According to Civil Code Section 8814, which statement is correct regarding stop payment notices on private works projects?
Correct Answer
C) The claimant may give a bonded stop payment notice by obtaining a bond for 125% of the claim amount
Civil Code Section 8814 allows a claimant to give a bonded stop payment notice by obtaining a bond equal to 125% of the claim amount. This bonded notice provides stronger protection than an unbonded notice and requires the construction lender to withhold funds.
Why This Is the Correct Answer
Civil Code Section 8814 allows a claimant to give a bonded stop payment notice by obtaining a bond equal to 125% of the claim amount. This bonded notice provides stronger protection than an unbonded notice and requires the construction lender to withhold funds.
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