California Civil Code

§ 8536

CIV § 8536 Effective Jan 1, 2011Div. 4 · Title 2 · Part 6 · Ch. 5 · Art. 3

Statute text

(a)Except as provided in subdivision (b), on receipt of a stop payment notice a construction lender shall withhold from the borrower or other person to whom the lender or the owner is obligated to make payments or advancement out of the construction fund sufficient funds to pay the claim stated in the notice.

(b)The construction lender may, at its option, elect not to withhold funds in any of the following circumstances:

(1)The stop payment notice is unbonded.

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Legislative history

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.