Bill Text: IL HB3636 | 2011-2012 | 97th General Assembly | Amended

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Bill Title: Amends the Illinois Mechanics Lien Act. Adds, to the provisions concerning a written demand by an owner of real estate to a mechanics lienholder stating that the lienholder must file suit within 30 days or the lien is forfeited, the requirement that this express warning be included in the written demand: the failure to respond to the notice within 30 days after receipt of the notice results in forfeiture of the lien.

Spectrum: Moderate Partisan Bill (Democrat 10-2)

Status: (Passed) 2013-02-11 - Public Act . . . . . . . . . 97-1165 [HB3636 Detail]

Download: Illinois-2011-HB3636-Amended.html

Sen. John G. Mulroe

Filed: 5/17/2011

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2 AMENDMENT NO. ______. Amend House Bill 3636 on page 1, by
3replacing line 5 with the following:
4"Sections 16 and 34 as follows:
5 (770 ILCS 60/16) (from Ch. 82, par. 16)
6 Sec. 16. No incumbrance upon land, created before or after
7the making of the contract under the provisions of this act,
8shall operate upon the building erected, or materials furnished
9until a lien in favor of the persons having done work or
10furnished material (hereinafter "lien creditor") shall have
11been satisfied, and upon any questions arising between
12incumbrancers and lien creditors, all previous incumbrances
13shall be preferred only to the extent of the value of the land
14before any improvements at the time of making of the contract,
15but shall not be preferred to the value of any subsequent
16improvements, and each the lien creditor shall be preferred to

09700HB3636sam001- 2 -LRB097 05212 AJO 55770 a
1the value of all the improvements erected on said premises,
2whether or not provided by the lien creditor, and the court
3shall ascertain by jury or otherwise, as the case may require,
4what proportion of the proceeds of any sale shall be paid to
5the several parties in interest. All incumbrances, whether by
6mortgage, judgment or otherwise, charged and shown to be
7fraudulent, in respect to creditors, may be set aside by the
8court, and the premises freed and discharged from such
9fraudulent incumbrance. When the proceeds of a sale are
10insufficient to satisfy the claims of both previous
11incumbrancers and lien creditors, the proceeds of the sale
12shall be distributed as follows: (i) any previous incumbrancers
13shall have a paramount lien in the portion of the proceeds
14attributable to the value of the land before any improvements;
15and (ii) any lien creditors shall have a paramount lien in the
16portion of the proceeds attributable to the value of all
17subsequent improvements made to the property.
18(Source: Laws 1903, p. 230.)"; and
19on page 1, below line 21, by inserting the following:
20 "Section 99. Effective date. This Act takes effect upon
21becoming law.".