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 4 — Enforcement of Payment of Claim Stated in Stop Payment Notice, Section 9510

A stop payment notice ceases to be effective, and the public entity shall release funds withheld, 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.

Notes

Establishes that a stop payment notice ceases to be effective and the public entity must release withheld funds when the enforcement action is dismissed, unless the dismissal expressly states it is without prejudice, or when judgment in the enforcement action is entered against the claimant.

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