California Codes, 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
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.
Notes
Establishes that an owner’s or direct contractor’s assignment of construction-loan funds does not affect the rights of a claimant who gives the lender a stop payment notice. Gives the stop payment notice priority over the assignment whether the assignment occurs before or after the notice is given.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 8544 | https://laws.lexinter.net/codes/california/civil-code/division-4/part-6/title-2/chapter-5/article-4/section-8544