The legislature finds there are practices within the industry of constructing residential properties containing not more than four dwelling units resulting in certain financial inequities and, therefore, declares that the purpose of the Stop Notice Act is to: provide for timely payment by an original contractor to persons contracted with to furnish labor or materials incorporated or to be incorporated in residential construction; define stop notices and their legal usage; encourage construction lenders to assert reasonable supervision, monitoring and control of funds disbursed to the original contractor for the timely payment of labor or materials; restrain and bar diversion of funds for purposes not directly involved with construction of the residential site improvement; and provide for criminal penalties.
History: Laws 1989, ch. 301, ยง 2.
Structure 2021 New Mexico Statutes
Chapter 48 - Liens and Mortgages
Section 48-2A-1 - Short title.
Section 48-2A-3 - Definitions.
Section 48-2A-4 - Requirements for disclosure; owners and construction lenders.
Section 48-2A-5 - Stop notices; contents.
Section 48-2A-7 - Stop notices; bonds.
Section 48-2A-8 - Distribution of construction funds; liability.
Section 48-2A-9 - Limitations for filing suit by claimant.
Section 48-2A-10 - Claim satisfied notice; procedure; contents; penalty.