(60 ILCS 1/85-35)
Sec. 85-35.
Retaining percentage of contract price; trust agreement.
(a) Whenever any township 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 and the contract 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 township board, the amount retained may be deposited under a
trust agreement with an Illinois bank of the contractor's choice and subject to
the approval of the township board. The contractor shall receive any interest
on the amount deposited.
(b) Upon application by the contractor, the trust agreement must contain, as
a minimum, the following provisions:
(1) The amount to be deposited subject to the trust.
(2) The terms and conditions of payment if the |
|
(3) The termination of the trust agreement upon
|
| completion of the contract.
|
|
(4) The contractor is responsible for obtaining the
|
| written consent of the bank trustee, and any costs or service fees shall be borne by the contractor.
|
|
(c) The trust agreement may, at the discretion of the township board and
upon the request of the contractor, become operative at the time of the
first partial payment in accordance with existing statutes, ordinances, and
township procedures.
(Source: P.A. 83-372; 88-62.)
|