Illinois § 8-2-9.11

§ 8-2-9.11.

Whenever any municipality has entered into a contract for the repair, remodeling, renovation or construction of a building or structure or the construction or maintenance of a road or highway, which provides for retention of a percentage of the contract price until final completion and acceptance of the work, upon the request of the contractor and with the approval of the municipality, the amount so retained may be deposited under a trust agreement with an Illinois bank of the contractor's choice and subject to the approval of the municipality. The contractor shall receive any interest thereon. Upon application by the contractor, the trust agreement must contain, as a minimum, the following provisions: a. The amount to be deposited subject to the trust; b. The terms and conditions of payment in case of default of the contractor; c. The termination of the trust agreement upon completion of the contract; and d. The contractor shall be responsible for obtaining the written consent of the bank trustee, and any costs or service fees shall be borne by the contractor. The trust agreement may, at the discretion of the municipality and upon request of the contractor, become operative at the time of the first partial payment in accordance with existing statutes, ordinances and municipality procedures. (Source: P.A. 82-503.)