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Sen. Carole Pankau
Filed: 3/9/2007
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| AMENDMENT TO SENATE BILL 330
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| AMENDMENT NO. ______. Amend Senate Bill 330 by replacing |
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| everything after the enacting clause with the following:
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| "Section 5. The Mechanics Lien Act is amended by changing |
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| Section 23 as follows:
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| (770 ILCS 60/23) (from Ch. 82, par. 23)
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| Sec. 23. Liens against public funds.
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| (a) For the purpose of this Section "contractor" includes |
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| any
sub-contractor; "State" includes any department, board or |
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| commission
thereof, or other person financing and constructing |
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| any public
improvements for the benefit of the State or any |
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| department, board or
commission thereof; and "director" |
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| includes any chairman or president of
any State department, |
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| board or commission, or the president or chief
executive |
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| officer or such other person financing and constructing a
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| public improvement for the benefit of the State.
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| (a-5) For the purpose of this Section, "unit of local |
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| government" includes any unit of local government as defined in |
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| the Illinois Constitution of 1970, and any entity, other than |
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| the State, organized for the purpose of conducting public |
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| business pursuant to the Intergovernmental Cooperation Act or |
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| the General Not For Profit Corporation Act of 1986, or where a |
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| not-for-profit corporation is owned, operated, or controlled |
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| by one or more units of local government for the purpose of |
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| conducting public business.
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| (b) Any person who shall furnish labor, services, material, |
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| apparatus, fixtures,
apparatus or machinery , forms or form work
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| labor to any contractor having a contract for public
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| improvement for any county, township, school district, city, |
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| municipality ,
or municipal corporation , or any other unit of |
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| local government in this State, shall have a lien for the value
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| thereof on the money, bonds, or warrants due or to become due |
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| the
contractor having a contract with such county, township, |
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| school district,
municipality ,
or municipal corporation , or |
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| any other unit of local government in this State under such |
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| contract.
The lien shall attach only to that portion of the |
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| money, bonds, or warrants against which no voucher or other |
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| evidence of indebtedness has been issued and delivered to the |
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| contractor by or on behalf of the county, township, school |
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| district, city, municipality, municipal corporation, or any |
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| other unit of local government as the case may be at the time |
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| of the notice. |
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| (1) No person shall have a lien as provided in this |
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| subsection (b) unless
Provided, such person shall, before |
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| payment or delivery thereof is made to
such contractor, |
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| notify the clerk or secretary, as the case may be, of the
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| county, township, school district, city, municipality ,
or
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| municipal
corporation , or any other unit of local |
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| government
his claim by a written notice of the claim for |
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| lien containing a sworn statement identifying the |
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| claimant's contract, describing the work done by the |
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| claimant, and stating the total amount due and unpaid as of |
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| the date of the notice for the work and furnish a copy of |
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| said
notice at once to said contractor. The person claiming |
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| such lien may cause
notification and written notice thereof |
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| to be given either by sending the
written notice (by |
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| registered or certified mail, return receipt requested,
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| with delivery limited to addressee only) to, or by |
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| delivering the written
notice to the clerk or secretary, as |
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| the case may be, of the county,
township, school district, |
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| city, municipality, or municipal corporation , or any other |
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| unit of local government ;
and the copy of the written |
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| notice which the person claiming the lien is to
furnish to |
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| the contractor may be sent to, or delivered to such |
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| contractor
in like manner. The notice shall be effective |
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| when received or refused by the clerk or secretary, as the |
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| case may be,
And, provided further, that such lien shall |
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| attach only to
that portion of such money, bonds, or |
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| warrants against which no voucher or
other evidence of |
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| indebtedness has been issued and delivered to the
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| contractor by or on behalf of the county, township, school |
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| district, city,
municipality ,
or municipal corporation , or |
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| any other unit of local government
as the case may be at |
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| the time of
such notice . |
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| (2) Provided further, that where such person has not so |
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| notified
the clerk or secretary, as the case may be, of the |
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| county, township, school
district, city, municipality ,
or
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| municipal corporation , or any other unit of local |
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| government of his claim for a
lien, upon written demand of |
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| the contractor with service by certified mail
(return |
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| receipt requested) and with a copy filed with the clerk or
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| secretary, as the case may be, that person shall, within 30 |
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| days, notify
the clerk or secretary, as the case may be, of |
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| the county, township, school
district, city, municipality ,
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| or municipal corporation , or any other unit of local |
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| government of his claim for a
lien by either sending or |
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| delivering written notice in like manner as above
provided |
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| for causing notification and written notice of a claim for |
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| lien to
be given to such clerk or secretary, as the case |
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| may be, or the lien shall
be forfeited. |
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| (3) No official shall withhold from the contractor |
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| money, bonds,
warrants, or funds on the basis of a lien |
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| forfeited as provided herein. |
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| (4) The
person so claiming a lien shall, within 90 days |
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| after serving
giving such notice ,
commence proceedings by |
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| complaint for an accounting, making the contractor
having a |
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| contract with the county, township, school district, city,
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| municipality ,
or municipal corporation , or any other unit |
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| of local government and the contractor to whom such
labor, |
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| services, material, apparatus, fixtures, apparatus or
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| machinery , forms or form work
labor was furnished, parties
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| defendant, and shall within 10 days after filing the |
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| complaint
the same period notify the clerk or secretary,
as |
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| the case may be, of the county, township, school district, |
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| city,
municipality ,
or municipal corporation , or any other |
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| unit of local government of the commencement of such suit |
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| by
delivering to him or them a copy of the complaint filed. |
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| (5) Failure to
commence proceedings by complaint for |
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| accounting within 90 days after serving
giving notice of |
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| lien pursuant to
this subsection shall terminate the lien |
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| and no subsequent notice of lien
may be given for the same |
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| claim nor may that claim be asserted in any
proceedings |
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| pursuant to this Act , provided, however, that failure to |
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| file the complaint after notice of the claim for lien shall |
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| not preclude a subsequent notice or action for an amount or |
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| amounts becoming due to the lien claimant on a date after |
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| the prior notice or notices . |
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| (6) It shall be the duty of any such clerk
or |
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| secretary, as the case may be, upon receipt of the first |
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| notice herein
provided for to cause to be withheld a |
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| sufficient amount to pay such claim
for the period limited |
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| for the filing of suit plus the period for notice to the |
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| clerk or secretary of the suit , unless otherwise notified |
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| by
the person claiming the lien. Upon the expiration of |
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| this period the
money, bonds or warrants so withheld shall |
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| be released for payment to the
contractor unless the person |
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| claiming the lien shall have instituted
proceedings and |
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| delivered to the clerk or secretary, as the case may be, of
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| the county, township, school district, city, municipality ,
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| or municipal
corporation , or any other unit of local |
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| government a copy of the complaint as herein provided, in |
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| which case, the
amount claimed shall be withheld until the |
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| final adjudication of the suit
is had. Provided, that the |
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| clerk or secretary, as the case may be,
to whom a copy of |
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| the complaint is delivered as herein provided may pay
over |
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| to the clerk of the court in which such suit is pending a |
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| sum
sufficient to pay the amount claimed to abide the |
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| result of such suit and
be distributed by the clerk |
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| according to the judgment rendered or other
court order. |
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| Any payment so made to such claimant or to the clerk of the
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| court shall be a credit on the contract price to be paid to |
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| such contractor.
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| (c) Any person who shall furnish labor, services, material, |
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| apparatus, fixtures, apparatus or machinery , forms
or form work
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| labor to any contractor having a contract for public |
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| improvement for
the State, may have a lien for the value |
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LRB095 09738 AJO 33199 a |
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| thereof on the money, bonds or
warrants due or about to become |
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| due the contractor having a contract with
the State under the |
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| contract . The lien shall attach to only that portion of the |
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| money, bonds or warrants against which no voucher has been |
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| issued and delivered by the State. |
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| (1) No person or party shall have a lien as |
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| provided in this subsection (c) unless such person |
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| shall, before payment or delivery thereof is made to |
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| the contractor, notify
, by giving to the Director or |
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| other official,
whose duty it is to let such contract, |
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| written notice of a
his claim for lien
containing a |
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| sworn statement identifying the claimants contract, |
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| describing the work done by the claimant and stating |
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| the total amount due and unpaid as of the date of the |
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| notice for the work
of the claim showing with |
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| particularity the
several items and the amount claimed |
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| to be due on each . The claimant shall
furnish a copy of |
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| said notice at once to the contractor. The person |
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| claiming
such lien may cause such written notice with |
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| sworn statement of the claim to
be given either by |
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| sending such notice (by registered or certified mail,
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| return receipt requested, with delivery limited to |
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| addressee only) to, or
by delivering such notice to the |
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| Director or other official of the State
whose duty it |
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| is to let such contract; and the copy of such notice |
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| which
the person claiming the lien is to furnish to the |
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| contractor may be sent
to, or delivered to such |
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| contractor in like manner. The notice shall be |
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| effective when received or refused by the Director or |
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| other official whose duty it is to let the contract
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| However, the lien
shall attach to only that portion of |
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| the money, bonds or warrants
against which no voucher |
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| has been issued and delivered by the State . |
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| (2)
Provided, that where such person has not so |
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| notified the Director or other
official of the State, whose |
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| duty it is to let such contract, of his claim
for a lien, |
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| upon written demand of the contractor, with service by |
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| certified
mail (return receipt requested) and with a copy |
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| filed with such Director
or other official of the State, |
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| that person shall, within 30 days, notify
the Director or |
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| other official of the State, whose duty it is to let such
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| contract, of his claim for a lien by either sending or |
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| delivering written
notice in like manner as above provided |
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| for giving written notice with
sworn statement of claim to |
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| such Director or official, or the lien shall
be forfeited. |
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| (3) No public official shall withhold from the |
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| contractor money,
bonds, warrants or funds on the basis of |
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| a lien forfeited as provided herein. |
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| (4)
The person so claiming a lien shall, within 90 days |
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| after serving
giving such
notice, commence proceedings by |
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| complaint for an accounting, making the
contractor having a |
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| contract with the State and the contractor to whom
such |
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LRB095 09738 AJO 33199 a |
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| labor, services, material, apparatus, fixtures, apparatus |
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| or machinery , forms or form work
labor was furnished,
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| parties defendant, and shall, within 10 days after filing |
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| the suit
the same period notify the Director
of the |
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| commencement of such suit by delivering to him a copy
of |
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| the complaint filed; provided, if money appropriated by the |
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| General
Assembly is to be used in connection with the |
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| construction of such
public improvement, that suit shall be |
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| commenced and a copy of the
complaint delivered to the |
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| Director not less than 15 days before the date
when the |
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| appropriation from which such money is to be paid, will |
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| lapse. |
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| (5)
Failure to commence proceedings by complaint for |
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| accounting within 90 days after serving
giving notice of
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| lien pursuant to this subsection shall terminate the lien |
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| and no subsequent
notice of lien may be given for the same |
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| claim nor may that claim be
asserted in any proceedings |
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| pursuant to this Act , provided, however, that failure to |
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| file suit after notice of a claim for lien shall not |
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| preclude a subsequent notice or action for an amount or |
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| amounts becoming due to the lien claimant on a date after |
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| the prior notice or notices . |
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| (6) It shall be the duty of
the Director, upon receipt |
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| of the written notice with sworn statement as
herein |
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| provided, to withhold payment of a sum sufficient to pay |
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| the
amount of such claim, for the period limited for the |
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| filing of suit plus the period for the notice to the |
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| Director ,
unless otherwise notified by the person claiming |
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| the lien.
Upon the expiration of this period the money, |
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| bonds, or warrants so
withheld shall be released for |
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| payment to the contractor unless the
person claiming the |
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| lien shall have instituted proceedings and delivered
to the |
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| Director a copy of the complaint as herein
provided, in |
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| which case, the amount claimed shall be withheld until the
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| final adjudication of the suit is had. Provided, the |
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| Director or other
official may pay over to the clerk of the |
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| court in which such suit is
pending, a sum sufficient to |
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| pay the amount claimed to abide the result of
such suit and |
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| be distributed by the clerk according to the judgment
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| rendered or other court order. Any payment so made to such |
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| claimant or to
the clerk of the court shall be a credit on |
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| the contract price to be paid
to such contractor.
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| (d) Any officer of the State, county, township, school |
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| district, city,
municipality ,
or municipal corporation , or any |
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| other unit of local government violating the duty hereby |
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| imposed
upon him shall be liable on his official bond to the |
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| claimant giving notice
as provided in this Section for the |
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| damages resulting from such violation,
which may be recovered |
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| in a civil action in the circuit court. There shall
be no |
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| preference between the persons giving such notice, but all |
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| shall be
paid pro rata in proportion to the amount due under |
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| their respective contracts. |
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| (e) In the event a suit to enforce a claim based on a |
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| notice of claim for lien is commenced in accordance with this |
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| Section, and the suit is subsequently dismissed, the lien for |
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| the work claimed under the notice of claim for lien shall |
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| terminate 30 days after the effective date of the order |
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| dismissing the suit unless the lien claimant shall file a |
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| motion to reinstate the suit, a motion to reconsider, or a |
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| notice of appeal within the 30 day period. Notwithstanding the |
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| foregoing, nothing contained in this Section shall prevent a |
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| public body from paying a lien claim in less than 30 days after |
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| dismissal. |
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| (f) Unless the contract with the State, county, township, |
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| school district, city, municipality, municipal corporation, or |
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| any other unit of local government otherwise provides, no lien |
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| for material shall be defeated because of lack of proof that |
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| the material after the delivery thereof, actually entered into |
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| the construction of the building or improvement, even if it be |
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| shown that the material was not actually used in the |
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| construction of the building or improvement so long as it is |
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| shown that the material was delivered either (i) to the owner |
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| or its agent for that building or improvement, to be used in |
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| that building or improvement or (ii) pursuant to the contract, |
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| at the place where the building or improvement was being |
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| constructed or some other designated place, for the purpose of |
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| being used in construction or for the purpose of being employed |
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| in the process of construction as a means for assisting in the |