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Stop payments are used in cases where the depositor does not want the check to be paid. The reasons can include: The customer has a dispute with the party that the check was given to, and wants to withhold payment. The check was lost or stolen.
A stop payment notice is a legal document that subcontractors can file on a construction project to freeze funds owed to the general contractor by the property owner. This ensures that the subcontractor will receive payment from those funds before any other creditors.
A Stop Order is a legal demand to cease all employee labor at a job site due to violation of state law(s). This type of order is issued by government agencies when there are safety concerns or unlawful actions in progress.
Stop work notice means notice given under this article by a direct contractor to an owner that the contractor will stop work if the amount owed the contractor is not paid within 10 days after notice is given.
Simply put, a stop notice places a lien on funds not dispersed by the owner or lender on a construction project. When a claimant has not been paid for work completed, a stop payment requires the owner or lender to withhold funds from a GC or other contractor until the claimant receives payment.
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