Sec 33-1055. Persons authorized; election by construction lender to withhold monies; copy of bond; recovery limits

A. Any person entitled to record a claim of lien under article 6 of this chapter may give to a construction lender a stop notice or a bonded stop notice before the expiration of the time within which that person's lien shall be recorded under section 33-993. Any person entitled to give a stop notice who fails to serve a stop notice within thirty days after a written demand from the construction lender forfeits the right to any stop notice on the work described in the demand. A written demand from the owner shall be sent by registered or certified mail, postage prepaid, shall be addressed to that person at any place where that person maintains an office or conducts business and shall include the following language in bold-faced type that is at least as large as the largest type that otherwise appears on the document: "demand for service of stop notice pursuant to A.R.S. section 33-1055".

B. In the case of a stop notice or bonded stop notice filed by the original contractor or by a subcontractor, the original contractor or subcontractor is only entitled to recover on its own stop notice or bonded stop notice the net amount due the original contractor or subcontractor after deducting both of the following:

1. The stop notice claims of all subcontractors or material suppliers who have filed bonded stop notices for work done on behalf of the original contractor or subcontractor.

2. The amount of any payment already received as described in the stop notice or bonded stop notice.

C. A bonded stop notice shall not require the construction lender to withhold more than the net amount due for labor, services, materials, machinery, fixtures or tools. Notwithstanding any other law, a construction lender is not liable for the failure to withhold more than this net amount due on receipt of a bonded stop notice.