State of Illinois
90th General Assembly
Legislation

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[ Engrossed ][ House Amendment 001 ][ Senate Amendment 001 ]

90_SB1544

      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.
                                                     LRB9009367WHpk
                                               LRB9009367WHpk
 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    Section 21.05 as follows:
 7        (770 ILCS 60/21.05 new)
 8        Sec.   21.05.    Notice   of   Commencement;   Notice  to
 9    Contractor.
10        (a)  In addition to  all  other  requirements  applicable
11    under  this  Act  to  the  perfection  of  liens  by  persons
12    furnishing  labor, services, or materials for the improvement
13    of any lot or tract of land  in  this  State,  a  person  who
14    furnishes  labor,  services, or materials for the improvement
15    of a lot or tract of land and who does not  have  privity  of
16    contract  with  the contractor shall give a written Notice of
17    Furnishing, meeting the requirements of  subsection  (c),  to
18    the  owner or agent of the owner and to the contractor for an
19    improvement project on which there has been  filed  with  the
20    recorder  of  the county or counties in which the improvement
21    project is located a  Notice  of  Commencement,  meeting  the
22    requirements  of subsection (b), except as otherwise provided
23    in this Section.  The Notice of Furnishing shall be given  to
24    the  owner  or  the  agent of the owner and to the contractor
25    within 21 days from the filing of the Notice of  Commencement
26    with  the  recorder  or  within  21  days following the first
27    delivery of labor, services, or materials to the  improvement
28    project  by  the  person  giving  the  Notice  of Furnishing,
29    whichever is later.  The Notice of Furnishing shall be  given
30    either  personally  or  by  certified  mail,  return  receipt
31    requested, addressed to the owner or owner's agent and to the
                            -2-                LRB9009367WHpk
 1    contractor  at their respective addresses shown on the Notice
 2    of Commencement.  For purposes of this subsection, notice  by
 3    certified  mail  is  considered  given  at  the  time  of its
 4    mailing.
 5        (b)  Before labor or work is performed on the improvement
 6    project, a Notice of  Commencement  shall  be  filed  by  the
 7    owner,  the  agent  of  the owner, or the contractor with the
 8    recorder of the county or counties in which  the  improvement
 9    project  is  located.   A  copy of the Notice of Commencement
10    shall  be  posted  on  the  project  site.   The  Notice   of
11    Commencement shall include:
12             (1)  The  name, address, and telephone number of the
13        contractor;
14             (2)  The  name  and  location  of  the   improvement
15        project  being  constructed  and the legal description of
16        the  lot,  lots,  or  tract  of  land  upon   which   the
17        improvements are being made;
18             (3)  The  name  and address of the true owner of the
19        lot, lots, or tract of land upon which  the  improvements
20        are being made;
21             (4)  The  name  and address of the person other than
22        the owner at whose instance the  improvements  are  being
23        made, if not the true owner of the lot, lots, or tract of
24        land upon which the improvements are being made;
25             (5)  The  name and the address of the surety for the
26        performance and payment bonds, if any; and
27             (6)  The  name  and  address  of  the   construction
28        lender, if any.
29    The  owner,  the  agent of the owner, or the contractor shall
30    give  a  copy  of  the  Notice   of   Commencement   to   any
31    subcontractor,  materialman,  or  person  who gives a written
32    request to  the  owner,  the  agent  of  the  owner,  or  the
33    contractor requesting the copy. Failure to give a copy of the
34    Notice  of Commencement within 10 calendar days of the giving
                            -3-                LRB9009367WHpk
 1    of the written request by the subcontractor, materialman,  or
 2    person   shall   render  this  Section  inapplicable  to  the
 3    subcontractor, materialman, or  person  making  the  request.
 4    The  written request for a copy of the Notice of Commencement
 5    shall be given either personally or by certified mail, return
 6    receipt requested, addressed to the owner, owner's agent,  or
 7    contractor,   and   the  requested  copy  of  the  Notice  of
 8    Commencement   shall   be   given   to   the   subcontractor,
 9    materialman, or person making the request  either  personally
10    or  by certified mail, return receipt requested, addressed to
11    the subcontractor, materialman, or person making the  request
12    at  the  address  shown on the request.  For purposes of this
13    Section, if the written request for a copy of the  Notice  of
14    Commencement  is  given by certified mail or if the requested
15    copy of the Notice of Commencement is given by certified mail
16    to the subcontractor, materialman, or person  requesting  it,
17    the  request  or  copy  of the notice, as the case may be, is
18    considered given at the time of mailing.
19        (c)  A Notice of Furnishing shall be given to  the  owner
20    or  the  agent  of  the  owner  and  to the contractor at the
21    addresses set forth in the  Notice  of  Commencement  setting
22    forth:
23             (1)  The  name, address, and telephone number of the
24        person providing labor, services, or materials;
25             (2)  The name and address of each  person  at  whose
26        instance  the  labor,  services,  or  materials are being
27        furnished;
28             (3)  The  name  of  the  improvement   project   and
29        location  of  the  improvement  project  set forth in the
30        Notice of Commencement; and
31             (4)  A  description  of  the  labor,  services,   or
32        materials  being  provided  and,  if  known, the contract
33        price or anticipated value of  the  labor,  services,  or
34        materials to be provided or the amount claimed to be due,
                            -4-                LRB9009367WHpk
 1        if any.
 2        (d)  The  failure  to file a Notice of Commencement shall
 3    render the provisions  of  this  Section  inapplicable.   The
 4    filing  of  a  Notice  of Commencement shall not constitute a
 5    cloud, lien, or encumbrance upon or defect to  the  title  of
 6    the  lot,  lots,  or tract of land described in the Notice of
 7    Commencement, nor shall it  alter  the  aggregate  amount  of
 8    liens allowable, nor shall it affect the priority of any loan
 9    in which the lot, lots, or tract of land is to secure payment
10    of the loan filed before or after the Notice of Commencement,
11    nor shall it affect the future advances under any such loan.
12        (e)  The  recorder  shall file the Notice of Commencement
13    within the records of that office and shall maintain an index
14    therefor in the same manner that  contracts  or  stipulations
15    between  owners  and contractors are required to be filed and
16    indexed under Section 21 of this Act.  However,  each  Notice
17    of  Commencement  shall be indexed under the name of the true
18    owner and the  contractor  as  contained  in  the  Notice  of
19    Commencement.
20        (f)  No   laborer  is  required  to  serve  a  Notice  of
21    Furnishing under this Section to preserve lien rights.

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