CHAPTER 4. Stop Payment Notice

Chapter 4 added by Stats. 2010, Ch. 697, Sec. 20.

§§ 9350–9510 · 26 sections

1. ARTICLE 1. General Provisions §§ 9350–9364 · 8 sections

   • § 9350 The rights of all persons furnishing work pursuant to a public works contract, with respect to any fund for payment of construction costs, are governed…
   • § 9352 (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…
   • § 9354 (a) Except as provided in subdivision (b), a stop payment notice shall be given in compliance with the requirements of Chapter 2 (commencing with Section 8100)…
   • § 9356 A stop payment notice is not effective unless given before the expiration of whichever of the following time periods is applicable: (a) If a notice of…
   • § 9358 (a) The public entity shall, on receipt of a stop payment notice, withhold from the direct contractor sufficient funds due or to become due to the direct…
   • § 9360 (a) This chapter does not prohibit payment of funds to a direct contractor or a direct contractor’s assignee if a stop payment notice is not received before…
   • § 9362 (a) Not later than 10 days after each of the following events, the public entity shall give notice to a claimant that has given a stop payment notice of the…
   • § 9364 (a) A public entity may, in its discretion, permit the direct contractor to give the public entity a release bond. The bond shall be executed by an admitted…
2. ARTICLE 2. Summary Proceeding for Release of Funds §§ 9400–9414 · 8 sections

   • § 9400 A direct contractor may obtain release of funds withheld pursuant to a stop payment notice under the summary proceeding provided in this article on any of the…
   • § 9402 The direct contractor shall serve on the public entity an affidavit, together with a copy of the affidavit, in compliance with the requirements of Chapter 2…
   • § 9404 The public entity shall serve on the claimant a copy of the direct contractor’s affidavit, together with a notice stating that the public entity will release…
   • § 9406 (a) A claimant that contests the direct contractor’s affidavit shall serve on the public entity a counteraffidavit alleging the details of the claim and…
   • § 9408 (a) If a counteraffidavit, together with proof of service, is served under Section 9406, either the direct contractor or the claimant may commence an action…
   • § 9410 (a) The affidavit and counteraffidavit shall be filed with the court by the public entity and shall constitute the pleadings, subject to the power of the court…
   • § 9412 (a) No findings are required in a summary proceeding under this article. (b) If at the hearing no evidence other than the affidavit and counteraffidavit is…
   • § 9414 A determination in a summary proceeding under this article is not res judicata with respect to a right of action by the claimant against either the principal…
3. ARTICLE 3. Distribution of Funds Withheld §§ 9450–9456 · 4 sections

   • § 9450 If funds withheld pursuant to a stop payment notice are insufficient to pay in full the claims of all persons who have given a stop payment notice, the funds…
   • § 9452 Nothing in this chapter impairs the right of a claimant to recover from the direct contractor or the contractor’s sureties in an action on a payment bond under…
   • § 9454 A person that willfully gives a false stop payment notice to the public entity or that willfully includes in the notice work not provided for the public works…
   • § 9456 (a) A stop payment notice takes priority over an assignment by a direct contractor of any amount due or to become due pursuant to a public works contract,…
4. ARTICLE 4. Enforcement of Payment of Claim Stated in Stop Payment Notice §§ 9500–9510 · 6 sections

   • § 9500 (a) A claimant may not enforce payment of the claim stated in a stop payment notice unless the claimant has complied with all of the following conditions: (1)…
   • § 9502 (a) The claimant shall commence an action against the public entity and the direct contractor to enforce payment of the claim stated in a stop payment notice…
   • § 9504 Within five days after commencement of an action to enforce payment of the claim stated in a stop payment notice, the claimant shall give notice of…
   • § 9506 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…
   • § 9508 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…
   • § 9510 A stop payment notice ceases to be effective, and the public entity shall release funds withheld, in either of the following circumstances: (a) An action to…