There is a newer version of the Illinois Compiled Statutes
2012 Illinois Compiled Statutes
Chapter 810 - COMMERCIAL CODE
Act 810 ILCS 5/ - Uniform Commercial Code.
Article 9 - Secured Transactions
| ||
(2) "Account", except as used in "account for", means | ||
| ||
(3) "Account debtor" means a person obligated on an | ||
| ||
(4) "Accounting", except as used in "accounting for", | ||
| ||
(A) authenticated by a secured party; (B) indicating the aggregate unpaid secured | ||
| ||
(C) identifying the components of the obligations | ||
| ||
(5) "Agricultural lien" means an interest, other than | ||
| ||
(A) which secures payment or performance of an | ||
| ||
(B) which is created by statute in favor of a | ||
| ||
(C) whose effectiveness does not depend on the | ||
| ||
(6) "As-extracted collateral" means: (A) oil, gas, or other minerals that are subject | ||
| ||
(i) is created by a debtor having an interest | ||
| ||
(ii) attaches to the minerals as extracted; or (B) accounts arising out of the sale at the | ||
| ||
(7) "Authenticate" means: (A) to sign; or (B) to execute or otherwise adopt a symbol, or | ||
| ||
(8) "Bank" means an organization that is engaged in | ||
| ||
(9) "Cash proceeds" means proceeds that are money, | ||
| ||
(10) "Certificate of title" means a certificate of | ||
| ||
(11) "Chattel paper" means a record or records that | ||
| ||
(12) "Collateral" means the property subject to a | ||
| ||
(A) proceeds to which a security interest | ||
| ||
(B) accounts, chattel paper, payment intangibles, | ||
| ||
(C) goods that are the subject of a consignment. (13) "Commercial tort claim" means a claim arising in | ||
| ||
(A) the claimant is an organization; or (B) the claimant is an individual and the claim: (i) arose in the course of the claimant's | ||
| ||
(ii) does not include damages arising out of | ||
| ||
(14) "Commodity account" means an account maintained | ||
| ||
(15) "Commodity contract" means a commodity futures | ||
| ||
(A) traded on or subject to the rules of a board | ||
| ||
(B) traded on a foreign commodity board of trade, | ||
| ||
(16) "Commodity customer" means a person for which a | ||
| ||
(17) "Commodity intermediary" means a person that: (A) is registered as a futures commission | ||
| ||
(B) in the ordinary course of its business | ||
| ||
(18) "Communicate" means: (A) to send a written or other tangible record; (B) to transmit a record by any means agreed upon | ||
| ||
(C) in the case of transmission of a record to or | ||
| ||
(19) "Consignee" means a merchant to which goods are | ||
| ||
(20) "Consignment" means a transaction, regardless of | ||
| ||
(A) the merchant: (i) deals in goods of that kind under a name | ||
| ||
(ii) is not an auctioneer; and (iii) is not generally known by its creditors | ||
| ||
(B) with respect to each delivery, the aggregate | ||
| ||
(C) the goods are not consumer goods immediately | ||
| ||
(D) the transaction does not create a security | ||
| ||
(21) "Consignor" means a person that delivers goods | ||
| ||
(22) "Consumer debtor" means a debtor in a consumer | ||
| ||
(23) "Consumer goods" means goods that are used or | ||
| ||
(24) "Consumer-goods transaction" means a consumer | ||
| ||
(A) an individual incurs an obligation primarily | ||
| ||
(B) a security interest in consumer goods secures | ||
| ||
(25) "Consumer obligor" means an obligor who is an | ||
| ||
(26) "Consumer transaction" means a transaction in | ||
| ||
(27) "Continuation statement" means an amendment of a | ||
| ||
(A) identifies, by its file number, the initial | ||
| ||
(B) indicates that it is a continuation statement | ||
| ||
(28) "Debtor" means: (A) a person having an interest, other than a | ||
| ||
(B) a seller of accounts, chattel paper, payment | ||
| ||
(C) a consignee. (29) "Deposit account" means a demand, time, savings, | ||
| ||
(30) "Document" means a document of title or a | ||
| ||
(31) "Electronic chattel paper" means chattel paper | ||
| ||
(32) "Encumbrance" means a right, other than an | ||
| ||
(33) "Equipment" means goods other than inventory, | ||
| ||
(34) "Farm products" means goods, other than standing | ||
| ||
(A) crops grown, growing, or to be grown, | ||
| ||
(i) crops produced on trees, vines, and | ||
| ||
(ii) aquatic goods produced in aquacultural | ||
| ||
(B) livestock, born or unborn, including aquatic | ||
| ||
(C) supplies used or produced in a farming | ||
| ||
(D) products of crops or livestock in their | ||
| ||
(35) "Farming operation" means raising, cultivating, | ||
| ||
(36) "File number" means the number assigned to an | ||
| ||
(37) "Filing office" means an office designated in | ||
| ||
(38) "Filing-office rule" means a rule adopted | ||
| ||
(39) "Financing statement" means a record or records | ||
| ||
(40) "Fixture filing" means the filing of a financing | ||
| ||
(41) "Fixtures" means goods that have become so | ||
| ||
(42) "General intangible" means any personal | ||
| ||
(43) "Good faith" means honesty in fact and the | ||
| ||
(44) "Goods" means all things that are movable when a | ||
| ||
(45) "Governmental unit" means a subdivision, agency, | ||
| ||
(46) "Health-care-insurance receivable" means an | ||
| ||
(47) "Instrument" means a negotiable instrument or | ||
| ||
(48) "Inventory" means goods, other than farm | ||
| ||
(A) are leased by a person as lessor; (B) are held by a person for sale or lease or to | ||
| ||
(C) are furnished by a person under a contract of | ||
| ||
(D) consist of raw materials, work in process, or | ||
| ||
(49) "Investment property" means a security, whether | ||
| ||
(50) "Jurisdiction of organization", with respect to | ||
| ||
(51) "Letter-of-credit right" means a right to | ||
| ||
(52) "Lien creditor" means: (A) a creditor that has acquired a lien on the | ||
| ||
(B) an assignee for benefit of creditors from the | ||
| ||
(C) a trustee in bankruptcy from the date of the | ||
| ||
(D) a receiver in equity from the time of | ||
| ||
(53) "Manufactured home" means a factory-assembled, | ||
| ||
(54) "Manufactured-home transaction" means a secured | ||
| ||
(A) that creates a purchase-money security | ||
| ||
(B) in which a manufactured home, other than a | ||
| ||
(55) "Mortgage" means a consensual interest in real | ||
| ||
(56) "New debtor" means a person that becomes bound | ||
| ||
(57) "New value" means (i) money, (ii) money's worth | ||
| ||
(58) "Noncash proceeds" means proceeds other than | ||
| ||
(59) "Obligor" means a person that, with respect to | ||
| ||
(60) "Original debtor", except as used in Section | ||
| ||
(61) "Payment intangible" means a general intangible | ||
| ||
(62) "Person related to", with respect to an | ||
| ||
(A) the spouse of the individual; (B) a brother, brother-in-law, sister, or | ||
| ||
(C) an ancestor or lineal descendant of the | ||
| ||
(D) any other relative, by blood or marriage, of | ||
| ||
(63) "Person related to", with respect to an | ||
| ||
(A) a person directly or indirectly controlling, | ||
| ||
(B) an officer or director of, or a person | ||
| ||
(C) an officer or director of, or a person | ||
| ||
(D) the spouse of an individual described in | ||
| ||
(E) an individual who is related by blood or | ||
| ||
(64) "Proceeds", except as used in Section 9-609(b), | ||
| ||
(A) whatever is acquired upon the sale, lease, | ||
| ||
(B) whatever is collected on, or distributed on | ||
| ||
(C) rights arising out of collateral; (D) to the extent of the value of collateral, | ||
| ||
(E) to the extent of the value of collateral and | ||
| ||
(65) "Promissory note" means an instrument that | ||
| ||
(66) "Proposal" means a record authenticated by a | ||
| ||
(67) "Public-finance transaction" means a secured | ||
| ||
(A) debt securities are issued; (B) all or a portion of the securities issued | ||
| ||
(C) the debtor, obligor, secured party, account | ||
| ||
(68) "Pursuant to commitment", with respect to an | ||
| ||
(69) "Record", except as used in "for record", "of | ||
| ||
(70) "Registered organization" means an organization | ||
| ||
(71) "Secondary obligor" means an obligor to the | ||
| ||
(A) the obligor's obligation is secondary; or (B) the obligor has a right of recourse with | ||
| ||
(72) "Secured party" means: (A) a person in whose favor a security interest | ||
| ||
(B) a person that holds an agricultural lien; (C) a consignor; (D) a person to which accounts, chattel paper, | ||
| ||
(E) a trustee, indenture trustee, agent, | ||
| ||
(F) a person that holds a security interest | ||
| ||
(73) "Security agreement" means an agreement that | ||
| ||
(74) "Send", in connection with a record or | ||
| ||
(A) to deposit in the mail, deliver for | ||
| ||
(B) to cause the record or notification to be | ||
| ||
(75) "Software" means a computer program and any | ||
| ||
(76) "State" means a State of the United States, the | ||
| ||
(77) "Supporting obligation" means a letter-of-credit | ||
| ||
(78) "Tangible chattel paper" means chattel paper | ||
| ||
(79) "Termination statement" means an amendment of a | ||
| ||
(A) identifies, by its file number, the initial | ||
| ||
(B) indicates either that it is a termination | ||
| ||
(80) "Transmitting utility" means a person primarily | ||
| ||
(A) operating a railroad, subway, street railway, | ||
| ||
(B) transmitting communications electrically, | ||
| ||
(C) transmitting goods by pipeline or sewer; or (D) transmitting or producing and transmitting | ||
| ||
(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. 95-895, eff. 1-1-09; 96-1477, eff. 1-1-11.) (Text of Section after amendment by P.A. 97-1034 ) Sec. 9-102. Definitions and index of definitions. (a) Article 9 definitions. In this Article: (1) "Accession" means goods that are physically | ||
| ||
(2) "Account", except as used in "account for", means | ||
| ||
(3) "Account debtor" means a person obligated on an | ||
| ||
(4) "Accounting", except as used in "accounting for", | ||
| ||
(A) authenticated by a secured party; (B) indicating the aggregate unpaid secured | ||
| ||
(C) identifying the components of the obligations | ||
| ||
(5) "Agricultural lien" means an interest, other than | ||
| ||
(A) which secures payment or performance of an | ||
| ||
(B) which is created by statute in favor of a | ||
| ||
(C) whose effectiveness does not depend on the | ||
| ||
(6) "As-extracted collateral" means: (A) oil, gas, or other minerals that are subject | ||
| ||
(i) is created by a debtor having an interest | ||
| ||
(ii) attaches to the minerals as extracted; or (B) accounts arising out of the sale at the | ||
| ||
(7) "Authenticate" means: (A) to sign; or (B) with present intent to adopt or accept a | ||
| ||
(8) "Bank" means an organization that is engaged in | ||
| ||
(9) "Cash proceeds" means proceeds that are money, | ||
| ||
(10) "Certificate of title" means a certificate of | ||
| ||
(11) "Chattel paper" means a record or records that | ||
| ||
(12) "Collateral" means the property subject to a | ||
| ||
(A) proceeds to which a security interest | ||
| ||
(B) accounts, chattel paper, payment intangibles, | ||
| ||
(C) goods that are the subject of a consignment. (13) "Commercial tort claim" means a claim arising in | ||
| ||
(A) the claimant is an organization; or (B) the claimant is an individual and the claim: (i) arose in the course of the claimant's | ||
| ||
(ii) does not include damages arising out of | ||
| ||
(14) "Commodity account" means an account maintained | ||
| ||
(15) "Commodity contract" means a commodity futures | ||
| ||
(A) traded on or subject to the rules of a board | ||
| ||
(B) traded on a foreign commodity board of trade, | ||
| ||
(16) "Commodity customer" means a person for which a | ||
| ||
(17) "Commodity intermediary" means a person that: (A) is registered as a futures commission | ||
| ||
(B) in the ordinary course of its business | ||
| ||
(18) "Communicate" means: (A) to send a written or other tangible record; (B) to transmit a record by any means agreed upon | ||
| ||
(C) in the case of transmission of a record to or | ||
| ||
(19) "Consignee" means a merchant to which goods are | ||
| ||
(20) "Consignment" means a transaction, regardless of | ||
| ||
(A) the merchant: (i) deals in goods of that kind under a name | ||
| ||
(ii) is not an auctioneer; and (iii) is not generally known by its creditors | ||
| ||
(B) with respect to each delivery, the aggregate | ||
| ||
(C) the goods are not consumer goods immediately | ||
| ||
(D) the transaction does not create a security | ||
| ||
(21) "Consignor" means a person that delivers goods | ||
| ||
(22) "Consumer debtor" means a debtor in a consumer | ||
| ||
(23) "Consumer goods" means goods that are used or | ||
| ||
(24) "Consumer-goods transaction" means a consumer | ||
| ||
(A) an individual incurs an obligation primarily | ||
| ||
(B) a security interest in consumer goods secures | ||
| ||
(25) "Consumer obligor" means an obligor who is an | ||
| ||
(26) "Consumer transaction" means a transaction in | ||
| ||
(27) "Continuation statement" means an amendment of a | ||
| ||
(A) identifies, by its file number, the initial | ||
| ||
(B) indicates that it is a continuation statement | ||
| ||
(28) "Debtor" means: (A) a person having an interest, other than a | ||
| ||
(B) a seller of accounts, chattel paper, payment | ||
| ||
(C) a consignee. (29) "Deposit account" means a demand, time, savings, | ||
| ||
(30) "Document" means a document of title or a | ||
| ||
(31) "Electronic chattel paper" means chattel paper | ||
| ||
(32) "Encumbrance" means a right, other than an | ||
| ||
(33) "Equipment" means goods other than inventory, | ||
| ||
(34) "Farm products" means goods, other than standing | ||
| ||
(A) crops grown, growing, or to be grown, | ||
| ||
(i) crops produced on trees, vines, and | ||
| ||
(ii) aquatic goods produced in aquacultural | ||
| ||
(B) livestock, born or unborn, including aquatic | ||
| ||
(C) supplies used or produced in a farming | ||
| ||
(D) products of crops or livestock in their | ||
| ||
(35) "Farming operation" means raising, cultivating, | ||
| ||
(36) "File number" means the number assigned to an | ||
| ||
(37) "Filing office" means an office designated in | ||
| ||
(38) "Filing-office rule" means a rule adopted | ||
| ||
(39) "Financing statement" means a record or records | ||
| ||
(40) "Fixture filing" means the filing of a financing | ||
| ||
(41) "Fixtures" means goods that have become so | ||
| ||
(42) "General intangible" means any personal | ||
| ||
(43) "Good faith" means honesty in fact and the | ||
| ||
(44) "Goods" means all things that are movable when a | ||
| ||
(45) "Governmental unit" means a subdivision, agency, | ||
| ||
(46) "Health-care-insurance receivable" means an | ||
| ||
(47) "Instrument" means a negotiable instrument or | ||
| ||
(48) "Inventory" means goods, other than farm | ||
| ||
(A) are leased by a person as lessor; (B) are held by a person for sale or lease or to | ||
| ||
(C) are furnished by a person under a contract of | ||
| ||
(D) consist of raw materials, work in process, or | ||
| ||
(49) "Investment property" means a security, whether | ||
| ||
(50) "Jurisdiction of organization", with respect to | ||
| ||
(51) "Letter-of-credit right" means a right to | ||
| ||
(52) "Lien creditor" means: (A) a creditor that has acquired a lien on the | ||
| ||
(B) an assignee for benefit of creditors from the | ||
| ||
(C) a trustee in bankruptcy from the date of the | ||
| ||
(D) a receiver in equity from the time of | ||
| ||
(53) "Manufactured home" means a factory-assembled, | ||
| ||
(54) "Manufactured-home transaction" means a secured | ||
| ||
(A) that creates a purchase-money security | ||
| ||
(B) in which a manufactured home, other than a | ||
| ||
(55) "Mortgage" means a consensual interest in real | ||
| ||
(56) "New debtor" means a person that becomes bound | ||
| ||
(57) "New value" means (i) money, (ii) money's worth | ||
| ||
(58) "Noncash proceeds" means proceeds other than | ||
| ||
(59) "Obligor" means a person that, with respect to | ||
| ||
(60) "Original debtor", except as used in Section | ||
| ||
(61) "Payment intangible" means a general intangible | ||
| ||
(62) "Person related to", with respect to an | ||
| ||
(A) the spouse of the individual; (B) a brother, brother-in-law, sister, or | ||
| ||
(C) an ancestor or lineal descendant of the | ||
| ||
(D) any other relative, by blood or marriage, of | ||
| ||
(63) "Person related to", with respect to an | ||
| ||
(A) a person directly or indirectly controlling, | ||
| ||
(B) an officer or director of, or a person | ||
| ||
(C) an officer or director of, or a person | ||
| ||
(D) the spouse of an individual described in | ||
| ||
(E) an individual who is related by blood or | ||
| ||
(64) "Proceeds", except as used in Section 9-609(b), | ||
| ||
(A) whatever is acquired upon the sale, lease, | ||
| ||
(B) whatever is collected on, or distributed on | ||
| ||
(C) rights arising out of collateral; (D) to the extent of the value of collateral, | ||
| ||
(E) to the extent of the value of collateral and | ||
| ||
(65) "Promissory note" means an instrument that | ||
| ||
(66) "Proposal" means a record authenticated by a | ||
| ||
(67) "Public-finance transaction" means a secured | ||
| ||
(A) debt securities are issued; (B) all or a portion of the securities issued | ||
| ||
(C) the debtor, obligor, secured party, account | ||
| ||
(68) "Public organic record" means a record that is | ||
| ||
(A) a record consisting of the record initially | ||
| ||
(B) an organic record of a business trust | ||
| ||
(C) a record consisting of legislation enacted by | ||
| ||
(69) "Pursuant to commitment", with respect to an | ||
| ||
(70) "Record", except as used in "for record", "of | ||
| ||
(71) "Registered organization" means an organization | ||
| ||
(72) "Secondary obligor" means an obligor to the | ||
| ||
(A) the obligor's obligation is secondary; or (B) the obligor has a right of recourse with | ||
| ||
(73) "Secured party" means: (A) a person in whose favor a security interest | ||
| ||
(B) a person that holds an agricultural lien; (C) a consignor; (D) a person to which accounts, chattel paper, | ||
| ||
(E) a trustee, indenture trustee, agent, | ||
| ||
(F) a person that holds a security interest | ||
| ||
(74) "Security agreement" means an agreement that | ||
| ||
(75) "Send", in connection with a record or | ||
| ||
(A) to deposit in the mail, deliver for | ||
| ||
(B) to cause the record or notification to be | ||
| ||
(76) "Software" means a computer program and any | ||
| ||
(77) "State" means a State of the United States, the | ||
| ||
(78) "Supporting obligation" means a letter-of-credit | ||
| ||
(79) "Tangible chattel paper" means chattel paper | ||
| ||
(80) "Termination statement" means an amendment of a | ||
| ||
(A) identifies, by its file number, the initial | ||
| ||
(B) indicates either that it is a termination | ||
| ||
(81) "Transmitting utility" means a person primarily | ||
| ||
(A) operating a railroad, subway, street railway, | ||
| ||
(B) transmitting communications electrically, | ||
| ||
(C) transmitting goods by pipeline or sewer; or (D) transmitting or producing and transmitting | ||
| ||
(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. 96-1477, eff. 1-1-11; 97-1034, eff. 7-1-13.) |
| ||
(2) "purchase-money obligation" means an obligation | ||
| ||
(b) Purchase-money security interest in goods. A security interest in goods is a purchase-money security interest: (1) to the extent that the goods are purchase-money | ||
| ||
(2) if the security interest is in inventory that is | ||
| ||
(3) also to the extent that the 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: (1) the debtor acquired its interest in the software | ||
| ||
(2) the debtor acquired its interest in the software | ||
| ||
(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: (1) in accordance with any reasonable method of | ||
| ||
(2) in the absence of the parties' agreement to a | ||
| ||
(3) in the absence of an agreement to a reasonable | ||
| ||
(A) to obligations that are not secured; and (B) if more than one obligation is secured, to | ||
| ||
(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: (1) the purchase-money collateral also secures an | ||
| ||
(2) collateral that is not purchase-money collateral | ||
| ||
(3) the purchase-money obligation has been renewed, | ||
| ||
(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.) |
| ||
(2) the debtor, secured party, and bank have agreed | ||
| ||
(3) the secured party becomes the bank's customer | ||
| ||
(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.) |
| ||
(2) the authoritative copy identifies the secured | ||
| ||
(3) the authoritative copy is communicated to and | ||
| ||
(4) copies or revisions that add or change an | ||
| ||
(5) each copy of the authoritative copy and any copy | ||
| ||
(6) any revision of the authoritative copy is readily | ||
| ||
(Source: P.A. 90-665, eff. 7-30-98; 91-893, eff. 7-1-01.) (Text of Section after amendment by P.A. 97-1034 ) 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: (1) a single authoritative copy of the record or | ||
| ||
(2) the authoritative copy identifies the secured | ||
| ||
(3) the authoritative copy is communicated to and | ||
| ||
(4) copies or amendments that add or change an | ||
| ||
(5) each copy of the authoritative copy and any copy | ||
| ||
(6) any amendment of the authoritative copy is | ||
| ||
(Source: P.A. 97-1034, eff. 7-1-13.) |
| ||
(2) the commodity customer, secured party, and | ||
| ||
(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.) |
| ||
(2) in an authenticated record, the trustee for the | ||
| ||
(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.) |
| ||
(4) quantity; (5) computational or allocational formula or | ||
| ||
(6) except as otherwise provided in subsection (c), | ||
| ||
(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: (1) the collateral by those terms or as investment | ||
| ||
(2) the underlying financial asset or commodity | ||
| ||
(e) When description by type insufficient. A description only by type of collateral defined in the Uniform Commercial Code is an insufficient description of: (1) a commercial tort claim; or (2) in a consumer transaction, consumer goods, a | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) an agricultural lien; (3) a sale of accounts, chattel paper, payment | ||
| ||
(4) a consignment; (5) a security interest arising under Section 2-401, | ||
| ||
(6) a security interest arising under Section 4-210 | ||
| ||
(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: (1) a statute, regulation, or treaty of the United | ||
| ||
(2) another statute of this State expressly governs | ||
| ||
(3) a statute of another State, a foreign country, or | ||
| ||
(4) the rights of a transferee beneficiary or | ||
| ||
(5) this Article is in conflict with Section 205-410 | ||
| ||
(6) this Article is in conflict with Section 18-107 | ||
| ||
(d) Inapplicability of Article. This Article does not apply to: (1) a landlord's lien; (2) a lien, other than an agricultural lien, given by | ||
| ||
(3) an assignment of a claim for wages, salary, or | ||
| ||
(4) a sale of accounts, chattel paper, payment | ||
| ||
(5) an assignment of accounts, chattel paper, payment | ||
| ||
(6) an assignment of a right to payment under a | ||
| ||
(7) an assignment of a single account, payment | ||
| ||
(8) a transfer of an interest in or an assignment of | ||
| ||
(9) an assignment of a right represented by a | ||
| ||
(10) a right of recoupment or set-off, but: (A) Section 9-340 applies with respect to the | ||
| ||
(B) Section 9-404 applies with respect to | ||
| ||
(11) the creation or transfer of an interest in or | ||
| ||
(A) liens on real property in Sections 9-203 and | ||
| ||
(B) fixtures in Section 9-334; (C) fixture filings in Sections 9-501, 9-502, | ||
| ||
(D) security agreements covering personal and | ||
| ||
(12) an assignment of a claim arising in tort, other | ||
| ||
(13) a transfer by a government or governmental | ||
| ||
(14) a claim or a right to receive compensation for | ||
| ||
(15) a claim or right to receive benefits under a | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01; 92-819, eff. 8-21-02.) |
| ||
(2) filing is not required to perfect the security | ||
| ||
(3) the rights of the secured party after default by | ||
| ||
(4) the security interest has priority over a | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(4) Article IIIB of the Boat Registration and Safety | ||
| ||
(5) the Pawnbroker Regulation Act; (6) the Motor Vehicle Leasing Act; (7) the Consumer Installment Loan Act; and (8) the Consumer Deposit Security Act of 1987. (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: (1) validate any rate, charge, agreement, or practice | ||
| ||
(2) extend the application of the rule of law, | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(3) one of the following conditions is met: (A) the debtor has authenticated a security | ||
| ||
(B) the collateral is not a certificated security | ||
| ||
(C) the collateral is a certificated security in | ||
| ||
(D) the collateral is deposit accounts, | ||
| ||
(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: (1) the security agreement becomes effective to | ||
| ||
(2) the person becomes generally obligated for the | ||
| ||
(e) Effect of new debtor becoming bound. If a new debtor becomes bound as debtor by a security agreement entered into by another person: (1) the agreement satisfies subsection (b)(3) with | ||
| ||
(2) another agreement is not necessary to make a | ||
| ||
(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.) |
| ||
(2) a commercial tort claim. (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.) |
| ||
(B) collect, compromise, enforce, or otherwise | ||
| ||
(C) accept the return of collateral or make | ||
| ||
(D) use, commingle, or dispose of proceeds; or (2) the secured party fails to require the debtor to | ||
| ||
(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.) |
| ||
(2) the securities intermediary credits the financial | ||
| ||
(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: (1) the security or other financial asset: (A) in the ordinary course of business is | ||
| ||
(B) is delivered under an agreement between | ||
| ||
(2) the agreement calls for delivery against payment. (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.) |
| ||
(2) the risk of accidental loss or damage is on the | ||
| ||
(3) the secured party shall keep the collateral | ||
| ||
(4) the secured party may use or operate the | ||
| ||
(A) for the purpose of preserving the collateral | ||
| ||
(B) as permitted by an order of a court having | ||
| ||
(C) except in the case of consumer goods, in the | ||
| ||
(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: (1) may hold as additional security any proceeds, | ||
| ||
(2) shall apply money or funds received from the | ||
| ||
(3) may create a security interest in the collateral. (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: (1) subsection (a) does not apply unless the secured | ||
| ||
(A) to charge back uncollected collateral; or (B) otherwise to full or limited recourse against | ||
| ||
(2) subsections (b) and (c) do not apply. (Source: P.A. 95-895, eff. 1-1-09.) |
| ||
(2) a secured party having control of a deposit | ||
| ||
(A) pay the debtor the balance on deposit in the | ||
| ||
(B) transfer the balance on deposit into a | ||
| ||
(3) a secured party, other than a buyer, having | ||
| ||
(A) communicate the authoritative copy of the | ||
| ||
(B) if the debtor designates a custodian that is | ||
| ||
(C) take appropriate action to enable the debtor | ||
| ||
(4) a secured party having control of investment | ||
| ||
(5) a secured party having control of a | ||
| ||
(6) a secured party having control of an electronic | ||
| ||
(A) give control of the electronic document to | ||
| ||
(B) if the debtor designates a custodian that is | ||
| ||
(C) take appropriate action to enable the debtor | ||
| ||
(Source: P.A. 95-895, eff. 1-1-09.) |
| ||
(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.) |
| ||
(2) "Request for an accounting" means a record | ||
| ||
(3) "Request regarding a list of collateral" means a | ||
| ||
(4) "Request regarding a statement of account" means | ||
| ||
(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: (1) in the case of a request for an accounting, by | ||
| ||
(2) in the case of a request regarding a list of | ||
| ||
(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: (1) disclaiming any interest in the collateral; and (2) if known to the recipient, providing the name and | ||
| ||
(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: (1) disclaiming any interest in the obligations; and (2) if known to the recipient, providing the name and | ||
| ||
(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.) |
| ||
(2) While collateral is located in a jurisdiction, | ||
| ||
(3) Except as otherwise provided in paragraph (4), | ||
| ||
(A) perfection of a security interest in the | ||
| ||
(B) perfection of a security interest in timber | ||
| ||
(C) the effect of perfection or nonperfection and | ||
| ||
(4) The local law of the jurisdiction in which the | ||
| ||
(Source: P.A. 95-895, eff. 1-1-09.) |
| ||
(2) If paragraph (1) does not apply and an agreement | ||
| ||
(3) If neither paragraph (1) nor paragraph (2) | ||
| ||
(4) If none of the preceding paragraphs applies, the | ||
| ||
(5) If none of the preceding paragraphs applies, the | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) The local law of the issuer's jurisdiction as | ||
| ||
(3) The local law of the securities intermediary's | ||
| ||
(4) The local law of the commodity intermediary's | ||
| ||
(b) Commodity intermediary's jurisdiction. The following rules determine a commodity intermediary's jurisdiction for purposes of this Part: (1) If an agreement between the commodity | ||
| ||
(2) If paragraph (1) does not apply and an agreement | ||
| ||
(3) If neither paragraph (1) nor paragraph (2) | ||
| ||
(4) If none of the preceding paragraphs applies, the | ||
| ||
(5) If none of the preceding paragraphs applies, the | ||
| ||
(c) When perfection governed by law of jurisdiction where debtor located. The local law of the jurisdiction in which the debtor is located governs: (1) perfection of a security interest in investment | ||
| ||
(2) automatic perfection of a security interest in | ||
| ||
(3) automatic perfection of a security interest in a | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) A debtor that is an organization and has only one | ||
| ||
(3) A debtor that is an organization and has more | ||
| ||
(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: (1) in the State that the law of the United States | ||
| ||
(2) in the State that the registered organization, | ||
| ||
(3) in the District of Columbia, if neither paragraph | ||
| ||
(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: (1) the suspension, revocation, forfeiture, or lapse | ||
| ||
(2) the dissolution, winding up, or cancellation of | ||
| ||
(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. 91-357, eff. 7-29-99; 91-893, eff. 7-1-01.) (Text of Section after amendment by P.A. 97-1034 ) 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: (1) A debtor who is an individual is located at the | ||
| ||
(2) A debtor that is an organization and has only one | ||
| ||
(3) A debtor that is an organization and has more | ||
| ||
(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: (1) in the State that the law of the United States | ||
| ||
(2) in the State that the registered organization, | ||
| ||
(3) in the District of Columbia, if neither paragraph | ||
| ||
(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: (1) the suspension, revocation, forfeiture, or lapse | ||
| ||
(2) the dissolution, winding up, or cancellation of | ||
| ||
(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.) |
| ||
(2) an assignment of accounts or payment intangibles | ||
| ||
(3) a sale of a payment intangible; (4) a sale of a promissory note; (5) a security interest created by the assignment of | ||
| ||
(6) a security interest arising under Section 2-401, | ||
| ||
(7) a security interest of a collecting bank arising | ||
| ||
(8) a security interest of an issuer or nominated | ||
| ||
(9) a security interest arising in the delivery of a | ||
| ||
(10) a security interest in investment property | ||
| ||
(11) a security interest in a commodity contract or a | ||
| ||
(12) an assignment for the benefit of all creditors | ||
| ||
(13) a security interest created by an assignment of | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) that is perfected under Section 9-309 when it | ||
| ||
(3) in property subject to a statute, regulation, or | ||
| ||
(4) in goods in possession of a bailee which is | ||
| ||
(5) in certificated securities, documents, goods, or | ||
| ||
(6) in collateral in the secured party's possession | ||
| ||
(7) in a certificated security which is perfected by | ||
| ||
(8) in deposit accounts, electronic chattel paper, | ||
| ||
(9) in proceeds which is perfected under Section | ||
| ||
(10) that is perfected under Section 9-316. (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.) |
| ||
(2) the Illinois Vehicle Code or the Boat | ||
| ||
(3) a certificate-of-title statute of another | ||
| ||
(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. 91-893, eff. 7-1-01.) (Text of Section after amendment by P.A. 97-1034 ) 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: (1) a statute, regulation, or treaty of the United | ||
| ||
(2) the Illinois Vehicle Code or the Boat | ||
| ||
(3) a statute of another jurisdiction which provides | ||
| ||
(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.) |
| ||
(2) and except as otherwise provided in Section | ||
| ||
(3) a security interest in money may be perfected | ||
| ||
(c) Goods covered by negotiable document. While goods are in the possession of a bailee that has issued a negotiable document covering the goods: (1) a security interest in the goods may be perfected | ||
| ||
(2) a security interest perfected in the document has | ||
| ||
(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: (1) issuance of a document in the name of the secured | ||
| ||
(2) the bailee's receipt of notification of the | ||
| ||
(3) filing as to the goods. (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: (1) ultimate sale or exchange; or (2) loading, unloading, storing, shipping, | ||
| ||
(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: (1) ultimate sale or exchange; or (2) presentation, collection, enforcement, renewal, | ||
| ||
(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.) |
| ||
(2) the person takes possession of the collateral | ||
| ||
(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: (1) the acknowledgment is effective under subsection | ||
| ||
(2) unless the person otherwise agrees or law other | ||
| ||
(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: (1) to hold possession of the collateral for the | ||
| ||
(2) to redeliver the collateral to the secured party. (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.) |
| ||
(B) if the collateral is an uncertificated | ||
| ||
(C) if the collateral is a security entitlement, | ||
| ||
(Source: P.A. 95-895, eff. 1-1-09.) |
| ||
(2) a security interest attaches to any identifiable | ||
| ||
(b) When commingled proceeds identifiable. Proceeds that are commingled with other property are identifiable proceeds: (1) if the proceeds are goods, to the extent provided | ||
| ||
(2) if the proceeds are not goods, to the extent that | ||
| ||
(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: (1) the following conditions are satisfied: (A) a filed financing statement covers the | ||
| ||
(B) the proceeds are collateral in which a | ||
| ||
(C) the proceeds are not acquired with cash | ||
| ||
(2) the proceeds are identifiable cash proceeds; or (3) the security interest in the proceeds is | ||
| ||
(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: (1) when the effectiveness of the filed financing | ||
| ||
(2) the 21st day after the security interest attaches | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) the expiration of four months after a change of | ||
| ||
(3) the expiration of one year after a transfer 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: (1) the collateral is located in one jurisdiction and | ||
| ||
(2) thereafter the collateral is brought into another | ||
| ||
(3) upon entry into the other jurisdiction, the | ||
| ||
(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: (1) the time the security interest would have become | ||
| ||
(2) the expiration of four months after the goods had | ||
| ||
(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: (1) the time the security interest would have become | ||
| ||
(2) the expiration of four months after a change 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. (Source: P.A. 91-893, eff. 7-1-01.) (Text of Section after amendment by P.A. 97-1034 ) 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: (1) the time perfection would have ceased under the | ||
| ||
(2) the expiration of four months after a change of | ||
| ||
(3) the expiration of one year after a transfer 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: (1) the collateral is located in one jurisdiction and | ||
| ||
(2) thereafter the collateral is brought into another | ||
| ||
(3) upon entry into the other jurisdiction, the | ||
| ||
(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: (1) the time the security interest would have become | ||
| ||
(2) the expiration of four months after the goods had | ||
| ||
(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: (1) the time the security interest would have become | ||
| ||
(2) the expiration of four months after a change 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: (1) A financing statement filed before the change | ||
| ||
(2) If a security interest perfected by a financing | ||
| ||
(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: (1) The financing statement is effective to perfect | ||
| ||
(2) A security interest perfected by the financing | ||
| ||
(Source: P.A. 97-1034, eff. 7-1-13.) |
| ||
(2) except as otherwise provided in subsection (e) or | ||
| ||
(A) the security interest or agricultural lien is | ||
| ||
(B) one of the conditions specified in Section | ||
| ||
(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 security certificate 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 accounts, electronic chattel paper, electronic documents, general intangibles, or investment property other than 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. 95-895, eff. 1-1-09.) (Text of Section after amendment by P.A. 97-1034 ) 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: (1) a person entitled to priority under Section | ||
| ||
(2) except as otherwise provided in subsection (e) or | ||
| ||
(A) the security interest or agricultural lien is | ||
| ||
(B) one of the conditions specified in Section | ||
| ||
(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.) |
| ||
(4) before the filing of a financing statement | ||
| ||
(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. (1) A buyer of farm products takes subject to a | ||
| ||
(A) within one year before the sale of the farm | ||
| ||
(i) is an original or reproduced copy thereof; (ii) contains: (a) the name and address of | ||
| ||
(iii) must be amended in writing, within 3 | ||
| ||
(iv) will lapse on either the expiration | ||
| ||
(v) sets forth any payment obligations | ||
| ||
(B) the buyer has failed to perform the payment | ||
| ||
(2) For the purposes of this subsection (f), a buyer | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(A) is an original or reproduced copy thereof; (B) contains: (i) the name and address of the | ||
| ||
(C) must be amended in writing, within 3 months, | ||
| ||
(D) will lapse on either the expiration period of | ||
| ||
(E) sets forth any payment obligations imposed on | ||
| ||
(2) the commission merchant or selling agent has | ||
| ||
(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.) |
| ||
(2) A perfected security interest or agricultural | ||
| ||
(3) The first security interest or agricultural lien | ||
| ||
(b) Time of perfection: proceeds and supporting obligations. For the purposes of subsection (a)(1): (1) the time of filing or perfection as to a security | ||
| ||
(2) the time of filing or perfection as to a security | ||
| ||
(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: (1) any supporting obligation for the collateral; and (2) proceeds of the collateral if: (A) the security interest in proceeds is | ||
| ||
(B) the proceeds are cash proceeds or of the same | ||
| ||
(C) in the case of proceeds that are proceeds of | ||
| ||
(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: (1) subsection (g) and the other provisions of this | ||
| ||
(2) Section 4-210 with respect to a security interest | ||
| ||
(3) Section 5-118 with respect to a security interest | ||
| ||
(4) Section 9-110 with respect to a security interest | ||
| ||
(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.) |
| ||
(A) under Section 9-309 when it attaches; or (B) temporarily under Section 9-312(e), (f), or | ||
| ||
(2) is not made pursuant to a commitment entered into | ||
| ||
(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: (1) without knowledge of the lien; or (2) pursuant to a commitment entered into without | ||
| ||
(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: (1) the time the secured party acquires knowledge of | ||
| ||
(2) 45 days after the purchase. (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: (1) the time the secured party acquires knowledge of | ||
| ||
(2) 45 days after the lease contract becomes | ||
| ||
(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.) |
| ||
(2) the purchase-money secured party sends an | ||
| ||
(3) the holder of the conflicting security interest | ||
| ||
(4) the notification states that the person sending | ||
| ||
(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: (1) if the purchase-money security interest is | ||
| ||
(2) if the purchase-money security interest is | ||
| ||
(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: (1) the purchase-money security interest is perfected | ||
| ||
(2) the purchase-money secured party sends an | ||
| ||
(3) the holder of the conflicting security interest | ||
| ||
(4) the notification states that the person sending | ||
| ||
(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: (1) if the purchase-money security interest is | ||
| ||
(2) if the purchase-money security interest is | ||
| ||
(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): (1) a security interest securing an obligation | ||
| ||
(2) in all other cases, Section 9-322(a) applies to | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) the security interest created by the other person | ||
| ||
(3) there is no period thereafter when the security | ||
| ||
(b) Limitation of subsection (a) subordination. Subsection (a) subordinates a security interest only if the security interest: (1) otherwise would have priority solely under | ||
| ||
(2) arose solely under Section 2-711(3) or 2A-508(5). (Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(B) if the collateral is a security entitlement | ||
| ||
(i) if the secured party obtained control under | ||
| ||
(ii) if the secured party obtained control under | ||
| ||
(iii) if the secured party obtained control | ||
| ||
(C) if the collateral is a commodity contract carried | ||
| ||
(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.) |
| ||
(2) Security interests perfected by control under | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) Security interests perfected by control under | ||
| ||
(Source: P.A. 92-234, eff. 1-1-02.) |
| ||
(2) the chattel paper does not indicate that it has | ||
| ||
(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: (1) Section 9-322 provides for priority in the | ||
| ||
(2) the proceeds consist of the specific goods | ||
| ||
(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.) |
| ||
(2) which is created by statute or rule of law in | ||
| ||
(3) whose effectiveness depends on the person's | ||
| ||
(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.) |
| ||
(2) the interest of the encumbrancer or owner arises | ||
| ||
(3) the security interest is perfected by a fixture | ||
| ||
(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: (1) the debtor has an interest of record in the real | ||
| ||
(A) is perfected by a fixture filing before the | ||
| ||
(B) has priority over any conflicting interest of | ||
| ||
(2) before the goods become fixtures, the security | ||
| ||
(A) factory or office machines; (B) equipment that is not primarily used or | ||
| ||
(C) replacements of domestic appliances that are | ||
| ||
(3) the conflicting interest is a lien on the real | ||
| ||
(4) the security interest is: (A) created in a manufactured home in a | ||
| ||
(B) perfected pursuant to a statute described in | ||
| ||
(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: (1) the encumbrancer or owner has, in an | ||
| ||
(2) the debtor has a right to remove the goods as | ||
| ||
(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. (1) Subject to Section 9-322(g), a perfected security | ||
| ||
(A) a conflicting interest of an encumbrancer or | ||
| ||
(B) the rights of a holder of an obligation | ||
| ||
(2) For purposes of this subsection: (A) "Collateral assignment of beneficial | ||
| ||
(B) "Land trust" means any trust arrangement | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) If more than one security interest is perfected | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) the security interest is subordinate to a | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) a purchaser, other than a secured party, of the | ||
| ||
(Source: P.A. 95-895, eff. 1-1-09.) |
| ||
(2) the bank's knowledge of the security interest; or (3) the bank's receipt of instructions from the | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(4) without notice of a defense or claim in | ||
| ||
(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: (1) the record has the same effect as if the record | ||
| ||
(2) the account debtor may assert against an assignee | ||
| ||
(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.) |
| ||
(2) any other defense or claim of the account debtor | ||
| ||
(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.) |
| ||
(2) the right to payment or a part thereof has been | ||
| ||
(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.) |
| ||
(2) to the extent that an agreement between an | ||
| ||
(3) at the option of an account debtor, if the | ||
| ||
(A) only a portion of the account, chattel paper, | ||
| ||
(B) a portion has been assigned to another | ||
| ||
(C) the account debtor knows that the assignment | ||
| ||
(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: (1) prohibits, restricts, or requires the consent of | ||
| ||
(2) provides that the assignment or transfer or the | ||
| ||
(e) Inapplicability of subsection (d) to certain sales. Subsection (d) does not apply to the sale of a payment intangible or promissory note. (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: (1) prohibits, restricts, or requires the consent of | ||
| ||
(2) provides that the assignment or transfer or the | ||
| ||
(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. 91-893, eff. 7-1-01.) (Text of Section after amendment by P.A. 97-1034 ) 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): (1) if it does not reasonably identify the rights | ||
| ||
(2) to the extent that an agreement between an | ||
| ||
(3) at the option of an account debtor, if the | ||
| ||
(A) only a portion of the account, chattel paper, | ||
| ||
(B) a portion has been assigned to another | ||
| ||
(C) the account debtor knows that the assignment | ||
| ||
(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: (1) prohibits, restricts, or requires the consent of | ||
| ||
(2) provides that the assignment or transfer or the | ||
| ||
(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: (1) prohibits, restricts, or requires the consent of | ||
| ||
(2) provides that the assignment or transfer or the | ||
| ||
(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.) |
| ||
(2) provides that the assignment or transfer or the | ||
| ||
(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: (1) a transfer by the lessee of the lessee's right of | ||
| ||
(2) a delegation of a material performance of either | ||
| ||
(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.) |
| ||
(2) provides that the assignment or transfer or the | ||
| ||
(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. (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: (1) would impair the creation, attachment, or | ||
| ||
(2) provides that the assignment or transfer or the | ||
| ||
(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: (1) is not enforceable against the person obligated | ||
| ||
(2) does not impose a duty or obligation on the | ||
| ||
(3) does not require the person obligated on the | ||
| ||
(4) does not entitle the secured party to use or | ||
| ||
(5) does not entitle the secured party to use, | ||
| ||
(6) does not entitle the secured party to enforce the | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) (Text of Section after amendment by P.A. 97-1034 ) 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: (1) would impair the creation, attachment, or | ||
| ||
(2) provides that the assignment or transfer or the | ||
| ||
(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: (1) would impair the creation, attachment, or | ||
| ||
(2) provides that the assignment or transfer or the | ||
| ||
(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: (1) is not enforceable against the person obligated | ||
| ||
(2) does not impose a duty or obligation on the | ||
| ||
(3) does not require the person obligated on the | ||
| ||
(4) does not entitle the secured party to use or | ||
| ||
(5) does not entitle the secured party to use, | ||
| ||
(6) does not entitle the secured party to enforce the | ||
| ||
(Source: P.A. 97-1034, eff. 7-1-13.) |
| ||
(2) provides that the assignment or the creation, | ||
| ||
(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: (1) is not enforceable against the applicant, issuer, | ||
| ||
(2) imposes no duties or obligations on the | ||
| ||
(3) does not require the applicant, issuer, nominated | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(A) the collateral is as-extracted collateral or | ||
| ||
(B) the financing statement is filed as a fixture | ||
| ||
(2) the office of the Secretary of State in all other | ||
| ||
(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.) |
| ||
(2) is not related to a valid existing or potential | ||
| ||
(3) is filed with the intent to harass or defraud the | ||
| ||
(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: (1) the greater of the actual damages caused by the | ||
| ||
(2) reasonable attorney's fees; (3) court costs and other related expenses of | ||
| ||
(4) in the discretion of the court, exemplary damages | ||
| ||
(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.) |
| ||
(3) indicates the collateral covered by the financing | ||
| ||
(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: (1) indicate that it covers this type of collateral; (2) indicate that it is to be filed in the real | ||
| ||
(3) provide a description of the real property to | ||
| ||
(4) if the debtor does not have an interest of record | ||
| ||
(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: (1) the record indicates the goods or accounts that | ||
| ||
(2) the goods are or are to become fixtures related | ||
| ||
(3) the record satisfies the requirements for a | ||
| ||
(4) the record is recorded. (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. 91-893, eff. 7-1-01.) (Text of Section after amendment by P.A. 97-1034 ) 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: (1) provides the name of the debtor; (2) provides the name of the secured party or a | ||
| ||
(3) indicates the collateral covered by the financing | ||
| ||
(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: (1) indicate that it covers this type of collateral; (2) indicate that it is to be filed in the real | ||
| ||
(3) provide a description of the real property to | ||
| ||
(4) if the debtor does not have an interest of record | ||
| ||
(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: (1) the record indicates the goods or accounts that | ||
| ||
(2) the goods are or are to become fixtures related | ||
| ||
(3) the record satisfies the requirements for a | ||
| ||
(A) the record need not indicate that it is to be | ||
| ||
(B) the record sufficiently provides the name of | ||
| ||
(4) the record is recorded. (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.) |
| ||
(2) if the debtor is a decedent's estate, only if the | ||
| ||
(3) if the debtor is a trust or a trustee acting with | ||
| ||
(A) provides the name specified for the trust in | ||
| ||
(B) indicates, in the debtor's name or otherwise, | ||
| ||
(4) in other cases: (A) if the debtor has a name, only if it provides | ||
| ||
(B) if the debtor does not have a name, only if | ||
| ||
(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: (1) a trade name or other name of the debtor; or (2) unless required under subsection (a)(4)(B), names | ||
| ||
(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. (Source: P.A. 91-893, eff. 7-1-01.) (Text of Section after amendment by P.A. 97-1034 ) 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: (1) except as otherwise provided in paragraph (3), if | ||
| ||
(2) subject to subsection (f), if the collateral is | ||
| ||
(3) if the collateral is held in a trust that is not | ||
| ||
(A) provides, as the name of the debtor: (i) if the organic record of the trust | ||
| ||
(ii) if the organic record of the trust does | ||
| ||
(B) in a separate part of the financing | ||
| ||
(i) if the name is provided in accordance | ||
| ||
(ii) if the name is provided in accordance | ||
| ||
(4) subject to subsection (g), if the debtor is an | ||
| ||
(5) if the debtor is an individual to whom paragraph | ||
| ||
(6) in other cases: (A) if the debtor has a name, only if the | ||
| ||
(B) if the debtor does not have a name, only if | ||
| ||
(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: (1) a trade name or other name of the debtor; or (2) unless required under subsection (a)(6)(B), names | ||
| ||
(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: (1) if the settlor is a registered organization, the | ||
| ||
(2) in other cases, the name of the settlor or | ||
| ||
(Source: P.A. 97-1034, eff. 7-1-13.) |
| ||
(2) an indication that the financing statement covers | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) the financing statement is not effective to | ||
| ||
(Source: P.A. 90-214, eff. 7-25-97; 91-893, eff. 7-1-01.) (Text of Section after amendment by P.A. 97-1034 ) 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: (1) the financing statement is effective to perfect a | ||
| ||
(2) the financing statement is not effective to | ||
| ||
(Source: P.A. 97-1034, eff. 7-1-13.) |
| ||
(2) the financing statement is not effective to | ||
| ||
(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.) |
| ||
(2) the person holds an agricultural lien that has | ||
| ||
(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: (1) the collateral described in the security | ||
| ||
(2) property that becomes collateral under Section | ||
| ||
(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: (1) the secured party of record authorizes the | ||
| ||
(2) the amendment is a termination statement for a | ||
| ||
(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.) |
| ||
(2) if the amendment relates to an initial financing | ||
| ||
(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: (1) purports to delete all debtors and fails to | ||
| ||
(2) purports to delete all secured parties of record | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) the debtor did not authorize the filing of the | ||
| ||
(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: (1) within one month after there is no obligation | ||
| ||
(2) if earlier, within 20 days after the secured | ||
| ||
(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: (1) except in the case of a financing statement | ||
| ||
(2) the financing statement covers accounts or | ||
| ||
(3) the financing statement covers goods that were | ||
| ||
(4) the debtor did not authorize the filing of the | ||
| ||
(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.) |
| ||
(2) provides the name of the assignor; and (3) provides the name and mailing address of the | ||
| ||
(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.) |
| ||
(2) an amount equal to or greater than the applicable | ||
| ||
(3) the filing office is unable to index the record | ||
| ||
(A) in the case of an initial financing | ||
| ||
(B) in the case of an amendment or correction | ||
| ||
(i) does not identify the initial financing | ||
| ||
(ii) identifies an initial financing | ||
| ||
(iii) identifies an initial financing | ||
| ||
(C) in the case of an initial financing statement | ||
| ||
(D) in the case of a record filed or recorded in | ||
| ||
(E) in the case of a record submitted to the | ||
| ||
(3.5) in the case of an initial financing statement | ||
| ||
(4) in the case of an initial financing statement or | ||
| ||
(5) in the case of an initial financing statement or | ||
| ||
(A) provide a mailing address for the debtor; (B) indicate whether the debtor is an individual | ||
| ||
(C) if the financing statement indicates that the | ||
| ||
(i) a type of organization for the debtor; (ii) a jurisdiction of organization for the | ||
| ||
(iii) an organizational identification number | ||
| ||
(6) in the case of an assignment reflected in an | ||
| ||
(7) in the case of a continuation statement, the | ||
| ||
(c) Rules applicable to subsection (b). For purposes of subsection (b): (1) a record does not provide information if the | ||
| ||
(2) a record that does not indicate that it is an | ||
| ||
(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.) (Text of Section from P.A. 97-1034) 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: (1) the record is not communicated by a method or | ||
| ||
(2) an amount equal to or greater than the applicable | ||
| ||
(3) the filing office is unable to index the record | ||
| ||
(A) in the case of an initial financing | ||
| ||
(B) in the case of an amendment or information | ||
| ||
(i) does not identify the initial financing | ||
| ||
(ii) identifies an initial financing | ||
| ||
(C) in the case of an initial financing statement | ||
| ||
(D) in the case of a record filed or recorded in | ||
| ||
(E) in the case of a record submitted to the | ||
| ||
(3.5) in the case of an initial financing statement | ||
| ||
(4) in the case of an initial financing statement or | ||
| ||
(5) in the case of an initial financing statement or | ||
| ||
(A) provide a mailing address for the debtor; or (B) indicate whether the name provided as the | ||
| ||
(6) in the case of an assignment reflected in an | ||
| ||
(7) in the case of a continuation statement, the | ||
| ||
(c) Rules applicable to subsection (b). For purposes of subsection (b): (1) a record does not provide information if the | ||
| ||
(2) a record that does not indicate that it is an | ||
| ||
(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. 97-1034, eff. 7-1-13.) |
| ||
(B) if the correction statement relates to a | ||
| ||
(2) indicate that it is a correction statement; and (3) provide the basis for the person's belief that | ||
| ||
(c) Record not affected by correction statement. The filing of a correction statement does not affect the effectiveness of an initial financing statement or other filed record. (Source: P.A. 91-893, eff. 7-1-01.) (Text of Section after amendment by P.A. 97-1034 ) 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: (1) identify the record to which it relates by the | ||
| ||
(2) indicate that it is an information statement; and (3) provide the basis for the person's belief that | ||
| ||
(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: (1) identify the record to which it relates by the | ||
| ||
(2) indicate that it is an information statement; and (3) provide the basis for the person's belief that | ||
| ||
(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.) |
| ||
(3) maintain the filed record for public inspection; | ||
| ||
(4) index the filed record in accordance with | ||
| ||
(b) File number. A file number assigned after January 1, 2002, must include a digit that: (1) is mathematically derived from or related to the | ||
| ||
(2) aids the filing office in determining whether a | ||
| ||
(c) Indexing: general. Except as otherwise provided in subsections (d) and (e), the filing office shall: (1) index an initial financing statement according to | ||
| ||
(2) index a record that provides a name of a debtor | ||
| ||
(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: (1) under the names of the debtor and of each owner | ||
| ||
(2) to the extent that the law of this State provides | ||
| ||
(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): (1) under the name of the assignor as grantor; and (2) to the extent that the law of this State provides | ||
| ||
(f) Retrieval and association capability. The filing office shall maintain a capability: (1) to retrieve a record by the name of the debtor | ||
| ||
(2) to associate and retrieve with one another an | ||
| ||
(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.) |
| ||
(2) if the record was filed in the filing office | ||
| ||
(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.) |
| ||
(2) send the copy to the person. (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: (1) the information in the record; (2) the number assigned to the record pursuant to | ||
| ||
(3) the date and time of the filing of the record. (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: (1) whether there is on file on a date and time | ||
| ||
(A) designates a particular debtor or, if the | ||
| ||
(B) has not lapsed under Section 9-515 with | ||
| ||
(C) if the request so states, has lapsed under | ||
| ||
(2) the date and time of filing of each financing | ||
| ||
(3) the information provided in each financing | ||
| ||
(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.) |
| ||
(2) the filing office exercises reasonable diligence | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) $20 if the record is communicated in writing and | ||
| ||
(3) $20 if the record is communicated by another | ||
| ||
(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: (1) $20 if the financing statement indicates that it | ||
| ||
(2) $20 if the financing statement indicates that it | ||
| ||
(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: (1) $10 if the request is communicated in writing; and (2) $10 if the request is communicated by another | ||
| ||
(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.) |
| ||
(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: (1) consult with filing offices in other | ||
| ||
(2) consult the most recent version of the Model | ||
| ||
(3) take into consideration the rules and practices | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) the filing-office rules are not in harmony with | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) if the collateral is documents, may proceed | ||
| ||
(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: (1) the date of perfection of the security interest | ||
| ||
(2) the date of filing a financing statement covering | ||
| ||
(3) any date specified in a statute under which the | ||
| ||
(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.) |
| ||
(2) Section 9-210, which deals with requests for an | ||
| ||
(3) Section 9-607(c), which deals with collection and | ||
| ||
(4) Sections 9-608(a) and 9-615(c) to the extent that | ||
| ||
(5) Sections 9-608(a) and 9-615(d) to the extent that | ||
| ||
(6) Section 9-609 to the extent that it imposes upon | ||
| ||
(7) Sections 9-610(b), 9-611, 9-613, and 9-614, which | ||
| ||
(8) Section 9-615(f), which deals with calculation of | ||
| ||
(9) Section 9-616, which deals with explanation of | ||
| ||
(10) Sections 9-620, 9-621, and 9-622, which deal | ||
| ||
(11) Section 9-623, which deals with redemption of | ||
| ||
(12) Section 9-624, which deals with permissible | ||
| ||
(13) Sections 9-625 and 9-626, which deal with the | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) as to both the personal property and the real | ||
| ||
(b) Enforcement: fixtures. Subject to subsection (c), if a security agreement covers goods that are or become fixtures, a secured party may proceed: (1) under this Part; or (2) in accordance with the rights with respect to | ||
| ||
(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.) |
| ||
(A) that the person is a debtor or obligor; (B) the identity of the person; and (C) how to communicate with the person; or (2) to a secured party or lienholder that has filed a | ||
| ||
(A) that the person is a debtor; and (B) the identity of the person. (Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) may take any proceeds to which the secured party | ||
| ||
(3) may enforce the obligations of an account debtor | ||
| ||
(4) if it holds a security interest in a deposit | ||
| ||
(5) if it holds a security interest in a deposit | ||
| ||
(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: (1) a copy of the security agreement that creates or | ||
| ||
(2) the secured party's sworn affidavit in recordable | ||
| ||
(A) a default has occurred; and (B) the secured party is entitled to enforce the | ||
| ||
(c) Commercially reasonable collection and enforcement. A secured party shall proceed in a commercially reasonable manner if the secured party: (1) undertakes to collect from or enforce an | ||
| ||
(2) is entitled to charge back uncollected collateral | ||
| ||
(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. 91-893, eff. 7-1-01.) (Text of Section after amendment by P.A. 97-1034 ) 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: (1) may notify an account debtor or other person | ||
| ||
(2) may take any proceeds to which the secured party | ||
| ||
(3) may enforce the obligations of an account debtor | ||
| ||
(4) if it holds a security interest in a deposit | ||
| ||
(5) if it holds a security interest in a deposit | ||
| ||
(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: (1) a copy of the security agreement that creates or | ||
| ||
(2) the secured party's sworn affidavit in recordable | ||
| ||
(A) a default has occurred with respect to the | ||
| ||
(B) the secured party is entitled to enforce the | ||
| ||
(c) Commercially reasonable collection and enforcement. A secured party shall proceed in a commercially reasonable manner if the secured party: (1) undertakes to collect from or enforce an | ||
| ||
(2) is entitled to charge back uncollected collateral | ||
| ||
(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.) |
| ||
(A) the reasonable expenses of collection and | ||
| ||
(B) the satisfaction of obligations secured by | ||
| ||
(C) the satisfaction of obligations secured by | ||
| ||
(2) If requested by a secured party, a holder of a | ||
| ||
(3) A secured party need not apply or pay over for | ||
| ||
(4) A secured party shall account to and pay a debtor | ||
| ||
(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.) |
| ||
(b) Judicial and nonjudicial process. A secured party may proceed under subsection (a): (1) pursuant to judicial process; or (2) without judicial process, if it proceeds without | ||
| ||
(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.) |
| ||
(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): (1) in a manner that would be effective to disclaim | ||
| ||
(2) by communicating to the purchaser a record | ||
| ||
(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.) |
| ||
(2) the debtor and any secondary obligor waive the | ||
| ||
(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: (1) the debtor; (2) any secondary obligor; and (3) if the collateral is other than consumer goods: (A) any other person from which the secured party | ||
| ||
(B) any other secured party or lienholder that, | ||
| ||
(i) identified the collateral; (ii) was indexed under the debtor's name as | ||
| ||
(iii) was filed in the office in which to | ||
| ||
(C) any other secured party that, 10 days before | ||
| ||
(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: (1) not later than 20 days or earlier than 30 days | ||
| ||
(2) before the notification date, the secured party: (A) did not receive a response to the request for | ||
| ||
(B) received a response to the request for | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(A) describes the debtor and the secured party; (B) describes the collateral that is the subject | ||
| ||
(C) states the method of intended disposition; (D) states that the debtor is entitled to an | ||
| ||
(E) states the time and place of a public | ||
| ||
(2) Whether the contents of a notification that lacks | ||
| ||
(3) The contents of a notification providing | ||
| ||
(A) information not specified by that paragraph; | ||
| ||
(B) minor errors that are not seriously | ||
| ||
(4) A particular phrasing of the notification is not | ||
| ||
(5) The following form of notification and the form | ||
| ||
NOTIFICATION OF DISPOSITION OF COLLATERAL To: ..................................... (Name of | ||
| ||
From: ................................... (Name, | ||
| ||
Name of Debtor(s): ..................... (Include | ||
| ||
For a public disposition: We will sell or lease or license, as applicable, the | ||
| ||
Day and Date: ................................... Time: ........................................... Place: .......................................... For a private disposition: We will sell (or lease or license, as applicable) the | ||
| ||
You are entitled to an accounting of the unpaid | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(A) the information specified in Section 9-613(1); (B) a description of any liability for a | ||
| ||
(C) a telephone number from which the amount that | ||
| ||
(D) a telephone number or mailing address from | ||
| ||
(2) A particular phrasing of the notification is not | ||
| ||
(3) The contents of a notification providing | ||
| ||
(A) is accompanied by or combined with other | ||
| ||
(B) includes information not specified by that | ||
| ||
(C) includes minor errors that are not seriously | ||
| ||
(4) The following form of notification, when | ||
| ||
............. (Name and address of secured party) ............. (Date) NOTICE OF OUR PLAN TO SELL PROPERTY ...................................................... (Name and address of any obligor who is also a debtor) Subject: .................................. (Identification of Transaction) We have your ..................... (describe | ||
| ||
For a public disposition: We will sell ....................... (describe | ||
| ||
Date: ................................ Time: ................................ Place: ................................ You may attend the sale and bring bidders if you want. For a private disposition: We will sell ........................... (describe | ||
| ||
The money that we get from the sale (after paying our | ||
| ||
You can get the property back at any time before we | ||
| ||
If you want us to explain to you in writing how we | ||
| ||
If you need more information about the sale call us | ||
| ||
We are sending this notice to the following other | ||
| ||
................................................. (Names of all other debtors and obligors, if any) (5) A notification in the form of paragraph (4) is | ||
| ||
(6) If a notification under this Section is not in | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) the satisfaction of obligations secured by the | ||
| ||
(3) the satisfaction of obligations secured by any | ||
| ||
(A) the secured party receives from the holder of | ||
| ||
(B) in a case in which a consignor has an | ||
| ||
(4) a secured party that is a consignor of the | ||
| ||
(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): (1) unless subsection (a)(4) requires the secured | ||
| ||
(2) the obligor is liable for any deficiency. (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: (1) the debtor is not entitled to any surplus; and (2) the obligor is not liable for any deficiency. (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: (1) the transferee in the disposition is the secured | ||
| ||
(2) the amount of proceeds of the disposition is | ||
| ||
(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: (1) takes the cash proceeds free of the security | ||
| ||
(2) is not obligated to apply the proceeds of the | ||
| ||
(3) is not obligated to account to or pay the holder | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(B) states, if applicable, that future debits, | ||
| ||
(C) provides a telephone number or mailing | ||
| ||
(D) at the sender's option, the information set | ||
| ||
(2) "Request" means a record: (A) authenticated by a debtor or consumer obligor; (B) requesting that the recipient provide | ||
| ||
(C) sent after disposition of the collateral | ||
| ||
(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: (1) send an explanation to the debtor or consumer | ||
| ||
(A) before or when the secured party accounts to | ||
| ||
(B) within 14 days after receipt of a request | ||
| ||
(2) in the case of a consumer obligor who is liable | ||
| ||
(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: (1) the aggregate amount of obligations secured by | ||
| ||
(A) if the secured party takes or receives | ||
| ||
(B) if the secured party takes or receives | ||
| ||
(2) the amount of proceeds of the disposition; (3) the aggregate amount of the obligations after | ||
| ||
(4) the amount, in the aggregate or by type, and | ||
| ||
(5) the amount, in the aggregate or by type, and | ||
| ||
(6) the amount of the surplus or deficiency. (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: (1) accompanied by or combined with other | ||
| ||
(2) includes information not specified by this | ||
| ||
(3) includes minor errors that are not seriously | ||
| ||
(4) includes errors in information not required by | ||
| ||
(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.) |
| ||
(2) discharges the security interest under which the | ||
| ||
(3) discharges any subordinate security interest or | ||
| ||
(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: (1) the debtor's rights in the collateral; (2) the security interest or agricultural lien under | ||
| ||
(3) any other security interest or other lien. (Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) receives a transfer of collateral from the | ||
| ||
(3) is subrogated to the rights of a secured party | ||
| ||
(b) Effect of assignment, transfer, or subrogation. An assignment, transfer, or subrogation described in subsection (a): (1) is not a disposition of collateral under Section | ||
| ||
(2) relieves the secured party of further duties | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) that the secured party has exercised its | ||
| ||
(3) that, by reason of the exercise, a transferee has | ||
| ||
(4) the name and mailing address of the secured | ||
| ||
(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: (1) accept the transfer statement; (2) promptly amend its records to reflect the | ||
| ||
(3) if applicable, issue a new appropriate | ||
| ||
(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.) |
| ||
(2) the secured party does not receive, within the | ||
| ||
(A) a person to which the secured party was | ||
| ||
(B) any other person, other than the debtor, | ||
| ||
(3) if the collateral is consumer goods, the | ||
| ||
(4) subsection (e) does not require the secured party | ||
| ||
(b) Purported acceptance ineffective. A purported or apparent acceptance of collateral under this Section is ineffective unless: (1) the secured party consents to the acceptance in | ||
| ||
(2) the conditions of subsection (a) are met. (c) Debtor's consent. For purposes of this Section: (1) a debtor consents to an acceptance of collateral | ||
| ||
(2) a debtor consents to an acceptance of collateral | ||
| ||
(A) sends to the debtor after default a proposal | ||
| ||
(B) in the proposal, proposes to accept | ||
| ||
(C) does not receive a notification of objection | ||
| ||
(d) Effectiveness of notification. To be effective under subsection (a)(2), a notification of objection must be received by the secured party: (1) in the case of a person to which the proposal was | ||
| ||
(2) in other cases: (A) within 20 days after the last notification | ||
| ||
(B) if a notification was not sent, before the | ||
| ||
(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: (1) 60 percent of the cash price has been paid in the | ||
| ||
(2) 60 percent of the principal amount of the | ||
| ||
(f) Compliance with mandatory disposition requirement. To comply with subsection (e), the secured party shall dispose of the collateral: (1) within 90 days after taking possession; or (2) within any longer period to which the debtor and | ||
| ||
(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.) |
| ||
(2) any other secured party or lienholder that, 10 | ||
| ||
(A) identified the collateral; (B) was indexed under the debtor's name as of | ||
| ||
(C) was filed in the office or offices in which | ||
| ||
(3) any other secured party that, 10 days before the | ||
| ||
(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.) |
| ||
(2) transfers to the secured party all of a debtor's | ||
| ||
(3) discharges the security interest or agricultural | ||
| ||
(4) terminates any other subordinate interest. (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.) |
| ||
(2) the reasonable expenses and attorney's fees | ||
| ||
(c) When redemption may occur. A redemption may occur at any time before a secured party: (1) has collected collateral under Section 9-607; (2) has disposed of collateral or entered into a | ||
| ||
(3) has accepted collateral in full or partial | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) if the collateral is consumer goods, a person | ||
| ||
(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: (1) fails to comply with Section 9-208; (2) fails to comply with Section 9-209; (3) files a record that the person is not entitled to | ||
| ||
(4) fails to cause the secured party of record to | ||
| ||
(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. 91-893, eff. 7-1-01.) (Text of Section after amendment by P.A. 97-1034 ) 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: (1) a person that, at the time of the failure, was a | ||
| ||
(2) if the collateral is consumer goods, a person | ||
| ||
(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: (1) fails to comply with Section 9-208; (2) fails to comply with Section 9-209; (3) files a record that the person is not entitled to | ||
| ||
(4) fails to cause the secured party of record to | ||
| ||
(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.) |
| ||
(2) If the secured party's compliance is placed in | ||
| ||
(3) Except as otherwise provided in Section 9-628, if | ||
| ||
(A) the proceeds of the collection, enforcement, | ||
| ||
(B) the amount of proceeds that would have been | ||
| ||
(4) For purposes of paragraph (3)(B), the amount of | ||
| ||
(5) If a deficiency or surplus is calculated under | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(3) otherwise in conformity with reasonable | ||
| ||
(c) Approval by court or on behalf of creditors. A collection, enforcement, disposition, or acceptance is commercially reasonable if it has been approved: (1) in a judicial proceeding; (2) by a bona fide creditors' committee; (3) by a representative of creditors; or (4) by an assignee for the benefit of creditors. (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.) |
| ||
(2) the secured party's failure to comply with this | ||
| ||
(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: (1) to a person that is a debtor or obligor, unless | ||
| ||
(A) that the person is a debtor or obligor; (B) the identity of the person; and (C) how to communicate with the person; or (2) to a secured party or lienholder that has filed a | ||
| ||
(A) that the person is a debtor; and (B) the identity of the person. (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: (1) a debtor's representation concerning the purpose | ||
| ||
(2) an obligor's representation concerning the | ||
| ||
(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.) |
| ||
(2) the transactions and liens may be terminated, | ||
| ||
(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.) |
| ||
(2) remains enforceable thereafter only if the | ||
| ||
(3) remains perfected thereafter only if the | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) remains enforceable thereafter if the security | ||
| ||
(3) becomes perfected: (A) without further action, on the effective date | ||
| ||
(B) when the applicable requirements for | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) June 30, 2006. (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.) |
| ||
(2) the pre-effective-date financing statement was | ||
| ||
(3) the initial financing statement satisfies | ||
| ||
(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: (1) if the initial financing statement is filed | ||
| ||
(2) if the initial financing statement is filed after | ||
| ||
(c) Requirements for initial financing statement under subsection (a). To be effective for purposes of subsection (a), an initial financing statement must: (1) satisfy the requirements of Part 5 for an initial | ||
| ||
(2) identify the pre-effective-date financing | ||
| ||
(3) indicate that the pre-effective-date financing | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) an amendment is filed in the office specified in | ||
| ||
(3) an initial financing statement that provides the | ||
| ||
(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.) |
| ||
(2) the filing is necessary under this Part: (A) to continue the effectiveness of a financing | ||
| ||
(B) to perfect or continue the perfection of a | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
| ||
(2) "Former-Article-9 records" means: (A) financing statements and other records that | ||
| ||
(B) the index as of June 30, 2001. (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: (1) the collateral is timber to be cut or | ||
| ||
(2) the record is or relates to a financing statement | ||
| ||
(Source: P.A. 91-893, eff. 7-1-01.) |
Disclaimer: These codes may not be the most recent version. Illinois may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.