Illinois General Assembly - Illinois Compiled Statutes

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30 ILCS 550/3

(30 ILCS 550/3)

Sec. 3. Builder or developer cash bond or other surety.

(a) A county or municipality may not require a cash bond, irrevocable
letter of credit, surety bond, or letter of commitment issued by a bank,
savings and loan association, surety, or insurance company from a builder or
developer to
guarantee completion of a project improvement when the builder or developer
has filed with the county or municipal clerk a
current, irrevocable letter of credit, surety bond, or letter of commitment
issued by a bank, savings and loan association, surety, or insurance company,
deemed good and sufficient by the county or
municipality accepting such security, in an amount equal
to or greater than 110% of the amount of the bid on each project improvement.
A builder or developer has the option to utilize a
cash bond, irrevocable letter of credit,
surety bond, or letter of commitment, issued by a bank, savings and loan
association, surety, or insurance company, deemed good and
sufficient
by the county or municipality, to
satisfy any cash bond requirement established by a county or municipality.
Except for a municipality or county with a population of 1,000,000 or more,
the county or municipality must approve and deem a surety or
insurance company good and sufficient for the purposes set forth in this
Section if the surety or insurance company is authorized by the
Illinois Department of Insurance to sell and issue sureties in the State of
Illinois.

(b) If a county or municipality receives a cash bond, irrevocable letter
of credit, or surety bond from a builder or
developer to
guarantee completion of a project improvement, the county or municipality shall
(i) register
the bond under
the address of the project and the construction permit number and (ii) give the
builder or developer a receipt for the bond.  The county or municipality shall
establish and
maintain a separate account for all cash bonds received from builders and
developers to guarantee completion of a project improvement.

(c) The county or municipality shall refund a cash bond to a builder or
developer, or release the irrevocable letter of credit or surety bond,
within
60 days after the builder or developer notifies the county or municipality in
writing of the
completion of the project improvement for which the bond
was required.
For these purposes, "completion" means that the county or municipality has
determined
that the project improvement for which the bond was required is complete or a
licensed engineer or licensed architect has certified to the builder or
developer and the county or municipality that the project improvement has been
completed to the
applicable codes and ordinances.
The county or municipality shall pay interest to the builder or developer,
beginning 60 days
after the builder or developer notifies the county or municipality in writing
of the completion
of the
project improvement, on any bond not refunded to a builder or developer, at
the rate of 1%
per month.

(d) A home rule county or municipality may not require or maintain cash
bonds, irrevocable
letters of credit, surety bonds, or letters of commitment issued by a bank,
savings and loan association, surety, or insurance company
from builders
or developers in a manner inconsistent with this Section.  This Section supersedes
 and controls over other provisions of the Counties Code or
Illinois Municipal Code as they apply to and guarantee completion of a project
improvement that is required by the county or municipality, regardless of
whether the project improvement is a condition of annexation agreements.
This Section is a
denial and limitation under subsection (i) of Section
6 of Article VII of the Illinois Constitution on the concurrent exercise by a
home rule
county or municipality of powers and functions exercised by the State.

(Source: P.A. 96-1000, eff. 7-2-10.)