Public Act 094-0627
 
SB1930 Enrolled LRB094 08997 LCB 41406 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 1, 2, 3, 5, 7, 11, 13, 21, 21.01, 21.02, 22, 24, 25,
26, 28, 30, 32, and 35 as follows:
 
    (770 ILCS 60/1)  (from Ch. 82, par. 1)
    Sec. 1. Contractor defined; amount of lien; waiver of lien;
attachment of lien; agreement to waive; when not enforceable.
    (a) Any person who shall by any contract or contracts,
express or implied, or partly expressed or implied, with the
owner of a lot or tract of land, or with one whom the owner has
authorized or knowingly permitted to contract, to improve the
lot or tract of land or for the purpose of improving the tract
of land, or to manage a structure under construction thereon,
is known under this Act as a contractor and has a lien upon the
whole of such lot or tract of land and upon adjoining or
adjacent lots or tracts of land of such owner constituting the
same premises and occupied or used in connection with such lot
or tract of land as a place of residence or business; and in
case the contract relates to 2 or more buildings, on 2 or more
lots or tracts of land, upon all such lots and tracts of land
and improvements thereon for the amount due to him or her for
the material, fixtures, apparatus, machinery, services or
labor, and interest at the rate of 10% per annum from the date
the same is due. This lien extends to an estate in fee, for
life, for years, or any other estate or any right of redemption
or other interest that the owner may have in the lot or tract
of land at the time of making such contract or may subsequently
acquire and this lien attaches as of the date of the contract.
    (b) As used in subsection (a) of this Section, "improve"
means thereon, or to furnish labor, services, material,
fixtures, apparatus or machinery, forms or form work used in
the process of construction where cement, concrete or like
material is used for the purpose of or in the building,
altering, repairing or ornamenting any house or other building,
walk or sidewalk, whether the walk or sidewalk is on the land
or bordering thereon, driveway, fence or improvement or
appurtenances to the lot or tract of land or connected
therewith, and upon, over or under a sidewalk, street or alley
adjoining; or fill, sod or excavate such lot or tract of land,
or do landscape work thereon or therefor; or raise or lower any
house thereon or remove any house thereto, or remove any house
or other structure therefrom, or perform any services or incur
any expense as an architect, structural engineer, professional
engineer, land surveyor or property manager in, for or on a lot
or tract of land for any such purpose; or drill any water well
thereon; or furnish or perform labor or services as
superintendent, time keeper, mechanic, laborer or otherwise,
in the building, altering, repairing or ornamenting of the
same; or furnish material, fixtures, apparatus, machinery,
labor or services, forms or form work used in the process of
construction where concrete, cement or like material is used,
or drill any water well on the order of his agent, architect,
structural engineer or superintendent having charge of the
improvements, building, altering, repairing or ornamenting the
same. , is known under this Act as a contractor, and has a lien
upon the whole of such lot or tract of land and upon adjoining
or adjacent lots or tracts of land of such owner constituting
the same premises and occupied or used in connection with such
lot or tract of land as a place of residence or business; and
in case the contract relates to 2 or more buildings, on 2 or
more lots or tracts of land, upon all such lots and tracts of
land and improvements thereon for the amount due to him for
such material, fixtures, apparatus, machinery, services or
labor, and interest at the rate of 10% per annum from the date
the same is due. This lien extends to an estate in fee, for
life, for years, or any other estate or any right of
redemption, or other interest which the owner may have in the
lot or tract of land at the time of making such contract or may
subsequently acquire.
    (c) The taking of additional security by the contractor or
sub-contractor is not a waiver of any right of lien which he
may have by virtue of this Act, unless made a waiver by express
agreement of the parties and the waiver is not prohibited by
this Act. This lien attaches as of the date of the contract.
    (d) An agreement to waive any right to enforce or claim any
lien under this 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. This Section does not
prohibit release of lien under subsection (b) of Section 35 of
this Act or prohibit subordination of the lien, except as
provided in Section 21.
(Source: P.A. 86-807; 87-361.)
 
    (770 ILCS 60/2)  (from Ch. 82, par. 2)
    Sec. 2. Labor, services, material, fixtures, apparatus or
machinery, forms or form work furnished by mistake. Any person
furnishing labor, services, labor or material, fixtures,
apparatus or machinery, forms or form work for the erection of
a building, or structure, or improvement, by mistake upon land
owned by another than the party contracting as owner, shall
have a lien for such labor, services, labor or material,
fixtures, apparatus or machinery, forms or form work upon such
building, or structure or improvement, and the court, in the
enforcement of such lien, shall order and direct such building,
structure or improvement to be separately sold under its
judgment, and the purchaser may remove the same within such
reasonable time as the court may fix.
(Source: P.A. 84-452; 84-545.)
 
    (770 ILCS 60/3)  (from Ch. 82, par. 3)
    Sec. 3. Labor, services, material, fixtures, apparatus or
machinery, forms or form work furnished for lands of married
person; lands held by husband and wife. If any such labor,
services, material, fixtures, apparatus or machinery, forms or
form work or labor are performed upon or materials are
furnished for lands belonging to any married person, with the
married person's knowledge and not against the married person's
protest in writing, as provided in Section 1 of this Act, in
pursuance of a contract with the spouse of such married person,
the person furnishing such labor, services, material,
fixtures, apparatus or machinery, forms or form work or
materials shall have a lien upon such property, the same as if
such contract had been made with the married person, and in
case the title to such lands upon which improvements are made
is held by married persons husband and wife jointly, the lien
given by this act shall attach to such lands and improvements,
if the improvements be made in pursuance of a contract with
both of them, or in pursuance of a contract with either of
them, and in such cases no claim of homestead right set up by a
husband or wife shall defeat the lien given by this Act. For
purposes of this Section, property shall be deemed to be held
jointly if title is held by the parties either in tenancy by
the entirety or jointly, with right of survivorship and not as
tenants in common.
(Source: P.A. 78-846.)
 
    (770 ILCS 60/5)  (from Ch. 82, par. 5)
    Sec. 5. Statement of persons furnishing labor, services,
material, fixtures, apparatus or machinery, forms or form work
notice to owner of waiver; size of type.
    (a) It shall be the duty of the contractor to give the
owner, and the duty of the owner to require of the contractor,
before the owner or his agent, architect, or superintendent
shall pay or cause to be paid to the contractor or to his order
any moneys or other consideration due or to become due to the
contractor, or make or cause to be made to the contractor any
advancement of any moneys or any other consideration, a
statement in writing, under oath or verified by affidavit, of
the names and addresses of all parties furnishing materials and
labor, services, material, fixtures, apparatus or machinery,
forms or form work and of the amounts due or to become due to
each. Merchants and dealers in materials only shall not be
required to make statements required in this Section.
    (b) The following shall apply to an owner-occupied
single-family residence:
        (i) Each contractor shall provide the each owner or his
    or her agent, either as part of the contract or as a
    separate printed statement given before the owner or his
    agent makes the first payment for labor, materials,
    fixtures, apparatus or machinery, the following:
        "THE LAW REQUIRES THAT THE CONTRACTOR SHALL SUBMIT A
    SWORN STATEMENT OF PERSONS FURNISHING MATERIALS AND LABOR,
    SERVICES, MATERIAL, FIXTURES, APPARATUS OR MACHINERY,
    FORMS OR FORM WORK BEFORE ANY PAYMENTS ARE REQUIRED TO BE
    MADE TO THE CONTRACTOR."
        If the owners of the property are persons living
    together, the aforesaid statement is conclusively presumed
    given to each such owners if given to one of them. printed
    in the contract, the statement shall be set in type that is
    at least the same size as the largest type used in the body
    of the contract and is bold face or another font that
    clearly contrasts with and sets the statement apart from
    the rest of the body of the contract.
        (ii) Each It shall be the duty of each subcontractor
    who has furnished, or is furnishing, labor, services,
    material, fixtures, apparatus or machinery, forms or form
    work materials or labor for an existing owner-occupied
    single-family residence, in order to preserve his lien,
    shall to notify the occupant either personally or by
    certified mail, return receipt requested, addressed to the
    occupant or his agent at the residence within 60 days from
    his first furnishing labor, services, material, fixtures,
    apparatus or machinery, forms or form work, of his
    agreement to do so. materials or labor, that he is
    supplying materials or labor. Any notice given after 60
    days by the subcontractor, however, shall preserve his
    lien, but only to the extent that the owner has not been
    prejudiced by payments made before receipt of the notice.
        The notice shall contain the name and address of the
    subcontractor or material man, the date he started to work
    or to deliver materials, the type of work done and to be
    done or the type of labor, services, material, fixtures,
    apparatus or machinery, forms or form work materials
    delivered and to be delivered, and the name of the
    contractor requesting the work. The notice shall also
    contain the following warning:
    
"NOTICE TO OWNER
        The subcontractor providing this notice has performed
    work for or delivered material to your home improvement
    contractor. These services or materials are being used in
    the improvements to your residence and entitle the
    subcontractor to file a lien against your residence if the
    labor, services, material, fixtures, apparatus or
    machinery, forms or form work or materials are not paid for
    by your home improvement contractor. A lien waiver will be
    provided to your contractor when the subcontractor is paid,
    and you are urged to request this waiver from your
    contractor when paying for your home improvements."
        (iii) The statement and the notices required by
    subdivisions (b)(i) and (b)(ii) of this Section The warning
    shall be in at least 10 point boldface type. For purposes
    of this Section, notice by certified mail is considered
    served at the time of its mailing. Any notice given
    pursuant to subdivision (b)(ii) of this Section after 60
    days by the subcontractor, however, shall preserve his or
    her lien, but only to the extent that the owner has not
    been prejudiced by payments made before receipt of the
    notice.
(Source: P.A. 87-362.)
 
    (770 ILCS 60/7)  (from Ch. 82, par. 7)
    Sec. 7. Claim for lien; third parties; errors or
overcharges; multiple buildings or lots. No contractor shall be
allowed to enforce such lien against or to the prejudice of any
other creditor or incumbrancer or purchaser, unless within 4
months after completion, or if extra or additional work is done
or labor, services, material, fixtures, apparatus or
machinery, forms or form work is delivered therefor within 4
months after the completion of such extra or additional work or
the final delivery of such extra or additional labor, services,
material, fixtures, apparatus or machinery, forms or form work,
he or she shall either bring an action to enforce his or her
lien therefor or shall file in the office of the recorder of
the county in which the building, erection or other improvement
to be charged with the lien is situated, a claim for lien,
verified by the affidavit of himself or herself, or his or her
agent or employee, which shall consist of a brief statement of
the claimant's contract, the balance due after allowing all
credits, and a sufficiently correct description of the lot,
lots or tracts of land to identify the same. Such claim for
lien may be filed at any time after the claimant's contract is
made, and as to the owner may be filed at any time after the
contract is made and within 2 years after the completion of the
contract, or the completion of any extra work or the furnishing
of any extra labor, services, material, fixtures, apparatus or
machinery, forms or form work thereunder, and as to such owner
may be amended at any time before the final judgment. No such
lien shall be defeated to the proper amount thereof because of
an error or overcharging on the part of any person claiming a
lien therefor under this Act, unless it shall be shown that
such error or overcharge is made with intent to defraud; nor
shall any such lien for material be defeated because of lack of
proof that the material after the delivery thereof, actually
entered into the construction of such building or improvement,
although it be shown that such material was not actually used
in the construction of such building or improvement; provided,
that Provided, it is shown that such material was delivered
either to the owner or his or her agent for that building or
improvement, to be used in that building or improvement, or at
the place where said building or improvement was being
constructed, for the purpose of being used in construction or
for the purpose of being employed in the process of
construction as a means for assisting in the erection of the
building or improvement in what is commonly termed forms or
form work where concrete, cement or like material is used, in
whole or in part.
    In case of the construction of a number of buildings under
contract between the same parties, it shall be sufficient in
order to establish such lien for material, if it be shown that
such material was in good faith delivered at one of these
buildings for the purpose of being used in the construction of
any one or all of such buildings, or delivered to the owner or
his or her agent for such buildings, to be used therein; and
such lien for such material shall attach to all of said
buildings, together with the land upon which the same are being
constructed, the same as in a single building or improvement.
In the event the contract relates to 2 or more buildings on 2
or more lots or tracts of land, then all of these buildings and
lots or tracts of land may be included in one statement of
claims for a lien.
    A statement that a party is a subcontractor shall not
constitute an admission by the lien claimant that its status is
that of subcontractor if it is later determined that the party
with whom the lien claimant contracted was the owner or an
agent of the owner.
(Source: P.A. 83-358.)
 
    (770 ILCS 60/11)  (from Ch. 82, par. 11)
    Sec. 11. Averments in pleading; parties; dismissal;
notice.
    (a) Any pleading asserting a claim for lien The complaint
shall contain (i) a brief statement of the contract or
contracts to which the person (hereinafter called the
"claimant") asserting a claim for lien in the pleading is a
party and by the terms of which the claimant is employed to
furnish lienable services or material for the real property
(herein called the "premises"), (ii) the date when the contract
or contracts were dated or entered into, (iii) the date on
which the claimant's work, labor or material labor, services,
material, fixtures, apparatus or machinery, forms or form work
was last performed or furnished, whether the claimant completed
furnishing or performing its work, labor and material labor,
services, material, fixtures, apparatus or machinery, forms or
form work and if not why, (iv) on which it is founded, the
date, when made, and when completed, if not completed, why, and
it shall also set forth the amount due and unpaid to the
claimant, (v) , a description of the premises, and (vi) premises
which are subject to the lien, and such other facts as may be
necessary for to a full understanding of the rights of the
parties. Where plans and specifications are by reference made a
part of a the contract that is required to be alleged in a
pleading, it shall not be necessary to set the same out in the
pleading pleadings or attached as exhibits, but the same may be
produced on the trial of the suit. It shall not be necessary to
include a statement of any contract to which the claimant is
not a contracting party.
    (b) Each claimant shall make as parties to its pleading
(hereinafter called "necessary parties") the owner of the
premises, the contractor, all persons in the chain of contracts
between the claimant and the owner, all persons who have
asserted or may assert liens against the premises under this
Act, and any other person against whose interest in the
premises the claimant asserts a claim.
    (c) Necessary parties whose claims or interests are not
disclosed by a document recorded at the time a proper lis
pendens of the action under Section 2-1901 of the Code of Civil
Procedure has been recorded (or if the action is instituted as
a mortgage foreclosure at the time a proper notice of
foreclosure under Section 15-1503 of the Code of Civil
Procedure has been recorded) may be named and made parties
under the description of "unknown necessary parties". Persons
other than unknown necessary parties who may be interested in
the premises but whose identities are unknown to the claimant
may be named and made parties to the action under the
description of "unknown owners".
    (d) A claimant may, in its, his or her discretion, make as
parties (hereinafter called "permissible parties") to the
action any other persons having a legal, equitable or
possessory interest in or claim to the whole or any part of the
premises, but failure to make any such permissible party a
party to the action shall not defeat the lien, but the claim of
each claimant asserting a lien claim under this Act in the
action shall be subject to the interest of such permissible
party not made a party, and the action shall not adversely
affect the interest of any such permissible party not made a
party and not served with notice by summons or publication in
the action as provided in this Act.
    (e) The plaintiff shall cause notice to be given to all
such necessary parties or cause them to be served by summons or
by publication in like manner and upon the same conditions as
in other civil actions, and the plaintiff's failure to do so,
shall be grounds for judgment against him, her, or it on the
merits. A claimant other than the plaintiff asserting a claim
in the action under this Act shall also cause notice to be
given to or cause summons to be served upon any necessary
parties who have not been joined to the action, and his, her,
or its failure to do so shall be grounds for judgment against
him, her or it on the merits. Process may issue and service by
publication may be had against those persons so named under the
descriptions of "unknown necessary parties" or "unknown
owners", and judgments entered against them shall be of the
same effect as though they had been designated by and served
under their proper names, provided that any judgment shall only
bind any person served by publication with respect to their
interests in the premises and liens asserted or assertable
against the premises under this Act. A person who has been
properly served in the action by summons or by publication by
any claimant shall be deemed properly served by all claimants
in the action regardless of whether such persons have been
served before or after such claimants or any of them shall have
appeared, filed their pleadings or become parties to the
action, provided that nothing in this Section 11 shall excuse a
claimant from joining all necessary parties to the claimant's
pleading, whether as named parties, unknown necessary parties,
or unknown owners, within the time permitted by this Act.
Nothing in this Section 11 shall prevent service by publication
in any proceeding brought under this Act where authorized by
this Act in like manner and upon the same conditions as in
other civil actions.
    (f) Any necessary party or permissible party who has not
been joined to the action under his, her, or its proper name,
may, upon application of such party The plaintiff shall make
all parties interested, of whose interest he is notified or has
knowledge, parties defendant, and summons shall issue and
service thereof be had as in other civil actions; and when any
defendant resides or has gone out of the State, or on inquiry
cannot be found, or is concealed within this State, so that
process cannot be served on him, the plaintiff shall cause a
notice to be given to him, or cause a copy of the complaint to
be served upon him, in like manner and upon the same conditions
as is provided in other civil actions, and his failure to so
act with regard to summons or notice shall be ground for
judgment against him as upon the merits. The same rule shall
prevail with counterclaimants with regard to any person of
whose interest they have knowledge, and who are not already
parties to the suit or action. Parties in interest, within the
meaning of this act, shall include persons entitled to liens
thereunder whose claims are not, as well as are, due at the
time of the commencement of suit, and such claim shall be
allowed subject to a reduction of interest from the date of
judgment to the time the claim is due; also all persons who may
have any valid claim to the whole or any part of the premises
upon which a lien may be attempted to be enforced under the
provisions thereof, or who are interested in the subject matter
of the suit. Any such persons may, on application to the court
wherein the action suit is pending, be made or become a party
parties at any time before final judgment, but such joinder
shall not give such party any substantive rights not otherwise
provided by law, or excuse failure to comply with the
provisions of any applicable law.
    (g) No action under the provisions of this act shall be
voluntarily dismissed by the party bringing it without due
notice to all parties to before the action, court and upon
leave of court for upon good cause shown and upon terms
approved designated by the court.
(Source: P.A. 79-1358.)
 
    (770 ILCS 60/13)  (from Ch. 82, par. 13)
    Sec. 13. Defendant shall answer as in other civil actions.
    (a) The owner may make any defense against the contractor
by way of counter claim that he could in any civil action for
the payment of money, and may have the same right of recovery
on proof of such in excess of the claim of the contractor
against the contractor only, but for matters not growing out of
the contract recovery shall be without prejudice to the rights
of the sub-contractors thereunder for payment out of the
contract price or fund.
    (b) In any proceedings to enforce a lien on account of
wages due for labor the claimant need file only an affidavit
giving the amount due, between what dates the labor was
performed and the kind of labor performed, and the court shall
direct the amount due for wages as therein specified to be paid
within a short day to be fixed by the court, unless within 10
days after the filing of the claim the amount claimed is
contested by the owner or some other party to the suit. The
party making such contest shall file an affidavit which shall
state his defense to the allowance of the claim, and the court
shall proceed at once to hear the evidence, and determine the
merits of the claim, and in the event the allowance for wages
is not paid within the time fixed by the court, the court shall
order the premises sold to pay the amount in such manner as it
directs.
(Source: P.A. 79-1358.)
 
    (770 ILCS 60/21)  (from Ch. 82, par. 21)
    Sec. 21. Sub-contractor defined; lien of sub-contractor;
notice; size of type; service of notice; amount of lien;
default by contractor.
    (a) Subject to the provisions of Section 5, every mechanic,
worker or other person who shall furnish any labor, services,
material, fixtures materials, apparatus or , machinery, forms
or form work or fixtures, or furnish or perform services or
labor for the contractor, or shall furnish any material to be
employed in the process of construction as a means for
assisting in the erection of the building or improvement in
what is commonly termed form or form work where concrete,
cement or like material is used in whole or in part, shall be
known under this Act as a sub-contractor, and shall have a lien
for the value thereof, with interest on such amount from the
date the same is due, from the same time, on the same property
as provided for the contractor, and, also, as against the
creditors and assignees, and personal and legal
representatives of the contractor, on the material, fixtures,
apparatus or machinery furnished, and on the moneys or other
considerations due or to become due from the owner under the
original contract.
    (b) If the legal effect of any contract between the owner
and contractor is that no lien or claim may be filed or
maintained by any one and the waiver is not prohibited by this
Act, or that such contractor's lien shall be subordinated to
the interests of any other party, such provision shall be
binding; but the only admissible evidence thereof as against a
subcontractor sub-contractor or material supplier man, shall
be proof of actual notice thereof to him or her before his or
her contract is entered into. Such waiver or subordination
provision shall not be binding on the subcontractor unless set
forth in its entirety in writing in the contract between the
contractor and subcontractor or material supplier. before any
labor or material is furnished by him; or proof that a duly
written and signed stipulation or agreement to that effect has
been filed in the office of the recorder of the county or
counties where the house, building or other improvement is
situated, prior to the commencement of the work upon such
house, building or other improvement, or within 10 days after
the execution of the principal contract or not less than 10
days prior to the contract of the sub-contractor or material
man. The recorder shall record the same at length in the order
of time of its reception in books provided by him for that
purpose, and the recorder shall index the same, in the name of
the contractor and in the name of the owner, in books kept for
that purpose, and also in the tract or abstract book of the
tract, lot, or parcel of land, upon which the house, building
or other improvement is located, and the recorder shall receive
therefor a fee, such as is provided for the recording of
instruments in his office.
    (c) It shall be the duty of each subcontractor who has
furnished, or is furnishing, materials or labor, services,
material, fixtures, apparatus or machinery, forms or form work
for an existing owner-occupied single family residence, in
order to preserve his lien, to notify the occupant either
personally or by certified mail, return receipt requested,
addressed to the occupant or his agent of the residence within
60 days from his first furnishing materials or labor, services,
material, fixtures, apparatus or machinery, forms or form work,
that he is supplying labor, services, material, fixtures,
apparatus or machinery, forms or form work materials or labor;
provided, however, that any notice given after 60 days by the
subcontractor shall preserve his lien, but only to the extent
that the owner has not been prejudiced by payments made prior
to receipt of the notice. The notification shall include a
warning to the owner that before any payment is made to the
contractor, the owner should receive a waiver of lien executed
by each subcontractor who has furnished materials or labor,
services, material, fixtures, apparatus or machinery, forms or
form work.
    The notice shall contain the name and address of the
subcontractor or material man, the date he started to work or
to deliver materials, the type of work done and to be done or
the type of materials delivered and to be delivered, and the
name of the contractor requesting the work. The notice shall
also contain the following warning:
"NOTICE TO OWNER
    The subcontractor providing this notice has performed work
for or delivered material to your home improvement contractor.
These services or materials are being used in the improvements
to your residence and entitle the subcontractor to file a lien
against your residence if the services or materials are not
paid for by your home improvement contractor. A lien waiver
will be provided to your contractor when the subcontractor is
paid, and you are urged to request this waiver from your
contractor when paying for your home improvements."
    Such warning shall be in at least 10 point bold face type.
For purposes of this Section, notice by certified mail is
considered served at the time of its mailing.
    (d) In no case, except as hereinafter provided, shall the
owner be compelled to pay a greater sum for or on account of
the completion of such house, building or other improvement
than the price or sum stipulated in said original contract or
agreement, unless payment be made to the contractor or to his
order, in violation of the rights and interests of the persons
intended to be benefited by this act: Provided, if it shall
appear to the court that the owner and contractor fraudulently,
and for the purpose of defrauding sub-contractors fixed an
unreasonably low price in their original contract for the
erection or repairing of such house, building or other
improvement, then the court shall ascertain how much of a
difference exists between a fair price for labor, services, and
material, fixtures, apparatus or machinery, forms or form work
used in said house, building or other improvement, and the sum
named in said original contract, and said difference shall be
considered a part of the contract and be subject to a lien. But
where the contractor's statement, made as provided in Section
5, shows the amount to be paid to the sub-contractor, or party
furnishing material, or the sub-contractor's statement, made
pursuant to Section 22, shows the amount to become due for
material; or notice is given to the owner, as provided in
Sections 24 and 25, and thereafter such sub-contract shall be
performed, or material to the value of the amount named in such
statements or notice, shall be prepared for use and delivery,
or delivered without written protest on the part of the owner
previous to such performance or delivery, or preparation for
delivery, then, and in any of such cases, such sub-contractor
or party furnishing or preparing material, regardless of the
price named in the original contract, shall have a lien
therefor to the extent of the amount named in such statements
or notice. In case of default or abandonment by the contractor,
the sub-contractor or party furnishing material, shall have and
may enforce his lien to the same extent and in the same manner
that the contractor may under conditions that arise as provided
for in Section 4 of this Act, and shall have and may exercise
the same rights as are therein provided for the contractor.
    (e) Any provision in a contract, agreement, or
understanding, when payment from a contractor to a
subcontractor or supplier is conditioned upon receipt of the
payment from any other party including a private or public
owner, shall not be a defense by the party responsible for
payment to a claim brought under Section 21, 22, 23, or 28 of
this Act against the party. For the purpose of this Section,
"contractor" also includes subcontractor or supplier. The
provisions of Public Act 87-1180 shall be construed as
declarative of existing law and not as a new enactment.
(Source: P.A. 87-361; 87-362; 87-895; 87-1180; 88-45.)
 
    (770 ILCS 60/21.01)  (from Ch. 82, par. 21.01)
    Sec. 21.01. Failure of contractor to pay sub-contractor;
fraud; penalty. Any contractor, or if the contractor is a
corporation any officer or employee thereof, who with intent to
defraud induces a subcontractor, as defined in Section 21, to
execute and deliver a waiver of lien for the purpose of
enabling the contractor to obtain final payment under his
contract and upon the representation that the contractor will,
from such final payment, pay the subcontractor the amount due
the subcontractor, and who willfully fails to pay the
subcontractor in full within 30 days after such final payment
shall be guilty of a Class A misdemeanor.
(Source: P.A. 77-2705.)
 
    (770 ILCS 60/21.02)
    Sec. 21.02. Construction Trust Funds. trust funds.
    (a) Money held in trust; trustees. Any owner, contractor,
subcontractor, or supplier of any tier who requests or requires
the execution and delivery of a waiver of mechanics lien by any
person who furnishes labor, services, material, fixtures,
apparatus or machinery, forms or form work or materials for the
improvement of a lot or a tract of land in exchange for payment
or the promise of payment, shall hold in trust the sums
received by such person as the result of unpaid sums subject to
the waiver of mechanics lien, as trustee for the person who
furnished the labor, services, material, fixtures, apparatus
or machinery, forms or form work or the person otherwise
entitled to payment in exchange for such waiver. or materials.
    (b) How trust moneys held; commingling. Nothing contained
in this Section shall be construed as requiring moneys held in
trust by an owner, contractor, subcontractor, or material
supplier under this Section to be placed in a separate account.
If an owner, contractor, subcontractor, or material supplier
commingles moneys held in trust under this Section with other
moneys, the mere commingling of the moneys does not constitute
a violation of this Section.
    (c) Violation of this Section. Any owner, contractor,
subcontractor, or material supplier who knowingly retains or
used uses the moneys held in trust under this Section or any
part thereof, for any purpose other than to pay those persons
for whom the moneys are held in trust, shall be liable to any
person who successfully enforces his or her rights under this
Section for all damages sustained by that person.
(Source: P.A. 90-208, eff. 7-25-97.)
 
    (770 ILCS 60/22)  (from Ch. 82, par. 22)
    Sec. 22. Partners or joint contractors; sub-letting of
contract; statement by sub-contractor; failure to provide;
penalty. Whenever, after a contract has been made, the
contractor shall associate one or more persons as partners or
joint contractors, in carrying out the same, or any part
thereof, the lien for materials or labor, services, material,
fixtures, apparatus or machinery, forms or form work furnished
by a sub-contractor to such contractor and his partners or
associates, as originally agreed upon, shall continue the same
as if the sub-contract had been made with all of said partners.
When the contractor shall sub-let his contract or a specific
portion thereof to a sub-contractor, the party furnishing
material to or performing labor, services, material, fixtures,
apparatus or machinery, forms or form work for such
sub-contractor shall have a lien therefor; and may enforce his
lien in the same manner as is herein provided for the
enforcement of liens by sub-contractors. Any sub-contractor
shall, as often as requested in writing by the owner, or
contractor, or the agent of either, make out and give to such
owner, contractor or agent, a statement of the persons
furnishing labor, services, material, fixtures, apparatus or
machinery, forms or form work material and labor, giving their
names and how much, if anything, is due or to become due to
each of them, and which statement shall be made under oath if
required. If any sub-contractor shall fail to furnish such
statement within 5 days after such demand, he shall forfeit to
such owner or contractor the sum of $50 for every offense,
which may be recovered in a civil action and shall have no
right of action against either owner or contractor until he
shall furnish such statement, and the lien of such
sub-contractor shall be subject to the liens of all other
creditors.
(Source: P.A. 76-1381.)
 
    (770 ILCS 60/24)  (from Ch. 82, par. 24)
    Sec. 24. Written notice by sub-contractor; service; when
notice not necessary; form of notice.
    (a) Sub-contractors, or parties party furnishing labor, or
materials, fixtures, apparatus, machinery, or services, may at
any time after making his or her contract with the contractor,
and shall within 90 days after the completion thereof, or, if
extra or additional work or material is delivered thereafter,
within 90 days after the date of completion of such extra or
additional work or final delivery of such extra or additional
material, cause a written notice of his or her claim and the
amount due or to become due thereunder, to be sent by
registered or certified mail, with return receipt requested,
and delivery limited to addressee only, to or personally served
on the owner of record or his agent or architect, or the
superintendent having charge of the building or improvement and
to the lending agency, if known; however, if the lot or lots
and tract or tracts of land in question are registered under
the provisions of "An Act concerning land titles", approved May
1, 1897, as amended, the notice shall not be served as above
stated, but shall be filed in the office of the registrar of
titles of the county in which such lot or lots and tract or
tracts of land are situated, and such notice shall not be
necessary when the sworn statement of the contractor or
subcontractor provided for herein shall serve to give the owner
notice of the amount due and to whom due, but where such
statement is incorrect as to the amount, the subcontractor or
material man named shall be protected to the extent of the
amount named therein as due or to become due to him or her. For
purposes of this Section, notice by registered or certified
mail is considered served at the time of its mailing.
    The form of such notice may be as follows: To (name of
owner): You are hereby notified that I have been employed by
(the name of contractor) to (state here what was the contract
or what was done, or to be done, or what the claim is for) under
his or her contract with you, on your property at (here give
substantial description of the property) and that there was due
to me, or is to become due (as the case may be) therefor, the
sum of $.....
    Dated at .... this .... day of ....., .....
(Signature).....
    (b) The serving of notice pursuant to subsection (a) of
this Section shall not constitute an admission by the lien
claimant that its status is that of subcontractor if it is
later determined that the party with whom the lien claimant
contracted was the owner or an agent of the owner.
(Source: P.A. 84-551.)
 
    (770 ILCS 60/25)  (from Ch. 82, par. 25)
    Sec. 25. Notice to persons not found or not residing in
county.
    (a) In all cases where the owner of record, his or her
agent, architect, or superintendent or lending agency, if
known, cannot, upon reasonable diligence, be found in the
county in which said improvement is made, or shall not reside
therein, the sub-contractor or person furnishing labor,
services, material materials, fixtures, apparatus or ,
machinery, forms labor or form work services may give notice to
such persons who cannot be found by filing within 90 days after
the completion of his or her contract with the contractor, or
if extra or additional work or material is delivered
thereafter, within 90 days after the date of completion of such
extra or additional work or final delivery of such extra or
additional material, by filing in the office of the recorder
against the person making the contract and the owner a claim
for lien verified by the affidavit of himself or herself, or
his or her , agent or employee, which shall consist of a brief
statement of his or her contract or demand, and the balance due
after allowing all credits, and a sufficient correct
description of the lot, lots or tract of land to identify the
same. An itemized account shall not be necessary.
    (b) The notice recorded pursuant to subsection (a) of this
Section shall satisfy the notice requirements of Section 24 of
this Act only as to any owner of record, his or her agent,
architect, superintendent, or lending agency, if known, who or
which cannot, upon reasonable diligence, be found or shall not
reside in the county in which said improvement is made. In the
event that notice is recorded as provided herein, if such
notice complies with Section 7 of this Act it shall also be
deemed a claim for lien recorded pursuant to Section 7 of this
Act.
    (c) The recording of notice pursuant to subsection (a) of
this Section shall not constitute an admission by the lien
claimant that its status is that of subcontractor if it is
later determined that the party with whom the lien claimant
contracted was the owner or an agent of the owner.
(Source: P.A. 83-358.)
 
    (770 ILCS 60/26)  (from Ch. 82, par. 26)
    Sec. 26. Claim for wages as laborer preferred. The claim of
any person for wages as a laborer under Sections section
fifteen, 21 twenty-one and 22 twenty-two of this Act shall be a
preferred lien.
(Source: Laws 1903, p. 230.)
 
    (770 ILCS 60/28)  (from Ch. 82, par. 28)
    Sec. 28. Suits by laborers, materialmen or
sub-contractors. If any money due to the laborers, materialmen,
or sub-contractors be not paid within 10 days after his notice
is served as provided in sections 5, 24, and 25, and 27, then
such person may either file a claim for lien or file a
complaint and enforce such lien within the same limits as to
time and in such other manner as hereinbefore provided for the
contractor in section 7 and sections 9 to 20 inclusive, of this
Act, or he may sue the owner and contractor jointly for the
amount due in the circuit court, and a personal judgment may be
rendered therein, as in other cases. In such actions, as in
suits to enforce the lien, the owner shall be liable to the
plaintiff for no more than the pro rata share that such person
would be entitled to with other sub-contractors out of the
funds due to the contractor from the owner or one knowingly
permitted by the owner to under the contract for such
improvements and the contractor between them, except as
hereinbefore provided for laborers and materialmen, and such
action shall be maintained against the owner only in case the
plaintiff establishes a right to the lien. All suits and
actions by sub-contractors shall be against both contractor and
owner jointly, and no judgment shall be rendered therein until
both are duly brought before the court by process or
publication, and such process may be served and publication
made as to all persons except the owners as in other civil
actions. All such judgments, where the lien is established
shall be against both jointly, but shall be enforced against
the owner only to the extent that he is liable under his
contract as by this Act provided, and shall recite the date
from which the lien thereof attached according to the
provisions of Sections 1 to 20 of this Act; but this shall not
preclude a judgment against the contractor, personally, where
the lien is defeated.
(Source: P.A. 79-1358.)
 
    (770 ILCS 60/30)  (from Ch. 82, par. 30)
    Sec. 30. Multiple liens; insufficient funds; hearing;
judgment. If there are several liens under sections 21 and 22
of this Act upon the same premises, and the owner or any person
having such a lien shall fear that there is not a sufficient
amount coming to the contractor to pay all such liens, the such
owner or any one or more persons having such lien may file his,
her or their complaint in the circuit court of the proper
county, stating such fact and such other facts as may be
sufficient to a full understanding of the rights of the
parties. The contractor and all persons having liens upon or
who are interested in the premises, so far as the same are
known to or can be ascertained by the plaintiff, upon diligent
inquiry shall be made parties. Upon the hearing the court shall
find the amount due from the owner to the contractor, and the
amount due to each of the persons having liens, and in case the
amount found to be due to the contractor shall be insufficient
to discharge all the liens in full, the amount so found in
favor of the contractor shall be divided between the persons
entitled to such liens pro rata after the payment of all claims
for wages in proportion to the amounts so found to be due them
respectively. If the amount so found to be due to the
contractor shall be sufficient to pay the liens in full, the
same shall be so ordered. The premises may be sold as in other
cases under this Act. The parties to such action shall
prosecute the same under like requirements as are directed in
section 11 of this Act, and all persons who shall be duly
notified of such proceedings, and who shall fail to prove their
claims, whether the same be in judgment against the owner or
not, shall forever lose the benefit of and be precluded from
their liens and all claims against the owner. Upon the filing
of such complaint the court may, on the motion of any person
interested, and shall, upon final judgment stay further
proceedings upon any action against the owner on account of
such liens, and costs in such cases shall be adjusted as
provided for in section 17 of this Act.
(Source: P.A. 81-251.)
 
    (770 ILCS 60/32)  (from Ch. 82, par. 32)
    Sec. 32. Payments to contractor by owner. No payments to
the contractor or to his order of any money or other
considerations due or to become due to the contractor shall be
regarded as rightfully made, as against the sub-contractor,
laborer, or party furnishing labor, services, material,
fixtures, apparatus or machinery, forms or form work or
materials, if made by the owner without exercising and
enforcing the rights and powers conferred upon him in Sections
5, 21 and 22 of this Act.
(Source: P.A. 80-1333.)
 
    (770 ILCS 60/35)  (from Ch. 82, par. 35)
    Sec. 35. Satisfaction or release; recording; neglect;
penalty. Whenever a claim for lien has been filed with the
recorder or the Registrar of deeds Titles, either by the
contractor or sub-contractor, and is paid before October 1,
1973, with cost of filing same, or where there is a failure to
institute suit to enforce the same after demand, as provided in
the preceding section, within the time by this Act limited, the
person filing the same or some one by him duly authorized in
writing so to do, shall acknowledge satisfaction or release
thereof, in writing, on written demand of the owner, lienor, or
any person interested in the real estate, or his or her agent
or attorney, and on neglect to do so for 10 days after such
written demand he or she shall be liable to the owner for the
sum of $2,500, $25, which may be recovered in a civil action
together with the costs and the reasonable attorney's fees of
the owner, lienor, or other person interested in the real
estate, or his or her agent or attorney incurred in bringing
such action.
    (b) Such a satisfaction or release of lien may be filed
with the recorder or Registrar of deeds Titles in whose office
the claim for lien had been filed and when so filed shall
forever thereafter discharge and release the claim for lien and
shall bar all actions brought or to be brought thereupon.
    (c) Whenever a claim for lien has been filed with the
recorder or the Registrar of Titles, either by the contractor
or sub-contractor, and is paid after October 1, 1973 with cost
of filing such claim for lien, the person filing the claim or
someone by him duly authorized in writing so to do shall, upon
receipt of the satisfaction of such claim deliver a release of
lien in writing to the owner within 30 days after receipt of
payment or shall be liable to the owner for the sum of $100
which may be recovered in a civil action. The release of lien
shall have the following imprinted thereon in bold letters at
least 1/4 inch in height: "FOR THE PROTECTION OF THE OWNER,
THIS RELEASE SHOULD BE FILED WITH THE RECORDER OR THE REGISTRAR
OF TITLES IN WHOSE OFFICE THE CLAIM FOR LIEN WAS FILED." The
Recorder or the Registrar of Titles in whose office the claim
for lien had been filed, upon receipt of a release and the
payment of the recording or registration fee, shall record or
register the release.
(Source: P.A. 83-358.)
 
    (770 ILCS 60/1.1 rep.)  (from Ch. 82, par. 1.1)
    Section 10. The Mechanics Lien Act is amended by repealing
Section 1.1.