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 Illinois
Illinois has no stop payment notice by that name. On public jobs, an unpaid subcontractor or supplier can claim a lien on public funds still owed to the contractor by notifying the public body (770 ILCS 60/23); a statutory bond to release those funds was not confirmed. Liens on private property can be replaced by a court-approved bond of 175% of the claim (770 ILCS 60/38.1).
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.