after January 1, 2008, a reasonable amount for the cost
of recovery to collect on the bond, including attorney's fees and
costs. The attorney's fees and costs incurred in a successful action
for surcharge against a conservator or guardian for breach of his or
her duty under this code shall be a surcharge against the conservator
or guardian and, if unpaid, shall be recovered against the surety on
the bond. The Judicial Council shall, on or before January 1, 2008,
adopt a rule of court to implement this paragraph.
   (d) If the bond is given by personal sureties, the amount of the
bond shall be twice the amount required for a bond given by an
admitted surety insurer.
   (e) The Bond and Undertaking Law (Chapter 2 (commencing with
Section 995.010) of Title 14 of Part 2 of the Code of Civil
Procedure) applies to a bond given under this article, except to the
extent inconsistent with this article.



2320.1.  When the conservator or guardian has knowledge of facts
from which the guardian or conservator knows or should know that the
bond posted is less than the amount required under Section 2320, the
conservator or guardian, and the attorney, if any, shall make an ex
parte application for an order increasing the bond to the amount
required under Section 2320.



2320.2.  If additional bond is required by the court when the
account is heard, the order approving the account and related
matters, including fees, is not effective and the court shall not
file the order until the additional bond is filed.




2321.  (a) Notwithstanding any other provision of law, the court in
a conservatorship proceeding may not waive the filing of a bond or
reduce the amount of bond required, without a good cause
determination by the court which shall include a determination by the
court that the conservatee will not suffer harm as a result of the
waiver or reduction of the bond. Good cause may not be established
merely by the conservator having filed a bond in another or prior
proceeding.
   (b) In a conservatorship proceeding, where the conservatee, having
sufficient capacity to do so, has waived the filing of a bond, the
court in its discretion may permit the filing of a bond in an amount
less than would otherwise be required under Section 2320.




2322.  One appointed only as guardian of the person or conservator
of the person need not file a bond unless required by the court.



2323.  (a) The court may dispense with the requirement of a bond if
it appears likely that the estate will satisfy the conditions of
subdivision (a) of Section 2628 for its duration.
   (b) If at any time it appears that the estate does not satisfy the
conditions of subdivision (a) of Section 2628, the court shall
require the filing of a bond unless the court determines that good
cause exists, as provided in Section 2321.



2324.  If the person making the nomination has waived the filing of
the bond, a guardian nominated under Section 1500 or 1501 need not
file a bond unless required by the court.



2325.  The surety on the bond of a nonprofit charitable corporation
described in Section 2104 shall be an admitted surety insurer.



2326.  (a) If joint guardians or conservators are appointed, the
court may order that separate bonds or a joint bond or a combination
thereof be furnished.
   (b) If a joint bond is furnished, the liability on the bond is
joint and several.



2327.  (a) In a conservatorship proceeding, the court shall order a
separate bond for each conservatee, except where the assets of the
conservatees are commingled in which case a combined bond that covers
all assets may be provided.
   (b) If a guardianship proceeding involves more than one ward, the
court may order separate bonds, or a single bond which is for the
benefit of two or more wards in that proceeding, or a combination
thereof.


2328.  (a) In any proceeding to determine the amount of the bond of
the guardian or conservator (whether at the time of appointment or
subsequently), if the estate includes property which has been or will
be deposited with a trust company or financial institution pursuant
to Sections 2453 to 2456, inclusive, upon the condition that the
property, including any earnings thereon, will not be withdrawn
except on authorization of the court, the court, in its discretion,
with or without notice, may so order and may do either of the
following:
   (1) Exclude the property deposited in determining the amount of
the required bond or reduce the amount of the bond to be required in
respect to the property deposited to such an amount as the court
determines is reasonable.
   (2) If a bond has already been furnished or the amount fixed,
reduce the amount to such an amount as the court determines is
reasonable.
   (b) The petitioner for letters, or the proposed guardian or
conservator in advance of appointment of a guardian or conservator,
may do any one or more of the following:
   (1) Deliver personal property in the person's possession to a
trust company.
   (2) Deliver money in the person's possession for deposit in an
insured account in a financial institution in this state.
   (3) Allow a trust company to retain personal property already in
its possession.
   (4) Allow a financial institution in this state to retain money
already invested in an insured account in a financial institution.
   (c) In the cases described in subdivision (b), the petitioner or
proposed guardian or conservator shall obtain and file with the court
a written receipt including the agreement of the trust company or
financial institution that the property deposited, including any
earnings thereon, shall not be allowed to be withdrawn except upon
authorization of the court.
   (d) In receiving and retaining property on deposit pursuant to
subdivisions (b) and (c), the trust company or financial institution
is protected to the same extent as though it received the property on
deposit from a person to whom letters had been issued.



2329.  (a) If a guardian or conservator moves the court for
reduction in the amount of the bond, the motion shall include an
affidavit setting forth the condition of the estate.
   (b) Except upon a showing of good cause, the amount of the bond
shall not be reduced below the amount determined pursuant to Section
2320.
   (c) Nothing in this section limits the authority of the court to
reduce the amount of the bond with or without notice under Section
2328.


2330.  Upon the confirmation of the sale of any real property of the
estate, or upon the authorization of the borrowing of money secured
by a mortgage or deed of trust on real property of the estate, the
guardian or conservator shall furnish an additional bond as is
required by the court in order to make the sum of the bonds furnished
by the guardian or conservator equal to the amount determined
pursuant to Section 2320, taking into account the proceeds of the
sale or mortgage or deed of trust, unless the court makes an express
finding stating the reason why the bond should not be increased. If a
bond or additional bond is required under this section, the order
confirming the sale of real property of the estate or authorizing the
borrowing of money secured by a mortgage or deed of trust on real
property of the estate is not effective and the court shall not file
the order until the additional bond is filed.



2333.  (a) In case of a breach of a condition of the bond, an action
may be brought against the sureties on the bond for the use and
benefit of the ward or conservatee or of any person interested in the
estate.
   (b) No action may be maintained against the sureties on the bond
unless commenced within four years from the discharge or removal of
the guardian or conservator or within four years from the date the
order surcharging the guardian or conservator becomes final,
whichever is later.
   (c) In any case, and notwithstanding subdivision (b) of Section
2103, no action may be maintained against the sureties on the bond
unless the action commences within six years from the date the
judgment under Section 2103 or the later of the orders under
subdivision (b) of this section becomes final.




2334.  Where a petition is filed requesting an order that a guardian
or conservator be required to give a bond where no bond was
originally required, or an objection is made to the sufficiency of
the bond, and the petition or affidavit supporting the objection
alleges facts showing that the guardian or conservator is failing to
use ordinary care and diligence in the management of the estate, the
court, by order, may suspend the powers of the guardian or
conservator until the matter can be heard and determined.



2335.  A guardian or conservator who applies for a substitution and
release of a surety shall file an account with the application. The
court shall not order a substitution unless the account is approved.



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