SECTIONS 9450-9456 - California Statutes

CIVIL CODE

SECTION 9450-9456

9450. If funds withheld pursuant to a stop payment notice are
insufficient to pay in full the claims of all persons who have given
a stop payment notice, the funds shall be distributed among the
claimants in the ratio that the claim of each bears to the aggregate
of all claims for which a stop payment notice is given, without
regard to the order in which the notices were given or enforcement
actions were commenced.

9452. Nothing in this chapter impairs the right of a claimant to
recover from the direct contractor or the contractor's sureties in an
action on a payment bond under Chapter 5 (commencing with Section
9550) any deficit that remains unpaid after the distribution under
Section 9450.

9454. A person that willfully gives a false stop payment notice to
the public entity or that willfully includes in the notice work not
provided for the public works contract for which the stop payment
notice is given forfeits all right to participate in the distribution
under Section 9450.

9456. (a) A stop payment notice takes priority over an assignment
by a direct contractor of any amount due or to become due pursuant to
a public works contract, including contract changes, whether made
before or after the giving of a stop payment notice, and the
assignment has no effect on the rights of the claimant.
(b) Any garnishment of an amount due or to become due pursuant to
a public works contract by a creditor of a direct contractor under
Article 8 (commencing with Section 708.710) of Chapter 6 of Division
2 of Title 9 of Part 2 of the Code of Civil Procedure and any
statutory lien on that amount is subordinate to the rights of a
claimant.