State of Illinois
91st General Assembly
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Public Act 91-0534

SB749 Enrolled                                 LRB9103048DJcd

    AN ACT to amend the Illinois Business Brokers Act of 1995
by changing Sections 10-25, 10-105, and 10-115.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.  The Illinois Business Brokers Act of 1995 is
amended  by  changing  Sections  10-25, 10-105, and 10-115 as
follows:

    (815 ILCS 307/10-25)
    Sec. 10-25.  Fees and funds.  All fees and funds accruing
for the administration of this Act shall be accounted for  by
the  Secretary of State and shall be deposited with the State
Treasurer who shall deposit them in the Securities Audit  and
Enforcement Fund.
    (a)  The Secretary of State shall, by rule or regulation,
impose  and  collect fees necessary for the administration of
this  Act,  including  but  not  limited  to,  fees  for  the
following purposes:
         (1)  Filing an application pursuant to Section 10-10
    of this Act;
         (2)  Examining an application pursuant  to  Sections
    10-10 and 10-20 of this Act;
         (3)  Registering  a  business  broker  under Section
    10-10 of this Act;
         (4)  Renewing  registration  of  a  business  broker
    pursuant to Section 10-20 of this Act;
         (5)  Failure to file or file timely any document  or
    information required under this Act;
         (6)  Filing  a  notice of lien with the Secretary of
    State pursuant to Section 10-115 of this Act.
    (b)  The Secretary of State may, by rule  or  regulation,
raise  or  lower  any  fee imposed by, and which he or she is
authorized by law to collect under, this Act.
(Source: P.A. 89-209, eff. 1-1-96; 90-70, eff. 7-8-97.)

    (815 ILCS 307/10-105)
    Sec. 10-105.  Scope of the Act.   This  Act  shall  apply
only when the person engaging or seeking to engage engaged or
sought  to  be engaged by the business broker is domiciled in
this State or when the company or business sought to be  sold
has   its   principal   place  of  business  in  this  State.
Notwithstanding any other provision of this Section,  a  lien
on property arising under  Section 10-115 is enforceable only
against tangible property located in this State.
(Source: P.A. 90-70, eff. 7-8-97.)

    (815 ILCS 307/10-115)
    Sec. 10-115. Business broker lien.
    (a)  Any  business  broker  shall  have  a  lien upon the
tangible assets of a business located in this State  that  is
the  subject  of a business broker's written contract and the
proceeds from the sale of such business in the amount due  to
that the broker under the written contract is due.
    (b)  The  lien  shall be available to the business broker
named in the instrument signed by the owner of an interest in
the assets seller or purchaser.  The lien arising under  this
Act  shall be in addition to any other rights that a business
broker may have.
    (c)  A The lien under this  Act  does  not  shall  attach
unless and until: upon
         (1)  the business broker is being otherwise entitled
    to   a   fee  or  commission  under  a  written  contract
    instrument signed by the seller or its purchaser  or  the
    seller  or  purchaser's  duly  authorized  agent; and, as
    applicable
         (2)  before the actual conveyance or transfer of the
    business assets or property with  respect  to  which  the
    business  broker  is claiming a lien, the business broker
    files a notice  of lien (i) as to real property, with the
    recorder of the county in  which  the  real  property  is
    located  or (ii) as to tangible personal property, in the
    Office of the Secretary of State.
    (d)  When  payment  to  a  business  broker  is  due   in
installments,  a  portion  of  which  is  due  only after the
conveyance or transfer of the tangible assets  business,  any
claim  for  lien for those payments due after the transfer or
conveyance may  be  filed  at  any  time  subsequent  to  the
transfer  or  conveyance  of the tangible assets business and
prior to the date on which the payment is due but shall  only
be  effective  as a lien against the tangible assets business
or proceeds to the  extent  moneys  are  still  owed  to  the
transferor by the transferee. In all other respects, the lien
shall attach as described in this subsection of the filing of
the  notice  of  lien  and not relate back to the date of the
written agreement.
    (e)  If a business broker has a written agreement with  a
prospective  purchaser  or seller, then the lien shall attach
upon the prospective purchaser or seller that is  purchasing,
selling,  or  otherwise accepting a conveyance or transfer of
the real  property  or  tangible  personal  property  of  the
business  and  the  filing  of  a  notice  of lien (i) in the
recorder's office of the county in which the real property is
located, as to real property, and (ii) in the Office  of  the
Secretary  of State, as to tangible personal property, by the
business broker in the  Office  of  the  Secretary  of  State
within  90 days after the transfer to the purchaser purchase,
sale, or other conveyance or transfer of the business that is
the subject  of  the  written  agreement  with  the  business
broker.  The  lien  shall attach to the interest purchased by
the purchaser as of the date of the filing of the  notice  of
lien  and  does  not  relate  back to the date of the written
contract receipt of any consideration by the  seller  of  the
business  that  is  the subject of the written agreement with
the business broker.
    (f)  The business broker  shall,  within  10  days  after
filing its notice of lien, mail a copy of the  notice of lien
to the owner of the property business by depositing it in the
United States mail, registered or certified mail, with return
receipt  requested,  or personally serve a copy of the notice
served on the owner of record or his agent.  If the  lien  is
filed within 10 days prior to closing, the business broker is
not required to mail or personally serve a copy of the notice
of  lien.   Mailing  of  the  copy  of  the notice of lien is
effective if mailed to the address of the  business  that  is
the  subject  of the notice of lien, or to such other address
as the seller or  purchaser  has  provided  to  the  business
broker  in  writing  and  signed  by the seller or purchaser.
Mailing of the copy of  the  notice  of  claim  for  lien  is
effective  if  mailed  to  the  seller  at the address of the
business that is the subject of the notice of  lien    or  to
another  address that the seller or purchaser has provided in
writing to the business  broker when deposited  in  a  United
States mailbox with postage prepaid.  The broker's lien shall
be unenforceable if mailing of the copy of the notice of lien
does not occur at the time and in the manner required by this
Act.
    (g)  A  business  broker may bring suit to enforce a lien
in the circuit  court  (i)  in  the  county  where  the  real
property  headquarters of the business being sold is located,
as  to  real  property,  or  (ii)  as  to  tangible  personal
property, either in the county where the   personal  property
is  located or where the principal office of the owner of the
personal  property, or  the  owner's  residence,  is  located
where  the  purchaser resides (or maintains its headquarters)
if the lien is being filed against the  purchaser,  or  where
the  seller  resides  (or  maintains its headquarters) if the
lien is filed against the seller, by filing a  complaint  and
sworn affidavit that the lien has been filed.
    (h)  The  person  claiming  a  lien shall, within 2 years
after filing the  lien,  commence  proceedings  by  filing  a
complaint.   Failure  to  commence proceedings within 2 years
after  filing  the  lien  shall  extinguish  the  lien.    No
subsequent notice of lien may be given for the same claim nor
may that claim be asserted in any proceedings under this Act.
    (i)  A  complaint  under this Section shall have attached
to it a  copy  contain  a  brief  statement  of  the  written
contract or agreements on which the lien is founded and shall
contain,  the date when the contract or agreement was made, a
description of the services performed,  the  amount  due  and
unpaid,  a description of the tangible assets of the business
that is, or the proceeds from sale of which are,  subject  to
the  lien, and other facts necessary for a full understanding
of the rights of the parties.  The plaintiff shall  make  all
interested  parties,  of  whose  interest  the  plaintiff  is
notified  or has actual or constructive knowledge, defendants
to the action and shall issue summons and provide service  as
in  other  civil  actions.  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 that defendant, the plaintiff shall cause a notice  to  be
given  to that defendant, or cause a copy of the complaint to
be served upon that defendant, in the  manner  and  upon  the
same  conditions  as  in other civil actions.  Failure of the
plaintiff to  provide  proper  summons  or  notice  shall  be
grounds  for  judgment  against the plaintiff with prejudice.
Every lien claimed under this  Act  shall  be  foreclosed  as
provided  in  the  Illinois Mortgage  Foreclosure Law, if the
lien is on real property,  or  as  provided  in  the  Uniform
Commercial Code, if the lien is on personal property.
    (j)  The  lien notice shall state the name and address of
the claimant, the name  of  the  purchaser  or  seller  whose
property  or assets are subject to the lien, a description of
the real or personal property that is  subject  to  the  lien
business  upon  which  or  upon the proceeds from the sale of
which the lien is being claimed, the  amount  for  which  the
lien  is claimed, and the registration number of the business
broker.  The notice of lien shall recite that the information
contained in the notice is true and accurate to the knowledge
of the signer signatory.  The notice of lien shall be  signed
by  the  business broker or by a person authorized to sign on
behalf of the business broker and shall be verified.
    (k)  Whenever a claim for lien has been  filed  with  the
Office  of  the  Secretary  of State or the county recorder's
office  and  a  condition  occurs  that  would  preclude  the
business broker from receiving compensation under  the  terms
of  the  business  broker's  written  agreement, the business
broker shall provide to the purchaser of the business, if the
lien is filed against the purchaser's assets of the  business
that  are subject to this Act purchaser, or the seller of the
business, if the lien is filed against the seller's assets of
the business that are subject to this Act seller,  within  10
days  following  demand  by that party the owner of record, a
written release or satisfaction of the lien.
    (l)  Upon written demand of the owner, lienee,  or  other
authorized  agent,  served  on  the  person claiming the lien
requiring suit to be commenced to enforce the lien or  answer
to  be  filed in a pending suit, a suit shall be commenced or
answer filed within 30 days thereafter, or the lien shall  be
extinguished.   Service  may  be  by  registered or certified
mail, return receipt requested, or by personal service.
    (m)  If a claim for lien has been filed with  the  Office
of the Secretary of State or the county recorder's office and
is  paid,  or  if  there  is  failure  to institute a suit to
enforce the lien within the time provided by  this  Act,  the
business  broker shall acknowledge satisfaction or release of
the lien, in writing, on written demand of the  purchaser  of
the  business, if the lien is filed against the purchaser, or
the seller of the business, if the lien is filed against  the
seller, within 5 days after payment or expiration of the time
in which to file the lien.
    (n)  The  cost  of  proceedings  brought  under  this Act
asserting or defending a business  broker's  claim  of  lien,
including  reasonable attorneys' fees, costs, and prejudgment
interest interests due to  the  prevailing  party,  shall  be
borne  by the nonprevailing party or parties.  When more than
one party is responsible for  costs,  fees,  and  prejudgment
interest,  the costs, fees, and prejudgment interest shall be
equitably apportioned by the court  among  those  responsible
parties.
    (o)  Prior   recorded  liens  and  mortgages  shall  have
priority over a broker's lien.  A prior recorded  lien  shall
include,  without  limitation,  (i)  a  valid mechanic's lien
claim, that is recorded subsequent to the broker's notice  of
lien  but which relates back to a date prior to the recording
date of the broker's notice of lien and (ii)  prior  recorded
liens  securing revolving credit or and future advances under
of construction loans as described in Section 15-1302 of  the
Code  of  Civil  Procedure,  and  (iii)  prior recorded liens
perfected under the Uniform Commercial Code.
(Source: P.A. 90-70, eff. 7-8-97.)

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