90th General Assembly
Summary of HB1111
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Short description: 
CONSTRUCTION TRUST FUND ACT                                                

Synopsis of Bill as introduced:
        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.                
        HOUSE AMENDMENT NO. 1.                                                 
          Deletes reference to:                                                
          New Act                                                              
          Adds reference to:                                                   
          770 ILCS 60/21.02 new                                                
        Deletes everything. Amends the Mechanics Lien Act. Provides that       
   an owner, contractor, subcontractor, or supplier of any tier who            
   requests or requires a waiver of mechanics lien by any person who fur-      
   nishes labor, services, or materials for the improvement of a lot or        
   a tract of land in exchange for payment or the promise or payment,          
   shall hold the unpaid sums in trust subject to the waiver of mechanics      
   lien, as trustee for the person who furnished the labor, services, or       
   materials, which moneys need not be held in a separate account.             
   Provides that a violation of these provisions will subject the              
   violator to liability for all damages sustained. Effective                  
Last action on Bill: PUBLIC ACT.............................. 90-0208

   Last action date: 97-07-25

           Location: House

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   1     SENATE -   0


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