Sen. John G. Mulroe

Filed: 4/4/2014

 

 


 

 


 
09800SB3023sam003LRB098 17607 HEP 58255 a

1
AMENDMENT TO SENATE BILL 3023

2    AMENDMENT NO. ______. Amend Senate Bill 3023 on page 3, by
3replacing lines 13 through 21 with the following:
 
4    "(d) An agreement to waive any right to enforce or claim
5any lien under this Act, or an agreement to subordinate the
6lien, where the agreement is in anticipation of and in
7consideration for the awarding of a contract or subcontract,
8either express or implied, to perform work or supply materials
9for an improvement upon real property is against public policy
10and unenforceable. This Section does not prohibit release of
11lien under subsection (b) of Section 35 of this Act, nor does
12it prohibit an agreement to subordinate a mechanics lien to a
13mortgage lien that secures a construction loan if that
14agreement is made after more than 50% of the loan has been
15disbursed to fund improvements to the property or prohibit
16subordination of the lien, except as provided in Section 21.";
17and
 

 

 

09800SB3023sam003- 2 -LRB098 17607 HEP 58255 a

1on page 4, by replacing lines 19 through 26 with the following:
 
2    "(b) If the legal effect of a provision in any contract
3between the owner and contractor or contractor and
4subcontractor is that no lien or claim may be filed or
5maintained by any one and the waiver is not prohibited by this
6Act, or that such contractor's lien shall be subordinated to
7the interests of any other party, and the provision is not
8prohibited by this Act, such provision shall be binding if made
9as part of an agreement not prohibited by this Act. such
10provision shall be binding; but the only admissible evidence
11thereof as against a subcontractor or material supplier, shall
12be proof of actual notice thereof to him or her before his or
13her contract is entered into. Such subordination provision
14shall not be binding on the subcontractor unless set forth in
15its entirety in writing in the contract between the contractor
16and subcontractor or material supplier."; and
 
17on page 5, by deleting lines 1 through 5; and
 
18on page 8, by inserting immediately below line 13 the
19following:
 
20    "Section 99. Effective date. This Act takes effect upon
21becoming law.".