33-1063. Commencement of actions;
limitations
A. An action against the owner or construction lender to enforce payment of the
claim stated in the stop notice or bonded stop notice may be commenced at any time after
ten days from the date of the service of the stop notice on either the owner or
construction lender and shall be commenced not later than three months after the
expiration of the period within which claims of lien shall be recorded pursuant to
section 33-993, unless all the parties required to be parties to the claim stipulate in
writing to an extension of the time to bring an action of not more than an additional
three months.
B. Monies shall not be withheld by reason of any stop notice for longer than the
three month period prescribed in subsection A of this section unless an action is
commenced. If an action is not commenced, the notice ceases to be effective and the
monies shall be paid or released to the contractor or other person to whom they are
due. Notice of commencement of any action shall be given within five days after
commencement to the same persons and in the same manner as provided for service of a stop
notice or bonded stop notice.
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