33-1062 - Arizona Statutes

33-1062. Release of stop notice or bonded stop notice; surety bond A. An owner, a construction lender or any original contractor or subcontractor who disputes any stop notice or bonded stop notice may file with the person on whom notice was served a release bond. The release bond shall be executed in an amount equal to one hundred fifty per cent of the amount claimed in the notice, conditioned for the payment of any amount that does not exceed the penal obligation of the bond and that the claimant may recover on the claim. A copy of the release bond shall be served on the stop notice claimant in the same manner required for the delivery of a stop notice. On the filing and service of the release bond, the monies withheld in response to the stop notice or bonded stop notice shall be released promptly. A bond to release a stop notice or bonded stop notice under this section shall be executed by a surety company or companies holding a certificate of authority to transact surety business in this state, issued by the director of the department of insurance pursuant to title 20, chapter 2, article 1. The bond shall be for the sole protection of the claimant who perfected such notice. B. If an owner, a construction lender or any original contractor or subcontractor causes to be recorded a surety bond to discharge a lien perfected by the stop notice claimant pursuant to section 33-1004 with respect to the same labor and material described in the stop notice or bonded stop notice, the surety bond shall also serve as a release bond pursuant to this section, and the monies withheld in response to the stop notice or bonded stop notice shall be released promptly on the recording and service of the surety bond on the stop notice claimant as prescribed in section 33-1004. C. In an action to enforce payment of a claim stated in a stop notice or bonded stop notice, where a bond has been filed and served as provided in this section, a judgment for the claimant on the bond shall be against the person seeking to release such stop notice or bonded stop notice as principal and the surety for the amount the claimant recovers on the stop notice or bonded stop notice claim, including any recovery for interest, expenses, costs and attorney fees awarded by the court, that does not exceed the penal sum of the bond. If the amount the claimant recovers on the stop notice or bonded stop notice claim exceeds the penal sum of the bond, the claimant shall also be entitled to judgment against the principal for the excess amount.