An unpaid supplier on a school district job learns that the district recorded a notice of completion on April 10. By when must the stop payment notice be given, and what must the district do when it arrives?
Explanation
Civil Code §9356 gives 30 days after recordation of a notice of completion, acceptance or cessation. Recording such a notice SHORTENS the window from 90 days to 30; it never extends it, so April 10 plus 30 days is May 10. Section 9358(a) then makes the duty mandatory rather than discretionary: on receipt the public entity SHALL withhold sufficient funds due or to become due the direct contractor to pay the claim stated in the notice, plus its reasonable cost of any litigation. Six months after the stop-notice period closes is the separate deadline for an action on the payment bond.
Law Reference: Civil Code §9356; §9358(a)This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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