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| Public Act 097-1165 | ||||
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AN ACT concerning civil law.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Mechanics Lien Act is amended by changing | ||||
Sections 16 and 34 as follows:
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(770 ILCS 60/16) (from Ch. 82, par. 16)
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Sec. 16.
No incumbrance upon land, created before or after | ||||
the making of
the contract for improvements under the | ||||
provisions of this act, shall operate upon the
building | ||||
erected, or materials furnished until a lien in favor of the
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persons having done work or furnished material (hereinafter | ||||
"lien creditor") shall have been satisfied,
and upon any | ||||
questions arising between incumbrancers and lien creditors, | ||||
all
previous incumbrances shall be preferred only to the extent | ||||
of the value of the
land at the time of making of the contract | ||||
for improvements, but shall not be preferred to the value of | ||||
any subsequent improvements, and each the lien creditor shall | ||||
be
preferred to the value of all the subsequent improvements | ||||
erected on said premises, whether or not provided by the lien | ||||
creditor, and
the court shall ascertain by jury or otherwise, | ||||
as the case may require,
what proportion of the proceeds of any | ||||
sale shall be paid to the several
parties in interest. All | ||||
incumbrances, whether by mortgage, judgment or
otherwise, | ||||
charged and shown to be fraudulent, in respect to creditors, | ||
may
be set aside by the court, and the premises freed and | ||
discharged from such
fraudulent incumbrance. When the proceeds | ||
of a sale are insufficient to satisfy the claims of both | ||
previous incumbrancers and lien creditors, the proceeds of the | ||
sale shall be distributed as follows: (i) any previous | ||
incumbrancers shall have a paramount lien in the portion of the | ||
proceeds attributable to the value of the land at the time of | ||
making of the contract for improvements; and (ii) any lien | ||
creditors shall have a paramount lien in the portion of the | ||
proceeds attributable to the value of all subsequent | ||
improvements made to the property.
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(Source: Laws 1903, p. 230.)
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(770 ILCS 60/34) (from Ch. 82, par. 34)
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Sec. 34. Notice to commence suit. | ||
(a) Upon written demand of the owner, lienor, or any person
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interested in the real estate, or their agent or attorney, | ||
served on the
person claiming the lien, or his agent or | ||
attorney, requiring suit to be
commenced to enforce the lien or | ||
answer to be filed in a pending suit, suit
shall be commenced | ||
or answer filed within 30 days thereafter, or the lien
shall be | ||
forfeited. Such service may be by registered or certified mail,
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return receipt requested, or by personal service.
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(b) A written demand under this Section must contain the | ||
following language in at least 10 point bold face type: | ||
"Failure to respond to this notice within 30 days after | ||
receipt, as required by Section 34 of the Mechanics Lien Act, | ||
shall result in the forfeiture of the referenced lien." | ||
(Source: P.A. 82-618.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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