Which statement about stop payment notices in California is correct?
Correct Answer
D) A bonded stop payment notice requires posting a bond equal to 125% of the claim amount
Civil Code Section 8536 requires that a bonded stop payment notice be accompanied by a bond equal to 125% of the claim amount. This bond protects the owner from wrongful withholding of funds. Stop payment notices can be served by subcontractors and suppliers on both public and private projects.
Why This Is the Correct Answer
Civil Code Section 8536 requires that a bonded stop payment notice be accompanied by a bond equal to 125% of the claim amount. This bond protects the owner from wrongful withholding of funds. Stop payment notices can be served by subcontractors and suppliers on both public and private projects.
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