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Sen. John G. Mulroe
Filed: 5/17/2011
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| 1 | | AMENDMENT TO HOUSE BILL 3636
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| 2 | | AMENDMENT NO. ______. Amend House Bill 3636 on page 1, by |
| 3 | | replacing line 5 with the following:
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| 4 | | "Sections 16 and 34 as follows:
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| 5 | | (770 ILCS 60/16) (from Ch. 82, par. 16)
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| 6 | | Sec. 16.
No incumbrance upon land, created before or after |
| 7 | | the making of
the contract under the provisions of this act, |
| 8 | | shall operate upon the
building erected, or materials furnished |
| 9 | | until a lien in favor of the
persons having done work or |
| 10 | | furnished material (hereinafter "lien creditor") shall have |
| 11 | | been satisfied,
and upon any questions arising between |
| 12 | | incumbrancers and lien creditors, all
previous incumbrances |
| 13 | | shall be preferred only to the extent of the value of the
land |
| 14 | | before any improvements at the time of making of the contract, |
| 15 | | but shall not be preferred to the value of any subsequent |
| 16 | | improvements, and each the lien creditor shall be
preferred to |
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| 1 | | the value of all the improvements erected on said premises, |
| 2 | | whether or not provided by the lien creditor, and
the court |
| 3 | | shall ascertain by jury or otherwise, as the case may require,
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| 4 | | what proportion of the proceeds of any sale shall be paid to |
| 5 | | the several
parties in interest. All incumbrances, whether by |
| 6 | | mortgage, judgment or
otherwise, charged and shown to be |
| 7 | | fraudulent, in respect to creditors, may
be set aside by the |
| 8 | | court, and the premises freed and discharged from such
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| 9 | | fraudulent incumbrance. When the proceeds of a sale are |
| 10 | | insufficient to satisfy the claims of both previous |
| 11 | | incumbrancers and lien creditors, the proceeds of the sale |
| 12 | | shall be distributed as follows: (i) any previous incumbrancers |
| 13 | | shall have a paramount lien in the portion of the proceeds |
| 14 | | attributable to the value of the land before any improvements; |
| 15 | | and (ii) any lien creditors shall have a paramount lien in the |
| 16 | | portion of the proceeds attributable to the value of all |
| 17 | | subsequent improvements made to the property.
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| 18 | | (Source: Laws 1903, p. 230.)"; and
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| 19 | | on page 1, below line 21, by inserting the following:
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| 20 | | "Section 99. Effective date. This Act takes effect upon |
| 21 | | becoming law.".
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