hnQ_9999 wrote:Interesting question.Only two kinds of stop notice are worth choosing.Stop notice can stop the fund from a bond or a lender.A public project can be funded via a bond or directlygets fund from a bank or a lender (?).Without knowing the source of the test writer, I justclose the eyes and pick either (c) and (d).Anyone ?
I also think the answer is C, and here is why. (I could be totally wrong in what I am about to say, and if I am, someone strike me down so I don't go through life ignorant! I am the first to admit that I am not an expert on this) But it is my understanding that a true "Public Project" does not get funding from a bank or 'lender". I interpret the question's use of the term "lender" as a financial institution such as a bank, and NOT to mean some sort of creative financing. Such as from a group of private investors, or some complicated limited recourse or non-recourse financing, or something else. Because the question doesn't mention anything about that, all it mentions is "Public Project". Getting back to the question, since we know that a Public Project, in the truest sense, is a project that is funded by the Government through the use of tax money or bonds, and the resulting Building is meant to be owned or operated by the Government, then the answer is C. The type of projects where tax payer money is involved, and there is also a loan involved is in projects that are Public-Private-Partnerships (PPP). The only example I can think of at the moment is a Sports Stadium because it has been in the news a lot lately with the football teams in Oakland and Los Angeles. In a project like that, there are public funds, but it is not a "Public Project" because the government is not going to own or operate the stadium. Again, the question does not make any reference to a PPP, just a Public Project, AND I am also assuming that a Bonded Stop Notice is referring to a Release Bond. Therefore, given the choices available, C is the most correct answer.
After that long-winded explanation, I hope I am right... ha!
*edit(forgot I wanted to add this):
http://www.wisegeek.com/what-is-a-public-project.htm