Alabama Sample Letter concerning Stop Payment Notice
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FAQ
Notice to Owner (Unpaid Balance): Required to be sent to the Owner before filing a Statement of Lien. This notice only applies to the amount still owed by the Owner to the Contractor on the job at the time the notice is delivered. Generally a lien must be filed within 4 months of last delivery.
Canceling a bond relieves the surety of all liability. The liabilities that accrue during a period of liability include obligations that started to accrue prior to the beginning of the period of liability and had not been met, and obligations that begin accruing during the period of liability.
The California Stop Notice Release Bond must be written by a surety company, like Surety1, in an amount equal to 125 percent of the claim stated in the stop payment notice.
Alternately, the Surety can send a Notice of Cancellation. With License and Permit Bonds, a letter or notice from the Principal or Obligee that states the bond isn't needed anymore will trigger a notice from the Surety. Court bonds can only be canceled if a judge signs a legal affidavit.
While a payment bond is required for all public work contracts over $25,000, a claimant can file an action on the payment bond against the surety without filing a stop notice or suing the public entity. This notice must be served on the principal and surety by certified mail or personal service.
