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|[ Introduced ]||[ Engrossed ]||[ House Amendment 001 ]|
|[ House Amendment 002 ]|
92_HB1904enr HB1904 Enrolled 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. This 8 Section applies to subcontractors' retainage amounts expected 9 to be equal to or greater than $20,000. Upon the 10 contractor's receipt of the first partial or progress payment 11 from the Department, at the request of the subcontractor and 12 with the approval of the contractor, the retainage of the 13 subcontract shall be deposited under a trust agreement with 14 an Illinois financial institution, whose deposits are insured 15 by an agency or instrumentality of the federal government, of 16 the subcontractor's choice and subject to the approval of the 17 contractor. The subcontractor shall receive any interest on 18 the amount deposited. 19 Upon application by the subcontractor, a trust agreement 20 by the financial institution and the contractor must contain, 21 at a minimum, the following provisions: 22 (1) The amount to be deposited subject to the trust. 23 (2) The terms and conditions of payment in case of 24 default of the subcontractor. 25 (3) The termination of the trust agreement upon 26 completion of the subcontract. 27 The subcontractor is responsible for obtaining the 28 written consent of the financial institution trustee. Any 29 costs or service fees must be borne by the subcontractor. The 30 trust agreement may, at the discretion of the contractor and 31 upon request of the subcontractor, become operative at the HB1904 Enrolled -2- LRB9205725DHmb 1 time of the first partial payment in accordance with existing 2 statutes and Department procedures. Subcontractors' trust 3 agreements are voluntary and supersede any prohibition 4 regarding retainage that may be adopted by any transportation 5 agency. 6 This Section applies to all subcontracts in effect on and 7 after the effective date of this amendatory Act of the 92nd 8 General Assembly. 9 Section 99. Effective date. This Act takes effect upon 10 becoming law.
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