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Court and release bond

Illinois Mechanic's Lien Discharge Bond

Section 38.1 of the Illinois Mechanics Lien Act, 770 ILCS 60/38.1, lets an interested party ask the court to substitute a surety bond for the property as security for a lien claim. The bond must be 175% of the lien claim.

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Bond at a glance
Illinois Mechanic's Lien Discharge BondCourt and release bond
Required by state law
Law770 ILCS 60/38.1
Amount175% of the lien claim
ProcessPetition to the court for leave to post the bond
Required bySet by state law; the court approves the substitution.
How it works

Three steps to your bond.

  1. 01Apply onceTell us about your business and what the bond is for. One application covers most contractor bonds.
  2. 02The surety reviews itPropeller Bonds, our surety partner, reviews your application and sets the terms. We show you the terms before you commit.
  3. 03Sign and fileSign the bond and file it with whoever requires it: the project owner, agency or court. We help with the filing.
About this bond

What a mechanic's lien discharge bond is

When a contractor, subcontractor or supplier records a mechanic's lien on a property, the owner or general contractor can post a bond to release the lien. The claim then moves from the property to the bond, so the property can be sold or refinanced while the dispute is settled.

In Illinois

Section 38.1 of the Illinois Mechanics Lien Act, 770 ILCS 60/38.1, lets an interested party ask the court to substitute a surety bond for the property as security for a lien claim. The bond must be 175% of the lien claim.

  • Added by Public Act 99-0178, effective January 1, 2016.

You need this bond if you're

  • A property owner facing a mechanic's lien
  • A general contractor whose subcontractor or supplier filed a lien
  • A developer who needs clear title to sell or refinance
  • A lender that requires the lien removed before funding

What the surety looks at

The lien, the dispute behind it and your finances. Because the bond can pay out if the claimant wins, sureties often look closely at the dispute.

FAQs

Common questions.

How much is a lien discharge bond in Illinois?

State law sets the amount, usually more than the lien itself to cover interest and costs. See the facts above for the Illinois rule.

Does the bond end the dispute?

No. It only moves the claim from the property to the bond. The claimant can still sue, and if they win, the bond pays.

Where is the bond filed?

Usually with the county recorder where the lien was recorded, or with the court if a lien lawsuit is already open.

What does it cost?

You pay a premium, not the bond amount. The surety sets the premium after it reviews your application, usually as a percentage of the bond amount. We show you the terms before you commit.

How do I get one through BLDAssure?

Apply once with us. We collect the details the surety needs, Propeller Bonds (our surety partner) reviews the application and issues the bond, and we help you file it with whoever requires it.

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By state

Mechanic lien discharge bonds in other states.

Alabama mechanic's lien discharge bondAlaska mechanic's lien discharge bondArizona mechanic's lien discharge bondArkansas mechanic's lien discharge bondCalifornia mechanic's lien discharge bondColorado mechanic's lien discharge bondConnecticut mechanic's lien discharge bondDelaware mechanic's lien discharge bondDistrict of Columbia mechanic's lien discharge bondFlorida mechanic's lien discharge bondGeorgia mechanic's lien discharge bondHawaii mechanic's lien discharge bondIdaho mechanic's lien discharge bondIndiana mechanic's lien discharge bondIowa mechanic's lien discharge bondKansas mechanic's lien discharge bondKentucky mechanic's lien discharge bondLouisiana mechanic's lien discharge bondMaine mechanic's lien discharge bondMaryland mechanic's lien discharge bondMassachusetts mechanic's lien discharge bondMichigan mechanic's lien discharge bondMinnesota mechanic's lien discharge bondMississippi mechanic's lien discharge bondMissouri mechanic's lien discharge bondMontana mechanic's lien discharge bondNebraska mechanic's lien discharge bondNevada mechanic's lien discharge bondNew Hampshire mechanic's lien discharge bondNew Jersey mechanic's lien discharge bondNew Mexico mechanic's lien discharge bondNew York mechanic's lien discharge bondNorth Carolina mechanic's lien discharge bondNorth Dakota mechanic's lien discharge bondOhio mechanic's lien discharge bondOklahoma mechanic's lien discharge bondOregon mechanic's lien discharge bondPennsylvania mechanic's lien discharge bondRhode Island mechanic's lien discharge bondSouth Carolina mechanic's lien discharge bondSouth Dakota mechanic's lien discharge bondTennessee mechanic's lien discharge bondTexas mechanic's lien discharge bondUtah mechanic's lien discharge bondVermont mechanic's lien discharge bondVirginia mechanic's lien discharge bondWashington mechanic's lien discharge bondWest Virginia mechanic's lien discharge bondWisconsin mechanic's lien discharge bondWyoming mechanic's lien discharge bond

Sources

  1. Public Act 099-0178 (Illinois General Assembly)
  2. Taft: Illinois Mechanics Lien Act to allow substitution of bond

General information, not legal advice. Rules change; confirm the current requirement with the agency or owner that asks for the bond. Facts checked Oct 23, 2026.

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