Legal Resources | | CV 3196
Divistion 3 Obligations. Part 4 Obligations Arising From A Particular Transaction. Stop notice.
Chapter 4 Stop Notice For Public Work. Article 3 Conditions To Service Of Stop Notice.
If the original contractor or subcontractor disputes the correctness or validity or enforceability of any stop notice, the public entity may, in its discretion, permit the original contractor to file with the public entity a bond executed by a corporate surety, in an amount equal to 125 percent of the claim stated in the stop notice conditioned for the payment of any sum which the stop notice claimant may recover on the claim together with his costs of suit in the action, if he recovers therein. Upon the filing of such bond with the public entity, the public entity shall not withhold any money or bonds (where bonds are to be issued in payment for the work of improvement) from the original contractor on account of the stop notice. The surety or sureties upon such bond shall be jointly and severally liable to the stop notice claimant with the surety or sureties upon any payment bond furnished pursuant to Chapter 7 (commencing with Section 3247).
(Added by Stats. 1969, Ch. 1362, Sec. 2.)