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The chose in action authorized by this chapter against the bond and the sureties of the contractor shall be understood as lapsed one year after the work and all labor thereon have been completed. Upon expiration of said term the bond may be cancelled, unless there is pending any judicial action under this chapter. In such case, the bond shall not be cancelled until final and conclusive judgment has been passed with respect to such pending claim or claims and the same have been settled to the limit of the liability of the bond and of the sureties. History —June 22, 1961, No. 111, p. 223, § 9, eff. 90 days after June 22, 1961.