State of Illinois
91st General Assembly
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Public Act 91-0456

HB2724 Enrolled                                LRB9102003MWpc

    AN ACT to amend  the  Public  Construction  Bond  Act  by
changing Section 1.

    Be  it  enacted  by  the People of the State of Illinois,
represented in the General Assembly:

    Section 5.  The Public Construction Bond Act  is  amended
by changing Section 1 as follows:

    (30 ILCS 550/1) (from Ch. 29, par. 15)
    Sec.  1.  Except  as  otherwise provided by this Act, all
officials, boards, commissions or agents of this State, or of
any political subdivision thereof  in  making  contracts  for
public  work  of any kind costing over $5,000 to be performed
for the State,  or  a  political  subdivision  thereof  shall
require every contractor for the such work to furnish, supply
and  deliver  a  bond  to  the  State,  or  to  the political
subdivision thereof entering into the such contract,  as  the
case may be, with good and sufficient sureties. The amount of
the  such  bond shall be fixed by the such officials, boards,
commissions, commissioners or  agents,  and  the  such  bond,
among   other   conditions,  shall  be  conditioned  for  the
completion of the contract, for the payment of material  used
in  the  such  work  and  for all labor performed in the such
work, whether by subcontractor or otherwise.
    If the contract is for emergency repairs as  provided  in
the  Illinois  Procurement  Code,  proof  of  payment for all
labor, materials, apparatus, fixtures, and machinery  may  be
furnished in lieu of the bond required by this Section.
    Each  such  bond  is  deemed  to  contain  the  following
provisions  whether such provisions are inserted in such bond
or not:
    "The principal and sureties on this bond agree  that  all
the undertakings, covenants, terms, conditions and agreements
of  the  contract  or  contracts  entered  into  between  the
principal  and the State or any political subdivision thereof
will be performed and fulfilled and to pay all persons, firms
and corporations having contracts with the principal or  with
subcontractors, all just claims due them under the provisions
of  such contracts for labor performed or materials furnished
in the performance of the contract on account of  which  this
bond  is given, when such claims are not satisfied out of the
contract price of the contract on account of which this  bond
is  given, after final settlement between the officer, board,
commission  or  agent  of  the  State  or  of  any  political
subdivision thereof and the principal has been made."
    The bond required by this Section may  be  acquired  from
the company, agent or broker of the contractor's choice.  The
bond and sureties shall be subject to the right of reasonable
approval  or  disapproval, including suspension, by the State
or political subdivision thereof concerned.
    When other than motor fuel tax funds, federal-aid  funds,
or  other funds received from the State are used, a political
subdivision  may  allow   the   contractor   to   provide   a
non-diminishing irrevocable bank letter of credit, in lieu of
the  bond  required  by  this  Section,  on  contracts  under
$100,000  to  comply  with  the requirements of this Section.
Any such bank letter of credit shall contain  all  provisions
required for bonds by this Section.
(Source: P.A. 89-518, eff. 1-1-97.)

    Section  99.  Effective date.  This Act takes effect upon
becoming law.

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