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Divistion 3 Obligations. Part 4 Obligations Arising From A Particular Transaction. Stop Notices.   

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Chapter 4 Stop Notice For Public Work. Article 3 Conditions To Service Of Stop Notice.

It shall be the duty of the public entity, upon receipt of a stop notice pursuant to this chapter, to withhold from the original contractor, or from any person acting under his or her authority, money or bonds (where bonds are to be issued in payment for the work of improvement) due or to become due to that contractor in an amount sufficient to answer the claim stated in the stop notice and to provide for the public entity's reasonable cost of any litigation thereunder. The public entity may satisfy this duty by refusing to release money held in escrow pursuant to Section 10263 or 22300 of the Public Contract Code.

(Amended by Stats. 1998, Ch. 111, Sec. 1.)