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 Arkansas
Arkansas has no stop payment notice procedure. Unpaid parties on private jobs use mechanic's and materialmen's liens under Ark. Code §§ 18-44-101 to 18-44-135, and on public jobs they claim against the payment bond.
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.