State of Illinois
92nd General Assembly

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[ House Amendment 002 ]




 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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