State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Enrolled ][ House Amendment 001 ]

90_HB1111eng

      New Act
          Creates the Construction Trust Fund Act.   Provides  that
      moneys  paid under a  contract by an owner to a contractor or
      by an owner or contractor to a subcontractor for work done or
      materials furnished for or about a building shall be held  in
      trust  for  the  purpose  of paying those who did the work or
      furnished the materials.  The moneys  need  not  be  held  in
      separate  accounts;  commingling  does  not violate this Act.
      Provides that any trustee who knowingly retains or  uses  the
      moneys  held in trust for any purpose other than to pay those
      subcontractors  for  whom  the  moneys  are  held  shall   be
      personally  liable  to  any  person  damaged  by  the action.
      Effective immediately.
                                                     LRB9003240SMsb
HB1111 Engrossed                               LRB9003240SMsb
 1        AN ACT to amend the Mechanics Lien Act by adding  Section
 2    21.02.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The Mechanics Lien Act is amended  by  adding
 6    Section 21.02 as follows:
 7        (770 ILCS 60/21.02 new)
 8        Sec. 21.02. Construction trust funds.
 9        (a)  Money   held   in   trust;   trustees.   Any  owner,
10    contractor,  subcontractor,  or  supplier  of  any  tier  who
11    requests or requires the execution and delivery of  a  waiver
12    of   mechanics  lien  by  any  person  who  furnishes  labor,
13    services, or materials for the improvement  of  a  lot  or  a
14    tract  of  land  in  exchange  for  payment or the promise of
15    payment, shall hold in trust the unpaid sums subject  to  the
16    waiver  of  mechanics  lien,  as  trustee  for the person who
17    furnished the labor, services, or materials.
18        (b)  How  trust  moneys   held;   commingling.    Nothing
19    contained  in  this  Section  shall be construed as requiring
20    moneys held in trust by an owner, contractor,  subcontractor,
21    or  material  supplier  under  this Section to be placed in a
22    separate account. If an owner, contractor, subcontractor,  or
23    material  supplier commingles moneys held in trust under this
24    Section with other moneys, the mere commingling of the moneys
25    does not constitute a violation of this Section.
26        (c)  Violation of this Section.  Any  owner,  contractor,
27    subcontractor,  or material supplier who knowingly retains or
28    uses the moneys held in trust under this Section or any  part
29    thereof,  for any purpose other than to pay those persons for
30    whom the moneys are held in trust, shall  be  liable  to  any
31    person who successfully enforces his or her rights under this
HB1111 Engrossed            -2-                LRB9003240SMsb
 1    Section for all damages sustained by that person.
 2        Section  99.  Effective date.  This Act takes effect upon
 3    becoming law.

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