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Sen. John G. Mulroe
Filed: 4/4/2014
| | 09800SB3023sam003 | | LRB098 17607 HEP 58255 a |
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| 1 | | AMENDMENT TO SENATE BILL 3023
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| 2 | | AMENDMENT NO. ______. Amend Senate Bill 3023 on page 3, by |
| 3 | | replacing lines 13 through 21 with the following:
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| 4 | | "(d) An agreement to waive any right to enforce or claim |
| 5 | | any lien under this Act, or an agreement to subordinate the |
| 6 | | lien, where the agreement is in anticipation of and in |
| 7 | | consideration for the awarding of a contract or subcontract, |
| 8 | | either express or implied, to perform work or supply materials |
| 9 | | for an improvement upon real property is against public policy |
| 10 | | and unenforceable. This Section does not prohibit release of |
| 11 | | lien under subsection (b) of Section 35 of this Act, nor does |
| 12 | | it prohibit an agreement to subordinate a mechanics lien to a |
| 13 | | mortgage lien that secures a construction loan if that |
| 14 | | agreement is made after more than 50% of the loan has been |
| 15 | | disbursed to fund improvements to the property or prohibit |
| 16 | | subordination of the lien, except as provided in Section 21."; |
| 17 | | and
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| | 09800SB3023sam003 | - 2 - | LRB098 17607 HEP 58255 a |
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| 1 | | on page 4, by replacing lines 19 through 26 with the following:
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| 2 | | "(b) If the legal effect of a provision in any contract |
| 3 | | between the owner and
contractor or contractor and |
| 4 | | subcontractor is that no lien or claim may be filed or |
| 5 | | maintained by any
one and the waiver is not prohibited by this |
| 6 | | Act, or that such contractor's lien shall be subordinated to |
| 7 | | the interests of any other party, and the provision is not |
| 8 | | prohibited by this Act, such provision shall be
binding if made |
| 9 | | as part of an agreement not prohibited by this Act. such |
| 10 | | provision shall be binding; but the only admissible evidence
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| 11 | | thereof as against a subcontractor or material supplier, shall |
| 12 | | be proof of
actual notice thereof to him or her before his or |
| 13 | | her contract is entered into. Such subordination provision |
| 14 | | shall not be binding on the subcontractor unless set forth in |
| 15 | | its entirety in writing in the contract between the contractor |
| 16 | | and subcontractor or material supplier."; and
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| 17 | | on page 5, by deleting lines 1 through 5; and
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| 18 | | on page 8, by inserting immediately below line 13 the |
| 19 | | following:
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| 20 | | "Section 99. Effective date. This Act takes effect upon |
| 21 | | becoming law.".
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