2010 California Code
Civil Code
Article 1. General Provisions

9350.  The rights of all persons furnishing work pursuant to a
public works contract, with respect to any fund for payment of
construction costs, are governed exclusively by this chapter, and no
person may assert any legal or equitable right with respect to that
fund, other than a right created by direct written contract between
the person and the person holding the fund, except pursuant to the
provisions of this chapter.



9352.  (a) A stop payment notice shall comply with the requirements
of Chapter 2 (commencing with Section 8100) of Title 1, and shall be
signed and verified by the claimant.
   (b) The notice shall include a general description of work to be
provided, and an estimate of the total amount in value of the work to
be provided.
   (c) The amount claimed in the notice may include only the amount
due the claimant for work provided through the date of the notice.



9354.  (a) Except as provided in subdivision (b), a stop payment
notice shall be given in compliance with the requirements of Chapter
2 (commencing with Section 8100) of Title 1.
   (b) A stop payment notice shall be given to the public entity by
giving the notice to the following person:
   (1) In the case of a public works contract of the state, the
director of the department that awarded the contract.
   (2) In the case of a public works contract of a public entity
other than the state, the office of the controller, auditor, or other
public disbursing officer whose duty it is to make payment pursuant
to the contract, or the commissioners, managers, trustees, officers,
board of supervisors, board of trustees, common council, or other
body by which the contract was awarded.



9356.  A stop payment notice is not effective unless given before
the expiration of whichever of the following time periods is
applicable:
   (a) If a notice of completion, acceptance, or cessation is
recorded, 30 days after that recordation.
   (b) If a notice of completion, acceptance, or cessation is not
recorded, 90 days after cessation or completion.



9358.  (a) The public entity shall, on receipt of a stop payment
notice, withhold from the direct contractor sufficient funds due or
to become due to the direct contractor to pay the claim stated in the
stop payment notice and to provide for the public entity's
reasonable cost of any litigation pursuant to the stop payment
notice.
   (b) The public entity may satisfy its duty under this section by
refusing to release funds held in escrow under Section 10263 or 22300
of the Public Contract Code.



9360.  (a) This chapter does not prohibit payment of funds to a
direct contractor or a direct contractor's assignee if a stop payment
notice is not received before the disbursing officer actually
surrenders possession of the funds.
   (b) This chapter does not prohibit payment of any amount due to a
direct contractor or a direct contractor's assignee in excess of the
amount necessary to pay the total amount of all claims stated in stop
payment notices received by the public entity at the time of payment
plus any interest and court costs that might reasonably be
anticipated in connection with the claims.



9362.  (a) Not later than 10 days after each of the following
events, the public entity shall give notice to a claimant that has
given a stop payment notice of the time within which an action to
enforce payment of the claim stated in the stop payment notice must
be commenced:
   (1) Completion of a public works contract, whether by acceptance
or cessation.
   (2) Recordation of a notice of cessation or completion.
   (b) The notice shall comply with the requirements of Chapter 2
(commencing with Section 8100) of Title 1.
   (c) A public entity need not give notice under this section unless
the claimant has paid the public entity ten dollars ($10) at the
time of giving the stop payment notice.



9364.  (a) A public entity may, in its discretion, permit the direct
contractor to give the public entity a release bond. The bond shall
be executed by an admitted surety insurer, in an amount equal to 125
percent of the claim stated in the stop payment notice, conditioned
for the payment of any amount the claimant recovers in an action on
the claim, together with court costs if the claimant prevails.
   (b) On receipt of a release bond, the public entity shall not
withhold funds from the direct contractor pursuant to the stop
payment notice.
   (c) The surety on a release bond is jointly and severally liable
to the claimant with the sureties on any payment bond given under
Chapter 5 (commencing with Section 9550).