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Sen. John G. Mulroe
Filed: 2/22/2012
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| 1 | | AMENDMENT TO HOUSE BILL 3636
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| 2 | | AMENDMENT NO. ______. Amend House Bill 3636 on page 1, by |
| 3 | | replacing line 5 with the following:
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| 4 | | "Sections 16 and 34 as follows:
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| 5 | | (770 ILCS 60/16) (from Ch. 82, par. 16)
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| 6 | | Sec. 16.
No incumbrance upon land, created before or after |
| 7 | | the making of
the contract for improvements under the |
| 8 | | provisions of this act, shall operate upon the
building |
| 9 | | erected, or materials furnished until a lien in favor of the
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| 10 | | persons having done work or furnished material (hereinafter |
| 11 | | "lien creditor") shall have been satisfied,
and upon any |
| 12 | | questions arising between incumbrancers and lien creditors, |
| 13 | | all
previous incumbrances shall be preferred only to the extent |
| 14 | | of the value of the
land at the time of making of the contract |
| 15 | | for improvements, but shall not be preferred to the value of |
| 16 | | any subsequent improvements, and each the lien creditor shall |
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| 1 | | be
preferred to the value of all the subsequent improvements |
| 2 | | erected on said premises, whether or not provided by the lien |
| 3 | | creditor, and
the court shall ascertain by jury or otherwise, |
| 4 | | as the case may require,
what proportion of the proceeds of any |
| 5 | | sale shall be paid to the several
parties in interest. All |
| 6 | | incumbrances, whether by mortgage, judgment or
otherwise, |
| 7 | | charged and shown to be fraudulent, in respect to creditors, |
| 8 | | may
be set aside by the court, and the premises freed and |
| 9 | | discharged from such
fraudulent incumbrance. When the proceeds |
| 10 | | of a sale are insufficient to satisfy the claims of both |
| 11 | | previous incumbrancers and lien creditors, the proceeds of the |
| 12 | | sale shall be distributed as follows: (i) any previous |
| 13 | | incumbrancers shall have a paramount lien in the portion of the |
| 14 | | proceeds attributable to the value of the land at the time of |
| 15 | | making of the contract for improvements; and (ii) any lien |
| 16 | | creditors shall have a paramount lien in the portion of the |
| 17 | | proceeds attributable to the value of all subsequent |
| 18 | | improvements made to the property.
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| 19 | | (Source: Laws 1903, p. 230.)"; and
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| 20 | | on page 1, below line 21, by inserting the following:
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| 21 | | "Section 99. Effective date. This Act takes effect upon |
| 22 | | becoming law.".
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