HB0566eng 94TH GENERAL ASSEMBLY

HB0566 Engrossed LRB094 05756 LCB 35808 b

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Tool and Die Lien Act is amended by changing Sections 1, 2, 3, 5, and 6 and by adding Sections 4.1 and 5.1 as follows:

(770 ILCS 105/1) (from Ch. 82, par. 351)

Sec. 1. Lien.

(A) Plastic or metal processors or persons conducting a plastic or metal processing business shall have a lien on the tools, dies, molds, jigs, fixtures, forms or patterns in their possession belonging to a customer, for the balance due them from such customer for plastic or metal processing work, and for all materials related to such work. The processor may retain possession of the tool, die, mold, jig, fixture, form or pattern until such balance is paid, subject only to a security interest properly perfected pursuant to Article 9 of the Uniform Commercial Code.

(B) A toolmaker has a lien on all special tools produced by it and on all proceeds from the assignment, sale, transfer, exchange, or other disposition of the special tool produced by it until the toolmaker is paid in full all amounts due the toolmaker for the production of the special tool. For the purpose of this subsection:

(1) the lien attaches when the special tool is delivered from the toolmaker to the customer;

(2) the amount of the lien is the amount that a customer or processor owes the toolmaker for the fabrication, repair, or modification of the special tool; and

(3) the toolmaker retains the lien even if the toolmaker is not a possession of the special tool for which the lien is claimed.

(Source: P.A. 85-381.)

(770 ILCS 105/2) (from Ch. 82, par. 352)

Sec. 2. Definitions. For purposes of this Act:

(A) The term "processor" means any individual or entity including, but not limited to, a tool or die maker, who contracted with, or uses a tool, die, mold, jig, fixture, form or pattern to manufacture, assemble, or otherwise make a plastic or metal product or products for a customer.

(B) The term "customer" means any individual or entity who contracted with, or caused a plastic or metal processor to use a tool, die, mold, jig, fixture, form or pattern to manufacture, assemble, or otherwise make plastic or metal components or products.

(C) The term "special tool" means a tool, die, mold, jig, fixture, form, or pattern, or part used to manufacture, assemble, or otherwise make plastic or metal components or products.

(D) The term "toolmaker" means a person including, but not limited to, a mold builder, model maker, patternmaker, molder, die maker, metal former, jig and fixture builder, die sinker, die caster, mold designer, mold programmer, die designer, die programmer, and mold or die engineer, that fabricates, cuts, casts, forms, or designs molds for the plastic industry or dies for the metal forming industry.

(Source: P.A. 85-381.)

(770 ILCS 105/3) (from Ch. 82, par. 353)

Sec. 3. Notice. Before enforcing a such lien as provided for in subsection (A) of Section 1 of this Act, an initial notice in writing shall be given to the customer, either delivered personally or sent by registered mail to the last known address of the customer. This notice shall state that a lien is claimed in the amount therein set forth or thereto attached for processing work contracted or performed for the customer. This notice shall also include a demand for payment.

Before enforcing a lien as provided in subsection (B) of Section 1 of this Act, an initial notice in writing shall be given to the customer and processor, either delivered personally or sent by registered mail to the last known address of the customer and the processor. The notice shall state that a lien is claimed in the amount set forth in or attached to the notice for the fabrication, repair, or modification of the special tool. The notice shall also include a demand for payment.

(Source: P.A. 85-381.)

(770 ILCS 105/4.1 new)

Sec. 4.1. Possession of special tool. If the toolmaker has not been paid the amount claimed in the notice within 90 days after the initial notice is received by the customer and by the processor, the toolmaker has a right to possession of the special tool and may do the following:

(1) enforce the right to possession of the special tool by judgement, foreclosure, or any available judicial procedure;

(2) commence a civil action in circuit court to enforce the lien, including by obtaining a judgment for the amount owed and a judgment permitting the special tool to be sold at an execution sale;

(3) take possession of the special tool, if possession without judicial process can be done without breach of the peace; and

(4) sell the special tool in a public auction.

A toolmaker that suffers damages under this Act may obtain appropriate legal and equitable relief, including damages, in a civil action. The court shall award the toolmaker that is the prevailing party reasonable attorney's fees, court costs, and expenses related to enforcement of the lien.

(770 ILCS 105/5) (from Ch. 82, par. 355)

Sec. 5. Second notice; publication; sale by processor.

(A) Before a processor may sell the die, mold or special tool, the processor shall provide a second written notification to the customer, by registered mail, return receipt requested. The second notice shall include the following information:

(1) The processor's intention to sell the die, mold, or special tool;

(2) A description of the die, mold, or special tool to be sold;

(3) The time and place of the sale; and

(4) An itemized statement for the amount due.

(B) In addition to this notification by mail, the processor shall publish in a newspaper of general circulation in the place where the die, mold, or special tool is being held for sale by the processor, notice of the processor's intention to sell the die, mold, or special tool. The notice shall include a description of the die, mold, or special tool and name of the customer.

(Source: P.A. 85-381.)

(770 ILCS 105/5.1 new)

Sec. 5.1. Second notice; publication; sale by toolmaker.

(A) Before a toolmaker may sell the special tool, the toolmaker shall provide a second written notification to the customer and processor, by registered mail, return receipt requested. The second notice shall include the following information:

(1) the toolmaker's intention to sell the special tool;

(2) a description of the special tool to be sold;

(3) the time and place of the sale; and

(4) an itemized statement for the amount due.

(B) In addition to this notification by mail, the toolmaker shall publish in a newspaper of general circulation in the place where the special tool is being held for sale by the toolmaker, notice of the toolmaker's intention to sell the special tool. The notice shall include a description of the special tool and name of the customer and processor.

(770 ILCS 105/6) (from Ch. 82, par. 356)

Sec. 6. Inspection. (A) Prior to the sale of any die, mold or special tool in accordance with this Act, such item must be available for inspection, upon request, by members of the public during normal business hours for a period of at least 2 weeks prior to the sale.

(B) If the sale is for a sum greater than the amount of the lien, the excess shall be paid to any prior lienholder and any remainder to the customer and the processor.

(C) A sale shall not be made or a possession shall not be obtained under this Act if it would be in violation of any right of a customer or a processor under federal patent, bankruptcy, or copyright law.

(Source: P.A. 85-381.)