Substituting a Bond to Remove a Mechanic’s Lien: An Overview of The New Amendment to the Illinois Me
At the start of this year, a new provision of the Illinois Mechanics Lien Act became effective. 770 ILCS 60/38.1 (2016). Section 38.1 of the Act allows for certain parties to substitute a court-approved surety bond as collateral in place of the mechanic’s lien against the affected real estate, allowing litigation over the merits of a mechanic’s lien claim to proceed against the principal and surety under the substitute bond. This amendment is a major development in the history of Illinois’ Mechanics Lien Act, and it may simplify the sale or refinancing of real estate which would otherwise be encumbered by mechanic’s lien litigation. It is sure to be an important topic for lenders, land owners, developers, and the construction industry. Click here to read the full article.