State of Illinois
92nd General Assembly

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[ Engrossed ][ Enrolled ][ House Amendment 001 ]
[ House Amendment 002 ]



 1        AN ACT in relation to highways.

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

 4        Section 5.  The  Illinois  Highway  Code  is  amended  by
 5    adding Section 4-104 as follows:

 6        (605 ILCS 5/4-104 new)
 7        Sec.  4-104.  Subcontractors'  trust  agreements.  At the
 8    request of the subcontractor and with  the  approval  of  the
 9    Department, the retainage of the subcontract may be deposited
10    under   a   trust   agreement   with  an  Illinois  financial
11    institution, whose deposits  are  insured  by  an  agency  or
12    instrumentality   of   the   federal   government,   of   the
13    subcontractor's  choice  and  subject  to the approval of the
14    Department. The subcontractor shall receive any  interest  on
15    the amount deposited.
16        Upon  application by the subcontractor, a trust agreement
17    by the financial institution and the Department must contain,
18    at a minimum, the following provisions:
19        (1)  The amount to be deposited subject to the trust.
20        (2)  The terms and  conditions  of  payment  in  case  of
21    default of the subcontractor.
22        (3)  The   termination   of   the  trust  agreement  upon
23    completion of the subcontract.
24        The  subcontractor  is  responsible  for  obtaining   the
25    written  consent  of  the  financial institution trustee. Any
26    costs or service fees must be borne by the subcontractor. The
27    trust agreement may, at the discretion of the Department  and
28    upon  request  of  the subcontractor, become operative at the
29    time of the first partial payment in accordance with existing
30    statutes and Department procedures.
31        This Section applies to all subcontracts in effect on and
                            -2-                LRB9205725DHmb
 1    after the effective date of this amendatory Act of  the  92nd
 2    General Assembly.

 3        Section  99.  Effective date.  This Act takes effect upon
 4    becoming law.

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