Full Text of SB3427 101st General Assembly
SB3427 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB3427 Introduced 2/14/2020, by Sen. Rachelle Crowe SYNOPSIS AS INTRODUCED: |
| 770 ILCS 60/7 | from Ch. 82, par. 7 | 770 ILCS 60/24 | from Ch. 82, par. 24 |
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Amends the Mechanics Lien Act. Provides that no contractor or subcontractor (rather than just a contractor) shall be allowed to enforce a lien against or to the prejudice of any other creditor or incumbrancer or purchaser, unless within 4 months after completion of all work, including extra or additional work under the contractor's contract with the owner (rather than completion or if extra or additional work is delivered within 4 months after the completion of such work), he or she shall either bring an action to enforce his or her lien or shall file in the office of the recorder of the county in which the building, erection, or other improvement to be charged with the lien is situated, a claim for lien, verified by an affidavit. Provides that written notice by a subcontractor shall be due upon the completion of the work under the contractor's contract with the owner.
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| | A BILL FOR |
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| 1 | | AN ACT concerning civil law.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Mechanics Lien Act is amended by changing | 5 | | Sections 7 and 24 as follows:
| 6 | | (770 ILCS 60/7) (from Ch. 82, par. 7)
| 7 | | Sec. 7. Claim for lien; third parties; errors or | 8 | | overcharges; multiple buildings or lots.
| 9 | | (a) No contractor or subcontractor shall be allowed to | 10 | | enforce such lien against
or to the prejudice of any other | 11 | | creditor or incumbrancer or purchaser,
unless within 4 months | 12 | | after completion of all work , including any or if extra or | 13 | | additional
work , is done or labor, services, material, | 14 | | fixtures, apparatus or machinery, forms or form work , under the | 15 | | contractor's contract with the owner is delivered therefor | 16 | | within 4 months after
the completion of such extra or | 17 | | additional work or the final delivery of
such extra or | 18 | | additional labor, services, material, fixtures, apparatus or | 19 | | machinery, forms or form work , he or she shall either bring an | 20 | | action to enforce
his or her lien therefor or shall file in the | 21 | | office of the recorder
of the county in which the building, | 22 | | erection or other improvement to be
charged with the lien is | 23 | | situated, a claim for lien, verified by the
affidavit of |
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| 1 | | himself or herself, or his or her agent or employee, which
| 2 | | shall consist of a
brief statement of the claimant's contract, | 3 | | the balance due after allowing all
credits, and a sufficiently | 4 | | correct description of the lot, lots or
tracts of land to | 5 | | identify the same. Such claim for lien may be filed at
any time | 6 | | after the claimant's contract is made, and as to the owner may | 7 | | be filed at
any time after the contract is made and within 2 | 8 | | years after the
completion of the contractor's contract with | 9 | | the owner , including or the completion of any extra work or the
| 10 | | furnishing of any extra labor, services, material, fixtures, | 11 | | apparatus or machinery, forms or form work thereunder, and as | 12 | | to such owner may be
amended at any time before the final | 13 | | judgment. No such lien shall be
defeated to the proper amount | 14 | | thereof because of an error or
overcharging on the part of any | 15 | | person claiming a lien therefor under
this Act, unless it shall | 16 | | be shown that such error or overcharge is made
with intent to | 17 | | defraud; nor shall any such lien for material be defeated
| 18 | | because of lack of proof that the material after the delivery | 19 | | thereof,
actually entered into the construction of such | 20 | | building or improvement,
although it be shown that such | 21 | | material was not actually used in the
construction of such | 22 | | building or improvement; provided, that it is shown that
such | 23 | | material was delivered either to the owner or his or her agent | 24 | | for that
building or improvement, to be used in that building | 25 | | or improvement, or
at the place where said building or | 26 | | improvement was being constructed,
for the purpose of being |
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| 1 | | used in construction or for the purpose of
being employed in | 2 | | the process of construction as a means for assisting
in the | 3 | | erection of the building or improvement in what is commonly
| 4 | | termed forms or form work where concrete, cement or like | 5 | | material is
used, in whole or in part.
| 6 | | (b) In case of the construction of a number
of buildings | 7 | | under contract between the same parties, it shall be
sufficient | 8 | | in order to establish such lien for material, if it be shown
| 9 | | that such material was in good faith delivered at one of these
| 10 | | buildings for the purpose of being used in the construction of | 11 | | any one
or all of such buildings, or delivered to the owner or | 12 | | his or her agent for
such buildings, to be used therein; and | 13 | | such lien for such material
shall attach to all of said | 14 | | buildings, together with the land upon which
the same are being | 15 | | constructed, the same as in a single building or
improvement. | 16 | | In the event the contract
relates to 2 or more buildings on 2 | 17 | | or more lots or tracts of land,
then all of these buildings and | 18 | | lots or tracts of land may be included in
one statement of | 19 | | claims for a lien.
| 20 | | (c) A statement that a party is a subcontractor shall not | 21 | | constitute an admission by the lien claimant that its status is | 22 | | that of subcontractor if it is later determined that the party | 23 | | with whom the lien claimant contracted was the owner or an | 24 | | agent of the owner.
| 25 | | (d) A contractor for improvements of an owner-occupied | 26 | | single-family residence must give the owner written notice |
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| 1 | | within 10 days after recording a lien against any property of | 2 | | the owner. The notice is served when it is sent or personally | 3 | | delivered. If timely notice is not given and, as a result, the | 4 | | owner has suffered damages before notice is given, the lien is | 5 | | extinguished to the extent of the damages. The mere recording | 6 | | of the lien claim is not considered damages. This subsection | 7 | | does not apply to subcontractors, and it applies only to | 8 | | contracts entered into after the effective date of this | 9 | | amendatory Act of the 96th General Assembly. | 10 | | (Source: P.A. 96-654, eff. 1-1-10.)
| 11 | | (770 ILCS 60/24) (from Ch. 82, par. 24)
| 12 | | Sec. 24. Written notice by sub-contractor; service; when | 13 | | notice not necessary; form of notice.
| 14 | | (a) Sub-contractors, or parties furnishing labor, | 15 | | materials, fixtures, apparatus, machinery, or services, may at
| 16 | | any time after making his or her contract with the contractor, | 17 | | and shall
within 90 days after the completion of the work under | 18 | | the contractor's contract with the owner thereof , or, if extra | 19 | | or additional work
or material is delivered thereafter, within | 20 | | 90 days after the date of
completion of such extra or | 21 | | additional work or final delivery of such extra or
additional | 22 | | material under the contractor's contract with the owner , cause | 23 | | a written notice of his or her claim and the amount
due or to | 24 | | become due thereunder, to be sent by registered or certified
| 25 | | mail, with return receipt requested, and delivery limited to |
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| 1 | | addressee
only, to or personally served on the owner of record | 2 | | or his agent or
architect, or the superintendent having charge | 3 | | of the building or
improvement and to the lending agency, if | 4 | | known; and such notice shall not be
necessary when the sworn | 5 | | statement of the contractor or subcontractor
provided for | 6 | | herein shall serve to give the owner notice of the amount due
| 7 | | and to whom due, but where such statement is incorrect as to | 8 | | the amount,
the subcontractor or material man named shall be | 9 | | protected to the extent of
the amount named therein as due or | 10 | | to become due to him or her. For purposes of
this Section, | 11 | | notice by registered or certified mail is considered served
at | 12 | | the time of its mailing.
| 13 | | The form of such notice may be as follows: To (name of | 14 | | owner): You are
hereby notified that I have been employed by | 15 | | (the name of contractor) to
(state here what was the contract | 16 | | or what was done, or to be done, or what
the claim is for) under | 17 | | his or her contract with you, on your property at (here
give | 18 | | substantial description of the property) and that there was due | 19 | | to me,
or is to become due (as the case may be) therefor, the | 20 | | sum of $.....
| 21 | | Dated at .... this .... day of ....., .....
| 22 | | (Signature).....
| 23 | | (b) The serving of notice pursuant to subsection (a) of | 24 | | this Section shall not constitute an admission by the lien | 25 | | claimant that its status is that of subcontractor if it is | 26 | | later determined that the party with whom the lien claimant |
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| 1 | | contracted was the owner or an agent of the owner.
| 2 | | (Source: P.A. 94-627, eff. 1-1-06.)
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