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 North Dakota
North Dakota has no stop payment notice procedure. Unpaid parties on private jobs use a construction lien under N.D.C.C. ch. 35-27, and on public jobs claim against the contractor's bond under N.D.C.C. § 48-01.2-10.
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.