reglab/statecodes huggingface dataset:
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 4 - Mechanics Lien › ARTICLE 7 - Release Order › Section 8484.

8484. A petition for a release order shall be verified and shall allege all of the following:
(a) The date of recordation of the claim of lien. A certified copy of the claim of lien shall be attached to the petition.
(b) The county in which the claim of lien is recorded.
(c) The book and page or series number of the place in the official records where the claim of lien is recorded.
(d) The legal description of the property subject to the claim of lien.
(e) Whether an extension of credit has been granted under Section 8460, if so to what date, and that the time for commencement of an action to enforce the lien has expired.
(f) That the owner has given the claimant notice under Section 8482 demanding that the claimant execute and record a release of the lien and that the claimant is unable or unwilling to do so or cannot with reasonable diligence be found.
(g) Whether an action to enforce the lien is pending.
(h) Whether the owner of the property or interest in the property has filed for relief in bankruptcy or there is another restraint that prevents the claimant from commencing an action to enforce the lien.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 4 - Mechanics Lien › ARTICLE 7 - Release Order › Section 8486.

8486. (a) On the filing of a petition for a release order, the clerk shall set a hearing date. The date shall be not more than 30 days after the filing of the petition. The court may continue the hearing only on a showing of good cause, but in any event the court shall rule and make any necessary orders on the petition not later than 60 days after the filing of the petition.
(b) The petitioner shall serve a copy of the petition and a notice of hearing on the claimant at least 15 days before the hearing. Service shall be made in the same manner as service of summons, or by certified or registered mail, postage prepaid, return receipt requested, addressed to the claimant as provided in Section 8108.
(c) Notwithstanding Section 8116, when service is made by mail, service is complete on the fifth day following deposit of the petition and notice in the mail.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 4 - Mechanics Lien › ARTICLE 7 - Release Order › Section 8488.

8488. (a) At the hearing both (1) the petition and (2) the issue of compliance with the service and date for hearing requirements of this article are deemed controverted by the claimant. The petitioner has the initial burden of producing evidence on those matters. The petitioner has the burden of proof as to the issue of compliance with the service and date for hearing requirements of this article. The claimant has the burden of proof as to the validity of the lien.
(b) If judgment is in favor of the petitioner, the court shall order the property released from the claim of lien.
(c) The prevailing party is entitled to reasonable attorney’s fees.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 4 - Mechanics Lien › ARTICLE 8 - Removal of Claim of Lien from Record › Section 8490.

8490. (a) A court order dismissing a cause of action to enforce a lien or releasing property from a claim of lien, or a judgment that no lien exists, shall include all of the following information:
(1) The date of recordation of the claim of lien.
(2) The county in which the claim of lien is recorded.
(3) The book and page or series number of the place in the official records where the claim of lien is recorded.
(4) The legal description of the property.
(b) A court order or judgment under this section is equivalent to cancellation of the claim of lien and its removal from the record.
(c) A court order or judgment under this section is a recordable instrument. On recordation of a certified copy of the court order or judgment, the property described in the order or judgment is released from the claim of lien.
(d) This section does not apply to a court order dismissing an action to enforce a lien that is expressly stated to be without prejudice.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 4 - Mechanics Lien › ARTICLE 8 - Removal of Claim of Lien from Record › Section 8494.

8494. If a claim of lien expires and is unenforceable under Section 8460, or if a court order or judgment is recorded under Section 8490, the claim of lien does not constitute actual or constructive notice of any of the matters contained, claimed, alleged, or contended in the claim of lien, or create a duty of inquiry in any person thereafter dealing with the affected property.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 5 - Stop Payment Notice › ARTICLE 1 - General Provisions › Section 8500.

8500. The rights of all persons furnishing work for any work of improvement, 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 the fund, other than a right created by a written contract between that person and the person holding the fund, except pursuant to the provisions of this chapter.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 5 - Stop Payment Notice › ARTICLE 1 - General Provisions › Section 8502.

8502. (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.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 5 - Stop Payment Notice › ARTICLE 1 - General Provisions › Section 8504.

8504. A claimant that willfully gives a false stop payment notice or that willfully includes in the notice a demand to withhold for work that has not been provided forfeits all right to participate in the distribution of the funds withheld and all right to a lien under Chapter 4 (commencing with Section 8400).
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 5 - Stop Payment Notice › ARTICLE 1 - General Provisions › Section 8506.

8506. (a) A stop payment notice to an owner shall be given to the owner or to the owner’s architect, if any.
(b) A stop payment notice to a construction lender holding construction funds shall not be effective unless given to the manager or other responsible officer or person at the office or branch of the lender administering or holding the construction funds.
(c) A stop payment notice shall comply with the requirements of Chapter 2 (commencing with Section 8100) of Title 1.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 5 - Stop Payment Notice › ARTICLE 1 - General Provisions › Section 8508.

8508. A stop payment notice is not valid unless both of the following conditions are satisfied:
(a) The claimant gave preliminary notice to the extent required by Chapter 2 (commencing with Section 8200).
(b) The claimant gave the stop payment notice before expiration of the time within which a claim of lien must be recorded under Chapter 4 (commencing with Section 8400).
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 5 - Stop Payment Notice › ARTICLE 1 - General Provisions › Section 8510.

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. (SB 189) Effective January 1, 2011. Operative July 1, 2012, by Sec. 105 of Ch. 697 and by Section 8052.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 5 - Stop Payment Notice › ARTICLE 2 - Stop Payment Notice to Owner › Section 8520.

8520. (a) A person that has a lien right under Chapter 4 (commencing with Section 8400), other than a direct contractor, may give the owner a stop payment notice.
(b) The owner may give notice, in compliance with the requirements of Chapter 2 (commencing with Section 8100) of Title 1, demanding that a person that has a lien right under Chapter 4 (commencing with Section 8400) give the owner a stop payment notice. If the person fails to give the owner a bonded or unbonded stop payment notice, the person forfeits the right to a lien under Chapter 4 (commencing with Section 8400).
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 5 - Stop Payment Notice › ARTICLE 2 - Stop Payment Notice to Owner › Section 8522.

8522. (a) Except as provided in subdivision (b), on receipt of a stop payment notice an owner shall withhold from the direct contractor or from any person acting under authority of a direct contractor a sufficient amount due or to become due to the direct contractor to pay the claim stated in the notice.
(b) The owner may, but is not required to, withhold funds if the owner has previously recorded a payment bond under Section 8600. If the owner does not withhold funds, the owner shall, within 30 days after receipt of the stop payment notice, give notice to the claimant that a payment bond has been recorded and provide the claimant a copy of the bond. The notice shall comply with the requirements of Chapter 2 (commencing with Section 8100) of Title 1.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 5 - Stop Payment Notice › ARTICLE 3 - Stop Payment Notice to Construction Lender › Section 8530.

8530. A person that has a lien right under Chapter 4 (commencing with Section 8400) may give a construction lender a stop payment notice.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 5 - Stop Payment Notice › ARTICLE 3 - Stop Payment Notice to Construction Lender › Section 8532.

8532. A claimant may give a construction lender a stop payment notice accompanied by a bond in an amount equal to 125 percent of the amount of the claim. The bond shall be conditioned that if the defendant recovers judgment in an action to enforce payment of the claim stated in the stop payment notice or to enforce a claim of lien recorded by the claimant, the claimant will pay all costs that are awarded the owner, direct contractor, or construction lender, and all damages to the owner, direct contractor, or construction lender that result from the stop payment notice or recordation of the claim of lien, not exceeding the amount of the bond.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 5 - Stop Payment Notice › ARTICLE 3 - Stop Payment Notice to Construction Lender › Section 8534.

8534. (a) A construction lender that objects to the sufficiency of sureties on the bond given with a bonded stop payment notice shall give notice to the claimant of the objection, within 20 days after the bonded stop payment notice is given. The notice shall comply with the requirements of Chapter 2 (commencing with Section 8100) of Title 1.
(b) The claimant may within 10 days after notice of the objection is given substitute for the initial bond a bond executed by an admitted surety insurer. If the claimant does not substitute a bond executed by an admitted surety insurer, the construction lender may disregard the bonded stop payment notice and release all funds withheld in response to that notice.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 5 - Stop Payment Notice › ARTICLE 3 - Stop Payment Notice to Construction Lender › Section 8536.

8536. (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.
(2) The stop payment notice is given by a claimant other than a direct contractor, and a payment bond is recorded before the lender is given any stop payment notice.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 5 - Stop Payment Notice › ARTICLE 3 - Stop Payment Notice to Construction Lender › Section 8538.

8538. (a) The claimant may make a written request for notice of an election by the construction lender under Section 8536 not to withhold funds. The request shall be made at the time the claimant gives the construction lender the stop payment notice and shall be accompanied by a preaddressed, stamped envelope.
(b) If the construction lender elects not to withhold funds under Section 8536, the lender shall, within 30 days after making the election, give notice of that fact to a claimant who has requested notice of the election under subdivision (a). The notice shall comply with the requirements of Chapter 2 (commencing with Section 8100) of Title 1. If the basis of the election is the recordation of a payment bond under Section 8600, the construction lender shall include a copy of the bond with the notice.
(c) A construction lender is not liable for failure to include a copy of the bond with the notice under this section if all of the following conditions are satisfied:
(1) The failure was not intentional and resulted from a bona fide error.
(2) The lender maintains reasonable procedures to avoid an error of that type.
(3) The lender corrected the error not later than 20 days after the date the lender discovered the violation.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 5 - Stop Payment Notice › ARTICLE 4 - Priorities › Section 8540.

8540. (a) Funds withheld pursuant to a stop payment notice shall be distributed in the following order of priority:
(1) First, to pay claims of persons that have given a bonded stop payment notice. If funds are insufficient to pay the claims of those persons in full, the funds shall be distributed pro rata among the claimants in the ratio that the claim of each bears to the aggregate of all claims for which a bonded stop payment notice is given.
(2) Second, to pay claims of persons that have given an unbonded stop payment notice. If funds are insufficient to pay the claims of those persons in full, the funds shall be distributed among the claimants in the ratio that the claim of each bears to the aggregate of all claims for which an unbonded stop payment notice is given.
(b) Pro rata distribution under this section shall be made among the persons entitled to share in the distribution without regard to the order in which the person has given a stop payment notice or commenced an enforcement action.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 5 - Stop Payment Notice › ARTICLE 4 - Priorities › Section 8542.

8542. Notwithstanding Section 8540:
(a) If funds are withheld pursuant to a stop payment notice given to a construction lender by a direct contractor or subcontractor, the direct contractor or subcontractor may recover only the net amount due the direct contractor or subcontractor after deducting any funds that are withheld by the construction lender pursuant to the claims of subcontractors and material suppliers that have given a stop payment notice for work done on behalf of the direct contractor or subcontractor.
(b) In no event is the construction lender required to withhold, pursuant to a stop payment notice, more than the net amount provided in subdivision (a). Notwithstanding any other provision of this chapter, a construction lender is not liable for failure to withhold more than that net amount on receipt of a stop payment notice.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 5 - Stop Payment Notice › ARTICLE 4 - Priorities › Section 8544.

8544. The rights of a claimant who gives a construction lender a stop payment notice are not affected by an assignment of construction loan funds made by the owner or direct contractor, and the stop payment notice has priority over the assignment, whether the assignment is made before or after the stop payment notice is given.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 5 - Stop Payment Notice › ARTICLE 5 - Enforcement of Claim Stated in Stop Payment Notice › Section 8550.

8550. (a) A claimant shall commence an action to enforce payment of the claim stated in a stop payment notice at any time after 10 days from the date the claimant gives the stop payment notice.
(b) A claimant shall commence an action to enforce payment of the claim stated in a stop payment notice not later than 90 days after expiration of the time within which a stop payment notice must be given.
(c) An action under this section may not be brought to trial or judgment entered before expiration of the time provided in subdivision (b).
(d) If a claimant does not commence an action to enforce payment of the claim stated in a stop payment notice within the time prescribed in subdivision (b), the notice ceases to be effective and the person withholding funds pursuant to the notice shall release them.
(e) Within five days after commencement of an action to enforce payment of the claim stated in a stop payment notice, the claimant shall give notice of commencement of the action to the persons to whom the stop payment notice was given. The notice shall comply with the requirements of Chapter 2 (commencing with Section 8100) of Title 1.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 5 - Stop Payment Notice › ARTICLE 5 - Enforcement of Claim Stated in Stop Payment Notice › Section 8552.

8552. If more than one claimant has given a stop payment notice:
(a) Any number of claimants may join in the same enforcement action.
(b) If claimants commence separate actions, the court first acquiring jurisdiction may order the actions consolidated.
(c) On motion of the owner or construction lender the court shall require all claimants to be impleaded in one action, to the end that the rights of all parties may be adjudicated in the action.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 5 - Stop Payment Notice › ARTICLE 5 - Enforcement of Claim Stated in Stop Payment Notice › Section 8554.

8554. Notwithstanding Section 583.420 of the Code of Civil Procedure, if an action to enforce payment of the claim stated in a stop payment notice is not brought to trial within two years after commencement of the action, the court may in its discretion dismiss the action for want of prosecution.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 5 - Stop Payment Notice › ARTICLE 5 - Enforcement of Claim Stated in Stop Payment Notice › Section 8556.

8556. A stop payment notice ceases to be effective, and a person withholding funds pursuant to the notice shall release them, in either of the following circumstances:
(a) An action to enforce payment of the claim stated in the stop payment notice is dismissed, unless expressly stated to be without prejudice.
(b) Judgment in an action to enforce payment of the claim stated in the stop payment notice is against the claimant.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 5 - Stop Payment Notice › ARTICLE 5 - Enforcement of Claim Stated in Stop Payment Notice › Section 8558.

8558. (a) In an action to enforce payment of the claim stated in a bonded stop payment notice, the prevailing party is entitled to a reasonable attorney’s fee in addition to costs and damages.
(b) The court, on notice and motion by a party, shall determine who is the prevailing party or that there is no prevailing party for the purpose of this section, regardless of whether the action proceeds to final judgment. The prevailing party is the party that recovers greater relief in the action, subject to the following limitations:
(1) If the action is voluntarily dismissed or dismissed pursuant to a settlement, there is no prevailing party.
(2) If the defendant tenders to the claimant the full amount to which the claimant is entitled, and deposits in court for the claimant the amount so tendered, and alleges those facts in the answer and the allegation is determined to be true, the defendant is deemed to be the prevailing party.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 5 - Stop Payment Notice › ARTICLE 5 - Enforcement of Claim Stated in Stop Payment Notice › Section 8560.

8560. If the claimant is the prevailing party in an action to enforce payment of the claim stated in a bonded stop payment notice, any amount awarded on the claim shall include interest at the legal rate calculated from the date the stop payment notice is given.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 6 - Payment Bond › Section 8600.

8600. (a) This section applies if, before the commencement of work, the owner in good faith files a direct contract with the county recorder, and records a payment bond of the direct contractor in an amount not less than 50 percent of the price stated in the direct contract.
(b) If the conditions of subdivision (a) are satisfied, the court shall, where equitable to do so, restrict lien enforcement under this title to the aggregate amount due from the owner to the direct contractor and shall enter judgment against the direct contractor and surety on the bond for any deficiency that remains between the amount due to the direct contractor and the whole amount due to claimants.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 6 - Payment Bond › Section 8602.

8602. Section 8600 does not preclude an owner from requiring a performance bond, payment bond, or other security as protection against a direct contractor’s failure to perform the direct contract or to make full payment for all work provided pursuant to the contract.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 6 - Payment Bond › Section 8604.

8604. (a) If a lending institution requires that a payment bond be given as a condition of lending money to finance a work of improvement, and accepts in writing as sufficient a bond given in fulfillment of the requirement, the lending institution may not thereafter object to the borrower as to the validity of the bond or refuse to make the loan based on an objection to the bond if the bond is given by an admitted surety insurer.
(b) For purposes of this section, a “lending institution” includes a commercial bank, savings and loan institution, credit union, or other organization or person engaged in the business of financing loans.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 6 - Payment Bond › Section 8606.

8606. (a) A payment bond under this title shall be conditioned for the payment in full of the claims of all claimants and shall by its terms inure to the benefit of all claimants so as to give a claimant a right of action to enforce the liability on the bond. The bond shall be given by an admitted surety insurer.
(b) An owner, direct contractor, or subcontractor may be the principal on the bond.
(c) A claimant may enforce the liability on the bond in an action to enforce a lien under this part or in a separate action on the bond.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 6 - Payment Bond › Section 8608.

8608. (a) This title does not give a claimant a right to recover on a direct contractor’s payment bond given under this chapter unless the claimant provided work to the direct contractor either directly or through one or more subcontractors, pursuant to a direct contract.
(b) Nothing in this section affects the stop payment notice right of, and relative priorities among, design professionals and holders of secured interests in the real property.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 6 - Payment Bond › Section 8609.

8609. Any provision in a payment bond attempting by contract to shorten the period prescribed in Section 337 of the Code of Civil Procedure for the commencement of an action on the bond shall not be valid under either of the following circumstances:
(a) If the provision attempts to limit the time for commencement of an action on the bond to a shorter period than six months from the completion of any work of improvement.
(b) As applied to any action brought by a claimant, unless the bond is recorded before the work of improvement is commenced.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 6 - Payment Bond › Section 8610.

8610. Notwithstanding Section 8609, if a payment bond under this title is recorded before completion of a work of improvement, an action to enforce the liability on the bond may not be commenced later than six months after completion of the work of improvement.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 6 - Payment Bond › Section 8612.

8612. (a) In order to enforce a claim against a payment bond under this title, a claimant shall give the preliminary notice provided in Chapter 2 (commencing with Section 8200).
(b) If preliminary notice was not given as provided in Chapter 2 (commencing with Section 8200), a claimant may enforce a claim by giving written notice to the surety and the bond principal within 15 days after recordation of a notice of completion. If no notice of completion has been recorded, the time for giving written notice to the surety and the bond principal is extended to 75 days after completion of the work of improvement.
(c) Commencing July 1, 2012, and except as provided in subdivision (b), if the preliminary notice was required to be given by a person who has no direct contractual relationship with the contractor, and who has not given notice as provided in Chapter 2 (commencing with Section 8200), that person may enforce a claim by giving written notice to the surety and the bond principal, as provided in Section 8614, within 15 days after recordation of a notice of completion. If no notice of completion has been recorded, the time for giving written notice to the surety and the bond principal is extended to 75 days after completion of the work of improvement.
(d) Subdivision (c) shall not apply in either of the following circumstances:
(1) All progress payments, except for those disputed in good faith, have been made to a subcontractor who has a direct contractual relationship with the general contractor to whom the claimant has provided materials or services.
(2) The subcontractor who has a direct contractual relationship with the general contractor to whom the claimant has provided materials or services has been terminated from the project pursuant to the contract, and all progress payments, except those disputed in good faith, have been made as of the termination date.
(e) Pursuant to Section 8200, this section shall not apply to a laborer, as defined under Section 8024.
(f) This section shall become operative on July 1, 2012.
(Amended (as to be added by Stats. 2010, Ch. 697) by Stats. 2011, Ch. 700, Sec. 3. (SB 293) Effective January 1, 2012. Operative July 1, 2012, pursuant to Stats. 2010, Ch. 697, Sec. 105, and this section's own provisions.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 6 - Payment Bond › Section 8614.

8614. Notice to the principal and surety under Section 8612 shall comply with the requirements of Chapter 2 (commencing with Section 8100) of Title 1.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 7 - Security for Large Project › ARTICLE 1 - Application of Chapter › Section 8700.

8700. (a) This chapter applies if any of the following conditions is satisfied:
(1) The owner of the fee interest in property contracts for a work of improvement on the property with a contract price greater than five million dollars ($5,000,000).
(2) The owner of a less than fee interest in property, including a leasehold interest, contracts for a work of improvement on the property with a contract price greater than one million dollars ($1,000,000).
(b) For the purpose of this section:
(1) The owner of the fee interest in property is not deemed to be the owner of a less than fee interest by reason of a mortgage, deed of trust, ground lease, or other lien or encumbrance or right of occupancy that encumbers the fee interest.
(2) A lessee of real property is deemed to be the owner of a fee interest in the real property if all of the following conditions are satisfied:
(A) The initial term of the lease is at least 35 years.
(B) The lease covers one or more lawful parcels under the Subdivision Map Act, Division 2 (commencing with Section 66410) of Title 7 of the Government Code, and any applicable local ordinance adopted under that act, in their entirety, including, but not limited to, a parcel approved pursuant to a certificate of compliance proceeding.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 7 - Security for Large Project › ARTICLE 1 - Application of Chapter › Section 8702.

8702. This chapter does not apply to any of the following works of improvement:
(a) A single-family residence, including a single-family residence located within a subdivision, and any associated fixed work that requires the services of a general engineering contractor as defined in Section 7056 of the Business and Professions Code. As used in this subdivision, “single-family residence” means a real property improvement used or intended to be used as a dwelling unit for one family.
(b) A housing development eligible for a density bonus under Section 65915 of the Government Code.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 7 - Security for Large Project › ARTICLE 1 - Application of Chapter › Section 8704.

8704. This chapter does not apply to any of the following owners:
(a) A qualified publicly traded company or a wholly owned subsidiary of a qualified publicly traded company, if the obligations of the subsidiary pursuant to the contract for the work of improvement are guaranteed by the parent. As used in this subdivision, “qualified publicly traded company” means a company having a class of equity securities listed for trading on the New York Stock Exchange, the American Stock Exchange, or the NASDAQ stock market, and the nonsubordinated debt securities of which are rated as “investment grade” by either Fitch ICBA, Inc., Moody’s Investor Services, Inc., Standard & Poor’s Ratings Services, or a similar statistical rating organization that is nationally recognized for rating the creditworthiness of a publicly traded company. If at any time before final payment of all amounts due pursuant to the contract the nonsubordinated debt securities of the qualified publicly traded company are downgraded to below “investment grade” by any of those rating organizations, the owner is no longer exempt from this chapter.
(b) A qualified private company or a wholly owned subsidiary of a qualified private company, if the obligations of the subsidiary pursuant to the contract for the work of improvement are guaranteed by the parent. As used in this subdivision, “qualified private company” means a company that has no equity securities listed for trading on the New York Stock Exchange, the American Stock Exchange, or the NASDAQ stock market, and that has a net worth determined in accordance with generally accepted accounting principles in excess of fifty million dollars ($50,000,000). If at any time before final payment of all amounts due pursuant to the contract the net worth of the qualified private company is reduced below that level, the owner is no longer exempt from this chapter.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 7 - Security for Large Project › ARTICLE 2 - Security Requirement › Section 8710.

8710. An owner described in subdivision (a) of Section 8700 shall provide the direct contractor all of the following:
(a) Security for the owner’s payment obligation pursuant to the contract. The security shall be used only if the owner defaults on the payment obligation to the direct contractor. This subdivision does not apply to an owner that is the majority owner of the direct contractor.
(b) A copy, certified by the county recorder, of any recorded mortgage or deed of trust that secures the construction loan of a lending institution for the work of improvement, disclosing the amount of the loan.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 7 - Security for Large Project › ARTICLE 2 - Security Requirement › Section 8712.

8712. If an owner fails to provide or maintain the security required by this chapter, the direct contractor may give the owner notice demanding security. The notice shall comply with the requirements of Chapter 2 (commencing with Section 8100) of Title 1. If the owner does not provide or maintain the security within 10 days after notice demanding security is given, the direct contractor may suspend work until the owner provides or maintains the security.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 7 - Security for Large Project › ARTICLE 2 - Security Requirement › Section 8714.

8714. It is against public policy to waive the provisions of this chapter by contract.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 7 - Security for Large Project › ARTICLE 2 - Security Requirement › Section 8716.

8716. This chapter does not affect any statute providing for mechanics liens, stop payment notices, bond remedies, or prompt payment rights of a subcontractor, including the direct contractor’s payment responsibilities under Section 7108.5 of the Business and Professions Code.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 7 - Security for Large Project › ARTICLE 3 - Form of Security › Section 8720.

8720. An owner shall provide security by any of the following means:
(a) A bond that satisfies Section 8722.
(b) An irrevocable letter of credit that satisfies Section 8724.
(c) An escrow account that satisfies Section 8726.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 7 - Security for Large Project › ARTICLE 3 - Form of Security › Section 8722.

8722. A bond under this chapter shall satisfy all of the following requirements:
(a) The bond shall be executed by an admitted surety insurer that is either listed in the Department of the Treasury’s Listing of Approved Sureties (Department Circular 570) or that has an A.M. Best rating of A or better and has an underwriting limitation, under Section 12090 of the Insurance Code, greater than the amount of the bond.
(b) The bond shall be in an amount not less than 15 percent of the contract price for the work of improvement or, if the work of improvement is to be substantially completed within six months after the commencement of work, not less than 25 percent of the contract price.
(c) The bond shall be conditioned for payment on default by the owner of any undisputed amount pursuant to the contract that is due and payable for more than 30 days.
(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.)
2023 California Code › Civil Code - CIV › DIVISION 4 - GENERAL PROVISIONS › PART 6 - WORKS OF IMPROVEMENT › TITLE 2 - PRIVATE WORKS OF IMPROVEMENT › CHAPTER 7 - Security for Large Project › ARTICLE 3 - Form of Security › Section 8724.

8724. An irrevocable letter of credit under this chapter shall satisfy all of the following requirements:
(a) The letter of credit shall be issued by a financial institution, as defined in Section 5107 of the Financial Code, inuring to the benefit of the direct contractor.
(b) The letter of credit shall be in an amount not less than 15 percent of the contract price for the work of improvement or, if the work of improvement is to be substantially completed within six months after the commencement of work, not less than 25 percent of the contract price.
(c) The maturity date and other terms of the letter of credit shall be determined by agreement between the owner, the direct contractor, and the financial institution, except that the owner shall maintain the letter of credit in effect until the owner has satisfied its payment obligation to the direct contractor.
(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.)