California § 8542 - Notwithstanding Section 8540: (a) If funds are withheld pursuant to a stop paymen
Full text of California Public Contract Code - PCC § 8542 — Notwithstanding Section 8540: (a) If funds are withheld pursuant to a stop paymen, with citation guidance and answers to common questions.
§ 8542. Notwithstanding Section 8540: (a) If funds are withheld pursuant to a stop paymen
Notwithstanding Section 8540: (a) If funds are withheld pursuant to a stop payment notice given to a construction lender by a direct contractor or subcontractor, the direct contractor or subcontractor may recover only the net amount due the direct contractor or subcontractor after deducting any funds that are withheld by the construction lender pursuant to the claims of subcontractors and material suppliers that have given a stop payment notice for work done on behalf of the direct contractor or subcontractor. (b) In no event is the construction lender required to withhold, pursuant to a stop payment notice, more than the net amount provided in subdivision (a). Notwithstanding any other provision of this chapter, a construction lender is not liable for failure to withhold more than that net amount on receipt of a stop payment notice.
Source: official California text · Last verified 2026-08-27
Frequently Asked Questions About California § 8542
What does Public Contract Code - PCC § 8542 cover?
Section 8542 ("Notwithstanding Section 8540: (a) If funds are withheld pursuant to a stop paymen") 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 § 8542?
A common citation format is "Public Contract Code - PCC § 8542" (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 § 8542 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.