Get California Release Of Stop Notice

The Civil Code of California is a collection of statutes for the State of California. The code is made up of statutes which govern the general obligations and rights of persons within the jurisdiction of California.

(a) Except as provided in subdivision (b), on receipt of a stop payment notice a construction lender shall withhold from the borrower or other person to whom the lender or the owner is obligated to make payments or advancement out of the construction fund sufficient funds to pay the claim stated in the notice.

A stop notice notifies either the prime contractor, property owner, or construction lender that payment is due and that they must withhold enough funds to pay your claim before payments continue to the general contractor. Failure to pay you could result in you stopping work or filing a bond claim.

Bond: The public entity may, in its discretion, allow the contractor to file a proper bond to obtain release of the withheld amounts. The bond must be issued by a corporate surety, and be in an amount equal to 125 percent (125%) of the claim stated in the Stop Notice.

8538. (a) The claimant may make a written request for notice of an election by the construction lender under Section 8536 not to withhold funds. The request shall be made at the time the claimant gives the construction lender the stop payment notice and shall be accompanied by a preaddressed, stamped envelope.

The California Stop Notice Release Bond states that the Claimant in the matter should receive judgement in any action brought on said Claim. The bond holder should pay said judgement and costs to Claimant in an amount not exceeding the sum specified in this undertaking.

Code § 8044. Current through the 2022 Legislative Session. Section 8044 - Stop payment notice (a) (1) For the purposes of Title 2 (commencing with Section 8160), "stop payment notice" means the notice given by a claimant under Chapter 5 (commencing with Section 8500) of Title 2.

The Stop Notice on a state or local public work must be served within thirty (30) days after the recording of a Notice of Completion, Notice of Acceptance, or Notice of Cessation. (Civil Code 3184).