Whenever the obligation secured by a mortgage or deed of trust has been fully satisfied and the present mortgagee or beneficiary of record cannot be located after diligent search, or refuses to execute and deliver a proper certificate of discharge or request for reconveyance, or whenever a specified balance, including principal and interest, remains due and the mortgagor or trustor or the mortgagorâs or trustorâs successor in interest cannot, after diligent search, locate the then mortgagee or beneficiary of record, the lien of any mortgage or deed of trust shall be released when the mortgagor or trustor or the mortgagorâs or trustorâs successor in interest records or causes to be recorded, in the office of the county recorder of the county in which the encumbered property is located, a corporate bond accompanied by a declaration, as specified in subdivision (b), and with respect to a deed of trust, a reconveyance as hereinafter provided. (a) The bond shall be acceptable to the trustee and shall be issued by a corporation lawfully authorized to issue surety bonds in the State of California in a sum equal to the greater of either (1) two times the amount of the original obligation secured by the mortgage or deed of trust and any additional principal amounts, including advances, shown in any recorded amendment thereto, or (2) one-half of the total amount computed pursuant to (1) and any accrued interest on such amount, and shall be conditioned for payment of any sum which the mortgagee or beneficiary may recover in an action on the obligation secured by the mortgage or deed of trust, with costs of suit and reasonable attorneysâ fees. The obligees under the bond shall be the mortgagee or mortgageeâs successor in interest or the trustee who executes a reconveyance under this section and the beneficiary or beneficiaryâs successor in interest. The bond recorded by the mortgagor or trustor or mortgagorâs or trustorâs successor in interest shall contain the following information describing the mortgage or deed of trust: (1) Recording date and instrument number or book and page number of the recorded instrument. (2) Names of original mortgagor and mortgagee or trustor and beneficiary. (3) Amount shown as original principal sum secured thereby. (4) The recording information and new principal amount shown in any recorded amendment thereto. (b) The declaration accompanying the corporate bond recorded by the mortgagor or trustor or the mortgagorâs or trustorâs successor in interest shall state: (1) That it is recorded pursuant to this section. (2) The name of the original mortgagor or trustor and mortgagee or beneficiary. (3) The name and address of the person making the declaration. (4) That either the obligation secured by the mortgage or deed of trust has been fully satisfied and the present mortgagee or beneficiary of record cannot be located after diligent search, or refuses to execute and deliver a proper certificate of discharge or request for reconveyance as required under Section 2941; or that a specified balance, including principal and interest, remains due and the mortgagor or trustor or mortgagorâs or trustorâs successor in interest cannot, after diligent search, locate the then mortgagee or beneficiary. (5) That the declarant has mailed by certified mail, return receipt requested, to the last address of the person to whom payments under the mortgage or deed of trust were made and to the last mortgagee or beneficiary of record at the address for such mortgagee or beneficiary shown on the instrument creating, assigning, or conveying the interest, a notice of recording a declaration and bond under this section and informing the recipient of the name and address of the mortgagor or trustee, if any, and of the right to record a written objection with respect to the release of the lien of the mortgage or, with respect to a deed of trust, notify the trustee in writing of any objection to the reconveyance of
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