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|[ Introduced ]||[ Engrossed ]||[ Enrolled ]|
|[ House Amendment 002 ]|
92_HB1904ham001 LRB9205725DHmbam01 1 AMENDMENT TO HOUSE BILL 1904 2 AMENDMENT NO. . Amend House Bill 1904 as follows: 3 by replacing everything after the enacting clause with the 4 following: 5 "Section 5. The Illinois Highway Code is amended by 6 adding Section 4-104 as follows: 7 (605 ILCS 5/4-104 new) 8 Sec. 4-104. Subcontractors' trust agreements. This 9 Section applies to subcontractors' retainage amounts equal to 10 or greater than $2,000. Upon the contractor's receipt of the 11 first partial or progress payment from the Department, at the 12 request of the subcontractor and with the approval of the 13 contractor, the retainage of the subcontract shall be 14 deposited under a trust agreement with an Illinois financial 15 institution, whose deposits are insured by an agency or 16 instrumentality of the federal government, of the 17 subcontractor's choice and subject to the approval of the 18 contractor. The subcontractor shall receive any interest on 19 the amount deposited. 20 Upon application by the subcontractor, a trust agreement 21 by the financial institution and the contractor must contain, -2- LRB9205725DHmbam01 1 at a minimum, the following provisions: 2 (1) The amount to be deposited subject to the trust. 3 (2) The terms and conditions of payment in case of 4 default of the subcontractor. 5 (3) The termination of the trust agreement upon 6 completion of the subcontract. 7 The subcontractor is responsible for obtaining the 8 written consent of the financial institution trustee. Any 9 costs or service fees must be borne by the subcontractor. The 10 trust agreement may, at the discretion of the contractor and 11 upon request of the subcontractor, become operative at the 12 time of the first partial payment in accordance with existing 13 statutes and Department procedures. 14 This Section applies to all subcontracts in effect on and 15 after the effective date of this amendatory Act of the 92nd 16 General Assembly. 17 Section 99. Effective date. This Act takes effect upon 18 becoming law.".
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