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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
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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
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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,
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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.