California § 8724 - An irrevocable letter of credit under this chapter shall satisfy all of the follo
Full text of California Public Contract Code - PCC § 8724 — An irrevocable letter of credit under this chapter shall satisfy all of the follo, with citation guidance and answers to common questions.
§ 8724. An irrevocable letter of credit under this chapter shall satisfy all of the follo
An irrevocable letter of credit under this chapter shall satisfy all of the following requirements: (a) The letter of credit shall be issued by a financial institution, as defined in Section 5107 of the Financial Code, inuring to the benefit of the direct contractor. (b) The letter of credit shall be in an amount not less than 15 percent of the contract price for the work of improvement or, if the work of improvement is to be substantially completed within six months after the commencement of work, not less than 25 percent of the contract price. (c) The maturity date and other terms of the letter of credit shall be determined by agreement between the owner, the direct contractor, and the financial institution, except that the owner shall maintain the letter of credit in effect until the owner has satisfied its payment obligation to the direct contractor.
Source: official California text · Last verified 2026-08-27
Frequently Asked Questions About California § 8724
What does Public Contract Code - PCC § 8724 cover?
Section 8724 ("An irrevocable letter of credit under this chapter shall satisfy all of the follo") is part of the Public Contract Code - PCC, the codified statutory law of California. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite California § 8724?
A common citation format is "Public Contract Code - PCC § 8724" (California). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of California law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the California official source linked on this page or consult a licensed California attorney.
How does California § 8724 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in California can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in California.