Insurance & LiensQuestion 1476 of 1605
A 'stop payment notice' (formerly 'stop notice') is a remedy that allows an unpaid claimant to reach:
a.The CSLB's Recovery Fund
b.The homeowner's wages
c.The contractor's personal bank account directly
d.Construction funds held by the owner or, if bonded, the construction lender, rather than the real property itself
Explanation
A stop payment notice (Civil Code §8500 et seq.) directs the owner or construction lender to withhold undisbursed construction funds to satisfy the claim. Unlike a mechanics lien, which attaches to the real property, the stop payment notice reaches the money, providing an alternative remedy.
Law Reference: Civ. Code §8174Practice all 1605 questions free — no signup required.
Related questions on this topic
- A direct contractor who contracted directly with the owner on a private residential project generally must serve a preliminary notice on which party, if any?
- To remove a recorded mechanics lien from the property when a payment dispute is resolved, the contractor typically records a:
- After recording a mechanics lien, within what period must the claimant file a lawsuit (action) to foreclose the lien, or the lien becomes unenforceable?
- On a private work with a construction lender, for a stop payment notice to bind the LENDER to withhold funds, the claimant generally must:
- On many private commercial projects, the direct contractor furnishes a 'payment bond.' The primary purpose of a contractor's payment bond is to:
- California law makes which type of insurance MANDATORY for any contractor who has employees?
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)