55 ILCS 5/5-1123
2021 Illinois Compiled Statutes|Chapter 55 - COUNTIES|55 ILCS 5/ - Counties Code.|Article 5 - Powers And Duties Of County Boards

Sec. 5-1123. Builder or developer cash bond or other surety.(a) A county may not require a cash bond, irrevocable letter of credit,  surety bond, or letter of commitment issued by a bank, savings and loan  association, surety, or insurance company from a builder or developer to  guarantee completion of a project improvement when the builder or developer  has filed with the county clerk a current, irrevocable letter of credit, surety  bond, or letter of commitment, issued by a bank, savings and loan association,  surety, or insurance company, deemed good and sufficient by the county  accepting such security, in an amount equal to or greater than 110% of the  amount of the bid on each project improvement.  A builder or developer has  the option to utilize a cash bond, irrevocable letter of credit, surety  bond, or letter of  commitment issued by a bank, savings and loan association, surety, or insurance  company, deemed good and sufficient by the county, to satisfy any cash bond  requirement established by a county.  The county must approve  and deem a surety or insurance company good and sufficient for the purposes  set forth in this Section if the surety or insurance company is  authorized by the Illinois Department  of Insurance to sell and issue sureties in the State of Illinois.(b) If a county receives a cash bond, irrevocable letter of credit, or  surety bond from a builder or developer to  guarantee completion of a project improvement, the county shall (i) register  the bond under  the address of the project and the construction permit number and (ii) give the  builder or developer a receipt for the bond.  The county shall establish and  maintain a separate account for all cash bonds received from builders and  developers to guarantee completion of a project improvement.(c) The county shall refund a cash bond to a builder or developer, or  release the irrevocable letter of credit or surety bond, within  60 days after the builder or developer notifies the county in writing of the  completion of the project improvement for which the bond was required.  For  these purposes, "completion" means that the county has determined  that the project improvement for which the bond was required is complete or a  licensed engineer or licensed architect has certified to the builder or  developer and the county that the project improvement has been completed to the  applicable codes and ordinances.  The county shall pay interest to the builder  or developer, beginning 60 days after the builder or developer notifies the  county in writing of the completion of the project improvement, on any bond not  refunded to a builder or developer, at the rate of 1% per month.(d) A home rule county may not require or maintain cash bonds, irrevocable  letters of credit, surety bonds, or other adequate securities from builders  or developers in a manner inconsistent with this Section.  This Section  supersedes and controls over other provisions of this Code as  they apply to and guarantee completion of a project improvement that is  required by the county.  This Section is a  denial and limitation under subsection (i) of Section 6 of Article VII of the  Illinois Constitution on the concurrent exercise by a home rule county of  powers and functions exercised by the State.  (Source: P.A. 96-1000, eff. 7-2-10.)