Bill Text: IL SB3023 | 2013-2014 | 98th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Mechanics Lien Act. Provides that an agreement to subordinate a lien under the Act where the agreement is in anticipation of and in consideration for the awarding of a contract or subcontract, either express or implied, to perform work or supply materials for an improvement upon real property is against public policy and unenforceable. Deletes language providing that certain subordination provisions of contracts is not binding on the subcontractor unless set forth in its entirety in writing in the contract between the contractor and subcontractor or material supplier. Makes corresponding changes.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Passed) 2014-07-16 - Public Act . . . . . . . . . 98-0764 [SB3023 Detail]

Download: Illinois-2013-SB3023-Amended.html

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Sen. John G. Mulroe

Filed: 4/4/2014

09800SB3023sam002 LRB098 17607 HEP 58256 a
AMENDMENT TO SENATE BILL 3023
AMENDMENT NO. ______. Amend Senate Bill 3023 on page 3, by
replacing lines 13 through 21 with the following:
"(d) An agreement to waive any right to enforce or claim
any lien under this Act, or an agreement to subordinate the
lien, where the agreement is in anticipation of and in
consideration for the awarding of a contract or subcontract,
either express or implied, to perform work or supply materials
for an improvement upon real property is against public policy
and unenforceable. This Section does not prohibit release of
lien under subsection (b) of Section 35 of this Act, nor does
it prohibit an agreement to subordinate a mechanics lien to a
mortgage lien that secures a construction loan if that
agreement is made after more than 50% of the loan has been
disbursed to fund improvements to the property or prohibit
subordination of the lien, except as provided in Section 21.";
and

09800SB3023sam002 - 2 - LRB098 17607 HEP 58256 a
on page 8, by inserting immediately below line 13 the
following:
"Section 99. Effective date. This Act takes effect upon
becoming law.".