60/23. Liens against public funds§ 23. Liens against public funds.
(a) For the purpose of this Section
"contractor" includes any sub-contractor; "State" includes any
department, board or commission thereof, or other person financing and constructing any
public improvements for the benefit of the State or any department, board or commission
thereof; and "director" includes any chairman or president of any State
department, board or commission, or the president or chief executive officer or such other
person financing and constructing a public improvement for the benefit of the State.
(b) Any person who shall furnish material,
apparatus, fixtures, machinery or labor to any contractor having a contract for public
improvement for any county, township, school district, city, municipality or municipal
corporation in this State, shall have a lien for the value thereof on the money, bonds, or
warrants due or to become due the contractor having a contract with such county, township,
school district, municipality or municipal corporation in this State under such contract.
Provided, such person shall, before payment or delivery thereof is made to such
contractor, notify the clerk or secretary, as the case may be, of the county, township,
school district, city, municipality or municipal corporation of his claim by a written
notice and furnish a copy of said notice at once to said contractor. The person claiming
such lien may cause notification and written notice thereof to be given either by sending
the written notice (by registered or certified mail, return receipt requested, with
delivery limited to addressee only) to, or by delivering the written notice to the clerk
or secretary, as the case may be, of the county, township, school district, city,
municipality, or municipal corporation; and the copy of the written notice which the
person claiming the lien is to furnish to the contractor may be sent to, or delivered to
such contractor in like manner. And, provided further, that such lien shall attach only to
that portion of such money, bonds, or warrants against which no voucher or other evidence
of indebtedness has been issued and delivered to the contractor by or on behalf of the
county, township, school district, city, municipality or municipal corporation as the case
may be at the time of such notice. Provided further, that where such person has not so
notified the clerk or secretary, as the case may be, of the county, township, school
district, city, municipality or municipal corporation of his claim for a lien, upon
written demand of the contractor with service by certified mail (return receipt requested)
and with a copy filed with the clerk or secretary, as the ease may be, that person shall,
within 30 days, notify the clerk or secretary, as She case may be, of the county,
township, school district, city, municipality or municipal corporation of his claim for a
lien by either sending or delivering written notice in like manner as above provided for
causing notification and written notice of a claim for lien to be given to such clerk or
secretary, as the case may be, or the lien shall be forfeited. No official shall withhold
from the contractor money, bonds, warrants, or funds on the basis of a lien forfeited as
provided herein. The person so claiming a lien shall, within 90 days after giving such
notice, commence proceedings by complaint for an accounting, making the contractor having
a contract with the county, township, school district, city, municipality or municipal
corporation and the contractor to whom such material, apparatus, fixtures, machinery or
labor was furnished, parties defendant, and shall within the same period notify the clerk
or secretary, as the case may be, of the county, township, school district, city,
municipality or municipal corporation of the commencement of such suit by delivering to
him or them a copy of the complaint filed. Failure to commence proceedings within 90 days
after giving notice of lien pursuant to this subsection shall terminate the lien and no
subsequent notice of lien may be given for the same claim nor may that claim be asserted
in any proceedings pursuant to this Act. It shall be the duty of any such clerk or
secretary, as the case may be, upon receipt of the first notice herein provided for to
cause to be withheld a sufficient amount to pay such claim for the period limited for the
filing of suit, unless otherwise notified by the person claiming the lien. Upon the
expiration of this period the money, bonds or warrants so withheld shall be released for
payment to the contractor unless the person claiming the lien shall have instituted
proceedings and delivered to the clerk or secretary, as the case may be, of the county,
township, school district, city, municipality or municipal corporation a copy of the
complaint as herein provided, in which case, the amount claimed shall be withheld until
the final adjudication of the suit is had. Provided, that the clerk or secretary, as the
case may be, to whom a copy of the complaint is delivered as herein provided may pay over
to the clerk of the court in which such suit is pending a sum sufficient to pay the amount
claimed to abide the result of such suit and be distributed by the clerk according to the
judgment rendered or other court order. Any payment so made to such claimant or to the
clerk of the court shall be a credit on the contract price to be paid to such contractor.
(c) Any person who shall furnish material,
apparatus, fixtures, machinery or labor to any contractor having a contract for public
improvement for the State, may have a lien for the value thereof on the money, bonds or
warrants due or about to become due the contractor having a contract with the State under
the contract, by giving to the Director or other official, whose duty it is to let such
contract, written notice of his claim for lien containing a sworn statement of the claim
showing with particularity the several items and the amount claimed to be due on each. The
claimant shall furnish a copy of said notice at once to the contractor. The person
claiming such lien may cause such written notice with sworn statement of claim to be given
either by sending such notice (by registered or certified mail, return receipt requested,
with delivery limited to addressee only) to, or by delivering such notice to the Director
or other official of the State whose duty it is to let such contract; and the copy of such
notice which the person claiming the lien is to furnish to the contractor may be sent to,
or delivered to such contractor in like manner. However, the lien shall attach to only
that portion of the money, bonds or warrants against which no voucher has been issued and
delivered by the State. Provided, that where such person has not so notified the Director
or other official of the State, whose duty it is to let such contract, of his claim for a
lien, upon written demand of the contractor, with service by certified mail (return
receipt requested) and with a copy filed with such Director or other official of the
State, that person shall, within 30 days, notify the Director or other official of the
State, whose duty it is to let such contract, of his claim for a lien by either sending or
delivering written notice in like manner as above provided for giving written notice with
sworn statement of claim to such Director or official, or the lien shall be forfeited. No
public official shall withhold from the contractor money, bonds, warrants or funds on the
basis of a lien forfeited as provided herein. The person so claiming a lien shall, within
90 days after giving such notice, commence proceedings by complaint for an accounting,
making the contractor having a contract with the State and the contractor to whom such
material, apparatus, fixtures, machinery, or labor was furnished, parties defendant, and
shall, within the same period notify the Director of the commencement of such suit by
delivering to him a copy of the complaint filed; provided, if money appropriated by the
General Assembly is to be used in connection with the construction of such public
improvement, that suit shall be commenced and a copy of the complaint delivered to the
Director not less than 15 days before the date when the appropriation from which such
money is to be paid, will lapse. Failure to commence proceedings within 90 days after
giving notice of lien pursuant w this subsection shall terminate the lien and no
subsequent notice of lien may be given for the same claim nor may that claim be asserted
in any proceedings pursuant, ant to this Act. It shall be the duty of the Director, upon
receipt of the written notice with sworn statement as herein provided, to withhold payment
of a sum sufficient to pay the amount of such claim, for the period limited for the filing
of suit, unless otherwise notified by the person claiming the lien. Upon the expiration of
this period the money, bonds, or warrants so withheld shall be released for payment to the
contractor unless the person claiming the lien shall have instituted proceedings and
delivered to the Director a copy of the complaint as herein provided, in which case, the
amount claimed shall be withheld until the final adjudication of the suit is had.
Provided, the director: rector or other official may pay over to the clerk of the court in
which such suit is pending, a sum sufficient to pay the amount claimed to abide the result
of such suit and be distributed by the clerk according to the judgment rendered or other
court order. Any payment so made to such claimant or to the clerk of the court shall be a
credit on the contract price to be paid to such contractor.
(d) Any officer of the State, county, township,
school district, city, municipality or municipal corporation violating the duty hereby
imposed upon him shall be liable on his official bond to the claimant giving notice as
provided in this Section for the damages resulting from such violation, which may be
recovered in a civil action in the circuit court. There shall be no preference between the
persons giving such notice, but all shall be paid pro rata in proportion to the amount due
under their respective contracts.