SECTIONS 8500-8510 - California Statutes

CIVIL CODE

SECTION 8500-8510

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 this chapter, and no person may
assert any legal or equitable right with respect to the fund, other
than a right created by a written contract between that person and
the person holding the fund, except pursuant to the provisions of
this chapter.

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 claimant.
(b) The notice shall include a general description of work to be
provided, and an estimate of the total amount in value of the work to
be provided.
(c) The amount claimed in the notice may include only the amount
due the claimant for work provided through the date of the notice.

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 forfeits all right to participate in
the distribution of the funds withheld and all right to a lien under
Chapter 4 (commencing with Section 8400).

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 holding
construction funds shall not be effective unless given to the manager
or other responsible officer or person at the office or branch of
the lender administering or holding the construction funds.
(c) A stop payment notice shall comply with the requirements of
Chapter 2 (commencing with Section 8100) of Title 1.

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
Chapter 2 (commencing with Section 8200).
(b) The claimant gave the stop payment notice before expiration of
the time within which a claim of lien must be recorded under Chapter
4 (commencing with Section 8400).

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 bond shall be given by an admitted surety insurer
and shall be conditioned for payment of any amount not exceeding the
penal obligation of the bond that the claimant recovers on the claim,
together with costs of suit awarded in the action. The bond shall be
in an amount equal to 125 percent of the amount claimed in the stop
payment notice.
(c) On receipt of a release bond, the person withholding funds
pursuant to the stop payment notice shall release them.