CHAPTER 5. Stop Payment Notice [8500. - 8560.]
Chapter 5 added by Stats. 2010, Ch. 697, Sec. 20.
§§ 8500–8560 · 22 sections
ARTICLE 1. General Provisions §§ 8500–8510 · 6 sections
- § 8500 The rights of all persons furnishing work for any work of improvement, with respect to any fund for payment of construction costs, are governed exclusively by…
- § 8502 (a) A stop payment notice shall comply with the requirements of Chapter 2 (commencing with Section 8100) of Title 1, and shall be signed and verified by the…
- § 8504 A claimant that willfully gives a false stop payment notice or that willfully includes in the notice a demand to withhold for work that has not been provided…
- § 8506 (a) A stop payment notice to an owner shall be given to the owner or to the owner’s architect, if any. (b) A stop payment notice to a construction lender…
- § 8508 A stop payment notice is not valid unless both of the following conditions are satisfied: (a) The claimant gave preliminary notice to the extent required by…
- § 8510 (a) A person may obtain release of funds withheld pursuant to a stop payment notice by giving the person withholding the funds a release bond. (b) A release…
ARTICLE 2. Stop Payment Notice to Owner §§ 8520–8522 · 2 sections
- § 8520 (a) A person that has a lien right under Chapter 4 (commencing with Section 8400), other than a direct contractor, may give the owner a stop payment notice.…
- § 8522 (a) Except as provided in subdivision (b), on receipt of a stop payment notice an owner shall withhold from the direct contractor or from any person acting…
ARTICLE 3. Stop Payment Notice to Construction Lender §§ 8530–8538 · 5 sections
- § 8530 A person that has a lien right under Chapter 4 (commencing with Section 8400) may give a construction lender a stop payment notice.
- § 8532 A claimant may give a construction lender a stop payment notice accompanied by a bond in an amount equal to 125 percent of the amount of the claim. The bond…
- § 8534 (a) A construction lender that objects to the sufficiency of sureties on the bond given with a bonded stop payment notice shall give notice to the claimant of…
- § 8536 (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…
- § 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…
ARTICLE 4. Priorities §§ 8540–8544 · 3 sections
- § 8540 (a) Funds withheld pursuant to a stop payment notice shall be distributed in the following order of priority: (1) First, to pay claims of persons that have…
- § 8542 Notwithstanding Section 8540: (a) If funds are withheld pursuant to a stop payment notice given to a construction lender by a direct contractor or…
- § 8544 The rights of a claimant who gives a construction lender a stop payment notice are not affected by an assignment of construction loan funds made by the owner…
ARTICLE 5. Enforcement of Claim Stated in Stop Payment Notice §§ 8550–8560 · 6 sections
- § 8550 (a) A claimant shall commence an action to enforce payment of the claim stated in a stop payment notice at any time after 10 days from the date the claimant…
- § 8552 If more than one claimant has given a stop payment notice: (a) Any number of claimants may join in the same enforcement action. (b) If claimants commence…
- § 8554 Notwithstanding Section 583.420 of the Code of Civil Procedure, if an action to enforce payment of the claim stated in a stop payment notice is not brought to…
- § 8556 A stop payment notice ceases to be effective, and a person withholding funds pursuant to the notice shall release them, in either of the following…
- § 8558 (a) In an action to enforce payment of the claim stated in a bonded stop payment notice, the prevailing party is entitled to a reasonable attorney’s fee in…
- § 8560 If the claimant is the prevailing party in an action to enforce payment of the claim stated in a bonded stop payment notice, any amount awarded on the claim…