(55 ILCS 5/5-1020) (from Ch. 34, par. 5-1020)
Sec. 5-1020.
Trust agreements for funds retained pending construction
completion. Whenever any county has entered into a contract for the
repair, remodeling, renovation or construction of a building or structure
or the construction or maintenance of a road or highway (including any
contract to which Section 5-409 of the Illinois Highway Code is applicable)
or of a local improvement as defined in Division 5-32, as amended, which
provides for retention of a percentage of the contract price until final
completion and acceptance of the work, upon the request of the contractor
and with the approval of the county, the amount so retained may be
deposited under a trust agreement with an Illinois bank or savings and loan
association of the contractor's choice and subject to the approval of the
county. The contractor shall receive any interest thereon.
Upon application by the contractor, the trust agreement must contain, as a
minimum, the following provisions:
a. The amount to be deposited subject to the trust;
b. The terms and conditions of payment in case of default of the
contractor;
c. The termination of the trust agreement upon completion of the
contract; and
d. The contractor shall be responsible for obtaining the written
consent of the bank trustee, and any costs or service fees shall be
borne by the contractor.
The trust agreement may, at the discretion of the county and
upon request of the contractor, become operative at the time of the
first partial payment in accordance with existing statutes, ordinances and
county procedures.
No bank or savings and loan association shall receive public funds as
permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of "An Act relating to certain investments
of public funds by public agencies", approved July 23, 1943, as
now or hereafter amended.
(Source: P.A. 86-962.)
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