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 Indiana
Indiana has no stop payment notice release bond. On local public works, an unpaid subcontractor or supplier files a claim with the board within 60 days, and the board withholds the claim amount until it is resolved (IC 36-1-12-12); the statute does not provide a bond to release that money.
- Claimants can also sue on the payment bond required by IC 36-1-12-13.1.
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.