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Illinois Compiled Statutes

770 ILCS 60/21.02 (2026)

Construction Trust Funds

✓ current as of May 2026
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(770 ILCS 60/21.02)
    Sec. 21.02. Construction Trust Funds.
    (a) Money held in trust; trustees. Any owner, contractor, subcontractor, or supplier of any tier who requests or requires the execution and delivery of a waiver of mechanics lien by any person who furnishes labor, services, material, fixtures, apparatus or machinery, forms or form work for the improvement of a lot or a tract of land in exchange for payment or the promise of payment, shall hold in trust the sums received by such person as the result of the waiver of mechanics lien, as trustee for the person who furnished the labor, services, material, fixtures, apparatus or machinery, forms or form work or the person otherwise entitled to payment in exchange for such waiver.
    (b) How trust moneys held; commingling. Nothing contained in this Section shall be construed as requiring moneys held in trust by an owner, contractor, subcontractor, or material supplier under this Section to be placed in a separate account. If an owner, contractor, subcontractor, or material supplier commingles moneys held in trust under this Section with other moneys, the mere commingling of the moneys does not constitute a violation of this Section.
    (c) Violation of this Section. Any owner, contractor, subcontractor, or material supplier who knowingly retains or used the moneys held in trust under this Section or any part thereof, for any purpose other than to pay those for whom the moneys are held in trust, shall be liable to any person who successfully enforces his or her rights under this Section for all damages sustained by that person.
(Source: P.A. 94-627, eff. 1-1-06.)

    
Notes of Decisions
Cited in 7 cases, 2004–2013 · leading case: Raymond Prof'l Grp., Inc. v. William A. Pope Co. (In Re Raymond Prof'l Grp., Inc.), 408 B.R. 711 (Bankr. N.D. Ill. 2009).
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Raymond Prof'l Grp., Inc. v. William A. Pope Co. (In Re Raymond Prof'l Grp., Inc.), 408 B.R. 711 (Bankr. N.D. Ill. 2009). · cites it 5× “02 (West 2001) amended, by 770 ILCS 60/21.02 (Supp.2007) [hereinafter 770 ILCS 60/21.”
Weather-Tite, Inc. v. Univ. of St. Francis, 909 N.E.2d 830 (Ill. 2009). “See 770 ILCS 60/21.02 (West 2004). This court has recognized that when an owner receives notice of a subcontractor claim from a contractor’s sworn statement under section 5, the owner must retain sufficient funds to pay the subcontractor.”
James Cape & Sons Co. v. Bowles (In Re Bowles), 318 B.R. 129 (Bankr. E.D. Wis. 2004). “770 ILCS 60/21.02 (2004). 11 . While Cape does not concede it, Wis.”
Raymond Prof'l Grp., Inc. v. William A. Pope Co. (In Re Raymond Prof'l Grp., Inc.), 386 B.R. 678 (Bankr. N.D. Ill. 2008). “02 (West 2001), amended by 770 ILCS 60/21.02 (Supp.2007). Id. R. 12.”
Raymond Prof'l Grp., Inc. v. William A. Pope Co. (In Re Raymond Prof'l Grp., Inc.), 410 B.R. 813 (Bankr. N.D. Ill. 2009). “02 of the Illinois Mechanics Lien Act, 770 ILCS 60/21.02, all funds deposited in the Initial Account on February 4, 2003, and interest accrued thereon, were on that date impressed with a statutory trust in favor of both Pope and RMS as to the lien claims to which AES had notice…”
Gerdau Ameristeel US, Inc. v. Broeren Russo Constr., Inc., 2013 IL App (4th) 120547 (Ill. App. Ct. 2013). “Additionally, a lien waiver can be provided to the contractor when the subcontractor is paid, and the owner can require a lien waiver by every subcontractor when paying the contractor.”
Anchor Mech. Inc. v. Steege (In re ICM, Inc.), 502 B.R. 220 (Bankr. N.D. Ill. 2013). · cites it 2× “02(a) of the Illinois Mechanics Lien Act, 770 ILCS 60/21.02(a). Discussion Section 21.”
— 770 ILCS 60/21.02(a) — 2 cases
Raymond Prof'l Grp., Inc. v. William A. Pope Co. (In Re Raymond Prof'l Grp., Inc.), 408 B.R. 711 (Bankr. N.D. Ill. 2009). “02 (West 2001) amended, by 770 ILCS 60/21.02 (Supp.2007) [hereinafter 770 ILCS 60/21.”
Anchor Mech. Inc. v. Steege (In re ICM, Inc.), 502 B.R. 220 (Bankr. N.D. Ill. 2013). “02(a) of the Illinois Mechanics Lien Act, 770 ILCS 60/21.02(a). Discussion Section 21.”
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