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: 2/22/2012

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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 for improvements under the
8provisions of this act, shall operate upon the building
9erected, or materials furnished until a lien in favor of the
10persons having done work or furnished material (hereinafter
11"lien creditor") shall have been satisfied, and upon any
12questions arising between incumbrancers and lien creditors,
13all previous incumbrances shall be preferred only to the extent
14of the value of the land at the time of making of the contract
15for improvements, but shall not be preferred to the value of
16any subsequent improvements, and each the lien creditor shall

09700HB3636sam002- 2 -LRB097 05212 AJO 61501 a
1be preferred to the value of all the subsequent improvements
2erected on said premises, whether or not provided by the lien
3creditor, and the court shall ascertain by jury or otherwise,
4as the case may require, what proportion of the proceeds of any
5sale shall be paid to the several parties in interest. All
6incumbrances, whether by mortgage, judgment or otherwise,
7charged and shown to be fraudulent, in respect to creditors,
8may be set aside by the court, and the premises freed and
9discharged from such fraudulent incumbrance. When the proceeds
10of a sale are insufficient to satisfy the claims of both
11previous incumbrancers and lien creditors, the proceeds of the
12sale shall be distributed as follows: (i) any previous
13incumbrancers shall have a paramount lien in the portion of the
14proceeds attributable to the value of the land at the time of
15making of the contract for improvements; and (ii) any lien
16creditors shall have a paramount lien in the portion of the
17proceeds attributable to the value of all subsequent
18improvements made to the property.
19(Source: Laws 1903, p. 230.)"; and
20on page 1, below line 21, by inserting the following:
21 "Section 99. Effective date. This Act takes effect upon
22becoming law.".