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90_SB0708
770 ILCS 60/21.02 new
770 ILCS 60/21.05 new
Amends the Mechanics Lien Act. Provides that a person
who furnishes labor, services, or materials for the
improvement of lands and who does not have privity of
contract with the contractor must, in addition to meeting
other Act requirements for perfection of his or her lien,
give a written Notice of Furnishing if the person without
privity is furnishing the labor, services, or materials for
an improvement project on which a Notice of Commencement has
been filed by the owner, owner's agent, or contractor.
Prescribes the required content of and the time and manner of
giving and filing the Notice of Furnishing and Notice of
Commencement. Makes the Notice of Furnishing requirement
inapplicable to a subcontractor, materialman, or other person
who, after proper written request, is not timely given a copy
of the Notice of Commencement. Provides for the manner in
which the request for the copy and the giving of the copy are
made. Renders all new notice requirements inapplicable if a
Notice of Commencement is not filed. Exempts laborers from
serving a Notice of Furnishing. Provides that, if a
subcontractor delivers a waiver of lien upon a promise to pay
that is not fulfilled or upon payment by a check that is
dishonored, the subcontractor may, within 30 days after
delivering the waiver of lien, deliver a revocation of waiver
of lien that renders the waiver of lien null and void.
LRB9002916WHmg
LRB9002916WHmg
1 AN ACT to amend the Mechanics Lien Act by adding Section
2 21.05.
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 Sections 21.02 and 21.05 as follows:
7 (770 ILCS 60/21.02 new)
8 Sec. 21.02. Revocation of waiver of lien.
9 Notwithstanding any other provision of this Act, if a
10 subcontractor executes and delivers a waiver of lien to a
11 contractor upon promise of payment or upon receiving payment
12 by check and either payment is not made or the subcontractor
13 negotiates or attempts to negotiate the check and the check
14 is dishonored by the drawee, then the subcontractor may, not
15 more than 30 days after delivering the waiver of lien,
16 execute and deliver to the contractor and the owner a
17 revocation of waiver of lien. If a revocation of waiver of
18 lien is executed and delivered in accordance with the
19 preceding sentence, the waiver of lien is null and void and
20 unenforceable and the subcontractor's lien rights under this
21 Act remain in effect as though the waiver of lien had not
22 been executed or delivered. As used in this Section,
23 "check", "negotiate", and "dishonor" have the meanings
24 ascribed to those terms in Article 3 of the Uniform
25 Commercial Code.
26 A subcontractor's remedies under this Section are in
27 addition to any other available remedies.
28 (770 ILCS 60/21.05 new)
29 Sec. 21.05. Notice of Commencement; Notice to
30 Contractor.
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1 (a) In addition to all other requirements applicable
2 under this Act to the perfection of liens by persons
3 furnishing labor, services, or materials for the improvement
4 of any lot or tract of land in this State, a person who
5 furnishes labor, services, or materials for the improvement
6 of a lot or tract of land and who does not have privity of
7 contract with the contractor shall give a written Notice of
8 Furnishing, meeting the requirements of subsection (c), to
9 the owner or agent of the owner and to the contractor for an
10 improvement project on which there has been filed with the
11 recorder of the county or counties in which the improvement
12 project is located a Notice of Commencement, meeting the
13 requirements of subsection (b), except as otherwise provided
14 in this Section. The Notice of Furnishing shall be given to
15 the owner or the agent of the owner and to the contractor
16 within 21 days from the filing of the Notice of Commencement
17 with the recorder or within 21 days following the first
18 delivery of labor, services, or materials to the improvement
19 project by the person giving the Notice of Furnishing,
20 whichever is later. The Notice of Furnishing shall be given
21 either personally or by certified mail, return receipt
22 requested, addressed to the owner or owner's agent and to the
23 contractor at their respective addresses shown on the Notice
24 of Commencement. For purposes of this subsection, notice by
25 certified mail is considered given at the time of its
26 mailing.
27 (b) Before labor or work is performed on the improvement
28 project, a Notice of Commencement shall be filed by the
29 owner, the agent of the owner, or the contractor with the
30 recorder of the county or counties in which the improvement
31 project is located. A copy of the Notice of Commencement
32 shall be posted on the project site. The Notice of
33 Commencement shall include:
34 (1) The name, address, and telephone number of the
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1 contractor;
2 (2) The name and location of the improvement
3 project being constructed and the legal description or
4 the commonly known address of the lot, lots, or tract of
5 land upon which the improvements are being made;
6 (3) The name and address of the true owner of the
7 lot, lots, or tract of land upon which the improvements
8 are being made;
9 (4) The name and address of the person other than
10 the owner at whose instance the improvements are being
11 made, if not the true owner of the lot, lots, or tract of
12 land upon which the improvements are being made;
13 (5) The name and the address of the surety for the
14 performance and payment bonds, if any; and
15 (6) The name and address of the construction
16 lender, if any.
17 The owner, the agent of the owner, or the contractor shall
18 give a copy of the Notice of Commencement to any
19 subcontractor, materialman, or person who gives a written
20 request to the owner, the agent of the owner, or the
21 contractor requesting the copy. Failure to give a copy of the
22 Notice of Commencement within 10 calendar days of the giving
23 of the written request by the subcontractor, materialman, or
24 person shall render this Section inapplicable to the
25 subcontractor, materialman, or person making the request.
26 The written request for a copy of the Notice of Commencement
27 shall be given either personally or by certified mail, return
28 receipt requested, addressed to the owner, owner's agent, or
29 contractor, and the requested copy of the Notice of
30 Commencement shall be given to the subcontractor,
31 materialman, or person making the request either personally
32 or by certified mail, return receipt requested, addressed to
33 the subcontractor, materialman, or person making the request
34 at the address shown on the request. For purposes of this
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1 Section, if the written request for a copy of the Notice of
2 Commencement is given by certified mail or if the requested
3 copy of the Notice of Commencement is given by certified mail
4 to the subcontractor, materialman, or person requesting it,
5 the request or copy of the notice, as the case may be, is
6 considered given at the time of mailing.
7 (c) A Notice of Furnishing shall be given to the owner
8 or the agent of the owner and to the contractor at the
9 addresses set forth in the Notice of Commencement setting
10 forth:
11 (1) The name, address, and telephone number of the
12 person providing labor, services, or materials;
13 (2) The name and address of each person at whose
14 instance the labor, services, or materials are being
15 furnished;
16 (3) The name of the improvement project and
17 location of the improvement project set forth in the
18 Notice of Commencement; and
19 (4) A description of the labor, services, or
20 materials being provided and, if known, the contract
21 price or anticipated value of the labor, services, or
22 materials to be provided or the amount claimed to be due,
23 if any.
24 (d) The failure to file a Notice of Commencement shall
25 render the provisions of this Section inapplicable. The
26 filing of a Notice of Commencement shall not constitute a
27 cloud, lien, or encumbrance upon or defect to the title of
28 the lot, lots, or tract of land described in the Notice of
29 Commencement, nor shall it alter the aggregate amount of
30 liens allowable, nor shall it affect the priority of any loan
31 in which the lot, lots, or tract of land is to secure payment
32 of the loan filed before or after the Notice of Commencement,
33 nor shall it affect the future advances under any such loan.
34 (e) The recorder shall file the Notice of Commencement
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1 within the records of that office and shall maintain an index
2 therefor in the same manner that contracts or stipulations
3 between owners and contractors are required to be filed and
4 indexed under Section 21 of this Act. However, each Notice
5 of Commencement shall be indexed under the name of the true
6 owner and the contractor as contained in the Notice of
7 Commencement.
8 (f) No laborer is required to serve a Notice of
9 Furnishing under this Section to preserve lien rights.