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A stop payment notice, also known as a stop notice, is given to notify the property owner, general contractor, and/or lender that the claimant has not been paid for their services, materials, or equipment in a construction project.

Third, the notice must be served by first class mail, registered mail, or certified mail on the contractor or its subcontractor, either at his residence or anywhere he maintains an office, or by personal service. It must also be served on the department for whom the work is being performed.

A stop notice is sent to the owner to assert your right for the amount yet to be paid out on the project. It lets the owner know you are owed money by the general contractor or a lower tier subcontractor. The effect is the owner must ?stop? payment in the amount of your claim until the claim is resolved.

Arizona, Stop Notice. Arizona stop notices allow contractors and subs another legal remedy to secure payment on a construction project. These notices can be used to freeze unpaid construction funds in the amount set out in the notice.

Dear Mr. Doe: This letter serves as notice that your check NUMBER PRINTED ON CHECK, dated DATE OF CHECK, in the amount of DOLLAR AMOUNT OF CHECK, made payable to NAME ON THE CHECK, has been refused payment by the drawee bank, NAME OF THE BANK PRINTED ON THE CHECK, CITY, STATE OF BANK, for the reason of Stop Payment.

The stop work notice must be served personally or by certified mail on the contractor and the director of the department which let the contract for the state of California, or the public disbursing officer responsible to make payments under the contract, or with the body by whom the contract was awarded.

A bonded stop payment notice refers to a stop payment notice that is accompanied by a bond issued by a surety in the amount equal to 125% of the amount of the claim.

Generally, banks honor a stop payment request for a check drawn on your account. If you stop payment properly and the bank cashes the check, the bank may be liable for the cashed check. you fail to provide sufficient notice to implement the stop payment order.

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Orange California Sample Letter concerning Stop Payment Notice

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