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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
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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.