§ 8044 Stop Payment Notice Definitions

Key Takeaways

•A 'stop payment notice' is a message someone sends to stop money from being paid to someone else.
•There are two types: 'bonded' (with a promise to pay if wrong) and 'unbonded' (no promise).
•The law treats both types the same unless it says otherwise.
•This rule applies to construction or work payment problems.

Example

A worker fixes a kitchen but doesn't get paid. They send a 'stop payment notice' to the bank holding the homeowner's money.

The bank must hold the money until the problem is solved. If the worker is wrong, they might have to pay a fee if it's a 'bonded' notice.

(a) (1) For the purposes of Title 2 (commencing with Section 8160), “stop payment notice” means the notice given by a claimant under Chapter 5 (commencing with Section 8500) of Title 2. (2) A stop payment notice given under Title 2 (commencing with Section 8160) may be bonded or unbonded. A “bonded stop payment notice” is a notice given with a bond under Section 8532. An “unbonded stop payment notice” is a notice not given with a bond under Section 8532. (3) Except to the extent Title 2 (commencing with Section 8160) distinguishes between a bonded and an unbonded stop payment notice, a reference in that title to a stop payment notice includes both a bonded and an unbonded notice. (b) For the purposes of Title 3 (commencing with Section 9000), “stop payment notice” means the notice given by a claimant under Chapter 4 (commencing with Section 9350) of Title 3. (c) A reference in another statute to a “stop notice” in connection with the remedies provided in this part means a stop payment notice. (Added by Stats. 2010, Ch. 697, Sec. 20. (SB 189) Effective January 1, 2011. Operative July 1, 2012, by Sec. 105 of Ch. 697 and by Section 8052.)

Key Takeaways

•A 'stop payment notice' is a message someone sends to stop money from being paid to someone else.
•There are two types: 'bonded' (with a promise to pay if wrong) and 'unbonded' (no promise).
•The law treats both types the same unless it says otherwise.
•This rule applies to construction or work payment problems.

Example

A worker fixes a kitchen but doesn't get paid. They send a 'stop payment notice' to the bank holding the homeowner's money.

The bank must hold the money until the problem is solved. If the worker is wrong, they might have to pay a fee if it's a 'bonded' notice.

Key Takeaways

Example

Key Terms

References

§ 8044 Stop Payment Notice Definitions

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References