LawWiki
HomeCodesSearchGlossaryAPIAbout
LawWiki

Plain English summaries of California law with zero-hallucination AI. Every summary is verified against official source text.

Product

  • Search
  • Codes
  • About

Legal

  • Privacy Policy
  • Terms of Service
  • Disclaimer

© 2026 LawWiki. All rights reserved.

HomeCivil CodeDiv. 4Pt. 6Ch. 5Art. 5§ 8556 Stop Payment Notice Termination

§ 8556 Stop Payment Notice Termination

Civil Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 8556 Stop Payment Notice Termination

Key Takeaways

  • •If you tell the bank to stop paying someone, that order stops working if a court says no to your claim.
  • •If you lose in court, the bank must give the money to the person you tried to stop.
  • •The bank only keeps the money if the court says your case can be tried again later.

Example

You tell your bank to stop paying a contractor because you think they did a bad job on your house. You take them to court, but the judge says the contractor did nothing wrong.

The bank must now pay the contractor the money they were holding. Your stop payment order doesn’t work anymore because you lost in court.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 8556 Stop Payment Notice Termination

A stop payment notice ceases to be effective, and a person withholding funds pursuant to the notice shall release them, in either of the following circumstances: (a) An action to enforce payment of the claim stated in the stop payment notice is dismissed, unless expressly stated to be without prejudice. (b) Judgment in an action to enforce payment of the claim stated in the stop payment notice is against the claimant. (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.)

Last verified: January 21, 2026

Key Terms

stop payment noticeclaimdismissedwithout prejudicejudgmentclaimant

Related Statutes

  • § 9510 Stop Payment Notice Release
  • § 8550 Stop Payment Notice Deadlines
  • § 8502 Stop Payment Notice Requirements
  • § 8532 Stop Payment Notice Bond
  • § 8538 Claimant Notice Of Election

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Civil Code. Section 8556.
View Official Source