(810 ILCS 5/Art. 9 heading)
(810 ILCS 5/Art. 9 Pt. 1 heading)
(810 ILCS 5/Art. 9 Pt. 1 Sub. 1 heading)
(810 ILCS 5/9-101) (from Ch. 26, par. 9-101)
Sec. 9-101.
Short title.
This Article may be cited as Uniform Commercial
Code - Secured Transactions.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-102) (from Ch. 26, par. 9-102)
Sec. 9-102. Definitions and index of definitions.
(a) Article 9 definitions. In this Article:
(b) Definitions in other Articles. "Control" as provided in Section 7-106 and the
following definitions in other
Articles apply to this Article:
"Applicant". Section 5-102.
"Beneficiary". Section 5-102.
"Broker". Section 8-102.
"Certificated security". Section 8-102.
"Check". Section 3-104.
"Clearing corporation". Section 8-102.
"Contract for sale". Section 2-106.
"Customer". Section 4-104.
"Entitlement holder". Section 8-102.
"Financial asset". Section 8-102.
"Holder in due course". Section 3-302.
"Issuer" (with respect to a letter of
credit or letter-of-credit right). Section 5-102.
"Issuer" (with respect to a security). Section 8-201.
"Issuer" (with respect to documents of title). Section 7-102.
"Lease". Section 2A-103.
"Lease agreement". Section 2A-103.
"Lease contract". Section 2A-103.
"Leasehold interest". Section 2A-103.
"Lessee". Section 2A-103.
"Lessee in ordinary course of business". Section 2A-103.
"Lessor". Section 2A-103.
"Lessor's residual interest". Section 2A-103.
"Letter of credit". Section 5-102.
"Merchant". Section 2-104.
"Negotiable instrument". Section 3-104.
"Nominated person". Section 5-102.
"Note". Section 3-104.
"Proceeds of a letter of credit". Section 5-114.
"Prove". Section 3-103.
"Sale". Section 2-106.
"Securities account". Section 8-501.
"Securities intermediary". Section 8-102.
"Security". Section 8-102.
"Security certificate". Section 8-102.
"Security entitlement". Section 8-102.
"Uncertificated security". Section 8-102.
(c) Article 1 definitions and principles. Article 1 contains general
definitions and principles of construction and interpretation applicable
throughout
this Article.
(Source: P.A. 97-1034, eff. 7-1-13; 98-749, eff. 7-16-14.)
(810 ILCS 5/9-103) (from Ch. 26, par. 9-103)
Sec. 9-103.
Purchase-money security interest; application of payments;
burden of establishing.
(a) Definitions. In this Section:
(b) Purchase-money security interest in goods. A security interest in
goods is a purchase-money security interest:
(c) Purchase-money security interest in software. A security interest in
software is a purchase-money security interest to the extent that the security
interest
also secures a purchase-money obligation incurred with respect to goods in
which
the secured party holds or held a purchase-money security interest if:
(d) Consignor's inventory purchase-money security interest. The
security interest of a consignor in goods that are the subject of a consignment
is a
purchase-money security interest in inventory.
(e) Application of payment in non-consumer-goods transaction. In a
transaction other than a consumer-goods transaction, if the extent to which a
security interest is a purchase-money security interest depends on the
application of
a payment to a particular obligation, the payment must be applied:
(f) No loss of status of purchase-money security interest in
non-consumer-goods transaction. In a transaction other than a consumer-goods
transaction, a purchase-money security interest does not lose its status as
such, even
if:
(g) Burden of proof in non-consumer-goods transaction. In a
transaction other than a consumer-goods transaction, a secured party claiming a
purchase-money security interest has the burden of establishing the extent to
which
the security interest is a purchase-money security interest.
(h) Non-consumer-goods transactions; no inference. The limitation of
the rules in subsections (e), (f), and (g) to transactions other than
consumer-goods
transactions is intended to leave to the court the determination of the proper
rules in
consumer-goods transactions. The court may not infer from that limitation the
nature of the proper rule in consumer-goods transactions and may continue to
apply
established approaches.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-104) (from Ch. 26, par. 9-104)
Sec. 9-104.
Control of deposit account.
(a) Requirements for control. A secured party has control of a deposit
account if:
(b) Debtor's right to direct disposition. A secured party that has
satisfied
subsection (a) has control, even if the debtor retains the right to direct the
disposition of funds from the deposit account.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-105) (from Ch. 26, par. 9-105)
Sec. 9-105. Control of electronic chattel paper.
(a) General rule: Control of electronic chattel paper. A secured party has
control
of electronic chattel paper if a system employed for evidencing the transfer of interests in the chattel paper reliably establishes the secured party as the person to which the chattel paper was assigned.
(b) Specific facts giving control. A system satisfies subsection (a) if the record or records comprising the chattel
paper are
created, stored, and assigned in such a manner that:
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-106) (from Ch. 26, par. 9-106)
Sec. 9-106.
Control of investment property.
(a) Control under Section 8-106. A person has control of a certificated
security, uncertificated security, or security entitlement as provided in
Section
8-106.
(b) Control of commodity contract. A secured party has control of a
commodity contract if:
(c) Effect of control of securities account or commodity account. A
secured party having control of all security entitlements or commodity
contracts
carried in a securities account or commodity account has control over the
securities
account or commodity account.
(Source: P.A. 90-665, eff. 7-30-98; 91-893, eff. 7-1-01.)
(810 ILCS 5/9-107) (from Ch. 26, par. 9-107)
Sec. 9-107.
Control of letter-of-credit right.
A secured party has
control of a
letter-of-credit right to the extent of any right to payment or performance by
the
issuer or any nominated person if the issuer or nominated person has consented
to
an assignment of proceeds of the letter of credit under Section 5-114(c) or
otherwise applicable law or practice.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-107.1)
Sec. 9-107.1.
Control of Beneficial Interest in Illinois Land Trust.
(a) Requirements for Control. A secured party has control of the beneficial
interest in an Illinois land trust if:
(b) Debtor's right to direct disposition and proceeds. A secured party that
has
satisfied subsection (a) has control, even if the debtor retains, subject to
the terms and conditions of the collateral assignment or security agreement,
the power of direction
of
the trustee and the right to receive the rents, income and profits thereof.
(Source: P.A. 92-234, eff. 1-1-02.)
(810 ILCS 5/9-108) (from Ch. 26, par. 9-108)
Sec. 9-108.
Sufficiency of description.
(a) Sufficiency of description. Except as otherwise provided in
subsections (c), (d), and (e), a description of personal or real property is
sufficient,
whether or not it is specific, if it reasonably identifies what is described.
(b) Examples of reasonable identification. Except as otherwise provided
in subsection (d), a description of collateral reasonably identifies the
collateral if it
identifies the collateral by:
(c) Supergeneric description not sufficient. A description of collateral as
"all the debtor's assets" or "all the debtor's personal property" or using words of
similar import does not reasonably identify the collateral.
(d) Investment property. Except as otherwise provided in subsection (e),
a description of a security entitlement, securities account, or commodity account is
sufficient if it describes:
(e) When description by type insufficient. A description only by type of
collateral defined in the Uniform Commercial Code is an insufficient
description
of:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/Art. 9 Pt. 1 Sub. 2 heading)
(810 ILCS 5/9-109) (from Ch. 26, par. 9-109)
Sec. 9-109.
Scope.
(a) General scope of Article. Except as otherwise provided in subsections
(c) and (d), this Article applies to:
(b) Security interest in secured obligation. The application of this
Article to a security interest in a secured obligation is not affected by the fact that
the obligation is itself secured by a transaction or interest to which this Article does
not apply.
(c) Extent to which Article does not apply. This Article does not apply
to the extent that:
(d) Inapplicability of Article. This Article does not apply to:
(Source: P.A. 91-893, eff. 7-1-01; 92-819, eff. 8-21-02.)
(810 ILCS 5/9-110) (from Ch. 26, par. 9-110)
Sec. 9-110.
Security interests arising under Article 2 or 2A.
A security
interest arising under Section 2-401, 2-505, 2-711(3), or 2A-508(5) is subject
to
this Article. However, until the debtor obtains possession of the goods:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-112) (from Ch. 26, par. 9-112)
Sec. 9-112.
(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-113) (from Ch. 26, par. 9-113)
Sec. 9-113.
(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-114) (from Ch. 26, par. 9-114)
Sec. 9-114.
(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-115) (from Ch. 26, par. 9-115)
Sec. 9-115.
(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-116)
Sec. 9-116.
(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-150)
Sec. 9-150.
(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/Art. 9 Pt. 2 heading)
(810 ILCS 5/Art. 9 Pt. 2 Sub. 1 heading)
(810 ILCS 5/9-201) (from Ch. 26, par. 9-201)
Sec. 9-201.
General effectiveness of security agreement.
(a) General effectiveness. Except as otherwise provided in the Uniform
Commercial Code, a security agreement is effective according to its terms
between
the parties, against purchasers of the collateral, and against creditors.
(b) Applicable consumer laws and other law. A transaction subject to
this Article is subject to any applicable rule of law, statute, or regulation
which establishes a
different
rule for
consumers, including:
(c) Other applicable law controls. In case of conflict between this Article
and a rule of law, statute, or regulation described in subsection
(b), the rule
of law,
statute, or regulation controls. Failure to comply with a rule of law,
statute, or
regulation
described in subsection (b) has only the effect such rule of law, statute, or
regulation
specifies.
(d) Further deference to other applicable law. This Article does not:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-202) (from Ch. 26, par. 9-202)
Sec. 9-202.
Title to collateral immaterial.
Except as otherwise provided
with
respect to consignments or sales of accounts, chattel paper, payment
intangibles, or
promissory notes, the provisions of this Article with regard to rights and
obligations
apply whether title to collateral is in the secured party or the debtor.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-203) (from Ch. 26, par. 9-203)
Sec. 9-203. Attachment and enforceability of security interest; proceeds;
supporting obligations; formal requisites.
(a) Attachment. A security interest attaches to collateral when it becomes
enforceable against the debtor with respect to the collateral, unless an
agreement
expressly postpones the time of attachment.
(b) Enforceability. Except as otherwise provided in subsections (c)
through (i), a security interest is enforceable against the debtor and third
parties
with respect to the collateral only if:
(c) Other UCC provisions. Subsection (b) is subject to Section 4-210 on
the security interest of a collecting bank, Section 5-118 on the security interest of a
letter-of-credit issuer or nominated person, Section 9-110 on a security interest
arising under Article 2 or 2A, and Section 9-206 on security interests in investment
property.
(d) When person becomes bound by another person's security
agreement. A person becomes bound as debtor by a security agreement entered
into by another person if, by operation of law other than this Article or by contract:
(e) Effect of new debtor becoming bound. If a new debtor becomes
bound as debtor by a security agreement entered into by another person:
(f) Proceeds and supporting obligations. The attachment of a security
interest in collateral gives the secured party the rights to proceeds provided
by
Section 9-315 and is also attachment of a security interest in a supporting
obligation for the collateral.
(g) Lien securing right to payment. The attachment of a security interest
in a right to payment or performance secured by a security interest or other
lien on
personal or real property is also attachment of a security interest in the
security
interest, mortgage, or other lien.
(h) Security entitlement carried in securities account. The attachment
of a security interest in a securities account is also attachment of a security
interest
in the security entitlements carried in the securities account.
(i) Commodity contracts carried in commodity account. The
attachment of a security interest in a commodity account is also attachment of
a
security interest in the commodity contracts carried in the commodity
account.
(Source: P.A. 95-895, eff. 1-1-09.)
(810 ILCS 5/9-204) (from Ch. 26, par. 9-204)
Sec. 9-204.
After-acquired property; future advances.
(a) After-acquired collateral. Except as otherwise provided in subsection
(b), a security agreement may create or provide for a security interest in
after-acquired collateral.
(b) When after-acquired property clause not effective. A security
interest does not attach under a term constituting an after-acquired property
clause
to:
(c) Future advances and other value. A security agreement may provide
that collateral secures, or that accounts, chattel paper, payment intangibles,
or
promissory notes are sold in connection with, future advances or other value,
whether or not the advances or value are given pursuant to commitment.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-205) (from Ch. 26, par. 9-205)
Sec. 9-205.
Use or disposition of collateral permissible.
(a) When security interest not invalid or fraudulent. A security interest
is not invalid or fraudulent against creditors solely because:
(b) Requirements of possession not relaxed. This Section does not relax
the requirements of possession if attachment, perfection, or enforcement of a
security interest depends upon possession of the collateral by the secured
party.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-205.1) (from Ch. 26, par. 9-205.1)
Sec. 9-205.1.
Listing by debtor of purchasers or receivers of
collateral. A secured party may require that the debtor include as
part of the security agreement a list of persons to whom the debtor desires
to sell or otherwise dispose of the collateral.
The debtor shall not sell or otherwise dispose of the collateral to a person
not included in that list unless the debtor has notified the secured party
of his desire to sell or otherwise dispose of the collateral to such person
at least 7 days prior to the sale or other disposition.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-206) (from Ch. 26, par. 9-206)
Sec. 9-206.
Security interest arising in purchase or delivery of financial
asset.
(a) Security interest when person buys through securities
intermediary. A security interest in favor of a securities intermediary
attaches to a
person's security entitlement if:
(b) Security interest secures obligation to pay for financial asset. The
security interest described in subsection (a) secures the person's obligation
to pay
for the financial asset.
(c) Security interest in payment against delivery transaction. A
security interest in favor of a person that delivers a certificated security or other
financial asset represented by a writing attaches to the security or other financial
asset if:
(d) Security interest secures obligation to pay for delivery. The security
interest described in subsection (c) secures the obligation to make payment for
the
delivery.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/Art. 9 Pt. 2 Sub. 2 heading)
(810 ILCS 5/9-207) (from Ch. 26, par. 9-207)
Sec. 9-207. Rights and duties of secured party having possession or
control
of collateral.
(a) Duty of care when secured party in possession. Except as otherwise
provided in subsection (d), a secured party shall use reasonable care in the
custody
and preservation of collateral in the secured party's possession. In the case
of
chattel paper or an instrument, reasonable care includes taking necessary steps
to
preserve rights against prior parties unless otherwise agreed.
(b) Expenses, risks, duties, and rights when secured party in
possession. Except as otherwise provided in subsection (d), if a secured party
has
possession of collateral:
(c) Duties and rights when secured party in possession or control.
Except as otherwise provided in subsection (d), a secured party having possession
of collateral or control of collateral under Section 7-106, 9-104, 9-105, 9-106, or 9-107:
(d) Buyer of certain rights to payment. If the secured party is a buyer of
accounts, chattel paper, payment intangibles, or promissory notes or a
consignor:
(Source: P.A. 95-895, eff. 1-1-09.)
(810 ILCS 5/9-208) (from Ch. 26, par. 9-208)
Sec. 9-208. Additional duties of secured party having control of
collateral.
(a) Applicability of Section. This Section applies to cases in which there
is no outstanding secured obligation and the secured party is not committed to
make advances, incur obligations, or otherwise give value.
(b) Duties of secured party after receiving demand from debtor.
Within 10 days after receiving an authenticated demand by the debtor:
(810 ILCS 5/9-209)
Sec. 9-209.
Duties of secured party if account debtor has been notified of
assignment.
(a) Applicability of Section. Except as otherwise provided in subsection
(c), this Section applies if:
(b) Duties of secured party after receiving demand from debtor.
Within 10 days after receiving an authenticated demand by the debtor, a secured
party shall send to an account debtor that has received notification of an
assignment
to the secured party as assignee under Section 9-406(a) an authenticated record
that
releases the account debtor from any further obligation to the secured party.
(c) Inapplicability to sales. This Section does not apply to an assignment
constituting the sale of an account, chattel paper, or payment intangible.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-210)
Sec. 9-210.
Request for accounting; request regarding list of collateral
or
statement of account.
(a) Definitions. In this Section:
(b) Duty to respond to requests. Subject to subsections (c), (d), (e), and
(f), a secured party, other than a buyer of accounts, chattel paper, payment
intangibles, or promissory notes or a consignor, shall comply with a request within
14 days after receipt:
(c) Request regarding list of collateral; statement concerning type of
collateral. A secured party that claims a security interest in all of a particular type
of collateral owned by the debtor may comply with a request regarding a list of
collateral by sending to the debtor an authenticated record including a statement to
that effect within 14 days after receipt.
(d) Request regarding list of collateral; no interest claimed. A person
that receives a request regarding a list of collateral, claims no interest in the
collateral when it receives the request, and claimed an interest in the collateral at an
earlier time shall comply with the request within 14 days after receipt by sending to
the debtor an authenticated record:
(e) Request for accounting or regarding statement of account; no
interest in obligation claimed. A person that receives a request for an
accounting
or a request regarding a statement of account, claims no interest in the
obligations
when it receives the request, and claimed an interest in the obligations at an
earlier
time shall comply with the request within 14 days after receipt by sending to
the
debtor an authenticated record:
(f) Charges for responses. A debtor is entitled without charge to one
response to a request under this Section during any six-month period. The
secured
party may require payment of a charge not exceeding $25 for each additional
response.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/Art. 9 Pt. 3 heading)
(810 ILCS 5/Art. 9 Pt. 3 Sub. 1 heading)
(810 ILCS 5/9-301) (from Ch. 26, par. 9-301)
Sec. 9-301. Law governing perfection and priority of security interests. Except as otherwise provided in Sections 9-303 through 9-306.1,
the following
rules
determine the law governing perfection, the effect of perfection or
nonperfection,
and the priority of a security interest in collateral:
(Source: P.A. 95-895, eff. 1-1-09.)
(810 ILCS 5/9-302) (from Ch. 26, par. 9-302)
Sec. 9-302.
Law governing perfection and priority of agricultural liens.
While farm products are located in a jurisdiction, the local law of that
jurisdiction
governs perfection, the effect of perfection or nonperfection, and the priority
of an
agricultural lien on the farm products.
(Source: P.A. 90-665, eff. 7-30-98; 91-893, eff. 7-1-01.)
(810 ILCS 5/9-303) (from Ch. 26, par. 9-303)
Sec. 9-303.
Law governing perfection and priority of security interests in
goods covered by a certificate of title.
(a) Applicability of Section. This Section applies to goods covered by a
certificate of title, even if there is no other relationship between the
jurisdiction
under whose certificate of title the goods are covered and the goods or the
debtor.
(b) When goods covered by certificate of title. Goods become covered by
a certificate of title when a valid application for the certificate of title
and the
applicable fee are delivered to the appropriate authority. Goods cease to be
covered
by a certificate of title at the earlier of the time the certificate of title
ceases to be
effective under the law of the issuing jurisdiction or the time the goods
become
covered subsequently by a certificate of title issued by another jurisdiction.
(c) Applicable law. The local law of the jurisdiction under whose
certificate of title the goods are covered governs perfection, the effect of
perfection
or nonperfection, and the priority of a security interest in goods covered by a
certificate of title from the time the goods become covered by the certificate
of title
until the goods cease to be covered by the certificate of title.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-304) (from Ch. 26, par. 9-304)
Sec. 9-304.
Law governing perfection and priority of security interests
in deposit accounts.
(a) Law of bank's jurisdiction governs. The local law of a bank's
jurisdiction governs perfection, the effect of perfection or nonperfection, and
the
priority of a security interest in a deposit account maintained with that bank.
(b) Bank's jurisdiction. The following rules determine a bank's
jurisdiction for purposes of this Part:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-305) (from Ch. 26, par. 9-305)
Sec. 9-305.
Law governing perfection and priority of security interests
in investment property.
(a) Governing law: general rules. Except as otherwise provided
in subsection (c), the following rules apply:
(b) Commodity intermediary's jurisdiction. The following rules
determine a commodity intermediary's jurisdiction for purposes of this Part:
(c) When perfection governed by law of jurisdiction where
debtor located. The local law of the jurisdiction in which the debtor is located
governs:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-306) (from Ch. 26, par. 9-306)
Sec. 9-306.
Law governing perfection and priority of security interests
in letter-of-credit rights.
(a) Governing law: issuer's or nominated person's jurisdiction.
Subject to subsection (c), the local law of the issuer's jurisdiction or a
nominated
person's jurisdiction governs perfection, the effect of perfection or
nonperfection,
and the priority of a security interest in a letter-of-credit right if the
issuer's
jurisdiction or nominated person's jurisdiction is a State.
(b) Issuer's or nominated person's jurisdiction. For purposes of
this Part, an issuer's jurisdiction or nominated person's jurisdiction is the
jurisdiction whose law governs the liability of the issuer or nominated person
with
respect to the letter-of-credit right as provided in Section 5-116.
(c) When Section not applicable. This Section does not apply to a
security interest that is perfected only under Section 9-308(d).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-306.01) (from Ch. 26, par. 9-306.01)
Sec. 9-306.01.
(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-306.02) (from Ch. 26, par. 9-306.02)
Sec. 9-306.02.
(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-306.1)
Sec. 9-306.1.
Law Governing Perfection and Priority of Collateral
Assignments
of
Beneficial Interests in Illinois Land Trusts. The local law of the State of
Illinois governs perfection, the effect of perfection or nonperfection, and the
priority of a collateral assignment of, or other security interest in, a
beneficial interest in an Illinois
land
trust. This Section implements the important interest of this State in matters
associated with the administration of Illinois land trusts created for the
principal purpose of owning an interest in Illinois land and the regulation of
restrictions on the transfer of beneficial interests in, and of the power of
appointments under, such trusts.
(Source: P.A. 92-234, eff. 1-1-02.)
(810 ILCS 5/9-307) (from Ch. 26, par. 9-307)
Sec. 9-307. Location of debtor.
(a) "Place of business." In this Section, "place of business" means
a place where a debtor conducts its affairs.
(b) Debtor's location: general rules. Except as otherwise
provided in this Section, the following rules determine a debtor's location:
(c) Limitation of applicability of subsection (b). Subsection (b)
applies only if a debtor's residence, place of business, or chief executive
office, as applicable, is located in a jurisdiction whose law generally
requires information concerning the existence of a nonpossessory security
interest to be made generally available in a filing, recording, or registration
system as a condition or result of the security interest's obtaining priority
over the rights of a lien creditor with respect to the collateral. If
subsection (b) does not apply, the debtor is located in the District of
Columbia.
(d) Continuation of location: cessation of existence, etc. A person that
ceases to exist, have a residence, or have a place of business continues
to be located in the jurisdiction specified by subsections (b) and (c).
(e) Location of registered organization organized under State
law. A registered organization that is organized under the law of a State is
located in that State.
(f) Location of registered organization organized under federal law; bank
branches and agencies. Except as otherwise provided in subsection (i), a
registered organization that is organized under the law of the United States
and a branch or agency of a bank that is not organized under the law of the
United States or a State are located:
(g) Continuation of location: change in status of registered organization.
A registered organization continues to be located in the jurisdiction specified
by subsection (e) or (f) notwithstanding:
(h) Location of United States. The United States is located in the
District of Columbia.
(i) Location of foreign bank branch or agency if licensed in only one
State. A branch or agency of a bank that is not organized under the law
of the United States or a State is located in the State in which the branch
or agency is licensed, if all branches and agencies of the bank are licensed
in only one State.
(j) Location of foreign air carrier. A foreign air carrier under the
Federal Aviation Act of 1958, as amended, is located at the designated office
of the agent upon which service of process may be made on behalf of the
carrier.
(k) Section applies only to this Part. This Section applies only for
purposes of this Part.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-307.1) (from Ch. 26, par. 9-307.1)
Sec. 9-307.1.
(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-307.2) (from Ch. 26, par. 9-307.2)
Sec. 9-307.2.
(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/Art. 9 Pt. 3 Sub. 2 heading)
(810 ILCS 5/9-308) (from Ch. 26, par. 9-308)
Sec. 9-308.
When security interest or agricultural lien is perfected;
continuity of perfection.
(a) Perfection of security interest. Except as otherwise provided
in this Section and Section 9-309, a security interest is perfected if it has
attached
and all of the applicable requirements for perfection in Sections 9-310 through
9-316 have been satisfied. A security interest is perfected when it attaches
if the
applicable requirements are satisfied before the security interest attaches.
(b) Perfection of agricultural lien. An agricultural lien is
perfected if it has become effective and all of the applicable requirements for
perfection in Section 9-310 have been satisfied. An agricultural lien is
perfected
when it becomes effective if the applicable requirements are satisfied before
the
agricultural lien becomes effective.
(c) Continuous perfection; perfection by different methods. A
security interest or agricultural lien is perfected continuously if it is originally
perfected by one method under this Article and is later perfected by another method
under this Article, without an intermediate period when it was unperfected.
(d) Supporting obligation. Perfection of a security interest in
collateral also perfects a security interest in a supporting obligation for the
collateral.
(e) Lien securing right to payment. Perfection of a security
interest in a right to payment or performance also perfects a security interest in a
security interest, mortgage, or other lien on personal or real property securing the
right.
(f) Security entitlement carried in securities account. Perfection
of a security interest in a securities account also perfects a security
interest in the
security entitlements carried in the securities account.
(g) Commodity contract carried in commodity account.
Perfection of a security interest in a commodity account also perfects a
security
interest in the commodity contracts carried in the commodity account.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-309) (from Ch. 26, par. 9-309)
Sec. 9-309.
Security interest perfected upon attachment.
The following
security interests are perfected when they attach:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-310) (from Ch. 26, par. 9-310)
Sec. 9-310. When filing required to perfect security interest or
agricultural lien; security interests and agricultural liens to which filing
provisions do not apply.
(a) General rule: perfection by filing. Except as otherwise
provided in subsection (b) and Section 9-312(b), a financing statement must be
filed to perfect all security interests and agricultural liens.
(b) Exceptions: filing not necessary. The filing of a financing
statement is not necessary to perfect a security interest:
(c) Assignment of perfected security interest. If a secured party
assigns a perfected security interest or agricultural lien, a filing under this
Article is
not required to continue the perfected status of the security interest against
creditors
of and transferees from the original debtor.
(Source: P.A. 95-895, eff. 1-1-09.)
(810 ILCS 5/9-311) (from Ch. 26, par. 9-311)
Sec. 9-311. Perfection of security interests in property subject to
certain
statutes, regulations, and treaties.
(a) Security interest subject to other law. Except as otherwise
provided in subsection (d), the filing of a financing statement is not
necessary or
effective to perfect a security interest in property subject to:
(b) Compliance with other law. Compliance with the
requirements of a statute, regulation, or treaty described in subsection (a)
for
obtaining priority over the rights of a lien creditor is equivalent to the
filing of a
financing statement under this Article. Except as otherwise provided in subsection
(d) and Sections 9-313 and 9-316(d) and (e) for goods covered by a certificate of
title, a security interest in property subject to a statute, regulation, or treaty
described in subsection (a) may be perfected only by compliance with those
requirements, and a security interest so perfected remains perfected
notwithstanding a change in the use or transfer of possession of the collateral.
(c) Duration and renewal of perfection. Except as otherwise
provided in subsection (d) and Section 9-316(d) and (e), duration and renewal
of
perfection of a security interest perfected by compliance with the requirements
prescribed by a statute, regulation, or treaty described in subsection (a) are
governed by the statute, regulation, or treaty. In other respects, the
security interest
is subject to this Article.
(d) Inapplicability to certain inventory. During any period in
which
collateral subject to a
statute specified in subsection (a)(2)
is inventory held for sale or lease by a person or leased by
that
person as lessor and that person is in the business of selling or leasing goods
of that
kind, this Section does not apply to a security interest in that collateral
created by
that person as debtor.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-312) (from Ch. 26, par. 9-312)
Sec. 9-312. Perfection of security interests in chattel paper, deposit
accounts, documents, goods covered by documents, instruments, investment
property, letter-of-credit rights, and money; perfection by permissive filing;
temporary perfection without filing or transfer of possession.
(a) Perfection by filing permitted. A security interest in chattel
paper, negotiable documents, instruments,
beneficial interests in Illinois land trusts,
or investment property may be
perfected
by filing.
(b) Control or possession of certain collateral. Except as
otherwise provided in Section 9-315(c) and (d) for proceeds:
(c) Goods covered by negotiable document. While goods are in
the possession of a bailee that has issued a negotiable document covering the
goods:
(d) Goods covered by nonnegotiable document. While goods are
in the possession of a bailee that has issued a nonnegotiable document covering the
goods, a security interest in the goods may be perfected by:
(e) Temporary perfection: new value. A security interest in
certificated securities, negotiable documents, or instruments is perfected without
filing or the taking of possession or control for a period of 20 days from the time it attaches to
the extent that it arises for new value given under an authenticated security
agreement.
(f) Temporary perfection: goods or documents made available
to debtor. A perfected security interest in a negotiable document or goods in
possession of a bailee, other than one that has issued a negotiable document for the
goods, remains perfected for 20 days without filing if the secured party makes
available to the debtor the goods or documents representing the goods for the
purpose of:
(g) Temporary perfection: delivery of security certificate or
instrument to debtor. A perfected security interest in a certificated security
or
instrument remains perfected for 20 days without filing if the secured party
delivers
the security certificate or instrument to the debtor for the purpose of:
(h) Expiration of temporary perfection. After the 20-day period
specified in subsection (e), (f), or (g) expires, perfection depends upon
compliance
with this Article.
(Source: P.A. 95-895, eff. 1-1-09.)
(810 ILCS 5/9-313) (from Ch. 26, par. 9-313)
Sec. 9-313. When possession by or delivery to secured party perfects
security interest without filing.
(a) Perfection by possession or delivery. Except as otherwise provided
in subsection (b), a secured party may perfect a security interest in
tangible negotiable documents, goods, instruments, money, or tangible chattel paper by
taking possession of the collateral. A secured party may perfect a security
interest in certificated securities by taking delivery of the certificated
securities under Section 8-301.
(b) Goods covered by certificate of title. With respect to goods covered
by a certificate of title issued by this State, a secured party may perfect a
security interest in the goods by taking possession of the goods only in the
circumstances described in Section 9-316(d).
(c) Collateral in possession of person other than debtor. With respect to
collateral other than certificated securities and goods covered by a document,
a secured party takes possession of collateral in the possession of a person
other than the debtor, the secured party, or a lessee of the collateral from
the debtor in the ordinary course of the debtor's business, when:
(d) Time of perfection by possession; continuation of perfection. If
perfection of a security interest depends upon possession of the collateral by
a secured party, perfection occurs no earlier than the time the secured party
takes possession and continues only while the secured party retains possession.
(e) Time of perfection by delivery; continuation of perfection. A security
interest in a certificated security in registered form is perfected by
delivery when delivery of the certificated security occurs under Section 8-301
and remains perfected by delivery until the debtor obtains possession of the
security certificate.
(f) Acknowledgment not required. A person in possession of
collateral is not required to acknowledge that it holds possession for a
secured party's benefit.
(g) Effectiveness of acknowledgment; no duties or confirmation.
If a person acknowledges that it holds possession for the secured party's
benefit:
(h) Secured party's delivery to person other than debtor. A secured
party having possession of collateral does not relinquish possession by
delivering the collateral to a person other than the debtor or a lessee
of the collateral from the debtor in the ordinary course of the debtor's
business if the person was instructed before the delivery or is instructed
contemporaneously with the delivery:
(i) Effect of delivery under subsection (h); no duties or confirmation.
A secured party does not relinquish possession, even if a delivery under
subsection (h) violates the rights of a debtor. A person to which collateral
is delivered under subsection (h) does not owe any duty to the secured party
and is not required to confirm the delivery to another person unless the
person otherwise agrees or law other than this Article otherwise provides.
(Source: P.A. 95-895, eff. 1-1-09.)
(810 ILCS 5/9-314) (from Ch. 26, par. 9-314)
Sec. 9-314. Perfection by control.
(a) Perfection by control. A security interest in investment
property, deposit accounts,
electronic chattel paper, letter-of-credit rights,
electronic documents, or beneficial interests in Illinois land trusts may be
perfected by control of the collateral under Section 7-106, 9-104, 9-105, 9-106,
9-107, or 9-107.1.
(b) Specified collateral: time of perfection by control;
continuation of perfection. A security interest in deposit accounts,
electronic
chattel paper, letter-of-credit rights,
electronic documents, or beneficial interests in Illinois land trusts
is perfected by control under Section
7-106, 9-104,
9-105, 9-107, or 9-107.1 when the secured party obtains control and
remains perfected by
control only while the secured party retains control.
(c) Investment property: time of perfection by control;
continuation of perfection. A security interest in investment property is
perfected
by control under Section 9-106 from the time the secured party obtains control
and
remains perfected by control until:
(Source: P.A. 95-895, eff. 1-1-09.)
(810 ILCS 5/9-315) (from Ch. 26, par. 9-315)
Sec. 9-315.
Secured party's rights on disposition of collateral and in
proceeds.
(a) Disposition of collateral: continuation of security interest or
agricultural lien; proceeds. Except as otherwise provided in this Article and
in
Section 2-403(2):
(b) When commingled proceeds identifiable. Proceeds that are
commingled with other property are identifiable proceeds:
(c) Perfection of security interest in proceeds. A security interest
in proceeds is a perfected security interest if the security interest in the original
collateral was perfected.
(d) Continuation of perfection. A perfected security interest in
proceeds becomes unperfected on the 21st day after the security interest attaches to
the proceeds unless:
(e) When perfected security interest in proceeds becomes
unperfected. If a filed financing statement covers the original collateral, a
security
interest in proceeds which remains perfected under subsection (d)(1) becomes
unperfected at the later of:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-315.01)
Sec. 9-315.01.
Debtor disposing of collateral and failing to pay secured
party
amount due under security agreement; penalties for violation.
(1) It is unlawful for a debtor under the terms of a security agreement
(a)
who has
no right of sale or other disposition of the collateral or (b) who has a right
of sale or other
disposition of the collateral and is to account to the secured party for the
proceeds of any
sale or other disposition of the collateral, to sell or otherwise dispose of
the collateral and
willfully and wrongfully to fail to pay the secured party the amount of said
proceeds due
under the security agreement. Failure to pay such proceeds to the secured
party within 10
days after the sale or other disposition of the collateral is prima facie
evidence of a willful
and wanton failure to pay.
(2) An individual convicted of a violation of this Section shall be guilty
of
a Class
3 felony.
(3) A corporation convicted of a violation of this Section shall be guilty
of
a
business offense and shall be fined not less than $2,000 nor more than $10,000.
(4) In the event the debtor under the terms of a security agreement is a
corporation
or a partnership, any officer, director, manager, or managerial agent of the
debtor who
violates this Section or causes the debtor to violate this Section shall be
guilty of a Class
3 felony.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-315.02)
Sec. 9-315.02.
Disposal of collateral by debtor to persons
other than those previously disclosed to secured party - penalties for
violation - defense.
(1) Where, pursuant to Section 9-205.1, a secured party has required that
before the debtor sells or otherwise disposes of collateral in the debtor's
possession he disclose to the secured party the persons to whom he desires to
sell or otherwise dispose of such collateral, it is unlawful for the debtor to
sell or otherwise dispose of the collateral to a person other than a person so
disclosed to the secured party.
(2) An individual convicted of a violation of this Section shall be guilty
of a Class A misdemeanor.
(3) A corporation convicted of a violation of this Section shall be guilty
of a business offense and shall be fined not less than $2,000 nor more than
$10,000.
(4) In the event the debtor under the terms of a security agreement is a
corporation or a partnership, any officer, director, manager, or managerial
agent of the debtor who violates this Section or causes the debtor to violate
this Section shall be guilty of a Class A misdemeanor.
(5) It is an affirmative defense to a prosecution for the violation of this
Section that the debtor has paid to the secured party the proceeds from the
sale or other disposition of the collateral within 10 days after such sale or
disposition.
(Source: P.A. 91-893, eff. 7-1-01; 92-16, eff. 6-28-01.)
(810 ILCS 5/9-316) (from Ch. 26, par. 9-316)
Sec. 9-316. Effect of change
in governing law.
(a) General rule: effect on perfection of change in governing
law. A security interest perfected pursuant to the law of the jurisdiction
designated
in Section 9-301(1) or 9-305(c) remains perfected until the earliest of:
(b) Security interest perfected or unperfected under law of new
jurisdiction. If a security interest described in subsection (a) becomes perfected
under the law of the other jurisdiction before the earliest time or event described in
that subsection, it remains perfected thereafter. If the security interest does not
become perfected under the law of the other jurisdiction before the earliest time or
event, it becomes unperfected and is deemed never to have been perfected as
against a purchaser of the collateral for value.
(c) Possessory security interest in collateral moved to new
jurisdiction. A possessory security interest in collateral, other than goods covered
by a certificate of title and as-extracted collateral consisting of goods, remains
continuously perfected if:
(d) Goods covered by certificate of title from this State. Except
as otherwise provided in subsection (e), a security interest in goods covered by a
certificate of title which is perfected by any method under the law of another
jurisdiction when the goods become covered by a certificate of title from this State
remains perfected until the security interest would have become unperfected
under
the law of the other jurisdiction had the goods not become so covered.
(e) When subsection (d) security interest becomes unperfected
against purchasers. A security interest described in subsection (d) becomes
unperfected as against a purchaser of the goods for value and is deemed never
to
have been perfected as against a purchaser of the goods for value if the
applicable
requirements for perfection under Section 9-311(b) or 9-313 are not satisfied
before
the earlier of:
(f) Change in jurisdiction of bank, issuer, nominated person,
securities intermediary, or commodity intermediary. A security interest in
deposit accounts, letter-of-credit rights, or investment property which is perfected
under the law of the bank's jurisdiction, the issuer's jurisdiction, a nominated
person's jurisdiction, the securities intermediary's jurisdiction, or the commodity
intermediary's jurisdiction, as applicable, remains perfected until the earlier of:
(g) Subsection (f) security interest perfected or unperfected
under law of new jurisdiction. If a security interest described in subsection
(f)
becomes perfected under the law of the other jurisdiction before the earlier of
the
time or the end of the period described in that subsection, it remains
perfected
thereafter. If the security interest does not become perfected under the law
of the
other jurisdiction before the earlier of that time or the end of that period,
it becomes
unperfected and is deemed never to have been perfected as against a purchaser
of
the collateral for value.
(h) Effect on filed financing statement of change in governing law. The following rules apply to collateral to which a security interest attaches within four months after the debtor changes its location to another jurisdiction:
(i) Effect of change in governing law on financing statement filed against original debtor. If a financing statement naming an original debtor is filed pursuant to the law of the jurisdiction designated in Section 9-301(1) or 9-305(c) and the new debtor is located in another jurisdiction, the following rules apply:
(810 ILCS 5/Art. 9 Pt. 3 Sub. 3 heading)
(810 ILCS 5/9-317) (from Ch. 26, par. 9-317)
Sec. 9-317. Interests that take priority over or take free of
security interest or agricultural lien.
(a) Conflicting security interests and rights of lien creditors. A
security interest or agricultural lien is subordinate to the rights
of:
(b) Buyers that receive delivery. Except as otherwise provided in
subsection (e), a buyer, other than a secured party, of tangible chattel paper,
tangible documents, goods, instruments, or a certificated security takes free of a
security
interest or agricultural lien if the buyer gives value and receives delivery of
the
collateral without knowledge of the security interest or agricultural lien and
before
it is perfected.
(c) Lessees that receive delivery. Except as otherwise provided in
subsection (e), a lessee of goods takes free of a security interest or agricultural lien
if the lessee gives value and receives delivery of the collateral without knowledge
of the security interest or agricultural lien and before it is perfected.
(d) Licensees and buyers of certain collateral. A licensee of a
general intangible or a buyer, other than a secured party, of collateral other than tangible chattel paper, tangible documents, goods, instruments, or a certificated
security takes free of a security interest if the licensee or buyer gives value
without
knowledge of the security interest and before it is perfected.
(e) Purchase-money security interest. Except as otherwise
provided in Sections 9-320 and 9-321, if a person files a financing statement
with
respect to a purchase-money security interest before or within 20 days after
the
debtor receives delivery of the collateral, the security interest takes
priority over the
rights of a buyer, lessee, or lien creditor which arise between the time the
security
interest
attaches and the time of filing.
(f) Public deposits. An unperfected security interest shall take priority
over the rights of
a lien creditor if (i) the lien creditor is a trustee or receiver of a bank
or acting in furtherance of its
supervisory authority over such bank and (ii) a security interest is granted by
the bank to secure a deposit of
public funds with the bank or a repurchase agreement
with the bank pursuant to the Government Securities
Act of 1986, as amended.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-318) (from Ch. 26, par. 9-318)
Sec. 9-318.
No interest retained in right to payment that is sold; rights
and title of seller of account or chattel paper with respect to creditors and
purchasers.
(a) Seller retains no interest. A debtor that has sold an account,
chattel paper, payment intangible, or promissory note does not retain a legal
or
equitable interest in the collateral sold.
(b) Deemed rights of debtor if buyer's security interest
unperfected. For purposes of determining the rights of creditors of, and
purchasers for value of an account or chattel paper from, a debtor that has
sold an
account or chattel paper, while the buyer's security interest is unperfected,
the
debtor is deemed to have rights and title to the account or chattel paper
identical to
those the debtor sold.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-319)
Sec. 9-319.
Rights and title of consignee with respect to creditors and
purchasers.
(a) Consignee has consignor's rights. Except as otherwise
provided in subsection (b), for purposes of determining the rights of creditors
of,
and purchasers for value of goods from, a consignee, while the goods are in the
possession of the consignee, the consignee is deemed to have rights and title
to the
goods identical to those the consignor had or had power to transfer.
(b) Applicability of other law. For purposes of determining the
rights of a creditor of a consignee, law other than this Article determines the
rights
and title of a consignee while goods are in the consignee's possession if,
under this
Part, a perfected security interest held by the consignor would have priority
over
the rights of the creditor.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-320)
Sec. 9-320.
Buyer of goods and farm products.
(a) Buyer in ordinary course of business. Except as otherwise
provided in subsections (e) and (f), a buyer in the ordinary course of business
takes free of a
security interest created by the buyer's seller, even if the security
interest
is perfected and the buyer knows of its existence.
(b) Buyer of consumer goods. Except as otherwise provided in
subsection (e), a buyer of goods from a person who used or bought the goods for
use primarily for personal, family, or household purposes takes free of a
security
interest, even if perfected, if the buyer buys:
(c) Effectiveness of filing for subsection (b). To the extent that it
affects the priority of a security interest over a buyer of goods under subsection (b),
the period of effectiveness of a filing made in the jurisdiction in which the
seller is
located is governed by Section 9-316(a) and (b).
(d) Buyer in ordinary course of business at wellhead or
minehead. A buyer in ordinary course of business buying oil, gas, or other
minerals at the wellhead or minehead or after extraction takes free of an
interest
arising out of an encumbrance.
(e) Possessory security interest not affected. Subsections (a) and
(b) do not affect a security interest in goods in the possession of the secured
party
under Section 9-313.
(f) Buyer of farm products.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-320.1)
Sec. 9-320.1.
Liability of commission merchant or selling agent engaged in
sale of livestock or other farm products to holder of security interest.
(a) A commission merchant or selling agent
who sells a farm product for others shall be subject to a security interest
created by the seller in
such farm product if:
(b) For the purposes of this Section, a commission merchant or selling
agent has received notice from the secured party or seller when written
notice of the security
interest is sent to the commission merchant or selling agent by registered or
certified mail.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-320.2)
Sec. 9-320.2.
Notice to seller of farm products.
A commission merchant or selling agent who sells farm products for others,
and
any person
buying farm products in the ordinary course of business from a person engaged
in farming
operations, shall post at each licensed location where the merchant, agent, or
person buying farm
products in the ordinary course of business does business a notice that shall
read as follows:
It is a criminal offense to sell farm products subject to a security interest
without
making payment to the secured party. You should notify the purchaser if there
is a
security interest in the farm products you are selling.".
The notice shall be posted in a conspicuous manner and shall be in
contrasting type, large enough
to be read from a distance of 10 feet.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-321)
Sec. 9-321.
Licensee of general intangible and lessee of goods in ordinary
course of business.
(a) "Licensee in ordinary course of business." In this Section,
"licensee in ordinary course of business" means a person that becomes a
licensee of
a general intangible in good faith, without knowledge that the license violates
the
rights of another person in the general intangible, and in the ordinary course
from a
person in the business of licensing general intangibles of that kind. A person
becomes a licensee in the ordinary course if the license to the person comports with
the usual or customary practices in the kind of business in which the licensor is
engaged or with the licensor's own usual or customary practices.
(b) Rights of licensee in ordinary course of business. A licensee
in ordinary course of business takes its rights under a nonexclusive license free of a
security interest in the general intangible created by the licensor, even if
the
security interest is perfected and the licensee knows of its existence.
(c) Rights of lessee in ordinary course of business. A lessee in
ordinary course of business takes its leasehold interest free of a security
interest in
the goods created by the lessor, even if the security interest is perfected and
the
lessee knows of its existence.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-322)
Sec. 9-322.
Priorities among conflicting security interests in and
agricultural liens on same collateral.
(a) General priority rules. Except as otherwise provided in this
Section, priority among conflicting security interests and agricultural liens
in the
same collateral is determined according to the following rules:
(b) Time of perfection: proceeds and supporting obligations.
For the purposes of subsection (a)(1):
(c) Special priority rules: proceeds and supporting obligations.
Except as otherwise provided in subsection (f), a security interest in
collateral
which qualifies for priority over a conflicting security interest under Section
9-327,
9-328, 9-329, 9-329.1, 9-330, or 9-331 also has priority over a conflicting
security interest
in:
(d) First-to-file priority rule for certain collateral. Subject to
subsection (e) and except as otherwise provided in subsection (f), if a
security
interest in chattel paper, deposit accounts, negotiable documents, instruments,
investment property, letter-of-credit rights,
or beneficial interests in Illinois land trusts
is perfected by a method other than
filing, conflicting perfected security interests in proceeds of the collateral
rank
according to priority in time of filing.
(e) Applicability of subsection (d). Subsection (d) applies only if
the proceeds of the collateral are not cash proceeds, chattel paper, negotiable
documents, instruments, investment property,
beneficial interests in Illinois land trusts,
or letter-of-credit rights.
(f) Limitations on subsections (a) through (e). Subsections (a)
through (e) are subject to:
(g) Priority under agricultural lien statute. A perfected
agricultural lien on collateral has priority over a conflicting security
interest in or
agricultural lien on the same collateral if the statute creating the
agricultural lien so
provides.
(Source: P.A. 91-893, eff. 7-1-01; 92-234, eff. 1-1-02.)
(810 ILCS 5/9-323)
Sec. 9-323.
Future advances.
(a) When priority based on time of advance. Except as otherwise
provided in subsection (c), for purposes of determining the priority of a
perfected
security interest under Section 9-322(a)(1), perfection of the security interest dates
from the time an advance is made to the extent that the security interest secures an
advance that:
(b) Lien creditor. Except as otherwise provided in subsection (c),
a security interest is subordinate to the
rights of a person that becomes a lien creditor to the extent that the
security interest secures an advance made more than 45 days after the
person
becomes a lien creditor unless
the advance is made:
(c) Buyer of receivables. Subsections (a) and (b) do not apply to a
security interest held by a secured party that is a buyer of accounts, chattel paper,
payment intangibles, or promissory notes or a consignor.
(d) Buyer of goods. Except as otherwise provided in subsection
(e), a buyer of goods other than a buyer in ordinary course of business takes free of
a security interest to the extent that it secures advances made after the earlier of:
(e) Advances made pursuant to commitment: priority of buyer
of goods. Subsection (d) does not apply if the advance is made pursuant to a
commitment entered into without knowledge of the buyer's purchase and before the
expiration of the 45-day period.
(f) Lessee of goods. Except as otherwise provided in subsection
(g), a lessee of goods, other than a lessee in ordinary course of business,
takes the
leasehold interest free of a security interest to the extent that it secures
advances
made after the earlier of:
(g) Advances made pursuant to commitment: priority of lessee
of goods. Subsection (f) does not apply if the advance is made pursuant to a
commitment entered into without knowledge of the lease and before the
expiration
of the 45-day period.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-324)
Sec. 9-324.
Priority of purchase-money security interests.
(a) General rule: purchase-money priority. Except as otherwise
provided in subsection (g), a perfected purchase-money security interest in
goods
other than inventory or livestock has priority over a conflicting security
interest in
the same goods, and, except as otherwise provided in Section 9-327, a perfected
security interest in its identifiable proceeds also has priority, if the
purchase-money
security interest is perfected when the debtor receives possession of the
collateral or
within 20 days thereafter.
(b) Inventory purchase-money priority. Subject to subsection (c)
and except as otherwise provided in subsection (g), a perfected purchase-money
security interest in inventory has priority over a conflicting security
interest in the
same inventory, has priority over a conflicting security interest in chattel paper or
an instrument constituting proceeds of the inventory and in proceeds of the chattel
paper, if so provided in Section 9-330, and, except as otherwise provided in Section
9-327, also has priority in identifiable cash proceeds of the inventory to the extent
the identifiable cash proceeds are received on or before the delivery of the
inventory to a buyer, if:
(c) Holders of conflicting inventory security interests to be
notified. Subsections (b)(2) through (4) apply only if the holder of the conflicting
security interest had filed a financing statement covering the same types of
inventory:
(d) Livestock purchase-money priority. Subject to subsection (e)
and except as otherwise provided in subsection (g), a perfected purchase-money
security interest in livestock that are farm products has priority over a conflicting
security interest in the same livestock, and, except as otherwise provided in Section
9-327, a perfected security interest in their identifiable proceeds and identifiable
products in their unmanufactured states also has priority, if:
(e) Holders of conflicting livestock security interests to be
notified. Subsections (d)(2) through (4) apply only if the holder of the conflicting
security interest had filed a financing statement covering the same types of
livestock:
(f) Software purchase-money priority. Except as otherwise
provided in subsection (g), a perfected purchase-money security interest in software
has priority over a conflicting security interest in the same collateral, and, except as
otherwise provided in Section 9-327, a perfected security interest in its identifiable
proceeds also has priority, to the extent that the purchase-money security interest in
the goods in which the software was acquired for use has priority in the goods and
proceeds of the goods under this Section.
(g) Conflicting purchase-money security interests. If more than
one security interest qualifies for priority in the same collateral under
subsection
(a), (b), (d), or (f):
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-325)
Sec. 9-325.
Priority of security interests in transferred collateral.
(a) Subordination of security interest in transferred collateral.
Except as otherwise provided in subsection (b), a security interest created by
a
debtor is subordinate to a security interest in the same collateral created by
another
person if:
(b) Limitation of subsection (a) subordination. Subsection (a)
subordinates a security interest only if the security interest:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-326)
Sec. 9-326. Priority of security interests created by new debtor.
(a) Subordination of security interest created by new debtor.
Subject to subsection (b), a security interest that is created by a new debtor in collateral in which the new debtor has or acquires rights and is
perfected solely by a filed financing statement that would be ineffective to perfect the security interest but for the application of Section 9-316(i)(1) or 9-508 is subordinate to a
security interest in the same collateral which is perfected other than by such a
filed
financing statement.
(b) Priority under other provisions; multiple original debtors.
The other provisions of this Part determine the priority among conflicting
security
interests in the same collateral perfected by filed financing statements described in subsection (a). However, if the security agreements to
which
a new debtor became bound as debtor were not entered into by the same original
debtor, the conflicting security interests rank according to priority in time
of the
new debtor's having become bound.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-327)
Sec. 9-327.
Priority of security interests in deposit account.
The
following rules govern priority among conflicting security interests in the
same
deposit account:
(1) A security interest held by a secured party having control of the
deposit account under Section 9-104 has priority over a conflicting security
interest
held by a secured party that does not have control.
(2) Except as otherwise provided in paragraphs (3) and (4), security
interests perfected by control under Section 9-314 rank according to priority
in time
of obtaining control.
(3) Except as otherwise provided in paragraph (4), a security
interest held by the bank with which the deposit account is maintained has
priority
over a conflicting security interest held by another secured party.
(4) A security interest perfected by control under Section
9-104(a)(3) has priority over a security interest held by the bank with which
the
deposit account is maintained.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-328)
Sec. 9-328.
Priority of security interests in investment property.
The
following rules govern priority among conflicting security interests in the
same
investment property:
(1) A security interest held by a secured party having control of
investment property under Section 9-106 has priority over a security interest
held
by a secured party that does not have control of the investment property.
(2) Except as otherwise provided in paragraphs (3) and (4),
conflicting security interests held by secured parties each of which has
control
under Section 9-106 rank according to priority in time of:
(3) A security interest held by a securities intermediary in a security
entitlement or a securities account maintained with the securities intermediary
has
priority over a conflicting security interest held by another secured party.
(4) A security interest held by a commodity intermediary in a
commodity contract or a commodity account maintained with the commodity
intermediary has priority over a conflicting security interest held by another
secured party.
(5) A security interest in a certificated security in registered form
which is perfected by taking delivery under Section 9-313(a) and not by control
under Section 9-314 has priority over a conflicting security interest perfected
by a
method other than control.
(6) Conflicting security interests created by a broker, securities
intermediary, or commodity intermediary which are perfected without control
under Section 9-106 rank equally.
(7) In all other cases, priority among conflicting security interests in
investment property is governed by Sections 9-322 and 9-323.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-329)
Sec. 9-329.
Priority of security interests in letter-of-credit right.
The
following rules govern priority among conflicting security interests in the
same
letter-of-credit right:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-329.1)
Sec. 9-329.1.
Priority of Security Interests in
Beneficial Interest in an Illinois Land Trust. The following rules govern
priority among conflicting security interests
in the same beneficial interest in an Illinois land trust:
(Source: P.A. 92-234, eff. 1-1-02.)
(810 ILCS 5/9-330)
Sec. 9-330.
Priority of purchaser of chattel paper or instrument.
(a) Purchaser's priority: security interest claimed merely as
proceeds. A purchaser of chattel paper has priority over a security interest
in the
chattel paper which is claimed merely as proceeds of inventory subject to a
security
interest if:
(b) Purchaser's priority: other security interests. A purchaser
of chattel paper has priority over a security interest in the chattel paper which is
claimed other than merely as proceeds of inventory subject to a security interest if
the purchaser gives new value and takes possession of the chattel paper or obtains
control of the chattel paper under Section 9-105 in good faith, in the ordinary
course of the purchaser's business, and without knowledge that the purchase
violates the rights of the secured party.
(c) Chattel paper purchaser's priority in proceeds. Except as
otherwise provided in Section 9-327, a purchaser having priority in chattel paper
under subsection (a) or (b) also has priority in proceeds of the chattel paper to the
extent that:
(d) Instrument purchaser's priority. Except as otherwise
provided in Section 9-331(a), a purchaser of an instrument has priority over a
security interest in the instrument perfected by a method other than possession if
the purchaser gives value and takes possession of the instrument in good faith and
without knowledge that the purchase violates the rights of the secured party.
(e) Holder of purchase-money security interest gives new value.
For purposes of subsections (a) and (b), the holder of a purchase-money
security
interest in inventory gives new value for chattel paper constituting proceeds
of the
inventory.
(f) Indication of assignment gives knowledge. For purposes of
subsections (b) and (d), if chattel paper or an instrument indicates that it
has been
assigned to an identified secured party other than the purchaser, a purchaser
of the
chattel paper or instrument has knowledge that the purchase violates the rights
of
the secured party.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-331)
Sec. 9-331.
Priority of rights of purchasers of instruments, documents,
and securities under other Articles; priority of interests in financial assets
and
security entitlements under Article 8.
(a) Rights under Articles 3, 7, and 8 not limited. This Article
does not limit the rights of a holder in due course of a negotiable instrument,
a
holder to which a negotiable document of title has been duly negotiated, or a
protected purchaser of a security. These holders or purchasers take priority
over an
earlier security interest, even if perfected, to the extent provided in
Articles 3, 7,
and 8.
(b) Protection under Article 8. This Article does not limit the
rights of or impose liability on a person to the extent that the person is
protected
against the assertion of a claim under Article 8.
(c) Filing not notice. Filing under this Article does not constitute
notice of a claim or defense to the holders, or purchasers, or persons
described in
subsections (a) and (b).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-332)
Sec. 9-332.
Transfer of money; transfer of funds from deposit account.
(a) Transferee of money. A transferee of money takes the money
free of a security interest unless the transferee acts in collusion with the
debtor in
violating the rights of the secured party.
(b) Transferee of funds from deposit account. A transferee of
funds from a deposit account takes the funds free of a security interest in the
deposit account unless the transferee acts in collusion with the debtor in
violating
the rights of the secured party.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-333)
Sec. 9-333.
Priority of certain liens arising by operation of law.
(a) "Possessory lien." In this Section, "possessory lien" means an
interest, other than a security interest or an agricultural lien:
(b) Priority of possessory lien. A possessory lien on goods has
priority over a security interest in the goods unless the lien is created by a
statute
that expressly provides otherwise.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-334)
Sec. 9-334.
Priority of security interests in fixtures and crops.
(a) Security interest in fixtures under this Article. A security
interest under this Article may be created in goods that are fixtures or may
continue
in goods that become fixtures. A security interest does not exist under this
Article
in ordinary building materials incorporated into an improvement on land.
(b) Security interest in fixtures under real-property law. This
Article does not prevent creation of an encumbrance upon fixtures under real
property law.
(c) General rule: subordination of security interest in fixtures.
In cases not governed by subsections (d) through (h), a security interest in
fixtures
is subordinate to a conflicting interest of an encumbrancer or owner of the
related
real property other than the debtor.
(d) Fixtures purchase-money priority. Except as otherwise
provided in subsection (h), a perfected security interest in fixtures has
priority over
a conflicting interest of an encumbrancer or owner of the real property if the
debtor
has an interest of record in or is in possession of the real property and:
(e) Priority of security interest in fixtures over interests in real
property. A perfected security interest in fixtures has priority over a conflicting
interest of an encumbrancer or owner of the real property if:
(f) Priority based on consent, disclaimer, or right to remove. A
security interest in fixtures, whether or not perfected, has priority over a
conflicting
interest of an encumbrancer or owner of the real property if:
(g) Continuation of subsection (f)(2) priority. The priority of the
security interest under subsection (f)(2) continues for a reasonable time if
the debtor's
right to remove the goods as against the encumbrancer or owner terminates.
(h) Priority of construction mortgage. A mortgage is a
construction mortgage to the extent that it secures an obligation incurred for the
construction of an improvement on land, including the acquisition cost of the land,
if a recorded record of the mortgage so indicates. Except as otherwise
provided in
subsections (e) and (f), a security interest in fixtures is subordinate to a
construction
mortgage if a record of the mortgage is recorded before the goods become
fixtures
and the goods become fixtures before the completion of the construction. A
mortgage has this priority to the same extent as a construction mortgage to the
extent that it is given to refinance a construction mortgage.
(i) Priority of security interest in crops.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-335)
Sec. 9-335.
Accessions.
(a) Creation of security interest in accession. A security interest
may be created in an accession and continues in collateral that becomes an
accession.
(b) Perfection of security interest. If a security interest is
perfected when the collateral becomes an accession, the security interest
remains
perfected in the collateral.
(c) Priority of security interest. Except as otherwise provided in
subsection (d), the other provisions of this Part determine the priority of a
security
interest in an accession.
(d) Compliance with certificate-of-title statute. A security
interest in an accession is subordinate to a security interest in the whole which is
perfected by compliance with the requirements of a certificate-of-title statute under
Section 9-311(b).
(e) Removal of accession after default. After default, subject to
Part 6, a secured party may remove an accession from other goods if the
security
interest in the accession has priority over the claims of every person having
an
interest in the whole.
(f) Reimbursement following removal. A secured party that
removes an accession from other goods under subsection (e) shall promptly
reimburse any holder of a security interest or other lien on, or owner of, the
whole
or of the other goods, other than the debtor, for the cost of repair of any
physical
injury to the whole or the other goods. The secured party need not reimburse
the
holder or owner for any diminution in value of the whole or the other goods
caused
by the absence of the accession removed or by any necessity for replacing it.
A
person entitled to reimbursement may refuse permission to remove until the
secured party gives adequate assurance for the performance of the obligation to
reimburse.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-336)
Sec. 9-336.
Commingled goods.
(a) "Commingled goods." In this Section, "commingled goods"
means goods that are physically united with other goods in such a manner that
their
identity is lost in a product or mass.
(b) No security interest in commingled goods as such. A security
interest does not exist in commingled goods as such. However, a security
interest
may attach to a product or mass that results when goods become commingled
goods.
(c) Attachment of security interest to product or mass. If
collateral becomes commingled goods, a security interest attaches to the product or
mass.
(d) Perfection of security interest. If a security interest in
collateral is perfected before the collateral becomes commingled goods, the
security interest that attaches to the product or mass under subsection (c) is
perfected.
(e) Priority of security interest. Except as otherwise provided in
subsection (f), the other provisions of this Part determine the priority of a security
interest that attaches to the product or mass under subsection (c).
(f) Conflicting security interests in product or mass If more than
one security interest attaches to the product or mass under subsection (c), the
following rules determine priority:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-337)
Sec. 9-337.
Priority of security interests in goods covered by certificate
of title. If, while a security interest in goods is perfected by any method
under the
law of another jurisdiction, this State issues a certificate of title that does
not show
that the goods are subject to the security interest or contain a statement that
they
may be subject to security interests not shown on the certificate:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-338)
Sec. 9-338. Priority of security interest or agricultural lien perfected
by
filed financing statement providing certain incorrect information. If a
security
interest or agricultural lien is perfected by a filed financing statement
providing
information described in Section 9-516(b)(5) which is incorrect at the time the
financing statement is filed:
(Source: P.A. 95-895, eff. 1-1-09.)
(810 ILCS 5/9-339)
Sec. 9-339.
Priority subject to subordination.
This Article does not
preclude subordination by agreement by a person entitled to priority.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/Art. 9 Pt. 3 Sub. 4 heading)
(810 ILCS 5/9-340)
Sec. 9-340.
Effectiveness of right of recoupment or set-off against
deposit account.
(a) Exercise of recoupment or set-off. Except as otherwise
provided in subsection (c), a bank with which a deposit account is maintained
may
exercise any right of recoupment or set-off against a secured party that holds
a
security interest in the deposit account.
(b) Recoupment or set-off not affected by security interest.
Except as otherwise provided in subsection (c), the application of this Article
to a
security interest in a deposit account does not affect a right of recoupment or
set-off
of the secured party as to a deposit account maintained with the secured party.
(c) When set-off ineffective. The exercise by a bank of a set-off
against a deposit account is ineffective against a secured party that holds a
security
interest in the deposit account which is perfected by control under Section
9-104(a)(3), if the set-off is based on a claim against the debtor.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-341)
Sec. 9-341.
Bank's rights and duties with respect to deposit account.
Except as otherwise provided in Section 9-340(c), and unless the bank otherwise
agrees in an authenticated record, a bank's rights and duties with respect to a
deposit account maintained with the bank are not terminated, suspended, or
modified by:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-342)
Sec. 9-342.
Bank's right to refuse to enter into or disclose existence of
control agreement. This Article does not require a bank to enter into an
agreement of the kind described in Section 9-104(a)(2), even if its customer so
requests or directs. A bank that has entered into such an agreement is not
required
to confirm the existence of the agreement to another person unless requested to
do
so by its customer.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/Art. 9 Pt. 4 heading)
(810 ILCS 5/9-401) (from Ch. 26, par. 9-401)
Sec. 9-401.
Alienability of debtor's rights.
(a) Other law governs alienability; exceptions. Except as
otherwise provided in subsection (b) and Sections 9-406, 9-407, 9-408, and
9-409,
whether a debtor's rights in collateral may be voluntarily or involuntarily
transferred is governed by law other than this Article.
(b) Agreement does not prevent transfer. An agreement between
the debtor and secured party which prohibits a transfer of the debtor's rights
in
collateral or makes the transfer a default does not prevent the transfer from
taking
effect.
(Source: P.A. 90-300, eff. 1-1-98; 91-893, eff. 7-1-01.)
(810 ILCS 5/9-401A)
Sec. 9-401A.
(Blank).
(Source: P.A. 90-300, eff. 1-1-98; 91-893, eff. 7-1-01.)
(810 ILCS 5/9-402) (from Ch. 26, par. 9-402)
Sec. 9-402.
Secured party not obligated on contract of debtor or in tort.
The existence of a security interest, agricultural lien, or authority given to
a debtor
to dispose of or use collateral, without more, does not subject a secured party
to
liability in contract or tort for the debtor's acts or omissions.
(Source: P.A. 91-357, eff. 7-29-99; 91-893, eff. 7-1-01.)
(810 ILCS 5/9-403) (from Ch. 26, par. 9-403)
Sec. 9-403.
Agreement not to assert defenses against assignee.
(a) "Value." In this Section, "value" has the meaning provided in
Section 3-303(a).
(b) Agreement not to assert claim or defense. Except as
otherwise provided in this Section, an agreement between an account debtor and
an
assignor not to assert against an assignee any claim or defense that the
account
debtor may have against the assignor is enforceable by an assignee that takes
an
assignment:
(c) When subsection (b) not applicable. Subsection (b) does not
apply to defenses of a type that may be asserted against a holder in due course of a
negotiable instrument under Section 3-305(b).
(d) Omission of required statement in consumer transaction. In
a consumer transaction, if a record evidences the account debtor's obligation, law
other than this Article requires that the record include a statement to the effect that
the rights of an assignee are subject to claims or defenses that the account debtor
could assert against the original obligee, and the record does not include such a
statement:
(e) Rule for individual under other law. This Section is subject
to law other than this Article which establishes a different rule for an account
debtor who is an individual and who incurred the obligation primarily for personal,
family, or household purposes.
(f) Other law not displaced. Except as otherwise provided in
subsection (d), this Section does not displace law other than this Article which
gives effect to an agreement by an account debtor not to assert a claim or
defense
against an assignee.
(Source: P.A. 90-300, eff. 1-1-98; 91-357, eff. 7-29-99; 91-893, eff.
7-1-01.)
(810 ILCS 5/9-404) (from Ch. 26, par. 9-404)
Sec. 9-404.
Rights acquired by assignee; claims and defenses against
assignee.
(a) Assignee's rights subject to terms, claims, and defenses;
exceptions. Unless an account debtor has made an enforceable agreement not to
assert defenses or claims, and subject to subsections (b) through (e), the
rights of an
assignee are subject to:
(b) Account debtor's claim reduces amount owed to assignee.
Subject to subsection (c) and except as otherwise provided in subsection (d), the
claim of an account debtor against an assignor may be asserted against an assignee
under subsection (a) only to reduce the amount the account debtor owes.
(c) Rule for individual under other law. This Section is subject
to law other than this Article which establishes a different rule for an account
debtor who is an individual and who incurred the obligation primarily for personal,
family, or household purposes.
(d) Omission of required statement in consumer transaction. In
a consumer transaction, if a record evidences the account debtor's obligation,
law
other than this Article requires that the record include a statement to the
effect that
the account debtor's recovery against an assignee with respect to claims and
defenses against the assignor may not exceed amounts paid by the account debtor
under the record, and the record does not include such a statement, the extent
to
which a claim of an account debtor against the assignor may be asserted against
an
assignee is determined as if the record included such a statement.
(e) Inapplicability to health-care-insurance receivable. This
Section does not apply to an assignment of a health-care-insurance
receivable.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-404.5)
Sec. 9-404.5.
Termination statement; duties of filing officer.
(1) If a financing statement covering consumer goods is filed on or
after July 1, 1973, then within one
month or within 10 days following written demand by the debtor after there
is no outstanding secured obligation and no commitment to make advances,
incur obligations or otherwise give value, the secured party must file with
each filing officer with whom the financing statement was filed, a
termination statement to the effect that he no longer claims a security
interest under the financing statement, which shall be identified by file
number. In other cases whenever there is no outstanding secured obligation
and no commitment to make advances, incur obligations or otherwise give
value, the secured party must on written demand by the debtor send the
debtor, for each filing officer with whom the financing statement was
filed, a termination statement to the effect that he no longer claims a
security interest under the financing statement, which shall be identified
by file number. A termination statement signed by a person other than the
secured party of record must be accompanied by a separate written statement
of assignment signed by the secured party of record. If
the affected secured party fails to file such a termination statement as
required by this subsection, or to send such a termination statement within
10 days after proper demand therefor, he shall be liable to the debtor for
$100 and in addition for any loss caused to the debtor by such failure.
(2) On presentation to the filing officer of such a termination
statement he must note it in the index. If he has received the termination
statement in duplicate, he shall return one copy of the termination
statement to the secured party stamped to show the time of receipt thereof.
If the filing officer has a microfilm or other photographic record of the
financing statement, and of any related continuation statement, statement
of assignment and statement of release, he may remove the originals from
the files at any time after receipt of the termination statement, or if he
has no such record, he may remove them from the files at any time after one
year after receipt of the termination statement.
(3) If the termination statement is in the standard form prescribed by the
Secretary
of State, the uniform fee for filing and indexing the termination statement in
the office of
a county recorder shall be $5 and otherwise shall be $10, plus in each case an
additional
fee of $5 for each name more than one at each address listed against which the
termination statement is required to be indexed.
(Source: P.A. 91-893, eff. 7-6-00.)
(810 ILCS 5/9-405) (from Ch. 26, par. 9-405)
Sec. 9-405.
Modification of assigned contract.
(a) Effect of modification on assignee. A modification of or
substitution for an assigned contract is effective against an assignee if made
in good
faith. The assignee acquires corresponding rights under the modified or
substituted
contract. The assignment may provide that the modification or substitution is
a
breach of contract by the assignor. This subsection is subject to subsections
(b)
through (d).
(b) Applicability of subsection (a). Subsection (a) applies to the
extent that:
(c) Rule for individual under other law. This Section is subject
to law other than this Article which establishes a different rule for an
account
debtor who is an individual and who incurred the obligation primarily for
personal,
family, or household purposes.
(d) Inapplicability to health-care-insurance receivable. This
Section does not apply to an assignment of a health-care-insurance
receivable.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-406) (from Ch. 26, par. 9-406)
Sec. 9-406. Discharge of account debtor; notification of assignment;
identification and proof of assignment; restrictions on assignment of accounts,
chattel paper, payment intangibles, and promissory notes ineffective.
(a) Discharge of account debtor; effect of notification. Subject to
subsections (b) through (i), an account debtor on an account, chattel paper, or
a
payment intangible may discharge its obligation by paying the assignor until,
but
not after, the account debtor receives a notification, authenticated by the
assignor or
the assignee, that the amount due or to become due has been assigned and that
payment is to be made to the assignee. After receipt of the notification, the
account
debtor may discharge its obligation by paying the assignee and may not
discharge
the obligation by paying the assignor.
(b) When notification ineffective. Subject to subsection (h),
notification is ineffective under subsection (a):
(c) Proof of assignment. Subject to subsection (h), if requested by
the account debtor, an assignee shall seasonably furnish reasonable proof that
the
assignment has been made. Unless the assignee complies, the account debtor may
discharge its obligation by paying the assignor, even if the account debtor has
received a notification under subsection (a).
(d) Term restricting assignment generally ineffective. Except as
otherwise provided in subsection (e) and Sections 2A-303 and 9-407, and subject
to
subsection (h), a term in an agreement between an account debtor and an
assignor
or in a promissory note is ineffective to the extent that it:
(e) Inapplicability of subsection (d) to certain sales. Subsection
(d) does not apply to the sale of a payment intangible or promissory note, other than a sale pursuant to a disposition under Section 9-610 or an acceptance of collateral under Section 9-620.
(f) Legal restrictions on assignment generally ineffective.
Except as otherwise provided in Sections 2A-303 and 9-407 and subject to
subsections (h) and (i), a rule of law, statute, or regulation that prohibits, restricts,
or requires the consent of a government, governmental body or official, or account
debtor to the assignment or transfer of, or creation of a security interest in, an
account or chattel paper is ineffective to the extent that the rule of law, statute, or
regulation:
(g) Subsection (b)(3) not waivable. Subject to subsection (h), an
account debtor may not waive or vary its option under subsection (b)(3).
(h) Rule for individual under other law. This Section is subject
to law other than this Article which establishes a different rule for an
account
debtor who is an individual and who incurred the obligation primarily for
personal,
family, or household purposes.
(i) Inapplicability to health-care-insurance receivable. This
Section does not apply to an assignment of a health-care-insurance
receivable.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-407) (from Ch. 26, par. 9-407)
Sec. 9-407.
Restrictions on creation or enforcement of security interest
in leasehold interest or in lessor's residual interest.
(a) Term restricting assignment generally ineffective. Except as
otherwise provided in subsection (b), a term in a lease agreement is
ineffective to
the extent that it:
(b) Effectiveness of certain terms. Except as otherwise provided
in Section 2A-303(7), a term described in subsection (a)(2) is effective to the
extent
that there is:
(c) Security interest not material impairment. The creation,
attachment, perfection, or enforcement of a security interest in the lessor's
interest
under the lease contract or the lessor's residual interest in the goods is not
a transfer
that materially impairs the lessee's prospect of obtaining return performance
or
materially changes the duty of or materially increases the burden or risk
imposed
on the lessee within the purview of Section 2A-303(4) unless, and then only to
the
extent that, enforcement actually results in a delegation of material
performance of
the lessor.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-408) (from Ch. 26, par. 9-408)
Sec. 9-408. Restrictions on assignment of promissory notes,
health-care-insurance receivables, and certain general intangibles ineffective.
(a) Term restricting assignment generally ineffective. Except as
otherwise provided in subsection (b), a term in a promissory note or in
an agreement between an account debtor and a debtor which relates to a
health-care-insurance receivable or a general intangible, including a
contract, permit, license, or franchise, and which term prohibits, restricts,
or requires the consent of the person obligated on the promissory note or the
account debtor to, the assignment or transfer of, or creation, attachment, or
perfection of a security interest in, the promissory note,
health-care-insurance receivable, or general intangible, is ineffective to the
extent that the term:
(b) Applicability of subsection (a) to sales of certain rights to payment.
Subsection (a) applies to a security interest in a payment intangible or
promissory note only if the security interest arises out of a sale of the
payment intangible or promissory note, other than a sale pursuant to a disposition under Section 9-610 or an acceptance of collateral under Section 9-620.
(c) Legal restrictions on assignment generally ineffective. A rule of law,
statute, or regulation that prohibits, restricts, or requires the consent of
a government, governmental body or official, person obligated on a promissory
note, or account debtor to the assignment or transfer of, or creation of a
security interest in, a promissory note, health-care-insurance receivable, or
general intangible, including a contract, permit, license, or franchise between
an account debtor and a debtor, is ineffective to the extent that the rule of
law, statute, or regulation:
(d) Limitation on ineffectiveness under subsections (a) and (c).
To the extent that a term in a promissory note or in an agreement between an
account debtor and a debtor which relates to a health-care-insurance receivable
or general intangible or a rule of law, statute, or regulation described in
subsection (c) would be effective under law other than this Article but is
ineffective under subsection (a) or (c), the creation, attachment, or
perfection of a security interest in the promissory note, health-care-insurance
receivable, or general intangible:
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-409)
Sec. 9-409.
Restrictions on assignment of letter-of-credit rights
ineffective.
(a) Term or law restricting assignment generally ineffective. A
term in a letter of credit or a rule of law, statute, regulation, custom, or
practice
applicable to the letter of credit which prohibits, restricts, or requires the
consent of
an applicant, issuer, or nominated person to a beneficiary's assignment of or
creation of a security interest in a letter-of-credit right is ineffective to
the extent
that the term or rule of law, statute, regulation, custom, or practice:
(b) Limitation on ineffectiveness under subsection (a). To the
extent that a term in a letter of credit is ineffective under subsection (a) but would
be effective under law other than this Article or a custom or practice applicable to
the letter of credit, to the transfer of a right to draw or otherwise demand
performance under the letter of credit, or to the assignment of a right to proceeds of
the letter of credit, the creation, attachment, or perfection of a security interest in
the letter-of-credit right:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-410)
Sec. 9-410.
(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/Art. 9 Pt. 5 heading)
(810 ILCS 5/Art. 9 Pt. 5 Sub. 1 heading)
(810 ILCS 5/9-501) (from Ch. 26, par. 9-501)
Sec. 9-501.
Filing office.
(a) Filing offices. Except as otherwise provided in subsection (b),
if the local law of this State governs perfection of a security interest or
agricultural
lien, the office in which to file a financing statement to perfect the security
interest
or agricultural lien is:
(b) Filing office for transmitting utilities. The office in which to
file a financing statement to perfect a security interest in collateral,
including
fixtures, of a transmitting utility is the office of the Secretary of State.
The
financing statement also
constitutes a fixture filing as to the collateral indicated in the financing
statement
which is or is to become fixtures.
(Source: P.A. 91-357, eff. 7-29-99; 91-893, eff. 7-1-01.)
(810 ILCS 5/9-501.1)
Sec. 9-501.1. Fraudulent records.
(a) No person shall cause to be communicated to the filing office for filing a false record the person knows or reasonably should know:
(b) A person who violates subsection (a) is guilty of a Class A misdemeanor for a first offense and a Class 4 felony for a second or subsequent offense.
(c) A person who violates subsection (a) shall be liable in a civil action to each injured person for:
(d) A person identified as debtor in a filed record the person believes was caused to be communicated to the filing office in violation of subsection (a) may, under penalty of perjury, file with the Secretary of State an affidavit to that effect. The Secretary of State shall adopt and make available a form affidavit for use under this Section.
(e) Upon receipt of an affidavit filed under this Section, or upon administrative action by the Secretary of State, the Secretary of State shall communicate to the secured party of record on the record to which the affidavit or administrative action relates and to the person that communicated the record to the filing office, if different and known to the office, a request for additional documentation supporting the effectiveness of the record. The Department of Business Services of the Office of the Secretary of State and the Office of the General Counsel shall review all such documentation received within 30 days after the first request for additional documentation is sent. The Secretary of State may terminate the record effective 30 days after the first request for additional documentation is sent if it has a reasonable basis for concluding that the record was communicated to the filing office in violation of subsection (a).
The Secretary of State may initiate an administrative action under the first paragraph of this subsection (e) with regard to a filed record if it has reason to believe, from information contained in the record or obtained from the person that communicated the record to the filing office, that the record was communicated to the filing office in violation of subsection (a). The Secretary of State may give heightened scrutiny to a record that indicates that the debtor is a transmitting utility or that indicates that the transaction to which the record relates is a manufactured-home transaction or a public-finance transaction.
(f) The Secretary of State shall not charge a fee to file an affidavit under this Section and shall not return any fee paid for filing a record terminated under this Section.
(g) The Secretary of State shall promptly communicate to the secured party of record a notice of the termination of a record under subsection (e). A secured party of record that believes in good faith that the record was not communicated to the filing office in violation of subsection (a) may file an action to require that the record be reinstated by the filing office. A person that communicated a record to the filing office that the filing office rejected in reliance on Section 9-516(b)(3.5), who believes in good faith that the record was not communicated to the filing office in violation of Section 9-516(b)(3.5), may file an action to require that the record be accepted by the filing office.
(h) If a court or tribunal in an action under this Section determines that a record terminated under this Section or rejected in reliance on Section 9-516(b)(3.5) should be reinstated or accepted, the court or tribunal shall provide a copy of its order to that effect to the Secretary of State. On receipt of an order reinstating a terminated record, the Secretary of State shall refile the record along with a notice indicating that the record was refiled pursuant to this Section and its initial filing date. On receipt of an order requiring that a rejected record be accepted, the Secretary of State shall promptly file the record along with a notice indicating that the record was filed pursuant to this Section and the date on which it was communicated for filing. A rejected record that is filed pursuant to an order of a court or tribunal shall have the effect described in Section 9-516(d) for a record the filing office refuses to accept for a reason other than one set forth in Section 9-516(b).
(i) A terminated record that is refiled under subsection (h) is effective as a filed record from the initial filing date. If the period of effectiveness of a refiled record would have lapsed during the period of termination, the secured party may file a continuation statement within 30 days after the record is refiled and the continuation statement shall have the same effect as if it had been filed during the 6-month period described in Section 9-515(d). A refiled record shall be considered never to have been ineffective against all persons and for all purposes except that it shall not be effective as against a purchaser of the collateral that gave value in reasonable reliance on the absence of the record from the files.
(j) Neither the filing office nor any of its employees shall incur liability for the termination or failure to terminate a record under this Section or for the refusal to accept a record for filing in the lawful performance of the duties of the office or employee.
(k) This Section does not apply to a record communicated to the filing office by a regulated financial institution or by a representative of a regulated financial institution except that the Secretary of State may request from the secured party of record on the record or from the person that communicated the record to the filing office, if different and known to the office, additional documentation supporting that the record was communicated to the filing office by a regulated financial institution or by a representative of a regulated financial institution. The term "regulated financial institution" means a financial institution subject to regulatory oversight or examination by a State or federal agency and includes banks, savings banks, savings associations, building and loan associations, credit unions, consumer finance companies, industrial banks, industrial loan companies, insurance companies, investment companies, investment funds, installment sellers, mortgage servicers, sales finance companies, and leasing companies.
(l) If a record was communicated to the filing office for filing before the effective date of this Section and its communication would have constituted a violation of subsection (a) if it had occurred on or after the effective date of the Section: (i) subsections (b) and (c) are not applicable; and (ii) the other subsections of this Section are applicable.
(Source: P.A. 97-836, eff. 7-20-12.)
(810 ILCS 5/9-502) (from Ch. 26, par. 9-502)
Sec. 9-502. Contents of financing statement; record of mortgage as
financing statement; time of filing financing statement.
(a) Sufficiency of financing statement. Subject to subsection (b),
a financing statement is sufficient only if it:
(b) Real-property-related financing statements. Except as
otherwise provided in Section 9-501(b), to be sufficient, a financing statement
that
covers as-extracted collateral or timber to be cut, or which is filed as a
fixture filing
and covers goods that are or are to become fixtures, must satisfy subsection (a) and
also:
(c) Record of mortgage as financing statement. A record of a
mortgage is effective, from the date of recording, as a financing statement
filed as a
fixture filing or as a financing statement covering as-extracted collateral or
timber
to be cut only if:
(d) Filing before security agreement or attachment. A financing
statement may be filed before a security agreement is made or a security
interest
otherwise attaches.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-503) (from Ch. 26, par. 9-503)
Sec. 9-503. Name of debtor and secured party.
(a) Sufficiency of debtor's name. A financing statement
sufficiently provides the name of the debtor:
(b) Additional debtor-related information. A financing statement
that provides the name of the debtor in accordance with subsection (a) is not
rendered ineffective by the absence of:
(c) Debtor's trade name insufficient. A financing statement that
provides only the debtor's trade name does not sufficiently provide the name of the
debtor.
(d) Representative capacity. Failure to indicate the representative
capacity of a secured party or representative of a secured party does not affect the
sufficiency of a financing statement.
(e) Multiple debtors and secured parties. A financing statement
may provide the name of more than one debtor and the name of more than one
secured party.
(f) Name of decedent. The name of the decedent indicated on the order appointing the personal representative of the decedent issued by the court having jurisdiction over the collateral is sufficient as the "name of the decedent" under subsection (a)(2).
(g) Multiple driver's licenses. If this State has issued to an individual more than one driver's license of a kind described in subsection (a)(4), the one that was issued most recently is the one to which subsection (a)(4) refers.
(h) Definition. In this Section, the "name of the settlor or testator" means:
(810 ILCS 5/9-504) (from Ch. 26, par. 9-504)
Sec. 9-504.
Indication of collateral.
A financing statement sufficiently
indicates the collateral that it covers if the financing statement
provides:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-505) (from Ch. 26, par. 9-505)
Sec. 9-505.
Filing and compliance with other statutes and treaties for
consignments, leases, other bailments, and other transactions.
(a) Use of terms other than "debtor" and "secured party." A
consignor, lessor, or other bailor of goods, a licensor, or a buyer of a
payment
intangible or promissory note may file a financing statement, or may comply
with a
statute or treaty described in Section 9-311(a), using the terms "consignor",
"consignee", "lessor", "lessee", "bailor", "bailee", "licensor", "licensee",
"owner",
"registered owner", "buyer", "seller", or words of similar import, instead of
the
terms "secured party" and "debtor".
(b) Effect of financing statement under subsection (a). This part
applies to the filing of a financing statement under subsection (a) and, as
appropriate, to compliance that is equivalent to filing a financing statement
under
Section 9-311(b), but the filing or compliance is not of itself a factor in
determining
whether the collateral secures an obligation. If it is determined for another
reason
that the collateral secures an obligation, a security interest held by the
consignor,
lessor, bailor, licensor, owner, or buyer which attaches to the collateral is
perfected
by the filing or compliance.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-506) (from Ch. 26, par. 9-506)
Sec. 9-506.
Effect of errors or omissions.
(a) Minor errors and omissions. A financing statement
substantially satisfying the requirements of this Part is effective, even if it
has
minor errors or omissions, unless the errors or omissions make the financing
statement seriously misleading.
(b) Financing statement seriously misleading. Except as
otherwise provided in subsection (c), a financing statement that fails
sufficiently to
provide the name of the debtor in accordance with Section 9-503(a) is seriously
misleading.
(c) Financing statement not seriously misleading. If a search of
the records of the filing office under the debtor's correct name, using the
filing
office's standard search logic, if any, would disclose a financing statement
that fails
sufficiently to provide the name of the debtor in accordance with Section
9-503(a),
the name provided does not make the financing statement seriously misleading.
(d) "Debtor's correct name." For purposes of Section 9-508(b),
the "debtor's correct name" in subsection (c) means the correct name of the new
debtor.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-507) (from Ch. 26, par. 9-507)
Sec. 9-507. Effect of certain events on effectiveness of financing
statement.
(a) Disposition. A filed financing statement remains effective with
respect to collateral that is sold, exchanged, leased, licensed, or otherwise
disposed
of and in which a security interest or agricultural lien continues, even if the
secured
party knows of or consents to the disposition.
(b) Information becoming seriously misleading. Except as
otherwise provided in subsection (c) and Section 9-508, a financing statement
is not
rendered ineffective if, after the financing statement is filed, the
information
provided in the financing statement becomes seriously misleading under Section
9-506.
(c) Change in debtor's name. If the name that
a filed financing statement provides for a debtor becomes insufficient as the name of the debtor under Section 9-503(a) so that the financing statement becomes seriously misleading under Section 9-506:
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-508)
Sec. 9-508.
Effectiveness of financing statement if new debtor becomes
bound by security agreement.
(a) Financing statement naming original debtor. Except as
otherwise provided in this Section, a filed financing statement naming an
original
debtor is effective to perfect a security interest in collateral in which a new
debtor
has or acquires rights to the extent that the financing statement would have
been
effective had the original debtor acquired rights in the collateral.
(b) Financing statement becoming seriously misleading. If the
difference between the name of the original debtor and that of the new debtor
causes a filed financing statement that is effective under subsection (a) to be
seriously misleading under Section 9-506:
(c) When Section not applicable. This Section does not apply to
collateral as to which a filed financing statement remains effective against
the new
debtor under Section 9-507(a).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-509)
Sec. 9-509.
Persons entitled to file a record.
(a) Person entitled to file record. A person may file an initial
financing statement, amendment that adds collateral covered by a financing
statement, or amendment that adds a debtor to a financing statement only if:
(b) Security agreement as authorization. By authenticating or
becoming bound as debtor by a security agreement, a debtor or new debtor
authorizes the filing of an initial financing statement, and an amendment,
covering:
(c) Acquisition of collateral as authorization. By acquiring
collateral in which a security interest or agricultural lien continues under Section
9-315(a)(1), a debtor authorizes the filing of an initial financing statement, and an
amendment, covering the collateral and property that becomes collateral under
Section 9-315(a)(2).
(d) Person entitled to file certain amendments. A person may
file an amendment other than an amendment that adds collateral covered by a
financing statement or an amendment that adds a debtor to a financing statement
only if:
(e) Multiple secured parties of record. If there is more than one
secured party of record for a financing statement, each secured party of record
may
authorize the filing of an amendment under subsection (d).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-510)
Sec. 9-510. Effectiveness of filed record.
(a) Filed record effective if authorized. A filed record is effective
only to the extent that it was filed by a person that may file it under Section
9-509.
(b) Authorization by one secured party of record. A record
authorized by one secured party of record does not affect the financing
statement
with respect to another secured party of record.
(c) Continuation statement not timely filed. A continuation
statement that is not filed within the six-month period prescribed by Section
9-515(d) is ineffective.
(d) A filed record ceases to be effective if the filing office terminates the record pursuant to Section 9-501.1.
(Source: P.A. 97-836, eff. 7-20-12.)
(810 ILCS 5/9-511)
Sec. 9-511.
Secured party of record.
(a) Secured party of record. A secured party of record with
respect to a financing statement is a person whose name is provided as the name
of
the secured party or a representative of the secured party in an initial
financing
statement that has been filed. If an initial financing statement is filed
under Section
9-514(a), the assignee named in the initial financing statement is the secured
party
of record with respect to the financing statement.
(b) Amendment naming secured party of record. If an
amendment of a financing statement which provides the name of a person as a
secured party or a representative of a secured party is filed, the person named
in the
amendment is a secured party of record. If an amendment is filed under Section
9-514(b), the assignee named in the amendment is a secured party of record.
(c) Amendment deleting secured party of record. A person
remains a secured party of record until the filing of an amendment of the
financing
statement which deletes the person.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-512)
Sec. 9-512.
Amendment of financing statement.
(a) Amendment of information in financing statement. Subject
to Section 9-509, a person may add or delete collateral covered by, continue or
terminate the effectiveness of, or, subject to subsection (e), otherwise amend
the
information provided in, a financing statement by filing an amendment that:
(b) Period of effectiveness not affected. Except as otherwise
provided in Section 9-515, the filing of an amendment does not extend the
period
of effectiveness of the financing statement.
(c) Effectiveness of amendment adding collateral. A financing
statement that is amended by an amendment that adds collateral is effective as
to
the added collateral only from the date of the filing of the amendment.
(d) Effectiveness of amendment adding debtor. A financing
statement that is amended by an amendment that adds a debtor is effective as to
the
added debtor only from the date of the filing of the amendment.
(e) Certain amendments ineffective. An amendment is ineffective
to the extent it:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-513)
Sec. 9-513.
Termination statement.
(a) Consumer goods. A secured party shall cause the secured party
of record for a financing statement to file a termination statement for the
financing
statement if the financing statement covers consumer goods and:
(b) Time for compliance with subsection (a). To comply with
subsection (a), a secured party shall cause the secured party of record to file the
termination statement:
(c) Other collateral. In cases not governed by subsection (a),
within 20 days after a secured party receives an authenticated demand from a
debtor, the secured party shall cause the secured party of record for a financing
statement to send to the debtor a termination statement for the financing statement
or file the termination statement in the filing office if:
(d) Effect of filing termination statement. Except as otherwise
provided in Section 9-510, upon the filing of a termination statement with the
filing
office, the financing statement to which the termination statement relates
ceases to
be
effective. Except
as otherwise provided in Section 9-510, for purposes of Sections 9-519(g),
9-522(a), and 9-523(c) the filing with the filing office of a termination
statement relating to a financing statement that indicates that the debtor is a
transmitting utility also causes the effectiveness of the financing statement
to lapse.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-514)
Sec. 9-514.
Assignment of powers of secured party of record.
(a) Assignment reflected on initial financing statement. Except
as otherwise provided in subsection (c), an initial financing statement may
reflect
an assignment of all of the secured party's power to authorize an amendment to
the
financing statement by providing the name and mailing address of the assignee
as
the name and address of the secured party.
(b) Assignment of filed financing statement. Except as otherwise
provided in subsection (c), a secured party of record may assign of record all or part
of its power to authorize an amendment to a financing statement by filing in the
filing office an amendment of the financing statement which:
(c) Assignment of record of mortgage. An assignment of record
of a security interest in a fixture covered by a record of a mortgage which is
effective as a financing statement filed as a fixture filing under Section
9-502(c)
may be made only by an assignment of record of the mortgage in the manner
provided by law of this State other than the Uniform Commercial Code.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-515)
Sec. 9-515. Duration and effectiveness of financing statement; effect of
lapsed financing statement.
(a) Five-year effectiveness. Except as otherwise provided in
subsections (b), (e), (f), and (g), a filed financing statement is effective
for a period
of five years after the date of filing.
(b) Public-finance or manufactured-home transaction. Except
as otherwise provided in subsections (e), (f), and (g), an initial financing
statement
filed in connection with a public-finance transaction or manufactured-home
transaction is effective for a period of 30 years after the date of filing if it indicates
that it is filed in connection with a public-finance transaction or
manufactured-home transaction.
(c) Lapse and continuation of financing statement. The
effectiveness of a filed financing statement lapses on the expiration of the period of
its effectiveness unless before the lapse a continuation statement is filed pursuant to
subsection (d). Upon lapse, a financing statement ceases to be effective and any
security interest or agricultural lien that was perfected by the financing statement
becomes unperfected, unless the security interest is perfected otherwise. If the
security interest or agricultural lien becomes unperfected upon lapse, it is deemed
never to have been perfected as against a purchaser of the collateral for value.
(d) When continuation statement may be filed. A continuation
statement may be filed only within six months before the expiration of the five-year
period specified in subsection (a) or the 30-year period specified in subsection (b),
whichever is applicable.
(e) Effect of filing continuation statement. Except as otherwise
provided in Section 9-510, upon timely filing of a continuation statement, the
effectiveness of the initial financing statement continues for a period of five years
commencing on the day on which the financing statement would have become
ineffective in the absence of the filing. Upon the expiration of the five-year period,
the financing statement lapses in the same manner as provided in subsection (c),
unless, before the lapse, another continuation statement is filed pursuant to
subsection (d). Succeeding continuation statements may be filed in the same
manner to continue the effectiveness of the initial financing statement.
(f) Transmitting utility financing statement. If a debtor is a
transmitting utility and a filed initial financing statement so indicates, the financing
statement is effective until a termination statement is filed.
(g) Record of mortgage as financing statement. A record of a
mortgage that is effective as a financing statement filed as a fixture filing under
Section 9-502(c) remains effective as a financing statement filed as a fixture
filing
until the mortgage is released or satisfied of record or its effectiveness
otherwise
terminates as to the real property.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-516)
Sec. 9-516. What constitutes filing; effectiveness of filing.
(a) What constitutes filing. Except as otherwise provided in
subsection (b), communication of a record to a filing office and tender of the
filing
fee or acceptance of the record by the filing office constitutes filing.
(b) Refusal to accept record; filing does not occur. Filing does
not occur with respect to a record that a filing office refuses to accept
because:
(c) Rules applicable to subsection (b). For purposes of subsection
(b):
(d) Refusal to accept record; record effective as filed record. A
record that is communicated to the filing office with tender of the filing fee,
but
which the filing office refuses to accept for a reason other than one set forth
in
subsection (b), is effective as a filed record except as against a purchaser of
the
collateral which gives value in reasonable reliance upon the absence of the
record
from the files.
(e) The Secretary of State may refuse to accept a record for filing under subdivision (b)(3)(E) or (b)(3.5) only if the refusal is approved by the Department of Business Services of the Secretary of State and the General Counsel to the Secretary of State.
(Source: P.A. 97-836, eff. 7-20-12; 97-1034, eff. 7-1-13; 98-463, eff. 8-16-13.)
(810 ILCS 5/9-517)
Sec. 9-517.
Effect of indexing errors.
The failure of the filing office
to index a record correctly does not affect the effectiveness of the filed
record.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-518)
Sec. 9-518. Claim concerning inaccurate or wrongfully filed record.
(a) Statement with respect to record indexed under a person's name. A person may file in the filing office an information statement with respect to a record indexed there under the person's
name
if the person believes that the record is inaccurate or was wrongfully filed.
(b) Contents of statement under subsection (a). An information statement under subsection (a)
must:
(c) Statement by secured party of record. A person may file in the filing office an information statement with respect to a record filed there if the person is a secured party of record with respect to the financing statement to which the record relates and believes that the person that filed the record was not entitled to do so under Section 9-509(d).
(d) Contents of statement under subsection (c). An information statement under subsection (c) must:
(e) Record not affected by information statement. The filing of an information statement does not affect the effectiveness of an initial financing
statement or other filed record.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/Art. 9 Pt. 5 Sub. 2 heading)
(810 ILCS 5/9-519)
Sec. 9-519.
Numbering, maintaining, and indexing records;
communicating information provided in records.
(a) Filing office duties. For each record filed in a filing office, the
filing office shall:
(b) File number. A file number assigned after January 1, 2002,
must include a digit that:
(c) Indexing: general. Except as otherwise provided in
subsections (d) and (e), the filing office shall:
(d) Indexing: real-property-related financing statement. If a
financing statement is filed as a fixture filing or covers as-extracted
collateral or
timber to be cut, it must be filed for record and the filing office shall index
it:
(e) Indexing: real-property-related assignment. If a financing
statement is filed as a fixture filing or covers as-extracted collateral or timber to be
cut, the filing office shall index an assignment filed under Section 9-514(a) or an
amendment filed under Section 9-514(b):
(f) Retrieval and association capability. The filing office shall
maintain a capability:
(g) Removal of debtor's name. The filing office may not remove
a debtor's name from the index until one year after the effectiveness of a
financing
statement naming the debtor lapses under Section 9-515 with respect to all
secured
parties of record.
(h) Timeliness of filing office performance. The filing office shall
perform the acts required by subsections (a) through (e) at the time and in the
manner prescribed by filing-office rule, but not later than two business days
after
the filing office receives the record in question.
(i) Inapplicability to real-property-related filing office. Subsections
(b) and (h) do not apply to a filing office described in Section
9-501(a)(1).
(j) Unless a statute on disposition of public records provides otherwise,
if the filing officer has an electronic, microfilm, or other image record to be
maintained of the financing statement, continuation statement, statement of
assignment, statement of release, termination statement, or any other related
document, he or she may remove and destroy the original paper submission.
(Source: P.A. 91-893, eff. 7-1-01; 92-33, eff. 7-1-01.)
(810 ILCS 5/9-520)
Sec. 9-520.
Acceptance and refusal to accept record.
(a) Mandatory refusal to accept record. A filing office shall
refuse to accept a record for filing for a reason set forth in Section 9-516(b)
and
may refuse to accept a record for filing only for a reason set forth in Section
9-516(b).
(b) Communication concerning refusal. If a filing office refuses
to accept a record for filing, it shall communicate to the person that
presented the
record the fact of and reason for the refusal and the date and time the record
would
have been filed had the filing office accepted it. The communication must be
made
at the time and in the manner prescribed by filing-office rule,
but in the case of a filing
office described in Section 9-501(a)(2),
in no event more than two
business
days after the filing office receives the record.
(c) When filed financing statement effective. A filed financing
statement satisfying Section 9-502(a) and (b) is effective, even if the filing
office is
required to refuse to accept it for filing under subsection (a). However,
Section
9-338 applies to a filed financing statement providing information described in
Section 9-516(b)(5) which is incorrect at the time the financing statement is
filed.
(d) Separate application to multiple debtors. If a record
communicated to a filing office provides information that relates to more than
one
debtor, this Part applies as to each debtor separately.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-521)
Sec. 9-521. Uniform form of written financing statement and
amendment.
(a) Initial financing statement form. A filing office that accepts
written records may not refuse to accept a
written initial financing statement
in the
form and format
set forth in the official text of the 2010 amendments to Article 9 of the
Uniform Commercial Code
promulgated by the American Law Institute and the National Conference of
Commissioners on Uniform State Laws,
except for a reason set forth in Section
9-516(b).
(b) Amendment form. A filing office that accepts written records may not
refuse
to accept a written record in
the form and format
set forth as Form UCC3 and Form UCC3Ad in the final official text of the 2010 amendments to Article 9 of the
Uniform Commercial Code
promulgated by the American Law Institute and the National Conference of
Commissioners on Uniform State Laws, except for a
reason
set
forth in Section 9-516(b).
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-522)
Sec. 9-522.
Maintenance and destruction of records.
(a) Post-lapse maintenance and retrieval of information. The
filing office shall maintain a record of the information provided in a filed
financing
statement for at least one year after the effectiveness of the financing
statement has
lapsed under Section 9-515 with respect to all secured parties of record. The
record
must be retrievable by using the name of
the debtor and:
(b) Destruction of written records. Except to the extent that a
statute governing disposition of public records provides otherwise, the filing
office
immediately may destroy any written record evidencing a financing statement.
However, if the filing office destroys a written record, it shall maintain
another
record of the financing statement which complies with subsection (a).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-523)
Sec. 9-523.
Information from filing office; sale or license of records.
(a) Acknowledgment of filing written record. If a person that
files a written record requests an acknowledgment of the filing, the filing
office
shall send to the person an image of the record showing the number assigned to
the
record pursuant to Section 9-519(a)(1) and the date and time of the filing of
the
record. However, if the person furnishes a copy of the record to the filing
office,
the filing office may instead:
(b) Acknowledgment of filing other record. If a person files a
record other than a written record, the filing office shall communicate to the person
an acknowledgment that provides:
(c) Communication of requested information. The filing office
shall communicate or otherwise make available in a record the following
information to any person that requests it:
(d) Medium for communicating information. In complying with
its duty under subsection (c), the filing office may communicate information in
any
medium. However, if requested, the filing office shall communicate information
by
issuing a record that can be admitted into evidence in the courts of this
State without extrinsic evidence of its authenticity.
(e) Timeliness of filing office performance. The filing office shall
perform the acts required by subsections (a) through (d) at the time and in the
manner prescribed by filing-office rule,
but in the case of a filing
office described in Section 9-501(a)(2),
not later than two business days
after
the filing office receives the request.
(f) Public availability of records. At least weekly, the Secretary
of State shall offer to sell
or
license to the public on a nonexclusive basis, in bulk, copies of all records
filed in it
under this Part, in every medium from time to time available to the filing
office.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-524)
Sec. 9-524.
Delay by filing office.
Delay by the filing office beyond a
time
limit prescribed by this Part is excused if:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-525)
Sec. 9-525. Fees.
(a) Initial financing
statement or
other record: general rule.
Except as otherwise
provided in subsection (e), the fee for filing and indexing a record under this
Part,
other than an initial financing statement of the kind described in subsection
(b),
is:
(b) Initial financing statement:
public-finance
and
manufactured-housing transactions. Except as
otherwise provided in subsection (e), the fee for filing and indexing an
initial
financing statement of the following kind is:
(c) Number of names. The number of names required to be
indexed does not affect the amount of the fee in subsections (a) and (b).
(d) Response to information request. The fee for responding to a
request for information from the filing office, including for issuing a
certificate
showing communicating whether there is on file any financing
statement naming
a particular debtor, is:
(e) Record of mortgage. This Section does not require a fee with
respect to a record of a mortgage which is effective as a financing statement
filed as
a fixture filing or as a financing statement covering as-extracted collateral
or timber
to be cut under Section 9-502(c). However, the recording and satisfaction fees
that
otherwise would be applicable to the record of the mortgage apply.
(f) Of the total money collected for each filing with the Secretary of State of an original financing statement, amended statement, continuation, or assignment, or for a release of collateral, $12 of the filing fee shall be paid into the Secretary of State Special Services Fund. The remaining $8 shall be deposited into the General Revenue Fund in the State treasury.
(Source: P.A. 93-990, eff. 8-23-04.)
(810 ILCS 5/9-526)
Sec. 9-526.
Filing-office rules.
(a) Adoption of filing-office rules. The Secretary of State
shall adopt and publish rules to implement
this
Article. The filing-office rules must be:
(b) Harmonization of rules. To keep the filing-office rules and
practices of the filing office in harmony with the rules and practices of
filing offices
in other jurisdictions that enact substantially this Part, and to keep the
technology
used by the filing office compatible with the technology used by filing offices
in
other jurisdictions that enact substantially this Part, the Secretary of State,
so far as is consistent with the purposes,
policies,
and provisions of this Article, in adopting, amending, and repealing
filing-office
rules, shall:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-527)
Sec. 9-527.
Duty to report.
The Secretary of State
shall report annually to the
Governor and
Legislature on the operation of the filing office. The report must contain a
statement of the extent to which:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-528)
Sec. 9-528.
Liability of filing officer.
Neither the filing officer nor
any of the filing officer's employees or agents shall be subject to personal
liability by reason of any error or omission in the performance of any duty
under this Article except in the case of willful and wanton conduct.
(Source: P.A. 92-33, eff. 7-1-01.)
(810 ILCS 5/Art. 9 Pt. 6 heading)
(810 ILCS 5/Art. 9 Pt. 6 Sub. 1 heading)
(810 ILCS 5/9-601)
Sec. 9-601. Rights after default; judicial enforcement; consignor or
buyer of accounts, chattel paper, payment intangibles, or promissory notes.
(a) Rights of secured party after default. After default, a secured
party has the rights provided in this Part and, except as otherwise provided in
Section 9-602, those provided by agreement of the parties. A secured party:
(b) Rights and duties of secured party in possession or control.
A secured party in possession of collateral or control of collateral under Section
7-106, 9-104, 9-105, 9-106, or 9-107 has the rights and duties provided in Section 9-207.
(c) Rights cumulative; simultaneous exercise. The rights under
subsections (a) and (b) are cumulative and may be exercised simultaneously.
(d) Rights of debtor and obligor. Except as otherwise provided in
subsection (g) and Section 9-605, after default, a debtor and an obligor have
the
rights provided in this Part and by agreement of the parties.
(e) Lien of levy after judgment. If a secured party has reduced its
claim to judgment, the lien of any levy that may be made upon the collateral by
virtue of a judgment relates back to the earliest of:
(f) Execution sale. A sale pursuant to a judgment is a foreclosure
of the security interest or agricultural lien by judicial procedure within the
meaning
of this Section. A secured party may purchase at the sale and thereafter hold
the
collateral free of any other requirements of this Article.
(g) Consignor or buyer of certain rights to payment. Except as
otherwise provided in Section 9-607(c), this Part imposes no duties upon a
secured
party that is a consignor or is a buyer of accounts, chattel paper, payment
intangibles, or promissory notes.
(Source: P.A. 95-895, eff. 1-1-09.)
(810 ILCS 5/9-602)
Sec. 9-602.
Waiver and variance of rights and duties.
Except as
otherwise provided in Section 9-624, to the extent that they give rights to a
debtor
or obligor and impose duties on a secured party, the debtor or obligor may not
waive or vary the rules stated in the following listed Sections:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-603)
Sec. 9-603.
Agreement on standards concerning rights and duties.
(a) Agreed standards. The parties may determine by agreement
the standards measuring the fulfillment of the rights of a debtor or obligor
and the
duties of a secured party under a rule stated in Section 9-602 if the standards
are
not manifestly unreasonable.
(b) Agreed standards inapplicable to breach of peace.
Subsection (a) does not apply to the duty under Section 9-609 to refrain from
breaching the peace.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-604)
Sec. 9-604.
Procedure if security agreement covers real property or
fixtures.
(a) Enforcement: personal and real property. If a security
agreement covers both personal and real property, a secured party may proceed:
(b) Enforcement: fixtures. Subject to subsection (c), if a security
agreement covers goods that are or become fixtures, a secured party may
proceed:
(c) Removal of fixtures. Subject to the other provisions of this
Part, if a secured party holding a security interest in fixtures has priority over all
owners and encumbrancers of the real property, the secured party, after default,
may remove the collateral from the real property.
(d) Injury caused by removal. A secured party that removes
collateral shall promptly reimburse any encumbrancer or owner of the real
property, other than the debtor, for the cost of repair of any physical injury caused
by the removal. The secured party need not reimburse the encumbrancer or owner
for any diminution in value of the real property caused by the absence of the
goods
removed or by any necessity of replacing them. A person entitled to
reimbursement may refuse permission to remove until the secured party gives
adequate assurance for the performance of the obligation to reimburse.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-605)
Sec. 9-605.
Unknown debtor or secondary obligor.
A secured party does
not owe a duty based on its status as secured party:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-606)
Sec. 9-606.
Time of default for agricultural lien.
For purposes of this
Part, a default occurs in connection with an agricultural lien at the time the
secured party becomes entitled to enforce the lien in accordance with the
statute under which it was created.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-607)
Sec. 9-607. Collection and enforcement by secured party.
(a) Collection and enforcement generally. If so agreed, and in
any event after default, a secured party:
(b) Nonjudicial enforcement of mortgage. If necessary to enable
a secured party to exercise under subsection (a)(3) the right of a debtor to enforce a
mortgage nonjudicially, the secured party may record in the office in which a
record of the mortgage is recorded:
(c) Commercially reasonable collection and enforcement. A
secured party shall proceed in a commercially reasonable manner if the secured
party:
(d) Expenses of collection and enforcement. A secured party may
deduct from the collections made pursuant to subsection (c) reasonable expenses of
collection and enforcement, including reasonable attorney's fees and legal
expenses
incurred by the secured party.
(e) Duties to secured party not affected. This Section does not
determine whether an account debtor, bank, or other person obligated on
collateral
owes a duty to a secured party.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-608)
Sec. 9-608.
Application of proceeds of collection or enforcement;
liability for deficiency and right to surplus.
(a) Application of proceeds, surplus, and deficiency if obligation
secured. If a security interest or agricultural lien secures payment or
performance
of an obligation, the following rules apply:
(b) No surplus or deficiency in sales of certain rights to
payment. If the underlying transaction is a sale of accounts, chattel paper,
payment intangibles, or promissory notes, the debtor is not entitled to any
surplus,
and the obligor is not liable for any deficiency.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-609)
Sec. 9-609.
Secured party's right to take possession after default.
(a) Possession; rendering equipment unusable; disposition on
debtor's premises. After default, a secured party:
(b) Judicial and nonjudicial process. A secured party may
proceed under subsection (a):
(c) Assembly of collateral. If so agreed, and in any event after
default, a secured party may require the debtor to assemble the collateral and make
it available to the secured party at a place to be designated by the secured party
which is reasonably convenient to both parties.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-610)
Sec. 9-610. Disposition of collateral after default.
(a) Disposition after default. After default, a secured party may
sell, lease, license, or otherwise dispose of any or all of the collateral in
its present
condition or following any commercially reasonable preparation or processing.
(b) Commercially reasonable disposition. Every aspect of a
disposition of collateral, including the method, manner, time, place, and other
terms, must be commercially reasonable. If commercially reasonable, a secured
party may dispose of collateral by public or private proceedings, by one or
more
contracts, as a unit or in parcels, and at any time and place and on any terms.
(c) Purchase by secured party. A secured party may purchase
collateral:
(d) Warranties on disposition. A contract for sale, lease, license,
or other disposition includes the warranties relating to title, possession, quiet
enjoyment, and the like which by operation of law accompany a voluntary
disposition of property of the kind subject to the contract.
(e) Disclaimer of warranties. A secured party may disclaim or
modify warranties under subsection (d):
(f) Record sufficient to disclaim warranties. A record is
sufficient to disclaim warranties under subsection (e) if it indicates "There
is no
warranty relating to title, possession, quiet enjoyment, or the like in this
disposition" or uses words of similar import.
(g) The provisions of this Section are subject to Section 26.5 of the Retail Installment Sales Act.
(Source: P.A. 97-913, eff. 1-1-13.)
(810 ILCS 5/9-611)
Sec. 9-611.
Notification before disposition of collateral.
(a) "Notification date." In this Section, "notification date" means
the earlier of the date on which:
(b) Notification of disposition required. Except as otherwise
provided in subsection (d), a secured party that disposes of collateral under
Section
9-610 shall send to the persons specified in subsection (c) a reasonable
authenticated notification of disposition.
(c) Persons to be notified. To comply with subsection (b), the
secured party shall send an authenticated notification of disposition to:
(d) Subsection (b) inapplicable: perishable collateral;
recognized market. Subsection (b) does not apply if the collateral is perishable or
threatens to decline speedily in value or is of a type customarily sold on a
recognized market.
(e) Compliance with subsection (c)(3)(B). A secured party
complies with the requirement for notification prescribed by subsection (c)(3)(B)
if:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-612)
Sec. 9-612.
Timeliness of notification before disposition of collateral.
(a) Reasonable time is question of fact. Except as otherwise
provided in subsection (b), whether a notification is sent within a reasonable
time is
a question of
fact. The limitation of the
rule in subsection (b) to transactions other than consumer-goods transactions
is intended to leave to the court the determination of the proper rules in
consumer-goods transactions. The court may not infer from that limitation the
nature of the proper rule in consumer-goods transactions and may continue to
apply established approaches.
(b) 10-day period sufficient in non-consumer transaction. In a
transaction other than a consumer transaction, a notification of disposition
sent
after default and 10 days or more before the earliest time of disposition set
forth in
the notification is sent within a reasonable time before the disposition.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-613)
Sec. 9-613.
Contents and form of notification before disposition of
collateral: general. Except in a consumer-goods transaction, the following
rules
apply:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-614)
Sec. 9-614.
Contents and form of notification before disposition of
collateral: consumer-goods transaction. In a consumer-goods transaction, the
following rules apply:
............. (Name and address of secured party)
............. (Date)
......................................................
(Name and address of any obligor who is also a debtor)
Subject: ..................................
(Identification of Transaction)
Date: ................................
Time: ................................
Place: ................................
.................................................
(Names of all other debtors and obligors, if any)
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-615)
Sec. 9-615.
Application of proceeds of disposition; liability for
deficiency and right to surplus.
(a) Application of proceeds. A secured party shall apply or pay
over for application the cash proceeds of disposition in the following order
to:
(b) Proof of subordinate interest. If requested by a secured party,
a holder of a subordinate security interest or other lien shall furnish reasonable
proof of the interest or lien within a reasonable time. Unless the holder does so, the
secured party need not comply with the holder's demand under subsection (a)(3).
(c) Application of noncash proceeds. A secured party need not
apply or pay over for application noncash proceeds of disposition under this
Section unless the failure to do so would be commercially unreasonable. A secured
party that applies or pays over for application noncash proceeds shall do so in a
commercially reasonable manner.
(d) Surplus or deficiency if obligation secured. If the security
interest under which a disposition is made secures payment or performance of an
obligation, after making the payments and applications required by subsection (a)
and permitted by subsection (c):
(e) No surplus or deficiency in sales of certain rights to
payment. If the underlying transaction is a sale of accounts, chattel paper,
payment intangibles, or promissory notes:
(f) Calculation of surplus or deficiency in disposition to person
related to secured party. The surplus or deficiency following a disposition is
calculated based on the amount of proceeds that would have been realized in a
disposition complying with this Part
and described in subsection
(f)(2) of this Section to
a transferee other than the secured party, a
person related to the secured party, or a secondary obligor if:
(g) Cash proceeds received by junior secured party. A secured
party that receives cash proceeds of a disposition in good faith and without
knowledge that the receipt violates the rights of the holder of a security
interest or
other lien that is not subordinate to the security interest or agricultural
lien under
which the disposition is made:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-616)
Sec. 9-616.
Explanation of calculation of surplus or deficiency.
(a) Definitions. In this Section:
(b) Explanation of calculation. In a consumer-goods transaction
in which the debtor is entitled to a surplus or a consumer obligor is liable
for a
deficiency under Section 9-615, the secured party shall:
(c) Required information for response to request. To comply with a
request, the secured party must provide a response in writing which includes
the following information:
(d) Substantial compliance. A particular phrasing of
the explanation or response to a request is not required. An explanation or
a response to a request complying substantially with the requirements of this
Section is sufficient even if it is:
(e) Charges for responses. A debtor or consumer obligor is
entitled without charge to one response to a request under this Section during
any
six-month period in which the secured party did not send to the debtor or
consumer
obligor an explanation pursuant to subsection (b)(1). The secured party may
require payment of a charge not exceeding $25 for each additional response.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-617)
Sec. 9-617.
Rights of transferee of collateral.
(a) Effects of disposition. A secured party's disposition of
collateral after default:
(b) Rights of good-faith transferee. A transferee that acts in good
faith takes free of the rights and interests described in subsection (a), even
if the
secured party fails to comply with this Article or the requirements of any
judicial
proceeding.
(c) Rights of other transferee. If a transferee does not take free of
the rights and interests described in subsection (a), the transferee takes the
collateral subject to:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-618)
Sec. 9-618.
Rights and duties of certain secondary obligors.
(a) Rights and duties of secondary obligor. A secondary obligor
acquires the rights and becomes obligated to perform the duties of the secured
party
after the secondary obligor:
(b) Effect of assignment, transfer, or subrogation. An
assignment, transfer, or subrogation described in subsection (a):
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-619)
Sec. 9-619.
Transfer of record or legal title.
(a) "Transfer statement." In this Section, "transfer statement"
means a record authenticated by a secured party stating:
(b) Effect of transfer statement. A transfer statement entitles the
transferee to the transfer of record of all rights of the debtor in the collateral
specified in the statement in any official filing, recording, registration, or
certificate-of-title system covering the collateral. If a transfer statement is
presented with the applicable fee and request form to the official or office
responsible for maintaining the system, the official or office shall:
(c) Transfer not a disposition; no relief of secured party's
duties. A transfer of the record or legal title to collateral to a secured
party under
subsection (b) or otherwise is not of itself a disposition of collateral under
this
Article and does not of itself relieve the secured party of its duties under
this
Article.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-620)
Sec. 9-620.
Acceptance of collateral in full or partial satisfaction of
obligation; compulsory disposition of collateral.
(a) Conditions to acceptance in satisfaction. Except as otherwise
provided in subsection (g), a secured party may accept collateral in full or
partial
satisfaction of the obligation it secures only if:
(b) Purported acceptance ineffective. A purported or apparent
acceptance of collateral under this Section is ineffective unless:
(c) Debtor's consent. For purposes of this Section:
(d) Effectiveness of notification. To be effective under subsection
(a)(2), a notification of objection must be received by the secured party:
(e) Mandatory disposition of consumer goods. A secured party
that has taken possession of collateral shall dispose of the collateral pursuant to
Section 9-610 within the time specified in subsection (f) if:
(f) Compliance with mandatory disposition requirement. To
comply with subsection (e), the secured party shall dispose of the collateral:
(g) No partial satisfaction in consumer transaction. In a
consumer transaction, a secured party may not accept collateral in partial
satisfaction of the obligation it secures.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-621)
Sec. 9-621.
Notification of proposal to accept collateral.
(a) Persons to which proposal to be sent. A secured party that
desires to accept collateral in full or partial satisfaction of the obligation
it secures
shall send its proposal to:
(b) Proposal to be sent to secondary obligor in partial
satisfaction. A secured party that desires to accept collateral in partial
satisfaction
of the obligation it secures shall send its proposal to any secondary obligor
in
addition to the persons described in subsection (a).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-622)
Sec. 9-622.
Effect of acceptance of collateral.
(a) Effect of acceptance. A secured party's acceptance of
collateral in full or partial satisfaction of the obligation it secures:
(b) Discharge of subordinate interest notwithstanding
noncompliance. A subordinate interest is discharged or terminated under
subsection (a), even if the secured party fails to comply with this Article.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-623)
Sec. 9-623.
Right to redeem collateral.
(a) Persons that may redeem. A debtor, any secondary obligor, or
any other secured party or lienholder may redeem collateral.
(b) Requirements for redemption. To redeem collateral, a person
shall tender:
(c) When redemption may occur. A redemption may occur at any
time before a secured party:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-624)
Sec. 9-624.
Waiver.
(a) Waiver of disposition notification. A debtor or secondary
obligor may waive the right to notification of disposition of collateral under
Section
9-611 only by an agreement to that effect entered into and authenticated after
default.
(b) Waiver of mandatory disposition. A debtor may waive the
right to require disposition of collateral under Section 9-620(e) only by an
agreement to that effect entered into and authenticated after default.
(c) Waiver of redemption right.
A debtor or secondary obligor may waive the right to redeem
collateral
under Section 9-623 only by an agreement to that effect entered into and
authenticated after default.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/Art 9, P6, Sub 2 heading)
(810 ILCS 5/9-625)
Sec. 9-625. Remedies for secured party's failure to comply with Article.
(a) Judicial orders concerning noncompliance. If it is established
that a secured party is not proceeding in accordance with this Article, a court
may
order or restrain collection, enforcement, or disposition of collateral on
appropriate
terms and conditions.
(b) Damages for noncompliance. Subject to subsections (c), (d),
and (f), a person is liable for damages in the amount of any loss caused by a
failure
to comply with this Article. Loss caused by a failure to comply with a request
under Section 9-210 may include loss resulting from the debtor's inability to
obtain, or increased costs of, alternative financing.
(c) Persons entitled to recover damages; statutory damages if collateral is consumer goods. Except as otherwise provided in Section 9-628:
(d) Recovery when deficiency eliminated or reduced. A debtor
whose deficiency is eliminated under Section 9-626 may recover damages for the
loss of any surplus. However, a debtor or secondary obligor whose deficiency
is
eliminated or reduced under Section 9-626 may not otherwise recover under
subsection (b) for noncompliance with the provisions of this Part relating to
collection, enforcement, disposition, or acceptance.
(e) Statutory damages: noncompliance with specified
provisions. In addition to any damages recoverable under subsection (b), the
debtor, consumer obligor, or person named as a debtor in a filed record, as
applicable, may recover in an individual action $500 for each instance that a
person:
(f) Statutory damages: noncompliance with Section 9-210. A
debtor or consumer obligor may recover damages under subsection (b) and, in
addition, may in an individual action recover $500 in each case from a person
that, without reasonable cause, fails
to
comply with a request under Section 9-210. A recipient of a request under
Section
9-210 which never claimed an interest in the collateral or obligations that are
the
subject of a request under that Section has a reasonable excuse for failure to
comply
with the request within the meaning of this subsection.
(g) Limitation of security interest: noncompliance with Section
9-210. If a secured party fails to comply with a request regarding a list of
collateral
or a statement of account under Section 9-210, the secured party may claim a
security interest only as shown in the statement included in the request as
against a
person that is reasonably misled by the failure.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-626)
Sec. 9-626.
Action in which deficiency or surplus is in
issue; applicable rules if amount of deficiency or surplus is in issue. In
an action in which the amount of a deficiency
or surplus is in issue, the following rules apply:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-627)
Sec. 9-627.
Determination of whether conduct was commercially
reasonable.
(a) Greater amount obtainable under other circumstances; no
preclusion of commercial reasonableness. The fact that a greater amount could
have been obtained by a collection, enforcement, disposition, or acceptance at
a
different time or in a different method from that selected by the secured party
is not
of itself sufficient to preclude the secured party from establishing that the
collection, enforcement, disposition, or acceptance was made in a commercially
reasonable manner.
(b) Dispositions that are commercially reasonable. A disposition
of collateral is made in a commercially reasonable manner if the disposition is
made:
(c) Approval by court or on behalf of creditors. A collection,
enforcement, disposition, or acceptance is commercially reasonable if it has been
approved:
(d) Approval under subsection (c) not necessary; absence of
approval has no effect. Approval under subsection (c) need not be obtained,
and
lack of approval does not mean that the collection, enforcement, disposition,
or
acceptance is not commercially reasonable.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-628)
Sec. 9-628.
Nonliability and limitation on liability of secured party;
liability of secondary obligor.
(a) Limitation of liability to debtor or obligor. Unless a secured
party knows that a person is a debtor or obligor, knows the identity of the
person,
and knows how to communicate with the person:
(b) Limitation of liability to debtor, obligor, another secured
party, or lienholder. A secured party is not liable because of its status as secured
party:
(c) Limitation of liability if reasonable belief that transaction
not a consumer-goods transaction or consumer transaction. A secured party is
not liable to any person, and a person's liability for a deficiency is not
affected,
because of any act or omission arising out of the secured party's reasonable
belief
that a transaction is not a consumer-goods transaction or a consumer
transaction or
that goods are not consumer goods, if the secured party's belief is based on
its
reasonable reliance on:
(d) Limitation of liability for statutory damages. A secured party
is not liable to any person under Section 9-625(c)(2) for its failure to comply
with
Section 9-616.
(e) Limitation of multiple liability for statutory damages. A
secured party is not liable under Section 9-625(c)(2) more than once with
respect to
any one secured obligation.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/Art. 9 Pt. 7 heading)
(810 ILCS 5/9-701)
Sec. 9-701.
Effective date.
(See Section 99 of the Public Act adding this
Section to this Act.)
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-702)
Sec. 9-702.
Savings clause.
(a) Pre-effective-date transactions or liens. Except as otherwise
provided in this Part, this Act applies to a transaction or lien within its
scope, even
if the transaction or lien was entered into or created before the effective
date of this
amendatory Act of the 91st General Assembly.
(b) Continuing validity. Except as otherwise provided in
subsection (c) and Sections 9-703 through 9-709:
(c) Pre-effective-date proceedings. This amendatory Act of the
91st General Assembly does not affect an action, case, or proceeding commenced
before the effective date of this amendatory Act of the 91st General
Assembly.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-703)
Sec. 9-703.
Security interest perfected before effective date.
(a) Continuing priority over lien creditor: perfection
requirements satisfied. A security interest that is enforceable immediately
before
the effective date of this amendatory Act of the 91st General Assembly and
would
have priority over the rights of a person that becomes a lien creditor at that
time is a
perfected security interest under this Act if, on the effective date of this
amendatory
Act of the 91st General Assembly, the applicable requirements for enforceability
and perfection under this Act are satisfied without further action.
(b) Continuing priority over lien creditor: perfection
requirements not satisfied. Except as otherwise provided in Section 9-705, if,
immediately before the effective date of this amendatory Act of the 91st General
Assembly, a security interest is enforceable and would have priority over the rights
of a person that becomes a lien creditor at that time, but the applicable requirements
for enforceability or perfection under this Act are not satisfied on the effective date
of this amendatory Act of the 91st General Assembly, the security interest:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-704)
Sec. 9-704.
Security interest unperfected before effective date.
A
security interest that is enforceable immediately before the effective date of
this
amendatory Act of the 91st General Assembly but which would be subordinate to
the rights of a person that becomes a lien creditor at that time:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-705)
Sec. 9-705.
Effectiveness of action taken before effective date.
(a) Pre-effective-date action; one-year perfection period unless
reperfected. If action, other than the filing of a financing statement, is
taken
before the effective date of this amendatory Act of the 91st General Assembly
and
the action would have resulted in priority of a security interest over the
rights of a
person that becomes a lien creditor had the security interest become
enforceable
before the effective date of this amendatory Act of the 91st General Assembly, the
action is effective to perfect a security interest that attaches under this Act within
one year after the effective date of this amendatory Act of the 91st General
Assembly. An attached security interest becomes unperfected one year after the
effective date of this amendatory Act of the 91st General Assembly unless the
security interest becomes a perfected security interest under this Act before the
expiration of that period.
(b) Pre-effective-date filing. The filing of a financing statement
before the effective date of this amendatory Act of the 91st General Assembly is
effective to perfect a security interest to the extent the filing would satisfy the
applicable requirements for perfection under this Act.
(c) Pre-effective-date filing in jurisdiction formerly governing
perfection. This Act does not render ineffective an effective financing statement
that, before the effective date of this amendatory Act of the 91st General
Assembly,
is filed and satisfies the applicable requirements for perfection under the law
of the
jurisdiction governing perfection as provided in Section 9-103
of the Uniform Commercial Code as it existed before the effective date of
this amendatory Act of the 91st General Assembly.
However,
except as otherwise provided in subsections (d) and (e) and Section 9-706, the
financing statement ceases to be effective at the earlier of:
(d) Continuation statement. The filing of a continuation statement
after the effective date of this amendatory Act of the 91st General Assembly
does
not continue the effectiveness of the financing statement filed before the
effective
date of this amendatory Act of the 91st General Assembly. However, upon the
timely filing of a continuation statement after the effective date of this
amendatory
Act of the 91st General Assembly and in accordance with the law of the
jurisdiction governing perfection as provided in Part 3, the effectiveness of a
financing statement filed in the same office in that jurisdiction before the effective
date of this amendatory Act of the 91st General Assembly continues for the period
provided by the law of that jurisdiction.
(e) Application of subsection (c)(2) to transmitting utility
financing statement. Subsection (c)(2) applies to a financing statement that,
before the effective date of this amendatory Act of the 91st General Assembly,
is
filed against a transmitting utility and satisfies the applicable requirements
for
perfection under the law of the jurisdiction governing perfection as provided
in Section 9-103, as that Section existed before the effective date of this
amendatory Act of the 91st General Assembly, only to the extent that Part 3
provides that the law of
a
jurisdiction other than jurisdiction in which the financing statement is filed
governs
perfection of a security interest in collateral covered by the financing
statement.
(f) Application of Part 5. A financing statement that includes a
financing statement filed before the effective date of this amendatory Act of
the
91st General Assembly and a continuation statement filed after the effective
date of
this amendatory Act of the 91st General Assembly is effective only to the
extent
that it satisfies the requirements of Part 5 for an initial financing
statement.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-706)
Sec. 9-706.
When initial financing statement suffices to continue
effectiveness of financing statement.
(a) Initial financing statement in lieu of continuation statement.
The filing of an initial financing statement in the office specified in Section
9-501
continues the effectiveness of a financing statement filed before the effective
date
of this amendatory Act of the 91st General Assembly if:
(b) Period of continued effectiveness. The filing of an initial
financing statement under subsection (a) continues the effectiveness of the
pre-effective-date financing statement:
(c) Requirements for initial financing statement under
subsection (a). To be effective for purposes of subsection (a), an initial financing
statement must:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-707)
Sec. 9-707.
Amendment of pre-effective-date financing statement.
(a) "Pre-effective-date financing statement". In this Section,
"pre-effective-date financing statement" means a financing statement filed
before
the effective date of this amendatory Act of the 91st General Assembly.
(b) Applicable law. After the effective date of this amendatory Act of the
91st General Assembly, a person may add or
delete collateral covered by, continue or terminate the effectiveness of, or
otherwise amend the information provided in, a pre-effective-date financing
statement only in accordance with the law of the jurisdiction governing
perfection as provided in Part 3. However, the effectiveness of a
pre-effective-date financing statement also may be terminated in accordance
with
the law of the jurisdiction in which the financing statement is filed.
(c) Method of amending: general rule. Except as otherwise provided in
subsection (d), if the law of this State governs perfection of a security
interest, the information in a pre-effective-date financing statement may be
amended after the effective date of this amendatory Act of the 91st General
Assembly only if:
(d) Method of amending: continuation. If the law of this State governs
perfection of a security interest, the effectiveness of a pre-effective-date
financing statement may be continued only under Section 9-705(d) and (f) or
Section 9-706.
(e) Method of amending: additional termination rule. Whether or not the
law of this State governs perfection of a security interest, the effectiveness
of a pre-effective-date financing statement filed in this State may be
terminated after the effective date of this amendatory Act of the 91st General
Assembly by filing a termination statement in
the office in which the pre-effective-date financing statement is filed,
unless an initial financing statement that satisfies Section 9-706(c) has been
filed in the office specified by the law of the jurisdiction governing
perfection as provided in Part 3 as the office in which to file a financing
statement.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-708)
Sec. 9-708.
Persons entitled to file initial financing
statement or
continuation statement. A person may file an initial financing statement or a
continuation statement under this Part if:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-709)
Sec. 9-709.
Priority.
(a) Law governing priority. This Act determines the priority of
conflicting claims to collateral. However, if the relative priorities of the
claims
were established before the effective date of this amendatory Act of the 91st
General Assembly, Article 9 as it existed before the effective date of this
amendatory Act of the 91st General Assembly determines priority.
(b) Priority if security interest becomes enforceable under
Section 9-203. For purposes of Section 9-322(a), the priority of a security
interest
that becomes enforceable under Section 9-203 of this Act dates from the
effective
date of this amendatory Act of the 91st General Assembly if the security
interest is
perfected under this Act by the filing of a financing statement before the
effective
date of this amendatory Act of the 91st General Assembly which would not have
been effective to perfect the security interest under Article 9 as it existed
before the
effective date of this amendatory Act of the 91st General Assembly. This
subsection does not apply to conflicting security interests each of which is
perfected by the filing of such a financing statement.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-710)
Sec. 9-710.
Local-filing office responsibilities for filings under the
Uniform Commercial Code prior to this amendatory Act of the 91st General
Assembly.
(a) In this Section:
(b) Except for a record terminating a former-Article-9 record, a
local-filing office must not accept for filing a record presented after June
30,
2001, whether or not the record relates to a financing statement filed in the
local-filing office before July 1, 2001. If the record terminating such
former-Article-9 record statement is in the standard form prescribed by the
Secretary of State, the uniform fee for filing and indexing the termination
statement in the office of a county recorder shall be $5 and otherwise shall
be $10, plus in each case an additional fee of $5 for each name more than one
at each address listed against which the record is required to be indexed.
(c) Until July 1, 2001, each local-filing office must maintain all
former-Article-9 records in accordance with the Uniform Commercial Code as in
effect immediately before the effective date of this amendatory Act of the
91st General Assembly. A former-Article-9 record that is not reflected on the
index maintained on June 30, 2001, by the local-filing office must be
processed and indexed, and reflected on the index as of June 30, 2001, as soon
as practicable but in any event no later than July 30, 2001.
(d) Until at least June 30, 2008, each local-filing office must respond
to requests for information with respect to former-Article-9 records relating
to a debtor and issue certificates, in accordance with the Uniform Commercial
Code as in effect immediately before this amendatory Act of the 91st General
Assembly. The fees charged for responding to requests for information relating
to the debtor issuing the certificates with respect to former-Article-9
records must be the fees in effect under the Uniform Commercial Code as in
effect immediately before the effective date of this amendatory Act of the
91st General Assembly on June 30, 2001, unless a different fee is later set by
the local filing office. However, the different fee must not exceed $10 for
responding to a request for information relating to a debtor or $10 for
issuing a certificate.
(e) After June 30, 2008, each local-filing office may remove and
destroy, in accordance with any then applicable record retention law of this
State, all former-Article-9 records, including the related index.
(f) This Section does not apply, with respect to financing statements
and other records, to a filing office in which mortgages or records of
mortgages on real property are required to be filed or recorded if:
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/Art. 9 Pt. 8 heading)
(810 ILCS 5/9-801)
Sec. 9-801. Effective date. (See Section 99 of the Public Act adding this Section to this Act.)
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-802)
Sec. 9-802. Savings clause.
(a) Pre-effective-date transactions or liens. Except as otherwise provided in this Part, this Act applies to a transaction or lien within its scope, even if the transaction or lien was entered into or created before the effective date of this amendatory Act of the 97th General Assembly.
(b) Pre-effective-date proceedings. This amendatory Act of the 97th General Assembly does not affect an action, case, or proceeding commenced before the effective date of this amendatory Act of the 97th General Assembly.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-803)
Sec. 9-803. Security interest perfected before effective date.
(a) Continuing perfection: perfection requirements satisfied. A security interest that is a perfected security interest immediately before the effective date of this amendatory Act of the 97th General Assembly is a perfected security interest under Article 9 as amended by this amendatory Act of the 97th General Assembly if, on the effective date of this amendatory Act of the 97th General Assembly, the applicable requirements for attachment and perfection under Article 9 as amended by this amendatory Act of the 97th General Assembly are satisfied without further action.
(b) Continuing perfection: perfection requirements not satisfied. Except as otherwise provided in Section 9-805, if, immediately before the effective date of this amendatory Act of the 97th General Assembly, a security interest is a perfected security interest, but the applicable requirements for perfection under Article 9 as amended by this amendatory Act of the 97th General Assembly are not satisfied when this amendatory Act of the 97th General Assembly takes effect, the security interest remains perfected thereafter only if the applicable requirements for perfection under Article 9 as amended by this amendatory Act of the 97th General Assembly are satisfied within one year after the effective date of this amendatory Act of the 97th General Assembly.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-804)
Sec. 9-804. Security interest unperfected before the effective date of this amendatory Act of the 97th General Assembly. A security interest that is an unperfected security interest immediately before the effective date of this amendatory Act of the 97th General Assembly becomes a perfected security interest:
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-805)
Sec. 9-805. Effectiveness of action taken before the effective date of this amendatory Act of the 97th General Assembly.
(a) Pre-effective-date filing effective. The filing of a financing statement before the effective date of this amendatory Act of the 97th General Assembly is effective to perfect a security interest to the extent the filing would satisfy the applicable requirements for perfection under Article 9 as amended by this amendatory Act of the 97th General Assembly.
(b) When pre-effective-date filing becomes ineffective. This amendatory Act of the 97th General Assembly does not render ineffective an effective financing statement that, before the effective date of this amendatory Act of the 97th General Assembly, is filed and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in Article 9 as it existed before the effective date of this amendatory Act of the 97th General Assembly. However, except as otherwise provided in subsections (c) and (d) and Section 9-806, the financing statement ceases to be effective:
(c) Continuation statement. The filing of a continuation statement after the effective date of this amendatory Act of the 97th General Assembly does not continue the effectiveness of a financing statement filed before the effective date of this amendatory Act of the 97th General Assembly. However, upon the timely filing of a continuation statement after the effective date of this amendatory Act of the 97th General Assembly and in accordance with the law of the jurisdiction governing perfection as provided in Article 9, the effectiveness of a financing statement filed in the same office in that jurisdiction before the effective date of this amendatory Act of the 97th General Assembly continues for the period provided by the law of that jurisdiction.
(d) Application of subsection (b)(2)(B) to transmitting utility financing statement. Subsection (b)(2)(B) applies to a financing statement that, before the effective date of this amendatory Act of the 97th General Assembly, is filed against a transmitting utility and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in Article 9 as it existed before the effective date of this amendatory Act of the 97th General Assembly, only to the extent that Article 9 as amended by this amendatory Act of the 97th General Assembly provides that the law of a jurisdiction other than the jurisdiction in which the financing statement is filed governs perfection of a security interest in collateral covered by the financing statement.
(e) Application of Part 5. A financing statement that includes a financing statement filed before the effective date of this amendatory Act of the 97th General Assembly and a continuation statement filed after the effective date of this amendatory Act of the 97th General Assembly is effective only to the extent that it satisfies the requirements of Part 5 as amended by this amendatory Act of the 97th General Assembly for an initial financing statement. A financing statement that indicates that the debtor is a decedent's estate indicates that the collateral is being administered by a personal representative within the meaning of Section 9-503(a)(2) as amended by this amendatory Act of the 97th General Assembly. A financing statement that indicates that the debtor is a trust or is a trustee acting with respect to property held in trust indicates that the collateral is held in a trust within the meaning of Section 9-503(a)(3) as amended by this amendatory Act of the 97th General Assembly.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-806)
Sec. 9-806. When initial financing statement suffices to continue effectiveness of financing statement.
(a) Initial financing statement in lieu of continuation statement. The filing of an initial financing statement in the office specified in Section 9-501 continues the effectiveness of a financing statement filed before the effective date of this amendatory Act of the 97th General Assembly if:
(b) Period of continued effectiveness. The filing of an initial financing statement under subsection (a) continues the effectiveness of the pre-effective-date financing
statement:
(c) Requirements for initial financing statement under subsection (a). To be effective for purposes of subsection (a), an initial financing statement must:
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-807)
Sec. 9-807. Amendment of pre-effective-date financing statement.
(a) "Pre-effective-date financing statement". In this Section, "pre-effective-date financing statement" means a financing statement filed before the effective date of this amendatory Act of the 97th General Assembly.
(b) Applicable law. After this amendatory Act of the 97th General Assembly takes effect, a person may add or delete collateral covered by, continue or terminate the effectiveness of, or otherwise amend the information provided in, a pre-effective-date financing statement only in accordance with the law of the jurisdiction governing perfection as provided in Article 9 as amended by this amendatory Act of the 97th General Assembly. However, the effectiveness of a pre-effective-date financing statement also may be terminated in accordance with the law of the jurisdiction in which the financing statement is filed.
(c) Method of amending: general rule. Except as otherwise provided in subsection (d), if the law of this State governs perfection of a security interest, the information in a pre-effective-date financing statement may be amended after the effective date of this amendatory Act of the 97th General Assembly only if:
(d) Method of amending: continuation. If the law of this State governs perfection of a security interest, the effectiveness of a pre-effective-date financing statement may be continued only under Section 9-805(c) and (e) or 9-806.
(e) Method of amending: additional termination rule. Whether or not the law of this State governs perfection of a security interest, the effectiveness of a pre-effective-date financing statement filed in this State may be terminated after the effective date of this amendatory Act of the 97th General Assembly by filing a termination statement in the office in which the pre-effective-date financing statement is filed, unless an initial financing statement that satisfies Section 9-806(c) has been filed in the office specified by the law of the jurisdiction governing perfection as provided in Article 9 as amended by this amendatory Act of the 97th General Assembly as the office in which to file a financing statement.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-808)
Sec. 9-808. Person entitled to file initial financing statement or continuation statement. A person may file an initial financing statement or a continuation statement under this part if:
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-809)
Sec. 9-809. Priority. This Act determines the priority of conflicting claims to collateral. However, if the relative priorities of the claims were established before the effective date of this amendatory Act of the 97th General Assembly, Article 9 as it existed before the effective date of this amendatory Act of the 97th General Assembly determines priority.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/Art. 9 Pt. 99 heading)
(810 ILCS 5/9-9901) (from Ch. 26, par. 9-9901)
Sec. 9-9901.
(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-9902) (from Ch. 26, par. 9-9902)
Sec. 9-9902.
(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
Structure Illinois Compiled Statutes
810 ILCS 5/ - Uniform Commercial Code.
Article 1 - General Provisions
Article 3 - Negotiable Instruments
Article 4 - Bank Deposits And Collections
Article 7 - Documents of Title
Article 8 - Investment Securities
Article 9 - Secured Transactions
Article 10 - Effective Date And Repealer
Article 11 - Effective Date And Transition; Amendatory Act Of 1972
Article 12 - Effective Date And Transition; Amendatory Act Of 1987
Article 13 - Effective Date And Transition; Provisions For Amendatory Act Of 1996