Illinois General Assembly - Illinois Compiled Statutes

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55 ILCS 5/5-1123

(55 ILCS 5/5-1123)

Sec. 5-1123. Builder or developer cash bond or other surety.

(a) A county may not require a cash bond, irrevocable letter of credit,
surety bond, or letter of commitment issued by a bank, savings and loan
association, surety, or insurance company from a builder or developer to
guarantee completion of a project improvement when the builder or developer
has filed with the county clerk a current, irrevocable letter of credit, surety
bond, or letter of commitment, issued by a bank, savings and loan association,
surety, or insurance company, deemed good and sufficient by the county
accepting such security, in an amount equal to or greater than 110% of the
amount of the bid on each project improvement.  A builder or developer has
the option to utilize a cash bond, irrevocable letter of credit, surety
bond, or letter of
commitment issued by a bank, savings and loan association, surety, or insurance
company, deemed good and sufficient by the county, to satisfy any cash bond
requirement established by a county.  The county must approve
and deem a surety or insurance company good and sufficient for the purposes
set forth in this Section if the surety or insurance company is
authorized by the Illinois Department
of Insurance to sell and issue sureties in the State of Illinois.

(b) If a county receives a cash bond, irrevocable letter of credit, or
surety bond from a builder or developer to
guarantee completion of a project improvement, the county shall (i) register
the bond under
the address of the project and the construction permit number and (ii) give the
builder or developer a receipt for the bond.  The county shall establish and
maintain a separate account for all cash bonds received from builders and
developers to guarantee completion of a project improvement.

(c) The county shall refund a cash bond to a builder or developer, or
release the irrevocable letter of credit or surety bond, within
60 days after the builder or developer notifies the county in writing of the
completion of the project improvement for which the bond was required.  For
these purposes, "completion" means that the county has determined
that the project improvement for which the bond was required is complete or a
licensed engineer or licensed architect has certified to the builder or
developer and the county that the project improvement has been completed to the
applicable codes and ordinances.  The county shall pay interest to the builder
or developer, beginning 60 days after the builder or developer notifies the
county in writing of the completion of the project improvement, on any bond not
refunded to a builder or developer, at the rate of 1% per month.

(d) A home rule county may not require or maintain cash bonds, irrevocable
letters of credit, surety bonds, or other adequate securities from builders
or developers in a manner inconsistent with this Section.  This Section
supersedes and controls over other provisions of this Code as
they apply to and guarantee completion of a project improvement that is
required by the county.  This Section is a
denial and limitation under subsection (i) of Section 6 of Article VII of the
Illinois Constitution on the concurrent exercise by a home rule county of
powers and functions exercised by the State.

(Source: P.A. 96-1000, eff. 7-2-10.)