SECTIONS 8520-8522 - California Statutes

CIVIL CODE

SECTION 8520-8522

8520. (a) A person that has a lien right under Chapter 4
(commencing with Section 8400), other than a direct contractor, may
give the owner a stop payment notice.
(b) The owner may give notice, in compliance with the requirements
of Chapter 2 (commencing with Section 8100) of Title 1, demanding
that a person that has a lien right under Chapter 4 (commencing with
Section 8400) give the owner a stop payment notice. If the person
fails to give the owner a bonded or unbonded stop payment notice, the
person forfeits the right to a lien under Chapter 4 (commencing with
Section 8400).

8522. (a) Except as provided in subdivision (b), on receipt of a
stop payment notice an owner shall withhold from the direct
contractor or from any person acting under authority of a direct
contractor a sufficient amount due or to become due to the direct
contractor to pay the claim stated in the notice.
(b) The owner may, but is not required to, withhold funds if the
owner has previously recorded a payment bond under Section 8600. If
the owner does not withhold funds, the owner shall, within 30 days
after receipt of the stop payment notice, give notice to the claimant
that a payment bond has been recorded and provide the claimant a
copy of the bond. The notice shall comply with the requirements of
Chapter 2 (commencing with Section 8100) of Title 1.