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|[ Engrossed ]||[ Enrolled ]||[ House Amendment 001 ]|
|[ House Amendment 002 ]|
92_HB1904 LRB9205725DHmb 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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