When a lending institution requires that a payment bond be furnished as a condition of lending money to finance a private work of improvement, and accepts in writing as sufficient a payment bond posted in fulfillment of this requirement, it may thereafter object to the borrower as to the validity of that payment bond or refuse to make the loan based upon any objection to the payment bond only if the bond underwriter was licensed by the Department of Insurance. As used in this section, lending institution includes commercial banks, savings and loan institutions, credit unions, and any other organizations or persons that are engaged in the business of financing loans.
