Appendix E Check List: Liens on Public Funds and Claims Against Payment Bonds

• Library: Turner on Illinois Mechanics Liens (2016 Ed.)

APPENDIX E - CHECK LIST: LIENS ON PUBLIC FUNDS AND CLAIMS AGAINST PAYMENT BONDS

A. Gathering Information

1. Identifying the public body.
2. Identifying the contractor.
3. Identifying the public improvement contract.

a. Who is the contract with?
b. Is it a public improvement contract?

4. Obtaining a copy of the bond.
5. Determining the persons in the chain of contract between the contractor and the claimant.
6. Determining whether the work is:

a. lienable; and
b. within the scope of the work covered by the bond.

7. Determining the amount due the claimant as of the date the notice is to be served.
8. Determining the claimant's last day of work.
9. Determining the identity of public officials who are to be served with notices.

a. Clerk or Secretary of Unit of Local Government.
b. Agency of State. "Officer, board, bureau, or department awarding the contract."

B. Notices of Claim for Lien Against Public Funds under 770 ILCS 60/23

1. Necessity of serving notice

a. No lien exists until a notice is served.
b. The amount of the lien is limited to the lesser of the amount claimed in the notice or the amount due or to become due the contractor when the notice is served.

c. Requirements of notice are construed strictly in derogation of the common law. There are few exceptions.

2. Form of Notice.

a. A sworn statement.
b. Identifying the claimant's contract.
c. Describing the contract between the contractor and the public body.
d. Stating the total amount due and unpaid as of the date of the notice.

3. Right to object to form or Service of Notice.

a. The public body.
b. The contractor.
c. Others having claims to the fund?

4. Who Should Be Served?

a. If the State is the public body, notice should be served on the Director or other official of the State whose duty it is to let such contract.
b. If a unit of local government is the public body, notice should be served on the Clerk or Secretary of the unit of local government.
c. In all cases, notice should be served upon every party in the chain of contract between the public body and the claimant.

5. How notices of claim for lien should be served.

a. Certified or registered mail return receipt requested delivery limited to addressee only; or
b. Personal service.

6. When notices of claim should be served.

a Within 30 days after the claimant is served by certified mail return receipt requested with a demand to serve a notice of claim for lien.
b. While funds are still due or to become due to the contractor from

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