Legal Update
May 23, 2007
Illinois Legislature Allows for Lien on Rental Equipment
Illinois law currently does not provide for a mechanics lien to be claimed by a supplier of rental equipment. That may change.
On May 22nd, 2007, the Illinois legislature passed Senate Bill 330. In addition to some revisions to Section 23 of the Illinois Mechanics Lien Act, which concerns liens against public funds, the bill adds a new Section 1.2, entitled “Rental equipment liens.” This new section allows for lessors of construction equipment for use in the process of constructing improvements to real estate to have a lien for the rental value of that equipment.
The bill is slated for submission to the Governor by June 21, 2007 and the Governor will then have sixty (60) days in which to sign the bill, if he so chooses.
If you have any questions concerning this One Minute Memo, please contact the Seyfarth Shaw LLP construction attorneys.
Seyfarth Shaw LLP provides this information as a service to clients and other friends for educational purposes only. It should not be construed or relied on as legal advice or to create a lawyer-client relationship. Readers should not act upon this information without seeking advice from their professional advisers.