In July, 2015, Public Act 99-0178 became law authorizing the use of an Illinois mechanic's lien release bond to remove liens arising from improvement work on real property or for monies due to a contractor. The "Illinois Mechanic's Lien Act" was amended to include an owner or any person person having an interest in the real property parcel against which a mechanics' lien is filed to petition the circuit court in the jurisdiction in which the lien is filed to "bond over" the lien. The surety bond must be in an "eligible format" in order to be approved. The surety bond must specifically state that the principal and surety submit to the jurisdiction of the circuit court of the county where the property being encumbered is located and that a final judgment entered in a proceeding in favor of the lien claimant becomes also a judgment against the principal and surety of the Illinois mechanic's lien release bond for the amount due to the lienholder. Interest and attorney's fees are added to the judgment but surety's liability is limited to the full amount of the surety bond.
The surety bond must not be cancelable, remaining in effect until the complete satisfaction of the amount due under the claim is paid or the the full amount of the bond is depleted UNLESS upon final determination and the expiration of all appeal periods the lien claim is held invalid, void, or has been released by the lienholder. The time to enforce the lien claim may also expire which likewise released the surety from its obligation. The penal sum of the bond must be in an amount equal to 175% of the amount of the lien claim and issued by a surety company licensed in Illinois. The surety company must have a current financial strength rating of not less than "A" with no rating modifier, an outlook which is either positive or stable, and a financial size category of not less than IX, as rated by A.M. Best. Additionally, if property affected by the lien is in a judicial circuit that has its own list of approved surety companies, then the Illinois mechanic's lien discharge bond must be issued by a surety company specifically authorized to issue surety bonds for that circuit court.
Illinois surety bond leader, Surety One, Inc. is THE most responsive underwriter of judicial bonds in the nation. Our expertise in manuscripting surety bond forms acceptable to the courts, same day application approval, immediate bond execution and delivery are unmatched. We underwrite mechanic's lien release bonds in all fifty states, Puerto Rico and U.S. Virgin Islands. We are THE most agile and customer-focused underwriter of surety bonds in the U.S. Our experience, same day underwriting, immediate authenticated bond execution and delivery are unmatched. No other surety brokerage has the underwriting authorities that we do. Call (800) 373-2804, email Underwriting@SuretyOne.com or click here for a live chat for application materials and assistance with your Illinois Mechanic's lien release bond.
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