Section 5547 - Requirements for Bonds and Other Undertakings(a) When at any time in Chapter 5, a requirement for an application for registration of a unit includes, as an alternative, the provision of a bond or undertaking as described in this section, the bond or undertaking shall be one of the following: (1) A surety bond issued by a surety company authorized to transact general surety business in the State of California, executed by the principal and surety and acknowledged by a Notary Public using the certificate of acknowledgment specified in Section 1189(a) of the Civil Code. The bond shall be valid for a three-year period from the date the completed application for registration is received by the department.(2) A certificate of deposit or investment certificate issued by a financial institution authorized to do business in the State of California and insured by the Federal Deposit Insurance Corporation, which indicates the name of the depositor and is made payable to the department. The certificate of deposit or investment certificate shall be valid for a three-year period from the date the completed application for registration is received by the department.(3) Money deposited in a financial institution evidenced by a share or savings account passbook which shows the name and address of the financial institution and contains the signature of an officer or authorized agent of the financial institution. The account passbook shall be assigned to the department by the person evidence by the passbook to be the depositor of the account. The assignment of the account passbook shall be valid for a three-year period from the date the completed application was received by the department.(4) A cashier's check made payable to the department. A warrant in the amount of the cashier's check will be sent to the applicant by the department at the end of the three-year period, beginning with the date the completed application for registration is received by the department.(5) Any governmental agency identified in Section 995.220 of the Code of Civil Procedure may, in lieu of a bond or undertaking described herein, submit a letter of indemnification, indemnifying the department from all claims occurring because of the lack or defect in the application for registration. The letter of indemnification shall acknowledge the acceptance by the issuing governmental agency of all liability due to any claims, suits, actions, losses or damage on account of any defect in or undisclosed claim, lien, or encumbrance of whatever nature, pertaining to the application for registration or the registration or titling of the unit pursuant thereto. The letter shall include the unit identifying information and an acknowledgment that the indemnification shall remain in effect for a period of 3 years from the date the completed application for registration is received by the department.(b) The value of any bond or other undertaking accepted by the department, except for a letter of indemnification described in subsection (a)(5) above, shall be the greater of:(1) the total contract (sale) price of the unit;(2) the current market value of the unit based on the manufacture year, makeup, condition and location of the unit; or(3) the average of the values given in the current edition of the National Automobile Dealers Association (N.A.D.A.) Mobile/Manufactured Housing Appraisal Guide and the Kelley Blue Book.(c) An application for registration which includes a bond or undertaking described in subsection (a) above shall not be accepted by the department unless it also includes: (1) a statement, signed under penalty of perjury by the applicant(s) that: (A) describes the circumstances requiring the submission of a bond or undertaking;(B) explains how, when and from whom the unit was acquired; and(C) describes reasonable attempts made to locate and obtain the document or signature for which the bond or undertaking is being submitted as an alternative; and(D) a statement of the current market value of the unit;(2) evidence that attempts were made by the applicant(s) to obtain the document or signature for which the bond or undertaking is being submitted as an alternative, which may be, for example, unopened, returned certified letters addressed to the last known address of the owner from which a signature or titling document has been sought;(3) if the undertaking is either a certificate of deposit, an investment certificate, or an account passbook, pursuant to subsection (a)(2) or (a)(3), the following forms, completed and signed:(A) form HCD 482.4, Irrevocable Assignment to the Department of Housing and Community Development, version dated 7/97, provided by the department, completed by each person providing the certificate of deposit, investment certificate or account passbook and by the financial institution in which the funds evidenced by the certificate of deposit, investment certificate or account passbook are deposited: Click here to view image
(B) form HCD 482.5, Notice of Acknowledgment, version dated 7/97, as provided by the department, completed by each person providing the certificate of deposit, investment certificate or account passbook: Click here to view image
(4) if the undertaking is a cashier's check pursuant to subsection (a)(4), completed and signed form HCD 482.5, Notice of Acknowledgment, version dated 7/97, as provided in subsection (c)(3).(d) Notwithstanding anything in this section or in Chapter 5 to the contrary a bond or undertaking described in this section shall not be acceptable evidence to the department that the security interest of any inventory creditor, legal owner, junior lienholder or other party with a security interest in the unit identified on any DMV or department record no longer exits, if the inventory creditor, legal owner, junior lienholder or holder of the security interest is a financial institution. In that instance, the release of the security interest pursuant to Section 5581 or 5585, as applicable, will be required.Cal. Code Regs. Tit. 25, § 5547
1. New section filed 12-31-97; operative 1-1-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 1). Note: Authority cited: Sections 18015 and 18075, Health and Safety Code. Reference: Sections 18085, 18086.5, 18100.5 and 18102.5, Health and Safety Code.
1. New section filed 12-31-97; operative 1-1-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 1).