California Statutes
§ 61407.4. — 61407.4. (Amended by Stats. 1987, Ch. 1074, Sec. 2.)
California·Code FAC Food and Agricultural Code - FAC·Div. 21. DIVISION 21. MARKETING·Part 3. PART 3. MARKETING LAWS REGARDING PARTICULAR PRODUCTS·Ch. 1. CHAPTER 1. Marketing of Milk and Other Dairy Products·Art. 5. ARTICLE 5. Bonding and Payment for Manufacturing Milk
(a)The director may bring an action against a surety bond company if the company fails to do any of the following:
(1)Acknowledge promptly and act reasonably upon receiving a bond demand from the director.
(2)Promptly investigate and process claims.
(3)Make fair and equitable settlement of claims.
(4)Pay the bond amount to the director.
(b)The authority provided in subdivision (a) is in addition to the authority provided for in subdivision (h) of Section 790.03 of the Insurance Code.
(c)In addition to the bond proceeds, the surety bond company may be ordered to pay interest at the prevailing prime rate on the amounts owed from the date the claim was filed, all of the department’s court costs, and reasonable attorney’s fees.
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California § 61407.4. (61407.4. (Amended by Stats. 1987, Ch. 1074, Sec. 2.)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.
Legislative History
Amended by Stats. 1987, Ch. 1074, Sec. 2. Effective September 24, 1987.