Illinois General Assembly - Illinois Compiled Statutes

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810 ILCS 5/9-338

(810 ILCS 5/9-338)

Sec. 9-338.

Priority of security interest or agricultural lien perfected
by
filed financing statement providing certain incorrect information.

If a
security
interest or agricultural lien is perfected by a filed financing statement
providing
information described in Section 9-516(b)(5) which is incorrect at the time the
financing statement is filed:

(1) the security interest or agricultural lien is

subordinate to a conflicting perfected security interest in the collateral to the extent that the holder of the conflicting security interest gives value in reasonable reliance upon the incorrect information; and

(2) a purchaser, other than a secured party, of the

collateral takes free of the security interest or agricultural lien to the extent that, in reasonable reliance upon the incorrect information, the purchaser gives value and, in the case of tangible chattel paper, tangible documents, goods, instruments, or a security certificate, receives delivery of the collateral.

(Source: P.A. 95-895, eff. 1-1-09.)