Bill Text: IL SB3023 | 2013-2014 | 98th General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Mechanics Lien Act. Provides that an agreement to subordinate a lien under the Act where the agreement is in anticipation of and in consideration for the awarding of a contract or subcontract, either express or implied, to perform work or supply materials for an improvement upon real property is against public policy and unenforceable. Deletes language providing that certain subordination provisions of contracts is not binding on the subcontractor unless set forth in its entirety in writing in the contract between the contractor and subcontractor or material supplier. Makes corresponding changes.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Passed) 2014-07-16 - Public Act . . . . . . . . . 98-0764 [SB3023 Detail]
Download: Illinois-2013-SB3023-Amended.html
Bill Title: Amends the Mechanics Lien Act. Provides that an agreement to subordinate a lien under the Act where the agreement is in anticipation of and in consideration for the awarding of a contract or subcontract, either express or implied, to perform work or supply materials for an improvement upon real property is against public policy and unenforceable. Deletes language providing that certain subordination provisions of contracts is not binding on the subcontractor unless set forth in its entirety in writing in the contract between the contractor and subcontractor or material supplier. Makes corresponding changes.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Passed) 2014-07-16 - Public Act . . . . . . . . . 98-0764 [SB3023 Detail]
Download: Illinois-2013-SB3023-Amended.html
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1 | AMENDMENT TO SENATE BILL 3023
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2 | AMENDMENT NO. ______. Amend Senate Bill 3023 on page 3, by | ||||||
3 | replacing lines 13 through 21 with the following:
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4 | "(d) An agreement to waive any right to enforce or claim | ||||||
5 | any lien under this Act , or an agreement to subordinate the | ||||||
6 | lien, where the agreement is in anticipation of and in | ||||||
7 | consideration for the awarding of a contract or subcontract, | ||||||
8 | either express or implied, to perform work or supply materials | ||||||
9 | for an improvement upon real property is against public policy | ||||||
10 | and unenforceable. This Section does not prohibit release of | ||||||
11 | lien under subsection (b) of Section 35 of this Act , nor does | ||||||
12 | it prohibit an agreement to subordinate a mechanics lien to a | ||||||
13 | mortgage lien that secures a construction loan if that | ||||||
14 | agreement is made after more than 50% of the loan has been | ||||||
15 | disbursed to fund improvements to the property or prohibit | ||||||
16 | subordination of the lien, except as provided in Section 21 ."; | ||||||
17 | and
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1 | on page 8, by inserting immediately below line 13 the | ||||||
2 | following:
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3 | "Section 99. Effective date. This Act takes effect upon | ||||||
4 | becoming law.".
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