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Public Act 91-0456
HB2724 Enrolled LRB9102003MWpc
AN ACT to amend the Public Construction Bond Act by
changing Section 1.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Public Construction Bond Act is amended
by changing Section 1 as follows:
(30 ILCS 550/1) (from Ch. 29, par. 15)
Sec. 1. Except as otherwise provided by this Act, all
officials, boards, commissions or agents of this State, or of
any political subdivision thereof in making contracts for
public work of any kind costing over $5,000 to be performed
for the State, or a political subdivision thereof shall
require every contractor for the such work to furnish, supply
and deliver a bond to the State, or to the political
subdivision thereof entering into the such contract, as the
case may be, with good and sufficient sureties. The amount of
the such bond shall be fixed by the such officials, boards,
commissions, commissioners or agents, and the such bond,
among other conditions, shall be conditioned for the
completion of the contract, for the payment of material used
in the such work and for all labor performed in the such
work, whether by subcontractor or otherwise.
If the contract is for emergency repairs as provided in
the Illinois Procurement Code, proof of payment for all
labor, materials, apparatus, fixtures, and machinery may be
furnished in lieu of the bond required by this Section.
Each such bond is deemed to contain the following
provisions whether such provisions are inserted in such bond
or not:
"The principal and sureties on this bond agree that all
the undertakings, covenants, terms, conditions and agreements
of the contract or contracts entered into between the
principal and the State or any political subdivision thereof
will be performed and fulfilled and to pay all persons, firms
and corporations having contracts with the principal or with
subcontractors, all just claims due them under the provisions
of such contracts for labor performed or materials furnished
in the performance of the contract on account of which this
bond is given, when such claims are not satisfied out of the
contract price of the contract on account of which this bond
is given, after final settlement between the officer, board,
commission or agent of the State or of any political
subdivision thereof and the principal has been made."
The bond required by this Section may be acquired from
the company, agent or broker of the contractor's choice. The
bond and sureties shall be subject to the right of reasonable
approval or disapproval, including suspension, by the State
or political subdivision thereof concerned.
When other than motor fuel tax funds, federal-aid funds,
or other funds received from the State are used, a political
subdivision may allow the contractor to provide a
non-diminishing irrevocable bank letter of credit, in lieu of
the bond required by this Section, on contracts under
$100,000 to comply with the requirements of this Section.
Any such bank letter of credit shall contain all provisions
required for bonds by this Section.
(Source: P.A. 89-518, eff. 1-1-97.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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