California § 8540 - Funds withheld pursuant to a stop payment notice shall be distributed in the foll
Full text of California Public Contract Code - PCC § 8540 — Funds withheld pursuant to a stop payment notice shall be distributed in the foll, with citation guidance and answers to common questions.
§ 8540. Funds withheld pursuant to a stop payment notice shall be distributed in the foll
(a) Funds withheld pursuant to a stop payment notice shall be distributed in the following order of priority: (1) First, to pay claims of persons that have given a bonded stop payment notice. If funds are insufficient to pay the claims of those persons in full, the funds shall be distributed pro rata among the claimants in the ratio that the claim of each bears to the aggregate of all claims for which a bonded stop payment notice is given. (2) Second, to pay claims of persons that have given an unbonded stop payment notice. If funds are insufficient to pay the claims of those persons in full, the funds shall be distributed among the claimants in the ratio that the claim of each bears to the aggregate of all claims for which an unbonded stop payment notice is given. (b) Pro rata distribution under this section shall be made among the persons entitled to share in the distribution without regard to the order in which the person has given a stop payment notice or commenced an enforcement action.
Source: official California text · Last verified 2026-08-27
Frequently Asked Questions About California § 8540
What does Public Contract Code - PCC § 8540 cover?
Section 8540 ("Funds withheld pursuant to a stop payment notice shall be distributed in the foll") is part of the Public Contract Code - PCC, the codified statutory law of California. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite California § 8540?
A common citation format is "Public Contract Code - PCC § 8540" (California). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of California law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the California official source linked on this page or consult a licensed California attorney.
How does California § 8540 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in California can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in California.