2009 California Civil Code - Section 3166-3168 :: Article 5. Priorities

CIVIL CODE
SECTION 3166-3168

3166.  No assignment by the owner or contractor of construction loan
funds, whether made before or after a stop notice or bonded stop
notice is given to a construction lender, shall be held to take
priority over the stop notice or bonded stop notice, and such
assignment shall have no effect insofar as the rights of claimants
who give the stop notice or bonded stop notice are concerned.

3167.  (a) If the money withheld or required to be withheld pursuant
to any bonded stop notice shall be insufficient to pay in full the
valid claims of all persons by whom such notices were given, the same
shall be distributed among such persons in the same ratio that their
respective claims bear to the aggregate of all such valid claims.
Such pro rata distribution shall be made among the persons entitled
to share therein without regard to the order of time in which their
respective notices may have been given or their respective actions,
if any, commenced.
   (b) If the money withheld or required to be withheld pursuant to
any stop notice shall be insufficient to pay in full the valid claims
of all persons by whom such notices were given, the same shall be
distributed among such persons in the same ratio that their
respective claims bear to the aggregate of all such valid claims.
Such pro rata distribution shall be made among the persons entitled
to share therein without regard to the order of time in which their
respective notices may have been given or their respective actions,
if any, commenced.

3168.  Any person who willfully gives a false stop notice or bonded
stop notice or who willfully includes in his notice labor, services,
equipment, or materials not furnished for the property described in
such notice forfeits all right to participate in the pro rata
distribution of such money and all right to any lien under Chapter 2
(commencing with Section 3109).


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