2011 California Code
Civil Code
DIVISION 4. GENERAL PROVISIONS [3274 - 9566]
ARTICLE 1. General Provisions
Section 8510
(a) A person may obtain release of funds withheld pursuant to a stop payment notice by giving the person withholding the funds a release bond.
(b) A release bond shall be given by an admitted surety insurer and shall be conditioned for payment of any amount not exceeding the penal obligation of the bond that the claimant recovers on the claim, together with costs of suit awarded in the action. The bond shall be in an amount equal to 125 percent of the amount claimed in the stop payment notice.
(c) On receipt of a release bond, the person withholding funds pursuant to the stop payment notice shall release them.
(Added by Stats. 2010, Ch. 697, Sec. 20. Effective January 1, 2011. Operative July 1, 2012, by Sec. 105 of Ch. 697.)
Disclaimer: These codes may not be the most recent version. California may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
