October 18, 2021

Volume XI, Number 291

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October 18, 2021

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October 15, 2021

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Illinois House Considers Bill to Allow “Bonding Off” of Mechanics Liens

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Lenders in Illinois might want to take note of pending Illinois House Bill 2804. The bill would amend the Mechanics Lien Act, so as to allow “bonding off” of mechanic liens for the first time in Illinois. Nearly every state but Illinois currently allows the removal of a mechanics lien from the real estate by substituting a bond as security. In the absence of this common provision, an Illinois construction lender, even one with title insurance, might find its foreclosure delayed for months or years by mechanic lienors who object to any foreclosure sale until their liens are resolved. HB 2804, which was drafted in conjunction with advocates for contractors, represents an important step to remedy this statutory gap. The bill is currently under consideration by the Illinois House Judiciary Committee. A copy of the bill and its current status can be viewed through the Legislature’s website.

©2021 Katten Muchin Rosenman LLPNational Law Review, Volume III, Number 101
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About this Author

Timothy J. Patenode, Real Estate litigator, Katten Muchin Law firm
Partner

Timothy J. Patenode is the head of Katten's Chicago Real Estate Litigation practice and serves as Deputy General Counsel to the firm’s Chicago office. Tim is an accomplished commercial litigator with a concentration on significant and complex real estate disputes.

Tim’s lender practice focuses on debt and collateral recovery. His developer practice centers on construction defects, delays and payments as well as zoning issues. His experience spans multiple business cycles. He represents major real estate investment trusts, national...

312-902-5539
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