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 Hawaii
Hawaii does not use a stop payment notice procedure. Unpaid contractors and suppliers apply to the circuit court for a mechanic's lien, and an owner or contractor can discharge the lien by filing cash or a bond for twice the claimed amount under HRS § 507-45.
- See the Hawaii mechanic's lien discharge bond page for the lien bond rules.
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.