California Codes, Civil Code - CIV, Division 4 — General Provisions, Part 6 — Works of Improvement, Title 1 — Works of Improvement Generally, Chapter 3 — Waiver and Release, Section 8128

(a) A claimant may reduce the amount of, or release in its entirety, a stop payment notice. The reduction or release shall be in writing and may be given in a form other than a waiver and release form provided in this article.

(b) The writing shall identify whether it is a reduction of the amount of the stop payment notice, or a release of the notice in its entirety. If the writing is a reduction, it shall state the amount of the reduction, and the amount to remain withheld after the reduction.

(c) A claimant’s reduction or release of a stop payment notice has the following effect:

(1) The reduction or release releases the claimant’s right to enforce payment of the claim stated in the notice to the extent of the reduction or release.

(2) The reduction or release releases the person given the notice from the obligation to withhold funds pursuant to the notice to the extent of the reduction or release.

(3) The reduction or release does not preclude the claimant from giving a subsequent stop payment notice that is timely and proper.

(4) The reduction or release does not release any right of the claimant other than the right to enforce payment of the claim stated in the stop payment notice to the extent of the reduction or release.

Notes

Allows a claimant to reduce or fully release a stop payment notice in writing without using the statutory waiver form, identifying the reduction or release and remaining withheld amount when applicable. Limits the effect to the released payment claim and withholding duty, while preserving other rights and permitting a later timely, proper stop payment notice.

Use as reference

Lexinter.net | California Code, Civil Code - CIV § 8128 | https://laws.lexinter.net/codes/california/civil-code/division-4/part-6/title-1/chapter-3/section-8128

Disclaimer: Codes available on Lexinter may not reflect the most current laws in your jurisdiction. We make no warranties regarding the accuracy, completeness, or adequacy of the information provided. Always verify the status of any code with your state legislature or official government sources before relying on it for legal purposes.