SB3023sam001 98TH GENERAL ASSEMBLY

Sen. John G. Mulroe

Filed: 3/27/2014

09800SB3023sam001 LRB098 17607 HEP 57723 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 including, but not limited to, 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 and if the borrower is in default thereunder or prohibit subordination of the lien, except as provided in Section 21.".