Public Act 097-1165
HB3636 EnrolledLRB097 05212 AJO 45261 b
AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Mechanics Lien Act is amended by changing
Sections 16 and 34 as follows:
(770 ILCS 60/16) (from Ch. 82, par. 16)
Sec. 16. No incumbrance upon land, created before or after
the making of the contract for improvements under the
provisions of this act, shall operate upon the building
erected, or materials furnished until a lien in favor of the
persons having done work or furnished material (hereinafter
"lien creditor") shall have been satisfied, and upon any
questions arising between incumbrancers and lien creditors,
all previous incumbrances shall be preferred only to the extent
of the value of the land at the time of making of the contract
for improvements, but shall not be preferred to the value of
any subsequent improvements, and each the lien creditor shall
be preferred to the value of all the subsequent improvements
erected on said premises, whether or not provided by the lien
creditor, and the court shall ascertain by jury or otherwise,
as the case may require, what proportion of the proceeds of any
sale shall be paid to the several parties in interest. All
incumbrances, whether by mortgage, judgment or otherwise,
charged and shown to be fraudulent, in respect to creditors,
may be set aside by the court, and the premises freed and
discharged from such fraudulent incumbrance. When the proceeds
of a sale are insufficient to satisfy the claims of both
previous incumbrancers and lien creditors, the proceeds of the
sale shall be distributed as follows: (i) any previous
incumbrancers shall have a paramount lien in the portion of the
proceeds attributable to the value of the land at the time of
making of the contract for improvements; and (ii) any lien
creditors shall have a paramount lien in the portion of the
proceeds attributable to the value of all subsequent
improvements made to the property.
(Source: Laws 1903, p. 230.)
(770 ILCS 60/34) (from Ch. 82, par. 34)
Sec. 34. Notice to commence suit.
(a) Upon written demand of the owner, lienor, or any person
interested in the real estate, or their agent or attorney,
served on the person claiming the lien, or his agent or
attorney, requiring suit to be commenced to enforce the lien or
answer to be filed in a pending suit, suit shall be commenced
or answer filed within 30 days thereafter, or the lien shall be
forfeited. Such service may be by registered or certified mail,
return receipt requested, or by personal service.
(b) A written demand under this Section must contain the
following language in at least 10 point bold face type:
"Failure to respond to this notice within 30 days after
receipt, as required by Section 34 of the Mechanics Lien Act,
shall result in the forfeiture of the referenced lien."
(Source: P.A. 82-618.)
Section 99. Effective date. This Act takes effect upon
becoming law.