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90_HB2794
770 ILCS 60/5 from Ch. 82, par. 5
770 ILCS 60/24 from Ch. 82, par. 24
Amends provisions of the Mechanics Lien Act requiring a
contractor to give an owner a statement of persons
furnishing materials and labor and the amounts owing to
them. Provides that the statement may be verified by
certification. Also provides that a statement given by the
contractor to the owner that is neither verified by
certification, made under oath, nor verified by affidavit
shall be deemed to have satisfied the requirements of the
relevant provisions of the Act for purposes of protecting the
owner under the Act. Provides that a person who makes a
false statement, material to the issue or point in question,
which he or she does not believe to be true, in an
instrument that is verified by certification or that is
neither verified by certification, made under oath, nor
verified by affidavit and who gives the owner the instrument
commits a Class 3 felony. Effective immediately.
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LRB9007292WHmg
1 AN ACT to amend the Mechanics Lien Act by changing
2 Sections 5 and 24.
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 changing
6 Sections 5 and 24 as follows:
7 (770 ILCS 60/5) (from Ch. 82, par. 5)
8 Sec. 5. Statement by contractor; notice by
9 subcontractor.
10 (a) Statement by contractor.
11 (1) It shall be the duty of the contractor to give
12 the owner, and the duty of the owner to require of the
13 contractor, before the owner or his agent, architect, or
14 superintendent shall pay or cause to be paid to the
15 contractor or to his order any moneys or other
16 consideration due or to become due to the contractor, or
17 make or cause to be made to the contractor any
18 advancement of any moneys or any other consideration, a
19 statement in writing, either verified by certification as
20 set forth in this subsection (a), made under oath, or
21 verified by affidavit, of the names and addresses of all
22 parties furnishing materials and labor and of the amounts
23 due or to become due to each. Merchants and dealers in
24 materials only shall not be required to make statements
25 required in this Section.
26 (2) Each contractor shall provide each owner,
27 either as part of the contract or as a separate printed
28 statement, the following:
29 "THE LAW REQUIRES THAT THE CONTRACTOR SHALL
30 SUBMIT A SWORN OR CERTIFIED STATEMENT OF PERSONS
31 FURNISHING MATERIALS AND LABOR BEFORE ANY PAYMENTS
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1 ARE REQUIRED TO BE MADE TO THE CONTRACTOR."
2 (3) If printed in the contract, the statement shall
3 be set in type that is at least the same size as the
4 largest type used in the body of the contract and is bold
5 face or another font that clearly contrasts with and sets
6 the statement apart from the rest of the body of the
7 contract.
8 (4) The statement given by the contractor to the
9 owner under this subsection (a) may be verified by
10 certification rather than being made under oath or being
11 verified by affidavit. If the statement is verified by
12 certification, the several matters stated shall be stated
13 positively and the person or persons having knowledge of
14 the matters set forth in the statement shall subscribe
15 to a certification in substantially the following form:
16 "Under penalties as provided by law pursuant to Section 5
17 of the Mechanics Lien Act, the undersigned certifies
18 that the matters set forth in this statement are true and
19 correct." A statement verified by certification in
20 accordance with this subsection (a) may be used in the
21 same manner and with the same force and effect as though
22 subscribed and sworn to under oath. A person who makes a
23 false statement, material to the issue or point in
24 question, which he or she does not believe to be true, in
25 an instrument verified by certification by him or her
26 under this subsection (a) commits a Class 3 felony.
27 (5) A statement given or caused to be given by the
28 contractor to the owner under this subsection (a) that
29 is neither verified by certification, made under oath,
30 nor verified by affidavit shall be deemed to have
31 satisfied the requirements of this subsection (a) for
32 purposes of protecting the owner under this Act. A
33 person who makes a false statement, material to the
34 issue or point in question, which he or she does not
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1 believe to be true, in an instrument that is neither
2 verified by certification, made under oath, nor verified
3 by affidavit and who gives the instrument to the owner or
4 causes the instrument to be given to the owner commits a
5 Class 3 felony.
6 (b) Notice by subcontractor. It shall be the duty of
7 each subcontractor who has furnished, or is furnishing,
8 materials or labor for an existing owner-occupied
9 single-family residence, in order to preserve his lien, to
10 notify the occupant either personally or by certified mail,
11 return receipt requested, addressed to the occupant or his
12 agent at the residence within 60 days from his first
13 furnishing materials or labor, that he is supplying materials
14 or labor. Any notice given after 60 days by the
15 subcontractor, however, shall preserve his lien, but only to
16 the extent that the owner has not been prejudiced by payments
17 made before receipt of the notice.
18 The notice shall contain the name and address of the
19 subcontractor or material man, the date he started to work or
20 to deliver materials, the type of work done and to be done or
21 the type of materials delivered and to be delivered, and the
22 name of the contractor requesting the work. The notice shall
23 also contain the following warning:
24 "NOTICE TO OWNER
25 The subcontractor providing this notice has performed
26 work for or delivered material to your home improvement
27 contractor. These services or materials are being used in
28 the improvements to your residence and entitle the
29 subcontractor to file a lien against your residence if the
30 services or materials are not paid for by your home
31 improvement contractor. A lien waiver will be provided to
32 your contractor when the subcontractor is paid, and you are
33 urged to request this waiver from your contractor when paying
34 for your home improvements."
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1 The warning shall be in at least 10 point boldface type.
2 For purposes of this Section, notice by certified mail is
3 considered served at the time of its mailing.
4 (Source: P.A. 87-362.)
5 (770 ILCS 60/24) (from Ch. 82, par. 24)
6 Sec. 24. Sub-contractors, or party furnishing labor or
7 materials, may at any time after making his or her contract
8 with the contractor, and shall within 90 days after the
9 completion thereof, or, if extra or additional work or
10 material is delivered thereafter, within 90 days after the
11 date of completion of such extra or additional work or final
12 delivery of such extra or additional material, cause a
13 written notice of his or her claim and the amount due or to
14 become due thereunder, to be sent by registered or certified
15 mail, with return receipt requested, and delivery limited to
16 addressee only, to or personally served on the owner of
17 record or his agent or architect, or the superintendent
18 having charge of the building or improvement and to the
19 lending agency, if known; however, if the lot or lots and
20 tract or tracts of land in question are registered under the
21 provisions of "An Act concerning land titles", approved May
22 1, 1897, as amended, the notice shall not be served as above
23 stated, but shall be filed in the office of the registrar of
24 titles of the county in which such lot or lots and tract or
25 tracts of land are situated, and such notice shall not be
26 necessary when the sworn statement of the contractor or
27 subcontractor provided for herein shall serve to give the
28 owner notice of the amount due and to whom due, but where
29 such statement is incorrect as to the amount, the
30 subcontractor or material man named shall be protected to the
31 extent of the amount named therein as due or to become due to
32 him or her. For purposes of this Section, notice by
33 registered or certified mail is considered served at the time
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1 of its mailing.
2 The form of such notice may be as follows: To (name of
3 owner): You are hereby notified that I have been employed by
4 (the name of contractor) to (state here what was the contract
5 or what was done, or to be done, or what the claim is for)
6 under his or her contract with you, on your property at (here
7 give substantial description of the property) and that there
8 was due to me, or is to become due (as the case may be)
9 therefor, the sum of $.....
10 Dated at .... this .... day of ....., .....
11 (Signature).....
12 (Source: P.A. 84-551.)
13 Section 99. Effective date. This Act takes effect upon
14 becoming law.