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Earlier editions: 2020-112018-112026-09

DIVISION 4. GENERAL PROVISIONS 3274-9566›PART 6. WORKS OF IMPROVEMENT 8000-9566›TITLE 2. PRIVATE WORKS OF IMPROVEMENT 8160-8851›CHAPTER 5. Stop Payment Notice 8500-8560›ARTICLE 1. General Provisions 8500-8510

§ 8510

California Civil Code · 2026-10 edition · updated 2026-10-04 · California

(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.)

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