What a stop payment notice release bond is
In a few states, an unpaid subcontractor or supplier can serve a stop payment notice (also called a stop notice) on the owner or construction lender, which then holds back money owed on the job. A release bond lets that money be paid out; the claimant then claims against the bond instead.
In Alaska
Alaska lets an unpaid claimant serve a stop-lending notice on the construction lender under AS 34.35.062, but the statute does not provide a bond to release it. The notice expires on the 91st day after the lender receives it unless the claimant has sued, and the claimant can revoke it in writing.
You need this bond if you're
- A general contractor whose payments are being held
- A property owner or public agency holding funds
- A construction lender holding loan funds
What the surety looks at
The claim, the dispute behind it and your finances.