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 Oklahoma
Oklahoma does not have a stop payment notice (stop notice) statute. Unpaid subcontractors and material suppliers in Oklahoma rely on mechanics and materialmen's liens under 42 O.S. §§ 141–152 as their primary statutory payment remedy, not stop payment notices served on lenders. Because no stop payment notice mechanism exists in Oklahoma law, there is no corresponding stop payment notice release bond.
- Oklahoma does provide a related but distinct remedy: under 42 O.S. § 147.1, any interested party may discharge a recorded mechanics or materialmen's lien by depositing with the county clerk a corporate surety bond equal to 125% of the lien claim amount; the lien claimant then pursues the bond instead of the property. This is a lien discharge bond, not a stop payment notice release bond.
- Multiple construction-law sources confirm Oklahoma relies on the mechanics lien system, not stop payment notices, for subcontractor and supplier payment protection.
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.