093_SB1063sam001
LRB093 10795 LCB 14414 a
1 AMENDMENT TO SENATE BILL 1063
2 AMENDMENT NO. . Amend Senate Bill 1063, on page 2,
3 line 3, by replacing "$5,000" with "$7,500"; and
4 on page 2, line 9, after "purchaser.", by inserting "Any
5 money deposited with the builder for extras, additions, or
6 changes to the property, made subsequent to the initial
7 earnest money, deposit, or payment paid by a purchaser, shall
8 be excluded from the deposit requirements of this Act and
9 shall be exclusively applied by the builder to the cost of
10 extras, additions, or changes of the purchaser."; and
11 on page 2, line 17, after "residence.", by inserting "If the
12 deposit exceeds the allowable insured amount by the Federal
13 Deposit Insurance Corporation, the builder may open an
14 additional account but failure to do so shall not be a
15 violation of this Act. All risk of loss of any moneys
16 deposited with a federally insured account and the recovery
17 of the same from the Federal Deposit Insurance Corporation
18 and financial institution shall be the responsibility and
19 duty of the purchaser. The purchaser shall not be barred from
20 raising the loss or encumbrance of the money so deposited as
21 a defense or affirmative action to default of the
22 construction contract the purchaser may have with the
23 builder."; and
-2- LRB093 10795 LCB 14414 a
1 on page 2, line 19, after "contract.", by inserting "The
2 purchaser shall be liable for all costs and fees of opening
3 and maintaining the accounts."; and
4 on page 2, line 23, after "property.", by inserting "The
5 builder's sole liability under this Act to a purchaser for a
6 default shall be to refund the deposited sum and the
7 purchaser's acceptance of the same shall bar any additional
8 recovery against the builder under this Act."; and
9 on page 2, line 30, by replacing "The parties to" with "The
10 builder may elect to"; and
11 on page 2, line 31, by deleting "the contract may"; and
12 on page 3, by replacing lines 12 through 14 with the
13 following:
14 "Section 35. Violation.
15 (a) A violation of this Act by a builder shall
16 constitute an unlawful practice within the meaning of the
17 Consumer Fraud and Deceptive Business Practices Act.
18 (b) It is a violation of this Act for a purchaser to:
19 (1) permit a third party, unrelated to the
20 construction project on the property, to attach the funds
21 deposited;
22 (2) withdraw any of the funds deposited; or
23 (3) pledge or use the funds deposited as collateral
24 on any other transaction except for the purchase of the
25 property or a loan to secure the purchase of the
26 property.".