California Codes, Civil Code - CIV, Division 4 — General Provisions, Part 6 — Works of Improvement, Title 3 — Public Work of Improvement, Chapter 4 — Stop Payment Notice, Article 3 — Distribution of Funds Withheld, Section 9456

(a) A stop payment notice takes priority over an assignment by a direct contractor of any amount due or to become due pursuant to a public works contract, including contract changes, whether made before or after the giving of a stop payment notice, and the assignment has no effect on the rights of the claimant.

(b) Any garnishment of an amount due or to become due pursuant to a public works contract by a creditor of a direct contractor under Article 8 (commencing with Section 708.710) of Chapter 6 of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure and any statutory lien on that amount is subordinate to the rights of a claimant.

Notes

Establishes a stop payment notice as superior to a direct contractor’s assignment of amounts due or to become due under a public works contract, regardless of assignment timing. Makes garnishments by the contractor’s creditors and statutory liens on those contract amounts subordinate to the claimant’s rights.

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