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Sen. John G. Mulroe
Filed: 3/27/2014
| | 09800SB3023sam001 | | LRB098 17607 HEP 57723 a |
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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 including, but not limited to, an |
| 6 | | agreement to subordinate the lien, where the agreement is in |
| 7 | | anticipation of and in consideration for the awarding of a |
| 8 | | contract or subcontract, either express or implied, to perform |
| 9 | | work or supply materials for an improvement upon real property |
| 10 | | is against public policy and unenforceable. This Section does |
| 11 | | not prohibit release of lien under subsection (b) of Section 35 |
| 12 | | of this Act, nor does it prohibit an agreement to subordinate a |
| 13 | | mechanics lien to a mortgage lien that secures a construction |
| 14 | | loan if that agreement is made after more than 50% of the loan |
| 15 | | has been disbursed to fund improvements to the property and if |
| 16 | | the borrower is in default thereunder or prohibit subordination |
| 17 | | of the lien, except as provided in Section 21.".
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