Full Text of HB3636 97th General Assembly
HB3636enr 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning civil law.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Mechanics Lien Act is amended by changing | 5 | | Sections 16 and 34 as follows:
| 6 | | (770 ILCS 60/16) (from Ch. 82, par. 16)
| 7 | | Sec. 16.
No incumbrance upon land, created before or after | 8 | | the making of
the contract for improvements under the | 9 | | provisions of this act, shall operate upon the
building | 10 | | erected, or materials furnished until a lien in favor of the
| 11 | | persons having done work or furnished material (hereinafter | 12 | | "lien creditor") shall have been satisfied,
and upon any | 13 | | questions arising between incumbrancers and lien creditors, | 14 | | all
previous incumbrances shall be preferred only to the extent | 15 | | of the value of the
land at the time of making of the contract | 16 | | for improvements, but shall not be preferred to the value of | 17 | | any subsequent improvements , and each the lien creditor shall | 18 | | be
preferred to the value of all the subsequent improvements | 19 | | erected on said premises, whether or not provided by the lien | 20 | | creditor, and
the court shall ascertain by jury or otherwise, | 21 | | as the case may require,
what proportion of the proceeds of any | 22 | | sale shall be paid to the several
parties in interest. All | 23 | | incumbrances, whether by mortgage, judgment or
otherwise, |
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| 1 | | charged and shown to be fraudulent, in respect to creditors, | 2 | | may
be set aside by the court, and the premises freed and | 3 | | discharged from such
fraudulent incumbrance. When the proceeds | 4 | | of a sale are insufficient to satisfy the claims of both | 5 | | previous incumbrancers and lien creditors, the proceeds of the | 6 | | sale shall be distributed as follows: (i) any previous | 7 | | incumbrancers shall have a paramount lien in the portion of the | 8 | | proceeds attributable to the value of the land at the time of | 9 | | making of the contract for improvements; and (ii) any lien | 10 | | creditors shall have a paramount lien in the portion of the | 11 | | proceeds attributable to the value of all subsequent | 12 | | improvements made to the property.
| 13 | | (Source: Laws 1903, p. 230.)
| 14 | | (770 ILCS 60/34) (from Ch. 82, par. 34)
| 15 | | Sec. 34. Notice to commence suit. | 16 | | (a) Upon written demand of the owner, lienor, or any person
| 17 | | interested in the real estate, or their agent or attorney, | 18 | | served on the
person claiming the lien, or his agent or | 19 | | attorney, requiring suit to be
commenced to enforce the lien or | 20 | | answer to be filed in a pending suit, suit
shall be commenced | 21 | | or answer filed within 30 days thereafter, or the lien
shall be | 22 | | forfeited. Such service may be by registered or certified mail,
| 23 | | return receipt requested, or by personal service.
| 24 | | (b) A written demand under this Section must contain the | 25 | | following language in at least 10 point bold face type: |
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| 1 | | "Failure to respond to this notice within 30 days after | 2 | | receipt, as required by Section 34 of the Mechanics Lien Act, | 3 | | shall result in the forfeiture of the referenced lien." | 4 | | (Source: P.A. 82-618.)
| 5 | | Section 99. Effective date. This Act takes effect upon | 6 | | becoming law.
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