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Public Act 097-1034 | ||||
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AN ACT concerning business.
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Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
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Section 5. The Uniform Commercial Code is amended by | ||||
changing Sections 2A-103, 9-102, 9-105, 9-307, 9-311, 9-316, | ||||
9-317, 9-326, 9-406, 9-408, 9-502, 9-503, 9-507, 9-515, 9-516, | ||||
9-518, 9-521, 9-607, and 9-625 and by adding Part 8 to Article | ||||
9 as follows:
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(810 ILCS 5/2A-103) (from Ch. 26, par. 2A-103)
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Sec. 2A-103. Definitions and index of definitions.
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(1) In this Article unless the context otherwise requires:
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(a) "Buyer in ordinary course of business" means a
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person who, in good faith and without knowledge that the | ||||
sale to
him or her is in violation of the ownership rights | ||||
or security
interest or leasehold interest of a third party | ||||
in the goods, buys
in ordinary course from a person in the | ||||
business of selling
goods of that kind but does not include | ||||
a pawnbroker.
"Buying" may be for cash or by exchange of | ||||
other property or
on secured or unsecured credit and | ||||
includes acquiring
goods or
documents of title under a | ||||
pre-existing contract for sale but
does not include a | ||||
transfer in bulk or as security for or in total
or partial | ||||
satisfaction of a money debt.
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(b) "Cancellation" occurs when either party puts an
end | ||
to the lease contract for default by the other party.
| ||
(c) "Commercial unit" means such a unit of goods as
by | ||
commercial usage is a single whole for purposes of lease | ||
and
division of which materially impairs its character or | ||
value on the
market or in use. A commercial unit may be a | ||
single article, as
a machine, or a set of articles, as a | ||
suite of furniture or a line
of machinery, or a quantity, | ||
as a gross or carload, or any other
unit treated in use or | ||
in the relevant market as a single whole.
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(d) "Conforming" goods or performance under a lease
| ||
contract means goods or performance that are in accordance | ||
with
the obligations under the lease contract.
| ||
(e) "Consumer lease" means a lease that a lessor
| ||
regularly engaged in the business of leasing or selling | ||
makes to
a lessee who is an individual and who takes under | ||
the lease
primarily for a personal, family, or household | ||
purpose, if the
total payments to be made under the lease | ||
contract, excluding
payments for options to renew or buy, | ||
do not exceed $40,000.
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(f) "Fault" means wrongful act, omission, breach, or
| ||
default.
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(g) "Finance lease" means a lease with respect to | ||
which:
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(i) the lessor does not select, manufacture, or | ||
supply the goods;
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(ii) the lessor acquires the goods or the right to | ||
possession and use
of the goods in connection with the | ||
lease; and
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(iii) one of the following occurs:
| ||
(A) the lessee receives a copy of the contract | ||
by which the lessor
acquired the goods or the right | ||
to possession and use of the goods
before signing | ||
the lease contract;
| ||
(B) the lessee's approval of the contract by | ||
which the lessor acquired
the goods or the right to | ||
possession and use of the goods is a
condition to | ||
effectiveness of the lease contract;
| ||
(C) the lessee, before signing the lease | ||
contract, receives an
accurate and complete | ||
statement designating the promises and warranties,
| ||
and any disclaimers of warranties, limitations or | ||
modifications of
remedies, or liquidated damages, | ||
including those of a third party, such as
the | ||
manufacturer of the goods, provided to the lessor | ||
by the person
supplying the goods in connection | ||
with or as part of the contract by which
the lessor | ||
acquired the goods or the right to possession and | ||
use of the
goods; or
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(D) if the lease is not a consumer lease, the | ||
lessor, before the
lessee signs the lease | ||
contract, informs the lessee in writing (a) of the
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identity of the person supplying the goods to the | ||
lessor, unless the lessee
has selected that person | ||
and directed the lessor to acquire the goods or
the | ||
right to possession and use of the goods from that | ||
person, (b) that the
lessee is entitled under this | ||
Article to the promises and warranties,
including | ||
those of any third party, provided to the lessor by | ||
the person
supplying the goods in connection with | ||
or as part of the contract by which
the lessor | ||
acquired the goods or the right to possession and | ||
use of the
goods, and (c) that the lessee may | ||
communicate with the person
supplying the goods to | ||
the lessor and receive an accurate and complete
| ||
statement of those promises and warranties, | ||
including any disclaimers and
limitations of them | ||
or of remedies.
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(h) "Goods" means all things that are movable at the
| ||
time of identification to the lease contract, or are | ||
fixtures
(Section 2A-309), but the term does not include | ||
money,
documents, instruments, accounts, chattel paper, | ||
general
intangibles, or minerals or the like, including oil | ||
and gas,
before extraction. The term also includes the | ||
unborn young of
animals.
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(i) "Installment lease contract" means a lease | ||
contract
that authorizes or requires the delivery of goods | ||
in separate lots
to be separately accepted, even though the |
lease contract
contains a clause "each delivery is a | ||
separate lease" or its
equivalent.
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(j) "Lease" means a transfer of the right to possession
| ||
and use of goods for a term in return for consideration, | ||
but a
sale, including a sale on approval or a sale or | ||
return, or
retention or creation of a security interest is | ||
not a lease.
Unless the context clearly indicates | ||
otherwise, the term includes
a sublease.
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(k) "Lease agreement" means the bargain, with respect
| ||
to the lease, of the lessor and the lessee in fact as found | ||
in
their language or by implication from other | ||
circumstances
including course of dealing or usage of trade | ||
or course of
performance as provided in this Article. | ||
Unless the context
clearly indicates otherwise, the term | ||
includes a sublease
agreement.
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(l) "Lease contract" means the total legal obligation
| ||
that results from the lease agreement as affected by this | ||
Article
and any other applicable rules of law. Unless the | ||
context
clearly indicates otherwise, the term includes a | ||
sublease
contract.
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(m) "Leasehold interest" means the interest of the
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lessor or the lessee under a lease contract.
| ||
(n) "Lessee" means a person who acquires the right to
| ||
possession and use of goods under a lease. Unless the | ||
context
clearly indicates otherwise, the term includes a | ||
sublessee.
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(o) "Lessee in ordinary course of business" means a
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person who in good faith and without knowledge that the | ||
lease to
him or her is in violation of the ownership rights | ||
or security
interest or leasehold interest of a third party | ||
in the goods leases
in ordinary course from a person in the | ||
business of selling or
leasing goods of that kind but does | ||
not include a pawnbroker.
"Leasing" may be for cash or by | ||
exchange of other property or
on secured or unsecured | ||
credit and includes acquiring
goods or
documents of title | ||
under a pre-existing lease contract but does
not include a | ||
transfer in bulk or as security for or in total or
partial | ||
satisfaction of a money debt.
| ||
(p) "Lessor" means a person who transfers the right
to | ||
possession and use of goods under a lease. Unless the
| ||
context clearly indicates otherwise, the term includes a
| ||
sublessor.
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(q) "Lessor's residual interest" means the lessor's
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interest in the goods after expiration, termination, or
| ||
cancellation of the lease contract.
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(r) "Lien" means a charge against or interest in goods
| ||
to secure payment of a debt or performance of an | ||
obligation, but
the term does not include a security | ||
interest.
| ||
(s) "Lot" means a parcel or a single article that is | ||
the
subject matter of a separate lease or delivery, whether | ||
or not it
is sufficient to perform the lease contract.
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(t) "Merchant lessee" means a lessee that is a
merchant | ||
with respect to goods of the kind subject to the lease.
| ||
(u) "Present value" means the amount as of a date
| ||
certain of one or more sums payable in the future, | ||
discounted to
the date certain. The discount is determined | ||
by the interest
rate specified by the parties if the rate | ||
was not manifestly
unreasonable at the time the transaction | ||
was entered into;
otherwise, the discount is determined by | ||
a commercially
reasonable rate that takes into account the | ||
facts and
circumstances of each case at the time the | ||
transaction was
entered into.
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(v) "Purchase" includes taking by sale, lease,
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mortgage, security interest, pledge, gift, or any other | ||
voluntary
transaction creating an interest in goods.
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(w) "Sublease" means a lease of goods the right to
| ||
possession and use of which was acquired by the lessor as a
| ||
lessee under an existing lease.
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(x) "Supplier" means a person from whom a lessor
buys | ||
or leases goods to be leased under a finance lease.
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(y) "Supply contract" means a contract under which a
| ||
lessor buys or leases goods to be leased.
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(z) "Termination" occurs when either party pursuant
to | ||
a power created by agreement or law puts an end to the | ||
lease
contract otherwise than for default.
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(2) Other definitions applying to this Article and the
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Sections in which they appear are:
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"Accessions". Section 2A-310(1).
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"Construction mortgage". Section 2A-309(1)(d).
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"Encumbrance". Section 2A-309(1)(e).
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"Fixtures". Section 2A-309(1)(a).
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"Fixture filing". Section 2A-309(1)(b).
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"Purchase money lease". Section 2A-309(1)(c).
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(3) The following definitions in other Articles apply to
| ||
this Article:
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"Account". Section 9-102(a)(2).
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"Between merchants". Section 2-104(3).
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"Buyer". Section 2-103(1)(a).
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"Chattel paper". Section 9-102(a)(11).
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"Consumer goods". Section 9-102(a)(23).
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"Document". Section 9-102(a)(30).
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"Entrusting". Section 2-403(3).
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"General intangible". Section 9-102(a)(42).
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"Good faith". Section 2-103(1)(b).
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"Instrument". Section 9-102(a)(47).
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"Merchant". Section 2-104(1).
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"Mortgage". Section 9-102(a)(55).
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"Pursuant to commitment". Section 9-102(a)(69) | ||
9-102(a)(68) .
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"Receipt". Section 2-103(1)(c).
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"Sale". Section 2-106(1).
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"Sale on approval". Section 2-326.
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"Sale or return". Section 2-326.
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"Seller". Section 2-103(1)(d).
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(4) In addition, Article 1 contains general definitions and
| ||
principles of construction and interpretation applicable
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throughout this Article.
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(Source: P.A. 95-895, eff. 1-1-09.)
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(810 ILCS 5/9-102) (from Ch. 26, par. 9-102)
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Sec. 9-102. Definitions and index of definitions.
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(a) Article 9 definitions. In this Article:
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(1) "Accession" means goods that are physically united | ||
with other
goods in such a manner that the identity of the | ||
original goods is not lost.
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(2) "Account", except as used in "account for", means a | ||
right to
payment of a monetary obligation, whether or not | ||
earned by performance, (i) for
property that has been or is | ||
to be sold, leased, licensed, assigned, or
otherwise
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disposed of, (ii) for services rendered or to be rendered, | ||
(iii) for a policy
of
insurance issued or to be issued, | ||
(iv) for a secondary obligation incurred or
to be
incurred, | ||
(v) for energy provided or to be provided, (vi) for the use | ||
or hire
of a
vessel under a charter or other contract, | ||
(vii) arising out of the use of a
credit or
charge card or | ||
information contained on or for use with the card, or | ||
(viii) as
winnings in a lottery or other game of chance | ||
operated or sponsored by a State,
governmental unit of a | ||
State, or person licensed or authorized to operate the
game
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by a State or governmental unit of a State. The term | ||
includes
health-care-insurance
receivables. The term does | ||
not include (i) rights to payment evidenced by
chattel
| ||
paper or an instrument, (ii) commercial tort claims, (iii) | ||
deposit accounts,
(iv)
investment property, (v) | ||
letter-of-credit rights or letters of credit, or (vi)
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rights to
payment for money or funds advanced or sold, | ||
other than rights arising out of
the
use of a credit or | ||
charge card or information contained on or for use with the
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card.
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(3) "Account debtor" means a person obligated on an | ||
account, chattel
paper, or general intangible. The term | ||
does not include persons obligated to
pay a
negotiable | ||
instrument, even if the instrument constitutes part of | ||
chattel
paper.
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(4) "Accounting", except as used in "accounting for", | ||
means a record:
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(A) authenticated by a secured party;
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(B) indicating the aggregate unpaid secured | ||
obligations as of a date
not more than 35 days earlier | ||
or 35 days later than the date of the record; and
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(C) identifying the components of the obligations | ||
in reasonable
detail.
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(5) "Agricultural lien" means an interest, other than a | ||
security
interest,
in farm products:
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(A) which secures payment or performance of an |
obligation for goods or services furnished in | ||
connection with a debtor's
farming operation;
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(B) which is created by statute in favor of a | ||
person that in the ordinary course of its business | ||
furnished goods or
services to a debtor in connection | ||
with a debtor's farming operation; and
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(C) whose effectiveness does not depend on the | ||
person's possession
of the personal property.
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(6) "As-extracted collateral" means:
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(A) oil, gas, or other minerals that are subject to | ||
a security interest
that:
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(i) is created by a debtor having an interest | ||
in the minerals
before extraction; and
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(ii) attaches to the minerals as extracted; or
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(B) accounts arising out of the sale at the | ||
wellhead or minehead of
oil, gas, or other minerals in | ||
which the debtor had an interest before
extraction.
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(7) "Authenticate" means:
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(A) to sign; or
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(B) with present intent to adopt or accept a | ||
record, to attach to or logically associate with the | ||
record an electronic sound, symbol, or process to | ||
execute or otherwise adopt a symbol, or encrypt or | ||
similarly
process a record in whole or in part, with | ||
the present intent of the
authenticating
person to | ||
identify the person and adopt or accept a record .
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(8) "Bank" means an organization that is engaged in the | ||
business of
banking. The term includes savings banks, | ||
savings and loan associations, credit
unions, and trust | ||
companies.
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(9) "Cash proceeds" means proceeds that are money, | ||
checks, deposit
accounts, or the like.
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(10) "Certificate of title" means a certificate of | ||
title with respect to
which a statute provides for the | ||
security interest in question to be indicated on the
| ||
certificate as a condition or result of the security | ||
interest's obtaining
priority over
the rights of a lien | ||
creditor with respect to the collateral. The term includes | ||
another record maintained as an alternative to a | ||
certificate of title by the governmental unit that issues | ||
certificates of title if a statute permits the security | ||
interest in question to be indicated on the record as a | ||
condition or result of the security interest's obtaining | ||
priority over the rights of a lien creditor with respect to | ||
the collateral.
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(11) "Chattel paper" means a record or records that | ||
evidence both a
monetary obligation and a security interest | ||
in specific goods, a security
interest in
specific goods | ||
and software used in the goods, a security interest in | ||
specific
goods and license of software used in the goods, a | ||
lease of specific goods,
or a lease of specified goods and | ||
a license of
software
used in the goods. In this paragraph, |
"monetary obligation" means a monetary
obligation secured | ||
by the goods or owed under a lease of the goods and | ||
includes
a monetary obligation with respect to software | ||
used in the goods. The term
does not include (i) charters | ||
or other contracts involving the use or hire of a
vessel or | ||
(ii) records that evidence a right to payment arising out | ||
of the use
of a credit or charge card or information | ||
contained on or for use with the
card. If a transaction is | ||
evidenced by records that include an instrument or
series | ||
of
instruments, the group of records taken together
| ||
constitutes chattel paper.
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(12) "Collateral" means the property subject to a | ||
security interest or
agricultural lien. The term includes:
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(A) proceeds to which a security interest | ||
attaches;
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(B) accounts, chattel paper, payment intangibles, | ||
and promissory
notes that have been sold; and
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(C) goods that are the subject of a consignment.
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(13) "Commercial tort claim" means a claim arising in | ||
tort with respect
to which:
| ||
(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 | ||
business or profession;
and
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(ii) does not include damages arising out of | ||
personal injury to or
the death of an individual.
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(14) "Commodity account" means an account maintained | ||
by a
commodity intermediary in which a commodity contract | ||
is carried for a commodity
customer.
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(15) "Commodity contract" means a commodity futures | ||
contract, an
option on a commodity futures contract, a | ||
commodity option, or another contract if
the contract or | ||
option is:
| ||
(A) traded on or subject to the rules of a board of | ||
trade that has been
designated as a contract market for | ||
such a contract pursuant to federal commodities
laws; | ||
or
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(B) traded on a foreign commodity board of trade, | ||
exchange, or
market, and is carried on the books of a | ||
commodity intermediary for a commodity
customer.
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(16) "Commodity customer" means a person for which a | ||
commodity
intermediary carries a commodity contract on its | ||
books.
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(17) "Commodity intermediary" means a person that:
| ||
(A) is registered as a futures commission merchant | ||
under federal
commodities law; or
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(B) in the ordinary course of its business provides | ||
clearance or
settlement services for a board of trade | ||
that has been designated as a contract
market pursuant | ||
to federal commodities law.
| ||
(18) "Communicate" means:
| ||
(A) to send a written or other tangible record;
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(B) to transmit a record by any means agreed upon | ||
by the persons
sending and receiving the record; or
| ||
(C) in the case of transmission of a record to or | ||
by a filing office, to
transmit a record by any means | ||
prescribed by filing-office rule.
| ||
(19) "Consignee" means a merchant to which goods are | ||
delivered in a
consignment.
| ||
(20) "Consignment" means a transaction, regardless of | ||
its form, in
which a person delivers goods to a merchant | ||
for the purpose of sale and:
| ||
(A) the merchant:
| ||
(i) deals in goods of that kind under a name | ||
other than the name
of the person making delivery;
| ||
(ii) is not an auctioneer; and
| ||
(iii) is not generally known by its creditors | ||
to be substantially
engaged in selling the goods of | ||
others;
| ||
(B) with respect to each delivery, the aggregate | ||
value of the goods is
$1,000 or more at the time of | ||
delivery;
| ||
(C) the goods are not consumer goods immediately | ||
before delivery;
and
| ||
(D) the transaction does not create a security | ||
interest that secures an
obligation.
| ||
(21) "Consignor" means a person that delivers goods to | ||
a consignee in
a consignment.
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(22) "Consumer debtor" means a debtor in a consumer | ||
transaction.
| ||
(23) "Consumer goods" means goods that are used or | ||
bought for use
primarily for personal, family, or household | ||
purposes.
| ||
(24) "Consumer-goods transaction" means a consumer | ||
transaction in
which:
| ||
(A) an individual incurs an obligation primarily | ||
for personal, family,
or household purposes; and
| ||
(B) a security interest in consumer goods secures | ||
the obligation.
| ||
(25) "Consumer obligor" means an obligor who is an | ||
individual and
who incurred the obligation as part of a | ||
transaction entered into primarily for
personal, family, | ||
or household purposes.
| ||
(26) "Consumer transaction" means a transaction in | ||
which (i) an
individual incurs an obligation primarily for | ||
personal, family, or household
purposes, (ii) a security | ||
interest secures the obligation, and (iii) the collateral | ||
is held
or acquired primarily for personal, family, or | ||
household purposes. The term
includes consumer-goods | ||
transactions.
| ||
(27) "Continuation statement" means an amendment of a | ||
financing
statement which:
| ||
(A) identifies, by its file number, the initial | ||
financing statement to
which it relates; and
|
(B) indicates that it is a continuation statement | ||
for, or that it is filed
to continue the effectiveness | ||
of, the identified financing statement.
| ||
(28) "Debtor" means:
| ||
(A) a person having an interest, other than a | ||
security interest or other
lien, in the collateral, | ||
whether or not the person is an obligor;
| ||
(B) a seller of accounts, chattel paper, payment | ||
intangibles, or
promissory notes; or
| ||
(C) a consignee.
| ||
(29) "Deposit account" means a demand, time, savings, | ||
passbook,
nonnegotiable certificates of deposit,
| ||
uncertificated certificates of deposit, nontransferrable | ||
certificates of
deposit, or
similar account maintained | ||
with a bank. The term does not include investment
property | ||
or accounts evidenced by an instrument.
| ||
(30) "Document" means a document of title or a receipt | ||
of the type
described in Section 7-201(b).
| ||
(31) "Electronic chattel paper" means chattel paper | ||
evidenced by a
record or records consisting of information | ||
stored in an electronic medium.
| ||
(32) "Encumbrance" means a right, other than an | ||
ownership interest, in
real property. The term includes | ||
mortgages and other liens on real property.
| ||
(33) "Equipment" means goods other than inventory, | ||
farm products, or
consumer goods.
|
(34) "Farm products" means goods, other than standing | ||
timber, with
respect to which the debtor is engaged in a | ||
farming operation and which are:
| ||
(A) crops grown, growing, or to be grown, | ||
including:
| ||
(i) crops produced on trees, vines, and | ||
bushes; and
| ||
(ii) aquatic goods produced in aquacultural | ||
operations;
| ||
(B) livestock, born or unborn, including aquatic | ||
goods produced in
aquacultural operations;
| ||
(C) supplies used or produced in a farming | ||
operation; or
| ||
(D) products of crops or livestock in their | ||
unmanufactured states.
| ||
(35) "Farming operation" means raising, cultivating, | ||
propagating,
fattening, grazing, or any other farming, | ||
livestock, or aquacultural operation.
| ||
(36) "File number" means the number assigned to an | ||
initial financing
statement pursuant to Section 9-519(a).
| ||
(37) "Filing office" means an office designated in | ||
Section 9-501 as the
place to file a financing statement.
| ||
(38) "Filing-office rule" means a rule adopted | ||
pursuant to Section
9-526.
| ||
(39) "Financing statement" means a record or records | ||
composed of an
initial financing statement and any filed |
record relating to the initial financing
statement.
| ||
(40) "Fixture filing" means the filing of a financing | ||
statement covering
goods that are or are to become fixtures | ||
and satisfying Section 9-502(a) and (b).
The term includes | ||
the filing of a financing statement covering goods of a
| ||
transmitting utility which are or are to become fixtures.
| ||
(41) "Fixtures" means goods that have become so related | ||
to particular
real property that an interest in them arises | ||
under real property law.
| ||
(42) "General intangible" means any personal property, | ||
including
things in action, other than accounts, chattel | ||
paper, commercial tort claims, deposit
accounts, | ||
documents, goods, instruments, investment property, | ||
letter-of-credit
rights, letters of credit, money, and | ||
oil, gas, or other minerals before extraction.
The term | ||
includes payment intangibles and software.
| ||
(43) "Good faith" means honesty in fact and the | ||
observance of
reasonable commercial standards of fair | ||
dealing.
| ||
(44) "Goods" means all things that are movable when a | ||
security interest
attaches. The term includes (i) | ||
fixtures, (ii) standing timber that is to be cut and
| ||
removed under a conveyance or contract for sale, (iii) the | ||
unborn young of animals,
(iv) crops grown, growing, or to | ||
be grown, even if the crops are produced on trees,
vines, | ||
or bushes, and (v) manufactured homes. The term also |
includes a computer
program embedded in goods and any | ||
supporting information provided in
connection with a | ||
transaction relating to the program if (i) the program is
| ||
associated with the goods in such a manner that it | ||
customarily is considered part of
the goods, or (ii) by | ||
becoming the owner of the goods, a person acquires a right | ||
to
use the program in connection with the goods. The term | ||
does not include a
computer program embedded in goods that | ||
consist solely of the medium in which
the program is | ||
embedded. The term also does not include accounts, chattel | ||
paper,
commercial tort claims, deposit accounts, | ||
documents, general intangibles,
instruments, investment | ||
property, letter-of-credit rights, letters of credit, | ||
money, or
oil, gas, or other minerals before extraction.
| ||
(45) "Governmental unit" means a subdivision, agency, | ||
department,
county, parish, municipality, or other unit of | ||
the government of the United States, a
State, or a foreign | ||
country. The term includes an organization having a | ||
separate
corporate existence if the organization is | ||
eligible to issue debt on which interest is
exempt from | ||
income taxation under the laws of the United States.
| ||
(46) "Health-care-insurance receivable" means an | ||
interest in or claim
under a policy of insurance which is a | ||
right to payment of a monetary
obligation for
health-care | ||
goods or services provided.
| ||
(47) "Instrument" means a negotiable instrument or any |
other writing
that evidences a right to the payment of a | ||
monetary obligation, is not itself a
security agreement or | ||
lease, and is of a type that in ordinary course of
business | ||
is
transferred by delivery with any necessary indorsement | ||
or assignment. The term
does not include (i) investment | ||
property, (ii) letters of credit,
(iii) nonnegotiable
| ||
certificates of deposit, (iv) uncertificated certificates | ||
of deposit, (v)
nontransferrable certificates of deposit, | ||
or (vi)
writings that
evidence a right to payment arising | ||
out of the use of a credit or charge card
or
information | ||
contained on or for use with the card.
| ||
(48) "Inventory" means goods, other than farm | ||
products, which:
| ||
(A) are leased by a person as lessor;
| ||
(B) are held by a person for sale or lease or to be | ||
furnished under a
contract of service;
| ||
(C) are furnished by a person under a contract of | ||
service; or
| ||
(D) consist of raw materials, work in process, or | ||
materials used or
consumed in a business.
| ||
(49) "Investment property" means a security, whether | ||
certificated or
uncertificated, security entitlement, | ||
securities account, commodity contract, or
commodity | ||
account.
| ||
(50) "Jurisdiction of organization", with respect to a | ||
registered
organization, means the jurisdiction under |
whose law the organization is formed or organized.
| ||
(51) "Letter-of-credit right" means a right to payment | ||
or performance
under a letter of credit, whether or not the | ||
beneficiary has demanded or is at the
time entitled to | ||
demand payment or performance. The term does not include | ||
the
right of a beneficiary to demand payment or performance | ||
under a letter of credit.
| ||
(52) "Lien creditor" means:
| ||
(A) a creditor that has acquired a lien on the | ||
property involved by
attachment, levy, or the like;
| ||
(B) an assignee for benefit of creditors from the | ||
time of assignment;
| ||
(C) a trustee in bankruptcy from the date of the | ||
filing of the petition;
or
| ||
(D) a receiver in equity from the time of | ||
appointment.
| ||
(53) "Manufactured home" means a factory-assembled, | ||
completely integrated structure designed for permanent | ||
habitation, with a permanent chassis, and so constructed as | ||
to permit its transport, on wheels temporarily or | ||
permanently attached to its frame, and is a movable or | ||
portable unit that is (i) 8 body feet or more in width, | ||
(ii) 40 body feet or more in length, and (iii) 320 or more | ||
square feet, constructed to be towed on its own chassis | ||
(comprised of frame and wheels) from the place of its | ||
construction to the location, or subsequent locations, at |
which it is installed and set up according to the | ||
manufacturer's instructions and connected to utilities for | ||
year-round occupancy for use as a permanent habitation, and | ||
designed and situated so as to permit its occupancy as a | ||
dwelling place for one or more persons. The term shall | ||
include units containing parts that may be folded, | ||
collapsed, or telescoped when being towed and that may be | ||
expected to provide additional cubic capacity, and that are | ||
designed to be joined into one integral unit capable of | ||
being separated again into the components for repeated | ||
towing. The term shall exclude campers and recreational | ||
vehicles.
| ||
(54) "Manufactured-home transaction" means a secured | ||
transaction:
| ||
(A) that creates a purchase-money security | ||
interest in a
manufactured home, other than a | ||
manufactured home held as inventory; or
| ||
(B) in which a manufactured home, other than a | ||
manufactured home
held as inventory, is the primary | ||
collateral.
| ||
(55) "Mortgage" means a consensual interest in real | ||
property, including
fixtures, which secures payment or | ||
performance of an obligation.
| ||
(56) "New debtor" means a person that becomes bound as | ||
debtor under
Section 9-203(d) by a security agreement | ||
previously entered into by another
person.
|
(57) "New value" means (i) money, (ii) money's worth in | ||
property,
services, or new credit, or (iii) release by a | ||
transferee of an interest in property
previously | ||
transferred to the transferee. The term does not include an | ||
obligation
substituted for another obligation.
| ||
(58) "Noncash proceeds" means proceeds other than cash | ||
proceeds.
| ||
(59) "Obligor" means a person that, with respect to an | ||
obligation
secured by a security interest in or an | ||
agricultural lien on the collateral,
(i) owes
payment or | ||
other performance of the obligation, (ii) has provided | ||
property
other
than the collateral to secure payment or | ||
other performance of the obligation,
or (iii)
is otherwise | ||
accountable in whole or in part for payment or other | ||
performance
of
the obligation. The term does not include | ||
issuers or nominated persons under a
letter of credit.
| ||
(60) "Original debtor",
except as used in Section
| ||
9-310(c), means
a person that, as debtor, entered into a
| ||
security agreement to which a new debtor has become bound | ||
under Section
9-203(d).
| ||
(61) "Payment intangible" means a general intangible | ||
under which the
account debtor's principal obligation is a | ||
monetary obligation.
| ||
(62) "Person related to", with respect to an | ||
individual, means:
| ||
(A) the spouse of the individual;
|
(B) a brother, brother-in-law, sister, or | ||
sister-in-law of the
individual;
| ||
(C) an ancestor or lineal descendant of the | ||
individual or the
individual's spouse; or
| ||
(D) any other relative, by blood or marriage, of | ||
the individual or the
individual's spouse who shares | ||
the same home with the individual.
| ||
(63) "Person related to", with respect to an | ||
organization, means:
| ||
(A) a person directly or indirectly controlling, | ||
controlled by, or
under common control with the | ||
organization;
| ||
(B) an officer or director of, or a person | ||
performing similar
functions with respect to, the | ||
organization;
| ||
(C) an officer or director of, or a person | ||
performing similar
functions with respect to, a person | ||
described in subparagraph (A);
| ||
(D) the spouse of an individual described in | ||
subparagraph (A), (B),
or (C); or
| ||
(E) an individual who is related by blood or | ||
marriage to an
individual described in subparagraph | ||
(A), (B), (C), or (D) and shares the same
home with the | ||
individual.
| ||
(64) "Proceeds", except as used in Section
9-609(b), | ||
means
the following property:
|
(A) whatever is acquired upon the sale, lease, | ||
license, exchange, or
other disposition of collateral;
| ||
(B) whatever is collected on, or distributed on | ||
account of, collateral;
| ||
(C) rights arising out of collateral;
| ||
(D) to the extent of the value of collateral, | ||
claims arising out of the
loss, nonconformity, or | ||
interference with the use of, defects or infringement
| ||
of
rights in, or damage to, the collateral; or
| ||
(E) to the extent of the value of collateral and to | ||
the extent payable
to the debtor or the secured party, | ||
insurance payable by reason of the loss or
| ||
nonconformity of, defects or infringement of rights | ||
in, or damage to, the
collateral.
| ||
(65) "Promissory note" means an instrument that | ||
evidences a promise
to pay a monetary obligation, does not | ||
evidence an order to pay, and does not
contain an | ||
acknowledgment by a bank that the bank has received for | ||
deposit a
sum
of money or funds.
| ||
(66) "Proposal" means a record authenticated by a | ||
secured party which
includes the terms on which the secured | ||
party is willing to accept collateral
in full
or partial | ||
satisfaction of the obligation it secures pursuant to | ||
Sections
9-620, 9-621,
and 9-622.
| ||
(67) "Public-finance transaction" means a secured | ||
transaction in
connection with which:
|
(A) debt securities are issued;
| ||
(B) all or a portion of the securities issued have | ||
an initial stated
maturity of at least 20 years; and
| ||
(C) the debtor, obligor, secured party, account | ||
debtor or other person
obligated on collateral, | ||
assignor or assignee of a secured obligation, or
| ||
assignor or
assignee of a security interest is a State | ||
or a governmental unit of a State.
| ||
(68) "Public organic record" means a record that is | ||
available to the public for inspection and is: | ||
(A) a record consisting of the record initially | ||
filed with or issued by a State or the United States to | ||
form or organize an organization and any record filed | ||
with or issued by the State or the United States which | ||
amends or restates the initial record; | ||
(B) an organic record of a business trust | ||
consisting of the record initially filed with a State | ||
and any record filed with the State which amends or | ||
restates the initial record, if a statute of the State | ||
governing business trusts requires that the record be | ||
filed with the State; or | ||
(C) a record consisting of legislation enacted by | ||
the legislature of a State or the Congress of the | ||
United States which forms or organizes an | ||
organization, any record amending the legislation, and | ||
any record filed with or issued by the State or the |
United States which amends or restates the name of the | ||
organization.
| ||
(69) (68) "Pursuant to commitment", with respect to an | ||
advance made or
other value given by a secured party, means | ||
pursuant to the secured party's
obligation, whether or not | ||
a subsequent event of default or other event not
within
the | ||
secured party's control has relieved or may relieve the | ||
secured party from
its
obligation.
| ||
(70) (69) "Record", except as used in "for record", "of | ||
record", "record or
legal title", and "record owner", means | ||
information that is inscribed on a
tangible
medium or which | ||
is stored in an electronic or other medium and is | ||
retrievable
in
perceivable form.
| ||
(71) (70) "Registered organization" means an | ||
organization formed or organized solely
under the law of a | ||
single State or the United States by the filing of a public | ||
organic record with, the issuance of a public organic | ||
record by, or the enactment of legislation by the State or | ||
the United States. The term includes a business trust that | ||
is formed or organized under the law of a single State if a | ||
statute of the State governing business trusts requires | ||
that the business trust's organic record be filed with the | ||
State and as to which the State
or the
United States must | ||
maintain a public record showing the organization to have
| ||
been
organized .
| ||
(72) (71) "Secondary obligor" means an obligor to the |
extent that:
| ||
(A) the obligor's obligation is secondary; or
| ||
(B) the obligor has a right of recourse with | ||
respect to an obligation
secured by collateral against | ||
the debtor, another obligor, or property of
either.
| ||
(73) (72) "Secured party" means:
| ||
(A) a person in whose favor a security interest is | ||
created or provided
for under a security agreement, | ||
whether or not any obligation to be secured is
| ||
outstanding;
| ||
(B) a person that holds an agricultural lien;
| ||
(C) a consignor;
| ||
(D) a person to which accounts, chattel paper, | ||
payment intangibles,
or promissory notes have been | ||
sold;
| ||
(E) a trustee, indenture trustee, agent, | ||
collateral agent, or other
representative in whose | ||
favor a security interest or agricultural lien is
| ||
created or
provided for; or
| ||
(F) a person that holds a security interest arising | ||
under Section
2-401, 2-505, 2-711(3), 2A-508(5), | ||
4-210, or 5-118.
| ||
(74) (73) "Security agreement" means an agreement that | ||
creates or provides
for a security interest.
| ||
(75) (74) "Send", in connection with a record or | ||
notification, means:
|
(A) to deposit in the mail, deliver for | ||
transmission, or transmit by
any other usual means of | ||
communication, with postage or cost of transmission
| ||
provided for, addressed to any address reasonable | ||
under the circumstances; or
| ||
(B) to cause the record or notification to be | ||
received within the time
that it would have been | ||
received if properly sent under subparagraph (A).
| ||
(76) (75) "Software" means a computer program and any | ||
supporting
information provided in connection with a | ||
transaction relating to the program.
The
term does not | ||
include a computer program that is included in the | ||
definition of
goods.
| ||
(77) (76) "State" means a State of the United States, | ||
the District of
Columbia, Puerto Rico, the United States | ||
Virgin Islands, or any territory or
insular
possession | ||
subject to the jurisdiction of the United States.
| ||
(78) (77) "Supporting obligation" means a | ||
letter-of-credit right or secondary
obligation that | ||
supports the payment or performance of an account, chattel
| ||
paper, a
document, a general intangible, an instrument, or | ||
investment property.
| ||
(79) (78) "Tangible chattel paper" means chattel paper | ||
evidenced by a
record or records consisting of information | ||
that is inscribed on a tangible
medium.
| ||
(80) (79) "Termination statement" means an amendment |
of a financing
statement which:
| ||
(A) identifies, by its file number, the initial | ||
financing statement to
which it relates; and
| ||
(B) indicates either that it is a termination | ||
statement or that the
identified financing statement | ||
is no longer effective.
| ||
(81) (80) "Transmitting utility" means a person | ||
primarily engaged in the
business of:
| ||
(A) operating a railroad, subway, street railway, | ||
or trolley bus;
| ||
(B) transmitting communications electrically, | ||
electromagnetically,
or by light;
| ||
(C) transmitting goods by pipeline or sewer; or
| ||
(D) transmitting or producing and transmitting | ||
electricity, steam,
gas, or water.
| ||
(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.)
| ||
(810 ILCS 5/9-105) (from Ch. 26, par. 9-105)
| ||
Sec. 9-105. Control of electronic chattel paper. | ||
(a) General rule: Control of electronic chattel paper. A | ||
secured party has
control
of electronic chattel paper if a | ||
system employed for evidencing the transfer of interests in the | ||
chattel paper reliably establishes the secured party as the | ||
person to which the chattel paper was assigned. | ||
(b) Specific facts giving control. A system satisfies | ||
subsection (a) if the record or records comprising the chattel
| ||
paper are
created, stored, and assigned in such a manner that:
| ||
(1) a single authoritative copy of the record or | ||
records exists which is
unique, identifiable and, except as | ||
otherwise provided in paragraphs (4), (5),
and
(6), | ||
unalterable;
| ||
(2) the authoritative copy identifies the secured | ||
party as the assignee of
the record or records;
| ||
(3) the authoritative copy is communicated to and |
maintained by the
secured party or its designated | ||
custodian;
| ||
(4) copies or amendments revisions that add or change | ||
an identified assignee of the
authoritative copy can be | ||
made only with the consent participation of the secured
| ||
party;
| ||
(5) each copy of the authoritative copy and any copy of | ||
a copy is readily
identifiable as a copy that is not the | ||
authoritative copy; and
| ||
(6) any amendment revision of the authoritative copy is | ||
readily identifiable as an
authorized or unauthorized | ||
revision .
| ||
(Source: P.A. 90-665, eff. 7-30-98; 91-893, eff. 7-1-01.)
| ||
(810 ILCS 5/9-307) (from Ch. 26, par. 9-307)
| ||
Sec. 9-307. Location of debtor.
| ||
(a) "Place of business." In this Section, "place of | ||
business" means
a place where a debtor conducts its affairs.
| ||
(b) Debtor's location: general rules. Except as otherwise
| ||
provided in this Section, the following rules determine a | ||
debtor's location:
| ||
(1) A debtor who is an individual is located at the
| ||
individual's principal residence.
| ||
(2) A debtor that is an organization and has only one | ||
place
of business is located at its place of business.
| ||
(3) A debtor that is an organization and has more than |
one
place of business is located at its chief executive | ||
office.
| ||
(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 |
designates, if
the law designates a State of location;
| ||
(2) in the State that the registered organization, | ||
branch, or
agency designates, if the law of the United | ||
States authorizes the registered
organization, branch, or | ||
agency to designate its State of location , including by | ||
designating its main office, home office, or other | ||
comparable office ; or
| ||
(3) in the District of Columbia, if neither paragraph | ||
(1) nor
paragraph (2) applies.
| ||
(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 | ||
of the registered
organization's status as such in its | ||
jurisdiction of organization; or
| ||
(2) the dissolution, winding up, or cancellation of the
| ||
existence of the registered organization.
| ||
(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.)
| ||
(810 ILCS 5/9-311) (from Ch. 26, par. 9-311)
| ||
Sec. 9-311.
Perfection of security interests in property | ||
subject to
certain
statutes, regulations, and treaties.
| ||
(a) Security interest subject to other law. Except as | ||
otherwise
provided in subsection (d), the filing of a financing | ||
statement is not
necessary or
effective to perfect a security | ||
interest in property subject to:
| ||
(1) a statute, regulation, or treaty of the United | ||
States whose
requirements for a security interest's | ||
obtaining priority over the rights of a
lien
creditor with | ||
respect to the property preempt Section 9-310(a);
| ||
(2) the Illinois Vehicle Code or the Boat Registration | ||
and Safety Act;
or
| ||
(3) a certificate-of-title statute of another | ||
jurisdiction which
provides for a security interest to be | ||
indicated on a the certificate of title as a
condition or
| ||
result of the security interest's obtaining priority over | ||
the rights of a lien
creditor
with respect to the property.
|
(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.)
| ||
(810 ILCS 5/9-316) (from Ch. 26, par. 9-316)
| ||
Sec. 9-316. Effect of Continued perfection of security | ||
interest following 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 law | ||
of
that jurisdiction;
| ||
(2) the expiration of four months after a change of the
| ||
debtor's location to another jurisdiction; or
| ||
(3) the expiration of one year after a transfer of | ||
collateral to a
person that thereby becomes a debtor and is | ||
located in another jurisdiction.
| ||
(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 | ||
subject to
a security interest perfected under the law of | ||
that jurisdiction;
| ||
(2) thereafter the collateral is brought into another
| ||
jurisdiction; and
| ||
(3) upon entry into the other jurisdiction, the | ||
security interest
is perfected under the law of the other | ||
jurisdiction.
| ||
(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
| ||
unperfected under the law of the other jurisdiction had the | ||
goods not become
covered by a certificate of title from | ||
this State; or
| ||
(2) the expiration of four months after the goods had | ||
become
so covered.
| ||
(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
| ||
unperfected under the law of that jurisdiction; or
| ||
(2) the expiration of four months after a change of the
| ||
applicable jurisdiction to another jurisdiction.
| ||
(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 | ||
pursuant to the law of the jurisdiction designated in | ||
Section 9-301(1) or 9-305(c) is effective to perfect a | ||
security interest in the collateral if the financing | ||
statement would have been effective to perfect a security | ||
interest in the collateral had the debtor not changed its | ||
location. | ||
(2) If a security interest perfected by a financing | ||
statement that is effective under paragraph (1) becomes | ||
perfected under the law of the other jurisdiction before | ||
the earlier of the time the financing statement would have | ||
become ineffective under the law of the jurisdiction | ||
designated in Section 9-301(1) or 9-305(c) or the | ||
expiration of the four-month period, it remains perfected | ||
thereafter. If the security interest does not become | ||
perfected under the law of the other jurisdiction before | ||
the earlier time or event, it becomes unperfected and is | ||
deemed never to have been perfected as against a purchaser | ||
of the collateral for value. |
(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 a | ||
security interest in collateral acquired by the new debtor | ||
before, and within four months after, the new debtor | ||
becomes bound under Section 9-203(d), if the financing | ||
statement would have been effective to perfect a security | ||
interest in the collateral had the collateral been acquired | ||
by the original debtor. | ||
(2) A security interest perfected by the financing | ||
statement and which becomes perfected under the law of the | ||
other jurisdiction before the earlier of the time the | ||
financing statement would have become ineffective under | ||
the law of the jurisdiction designated in Section 9-301(1) | ||
or 9-305(c) or the expiration of the four-month period | ||
remains perfected thereafter. A security interest that is | ||
perfected by the financing statement but which does not | ||
become perfected under the law of the other jurisdiction | ||
before the earlier time or event 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.)
|
(810 ILCS 5/9-317) (from Ch. 26, par. 9-317)
| ||
Sec. 9-317. Interests that take priority over or take free | ||
of
security interest or agricultural lien. | ||
(a) Conflicting security interests and rights of lien | ||
creditors. A
security interest or agricultural lien is | ||
subordinate to the rights
of:
| ||
(1) a person entitled to priority under Section 9-322; | ||
and
| ||
(2) except as otherwise provided in subsection (e) or | ||
(f), a person
that becomes a lien creditor before the | ||
earlier of the time:
| ||
(A) the security interest or agricultural lien is | ||
perfected; or
| ||
(B) one of the conditions specified in Section | ||
9-203(b)(3) is met and a
financing statement covering | ||
the collateral is filed.
| ||
(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 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 collateral accounts, electronic
chattel paper, electronic | ||
documents,
general intangibles, or investment property 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. 95-895, eff. 1-1-09.)
| ||
(810 ILCS 5/9-326)
| ||
Sec. 9-326. Priority of security interests created by new | ||
debtor.
| ||
(a) Subordination of security interest created by new | ||
debtor.
Subject to subsection (b), a security interest that is | ||
created by a new debtor in collateral in which the new debtor | ||
has or acquires rights and is
perfected solely by a filed | ||
financing statement that would be ineffective to perfect the | ||
security interest but for the application of Section | ||
9-316(i)(1) or 9-508 is effective solely under Section
9-508
in | ||
collateral in which a new debtor has or acquires rights is | ||
subordinate to a
security interest in the same collateral which | ||
is perfected other than by such a
filed
financing statement | ||
that is effective solely under Section 9-508 .
| ||
(b) Priority under other provisions; multiple original | ||
debtors.
The other provisions of this Part determine the | ||
priority among conflicting
security
interests in the same | ||
collateral perfected by filed financing statements described | ||
in subsection (a) that
are
effective solely under Section | ||
9-508 . However, if the security agreements to
which
a new | ||
debtor became bound as debtor were not entered into by the same |
original
debtor, the conflicting security interests rank | ||
according to priority in time
of the
new debtor's having become | ||
bound.
| ||
(Source: P.A. 91-893, eff. 7-1-01.)
| ||
(810 ILCS 5/9-406) (from Ch. 26, par. 9-406)
| ||
Sec. 9-406.
Discharge of account debtor; notification of | ||
assignment;
identification and proof of assignment; | ||
restrictions on assignment of accounts,
chattel paper, payment | ||
intangibles, and promissory notes ineffective.
| ||
(a) Discharge of account debtor; effect of notification. | ||
Subject to
subsections (b) through (i), an account debtor on an | ||
account, chattel paper, or
a
payment intangible may discharge | ||
its obligation by paying the assignor until,
but
not after, the | ||
account debtor receives a notification, authenticated by the
| ||
assignor or
the assignee, that the amount due or to become due | ||
has been assigned and that
payment is to be made to the | ||
assignee. After receipt of the notification, the
account
debtor | ||
may discharge its obligation by paying the assignee and may not
| ||
discharge
the obligation by paying the assignor.
| ||
(b) When notification ineffective. Subject to subsection | ||
(h),
notification is ineffective under subsection (a):
| ||
(1) if it does not reasonably identify the rights | ||
assigned;
| ||
(2) to the extent that an agreement between an account
| ||
debtor and a seller of a payment intangible limits the |
account debtor's duty to pay a
person other than the seller | ||
and the limitation is effective under law other than this
| ||
Article; or
| ||
(3) at the option of an account debtor, if the | ||
notification
notifies the account debtor to make less than | ||
the full amount of any installment or
other periodic | ||
payment to the assignee, even if:
| ||
(A) only a portion of the account, chattel paper, | ||
or
payment intangible has been assigned to that | ||
assignee;
| ||
(B) a portion has been assigned to another | ||
assignee;
or
| ||
(C) the account debtor knows that the assignment to
| ||
that assignee is limited.
| ||
(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 |
the account
debtor or person obligated on the promissory | ||
note to the assignment or transfer
of,
or the creation, | ||
attachment, perfection, or enforcement of a security | ||
interest
in, the
account, chattel paper, payment | ||
intangible, or promissory note; or
| ||
(2) provides that
the assignment or transfer or
the
| ||
creation, attachment, perfection, or
enforcement of the | ||
security interest may give rise to a default, breach, right
| ||
of
recoupment, claim, defense, termination, right of | ||
termination, or remedy under
the
account, chattel paper, | ||
payment intangible, or promissory note.
| ||
(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 |
the
government, governmental body or official, or account | ||
debtor to the assignment
or
transfer of, or the creation, | ||
attachment, perfection, or enforcement of a
security
| ||
interest in the account or chattel paper; or
| ||
(2) provides that the assignment or transfer or the | ||
creation, attachment,
perfection, or
enforcement of the | ||
security interest may give rise to a default, breach, right
| ||
of
recoupment, claim, defense, termination, right of | ||
termination, or remedy under
the
account or chattel paper.
| ||
(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.)
| ||
(810 ILCS 5/9-408) (from Ch. 26, par. 9-408)
| ||
Sec. 9-408.
Restrictions on assignment of promissory | ||
notes,
health-care-insurance receivables, and certain general | ||
intangibles ineffective.
|
(a) Term restricting assignment generally ineffective. | ||
Except as
otherwise provided in subsection (b), a term in a | ||
promissory note or in
an agreement between an account debtor | ||
and a debtor which relates to a
health-care-insurance | ||
receivable or a general intangible, including a
contract, | ||
permit, license, or franchise, and which term prohibits, | ||
restricts,
or requires the consent of the person obligated on | ||
the promissory note or the
account debtor to, the assignment or | ||
transfer of, or creation, attachment, or
perfection of a | ||
security interest in, the promissory note,
| ||
health-care-insurance receivable, or general intangible, is | ||
ineffective to the
extent that the term:
| ||
(1) would impair the creation, attachment, or | ||
perfection of a
security interest; or
| ||
(2) provides that the assignment or transfer or the | ||
creation, attachment,
or perfection of the security | ||
interest may give rise to a default, breach,
right of | ||
recoupment, claim, defense, termination, right of | ||
termination, or
remedy under the promissory note, | ||
health-care-insurance receivable, or general
intangible.
| ||
(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 | ||
perfection of a security
interest; or
| ||
(2) provides that the assignment or transfer or the | ||
creation, attachment,
or perfection of the security | ||
interest may give rise to a default, breach,
right of | ||
recoupment, claim, defense, termination, right of | ||
termination, or
remedy under the promissory note, | ||
health-care-insurance receivable, or general
intangible.
| ||
(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 on | ||
the promissory
note or the account debtor;
| ||
(2) does not impose a duty or obligation on the person | ||
obligated on the
promissory note or the account debtor;
| ||
(3) does not require the person obligated on the | ||
promissory note or the
account debtor to recognize the | ||
security interest, pay or render performance
to the secured | ||
party, or accept payment or performance from the secured | ||
party;
| ||
(4) does not entitle the secured party to use or assign | ||
the debtor's
rights under the promissory note, | ||
health-care-insurance receivable, or general
intangible, | ||
including any related information or materials furnished | ||
to the
debtor in the transaction giving rise to the | ||
promissory note,
health-care-insurance receivable, or | ||
general intangible;
| ||
(5) does not entitle the secured party to use, assign, | ||
possess,
or have access to any trade secrets or | ||
confidential information of the person
obligated on the | ||
promissory note or the account debtor; and
| ||
(6) does not entitle the secured party to enforce the | ||
security interest in
the promissory note, | ||
health-care-insurance receivable, or general intangible.
|
(Source: P.A. 91-893, eff. 7-1-01.)
| ||
(810 ILCS 5/9-502) (from Ch. 26, par. 9-502)
| ||
Sec. 9-502.
Contents of financing statement; record of | ||
mortgage as
financing statement; time of filing financing | ||
statement.
| ||
(a) Sufficiency of financing statement. Subject to | ||
subsection (b),
a financing statement is sufficient only if it:
| ||
(1) provides the name of the debtor;
| ||
(2) provides the name of the secured party or a | ||
representative
of the secured party; and
| ||
(3) indicates the collateral covered by the financing
| ||
statement.
| ||
(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
| ||
property records;
| ||
(3) provide a description of the real property to which | ||
the
collateral is related sufficient to give constructive | ||
notice of a mortgage
under the
law of this State if the | ||
description were contained in a record of the mortgage
of |
the
real property; and
| ||
(4) if the debtor does not have an interest of record | ||
in the real
property, provide the name of a record owner.
| ||
(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 it | ||
covers;
| ||
(2) the goods are or are to become fixtures related to | ||
the real
property described in the record or the collateral | ||
is related to the real
property
described in the record and | ||
is as-extracted collateral or timber to be cut;
| ||
(3) the record satisfies the requirements for a | ||
financing
statement in this Section , but: | ||
(A) the record need not indicate other than an | ||
indication that it is to be filed in
the real
property | ||
records; and
| ||
(B) the record sufficiently provides the name of a | ||
debtor who is an individual if it provides the | ||
individual name of the debtor or the surname and first | ||
personal name of the debtor, even if the debtor is an | ||
individual to whom Section 9-503(a)(4) applies; and
| ||
(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.)
| ||
(810 ILCS 5/9-503) (from Ch. 26, par. 9-503)
| ||
Sec. 9-503. Name of debtor and secured party.
| ||
(a) Sufficiency of debtor's name. A financing statement
| ||
sufficiently provides the name of the debtor:
| ||
(1) except as otherwise provided in paragraph (3), if | ||
the debtor is a registered organization or the collateral | ||
is held in a trust that is a registered organization , only | ||
if the
financing statement provides the name that is stated | ||
to be the registered organization's name of the debtor | ||
indicated on the public organic
record most recently filed | ||
with or issued or enacted by
of the registered | ||
organization's debtor's jurisdiction of organization which | ||
purports to state, amend, or restate the registered | ||
organization's name shows the debtor to have
been
| ||
organized ;
| ||
(2) subject to subsection (f), if the collateral is | ||
being administered by the personal representative of a | ||
decedent debtor is a decedent's estate , only if the | ||
financing
statement provides , as the name of the debtor, | ||
the name of the decedent and , in a separate part of the | ||
financing statement, indicates that the collateral is | ||
being administered by a personal representative debtor is |
an
estate ;
| ||
(3) if the collateral is held in a trust that is not a | ||
registered organization debtor is a trust or a trustee | ||
acting with respect to
property held in trust , only if the | ||
financing statement:
| ||
(A) provides , as the name of the debtor: | ||
(i) if the organic record of the trust | ||
specifies a name for the trust, the name specified; | ||
or | ||
(ii) if the organic record of the trust does | ||
not specify a name for the trust, the name of the | ||
settlor or testator the name specified for the | ||
trust in its
organic documents or, if no name is | ||
specified, provides the name of the settlor and
| ||
additional information sufficient to distinguish | ||
the debtor from other trusts having
one or more of | ||
the same settlors ; and
| ||
(B) in a separate part of the financing statement: | ||
(i) if the name is provided in accordance with | ||
subparagraph (A)(i), indicates that the collateral | ||
is held in a trust; or | ||
(ii) if the name is provided in accordance with | ||
subparagraph (A)(ii), provides additional | ||
information sufficient to distinguish the trust | ||
from other trusts having one or more of the same | ||
settlors or the same testator and indicates that |
the collateral is held in a trust, unless the | ||
additional information so indicates; | ||
(4) subject to subsection (g), if the debtor is an | ||
individual to whom this State has issued a driver's license | ||
that has not expired, only if the financing statement | ||
provides the name of the individual which is indicated on | ||
the driver's license; | ||
(5) if the debtor is an individual to whom paragraph | ||
(4) does not apply, only if the financing statement | ||
provides the individual name of the debtor or the surname | ||
and first personal name of the debtor indicates, in the | ||
debtor's name or otherwise, that
the debtor is a trust or | ||
is a trustee acting with respect to property held in trust ; | ||
and
| ||
(6) (4) in other cases:
| ||
(A) if the debtor has a name, only if the financing | ||
statement it provides the
individual or organizational | ||
name of the debtor; and
| ||
(B) if the debtor does not have a name, only if it
| ||
provides the names of the partners, members, | ||
associates, or other persons
comprising the debtor , in | ||
a manner that each name provided would be sufficient if | ||
the person named were the debtor .
| ||
(b) Additional debtor-related information. A financing | ||
statement
that provides the name of the debtor in accordance | ||
with subsection (a) is not
rendered ineffective by the absence |
of:
| ||
(1) a trade name or other name of the debtor; or
| ||
(2) unless required under subsection (a)(6)(B) | ||
(a)(4)(B) , names of
partners, members, associates, or | ||
other persons comprising the debtor.
| ||
(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 | ||
name that is stated to be the settlor's name on the public | ||
organic record most recently filed with or issued or | ||
enacted by the settlor's jurisdiction of organization | ||
which purports to state, amend, or restate the settlor's | ||
name; or | ||
(2) in other cases, the name of the settlor or testator | ||
indicated in the trust's organic record. | ||
(Source: P.A. 91-893, eff. 7-1-01.)
| ||
(810 ILCS 5/9-507) (from Ch. 26, par. 9-507)
| ||
Sec. 9-507.
Effect of certain events on effectiveness of | ||
financing
statement.
| ||
(a) Disposition. A filed financing statement remains | ||
effective with
respect to collateral that is sold, exchanged, | ||
leased, licensed, or otherwise
disposed
of and in which a | ||
security interest or agricultural lien continues, even if the
| ||
secured
party knows of or consents to the disposition.
| ||
(b) Information becoming seriously misleading. Except as
| ||
otherwise provided in subsection (c) and Section 9-508, a | ||
financing statement
is not
rendered ineffective if, after the | ||
financing statement is filed, the
information
provided in the | ||
financing statement becomes seriously misleading under Section
| ||
9-506.
| ||
(c) Change in debtor's name. If the a debtor so changes its | ||
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 | ||
security
interest in collateral acquired by the debtor | ||
before, or within four months
after, the filed financing | ||
statement becomes seriously misleading
change ; and
| ||
(2) the financing statement is not effective to perfect | ||
a
security interest in collateral acquired by the debtor | ||
more than four months
after the filed financing statement | ||
becomes seriously misleading
change , unless an amendment | ||
to the financing statement which renders the
financing | ||
statement not seriously misleading is filed within four | ||
months after
the filed financing statement becomes | ||
seriously misleading
change .
| ||
(Source: P.A. 90-214, eff. 7-25-97; 91-893, eff. 7-1-01.)
| ||
(810 ILCS 5/9-515)
| ||
Sec. 9-515.
Duration and effectiveness of financing | ||
statement; effect of
lapsed financing statement.
| ||
(a) Five-year effectiveness. Except as otherwise provided | ||
in
subsections (b), (e), (f), and (g), a filed financing | ||
statement is effective
for a period
of five years after the | ||
date of filing.
| ||
(b) Public-finance or manufactured-home transaction. | ||
Except
as otherwise provided in subsections (e), (f), and (g), |
an initial financing
statement
filed in connection with a | ||
public-finance transaction or manufactured-home
transaction is | ||
effective for a period of 30 years after the date of filing if | ||
it indicates
that it is filed in connection with a | ||
public-finance transaction or
manufactured-home transaction.
| ||
(c) Lapse and continuation of financing statement. The
| ||
effectiveness of a filed financing statement lapses on the | ||
expiration of the period of
its effectiveness unless before the | ||
lapse a continuation statement is filed pursuant to
subsection | ||
(d). Upon lapse, a financing statement ceases to be effective | ||
and any
security interest or agricultural lien that was | ||
perfected by the financing statement
becomes unperfected, | ||
unless the security interest is perfected otherwise. If the
| ||
security interest or agricultural lien becomes unperfected | ||
upon lapse, it is deemed
never to have been perfected as | ||
against a purchaser of the collateral for value.
| ||
(d) When continuation statement may be filed. A | ||
continuation
statement may be filed only within six months | ||
before the expiration of the five-year
period specified in | ||
subsection (a) or the 30-year period specified in subsection | ||
(b),
whichever is applicable.
| ||
(e) Effect of filing continuation statement. Except as | ||
otherwise
provided in Section 9-510, upon timely filing of a | ||
continuation statement, the
effectiveness of the initial | ||
financing statement continues for a period of five years
| ||
commencing on the day on which the financing statement would |
have become
ineffective in the absence of the filing. Upon the | ||
expiration of the five-year period,
the financing statement | ||
lapses in the same manner as provided in subsection (c),
| ||
unless, before the lapse, another continuation statement is | ||
filed pursuant to
subsection (d). Succeeding continuation | ||
statements may be filed in the same
manner to continue the | ||
effectiveness of the initial financing statement.
| ||
(f) Transmitting utility financing statement. If a debtor | ||
is a
transmitting utility and a filed initial financing | ||
statement so indicates, the financing
statement is effective | ||
until a termination statement is filed.
| ||
(g) Record of mortgage as financing statement. A record of | ||
a
mortgage that is effective as a financing statement filed as | ||
a fixture filing under
Section 9-502(c) remains effective as a | ||
financing statement filed as a fixture
filing
until the | ||
mortgage is released or satisfied of record or its | ||
effectiveness
otherwise
terminates as to the real property.
| ||
(Source: P.A. 91-893, eff. 7-1-01.)
| ||
(810 ILCS 5/9-516)
| ||
Sec. 9-516. What constitutes filing; effectiveness of | ||
filing.
| ||
(a) What constitutes filing. Except as otherwise provided | ||
in
subsection (b), communication of a record to a filing office | ||
and tender of the
filing
fee or acceptance of the record by the | ||
filing office constitutes filing.
|
(b) Refusal to accept record; filing does not occur. Filing | ||
does
not occur with respect to a record that a filing office | ||
refuses to accept
because:
| ||
(1) the record is not communicated by a method or | ||
medium
of communication authorized by the filing office;
| ||
(2) an amount equal to or greater than the applicable | ||
filing
fee is not tendered;
| ||
(3) the filing office is unable to index the record | ||
because:
| ||
(A) in the case of an initial financing statement, | ||
the
record does not provide a name for the debtor;
| ||
(B) in the case of an amendment or information | ||
correction
statement, the record:
| ||
(i) does not identify the initial financing
| ||
statement as required by Section 9-512 or 9-518, as | ||
applicable; or
| ||
(ii) identifies an initial financing statement
| ||
whose effectiveness has lapsed under Section | ||
9-515;
| ||
(C) in the case of an initial financing statement | ||
that
provides the name of a debtor identified as an | ||
individual or an amendment that
provides a name of a | ||
debtor identified as an individual which was not | ||
previously
provided in the financing statement to | ||
which the record relates, the record does not
identify | ||
the debtor's surname last name ;
|
(D) in the case of a record filed or recorded in | ||
the
filing office described in Section 9-501(a)(1), | ||
the record does not provide a
sufficient description of | ||
the real property to which it relates; or
| ||
(E) in the case of a record submitted to the filing | ||
office described in Section 9-501(b), the debtor does | ||
not meet the definition of a transmitting utility as | ||
described in Section 9-102(a)(80); | ||
(3.5) in the case of an initial financing statement or | ||
an amendment, if the filing office believes in good faith | ||
that a document submitted for filing is being filed for the | ||
purpose of defrauding any person or harassing any person in | ||
the performance of duties as a public servant;
| ||
(4) in the case of an initial financing statement or an
| ||
amendment that adds a secured party of record, the record | ||
does not provide a
name
and mailing address for the secured | ||
party of record;
| ||
(5) in the case of an initial financing statement or an
| ||
amendment that provides a name of a debtor which was not | ||
previously provided in
the financing statement to which the | ||
amendment relates, the record does not:
| ||
(A) provide a mailing address for the debtor; or
| ||
(B) indicate whether the name provided as the name | ||
of the debtor is the name of an individual or an
| ||
organization; or
| ||
(C) if the financing statement indicates that the
|
debtor is an organization, provide:
| ||
(i) a type of organization for the debtor;
| ||
(ii) a jurisdiction of organization for the
| ||
debtor; or
| ||
(iii) an organizational identification number
| ||
for the debtor or indicate that the debtor has | ||
none;
| ||
(6) in the case of an assignment reflected in an | ||
initial
financing statement under Section 9-514(a) or an | ||
amendment filed under Section
9-514(b), the record does not | ||
provide a name and mailing address for the assignee;
or
| ||
(7) in the case of a continuation statement, the record | ||
is not
filed within the six-month period prescribed by | ||
Section 9-515(d).
| ||
(c) Rules applicable to subsection (b). For purposes of | ||
subsection
(b):
| ||
(1) a record does not provide information if the filing | ||
office
is unable to read or decipher the information; and
| ||
(2) a record that does not indicate that it is an | ||
amendment or
identify an initial financing statement to | ||
which it relates, as required by
Section
9-512, 9-514, or | ||
9-518, is an initial financing statement.
| ||
(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. 95-446, eff. 1-1-08.)
| ||
(810 ILCS 5/9-518)
| ||
Sec. 9-518. Claim concerning inaccurate or wrongfully | ||
filed record.
| ||
(a) Statement with respect to record indexed under a | ||
person's name Correction statement . A person may file in the | ||
filing office an information a
correction 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 Sufficiency of correction statement under | ||
subsection (a) . An information A correction statement under | ||
subsection (a)
must:
| ||
(1) identify the record to which it relates by :
(A) the | ||
file number
assigned to the initial financing statement to | ||
which the record relates; and
| ||
(B) if the correction statement relates to a record |
filed or recorded in
a filing office described in | ||
Section 9-501(a)(1), the date and time that the
initial | ||
financing
statement was filed and the information | ||
specified in Section 9-502(b);
| ||
(2) indicate that it is an information a correction | ||
statement; and
| ||
(3) provide the basis for the person's belief that the | ||
record is
inaccurate and indicate the manner in which the | ||
person believes the record
should
be amended to cure any | ||
inaccuracy or provide the basis for the person's belief
| ||
that
the record was wrongfully filed.
| ||
(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 file | ||
number assigned to the initial financing statement to which | ||
the record relates; | ||
(2) indicate that it is an information statement; and | ||
(3) provide the basis for the person's belief that the | ||
person that filed the record was not entitled to do so | ||
under Section 9-509(d). |
(e) (c) Record not affected by information correction | ||
statement. The filing of an information 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.)
| ||
(810 ILCS 5/9-521)
| ||
Sec. 9-521.
Uniform form of written financing statement and
| ||
amendment.
| ||
(a) Initial financing statement form. A filing office that | ||
accepts
written records may not refuse to accept a
written | ||
initial financing statement
in the
form and format
set forth in | ||
the final official text of the 2010 amendments 1999 revisions | ||
to Article 9 of the
Uniform Commercial Code
promulgated by the | ||
American Law Institute and the National Conference of
| ||
Commissioners on Uniform State Laws,
except for a reason set | ||
forth in Section
9-516(b).
| ||
(b) Amendment form. A filing office that accepts written | ||
records may not
refuse
to accept a written record in
the form | ||
and format
set forth as Form UCC3 and Form UCC3Ad in the final | ||
official text of the 2010 amendments 1999 revisions to Article | ||
9 of the
Uniform Commercial Code
promulgated by the American | ||
Law Institute and the National Conference of
Commissioners on | ||
Uniform State Laws, except for a
reason
set
forth in Section | ||
9-516(b).
| ||
(Source: P.A. 91-893, eff. 7-1-01.)
|
(810 ILCS 5/9-607)
| ||
Sec. 9-607. Collection and enforcement by secured party.
| ||
(a) Collection and enforcement generally. If so agreed, and | ||
in
any event after default, a secured party:
| ||
(1) may notify an account debtor or other person | ||
obligated
on collateral to make payment or otherwise render | ||
performance to or for the
benefit
of the secured party;
| ||
(2) may take any proceeds to which the secured party is
| ||
entitled under Section 9-315;
| ||
(3) may enforce the obligations of an account debtor or | ||
other
person obligated on collateral and exercise the | ||
rights of the debtor with respect to
the obligation of the | ||
account debtor or other person obligated on collateral to | ||
make
payment or otherwise render performance to the debtor, | ||
and with respect to any
property that secures the | ||
obligations of the account debtor or other person obligated
| ||
on the collateral;
| ||
(4) if it holds a security interest in a deposit | ||
account
perfected by control under Section 9-104(a)(1), | ||
may apply the balance of the
deposit account to the | ||
obligation secured by the deposit account; and
| ||
(5) if it holds a security interest in a deposit | ||
account
perfected by control under Section 9-104(a)(2) or | ||
(3), may instruct the bank to pay
the balance of the | ||
deposit account to or for the benefit of the secured party.
|
(b) Nonjudicial enforcement of mortgage. If necessary to | ||
enable
a secured party to exercise under subsection (a)(3) the | ||
right of a debtor to enforce a
mortgage nonjudicially, the | ||
secured party may record in the office in which a
record of the | ||
mortgage is recorded:
| ||
(1) a copy of the security agreement that creates or | ||
provides
for a security interest in the obligation secured | ||
by the mortgage; and
| ||
(2) the secured party's sworn affidavit in recordable | ||
form
stating that:
| ||
(A) a default has occurred with respect to the | ||
obligation secured by the mortgage ; and
| ||
(B) the secured party is entitled to enforce the
| ||
mortgage nonjudicially.
| ||
(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 obligation | ||
of an
account debtor or other person obligated on | ||
collateral; and
| ||
(2) is entitled to charge back uncollected collateral | ||
or
otherwise to full or limited recourse against the debtor | ||
or a secondary obligor.
| ||
(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.)
| ||
(810 ILCS 5/9-625)
| ||
Sec. 9-625. Remedies for secured party's failure to comply | ||
with Article.
| ||
(a) Judicial orders concerning noncompliance. If it is | ||
established
that a secured party is not proceeding in | ||
accordance with this Article, a court
may
order or restrain | ||
collection, enforcement, or disposition of collateral on
| ||
appropriate
terms and conditions.
| ||
(b) Damages for noncompliance. Subject to subsections (c), | ||
(d),
and (f), a person is liable for damages in the amount of | ||
any loss caused by a
failure
to comply with this Article. Loss | ||
caused by a failure to comply with a request
under Section | ||
9-210 may include loss resulting from the debtor's inability to
| ||
obtain, or increased costs of, alternative financing.
| ||
(c) Persons entitled to recover damages; statutory damages | ||
if collateral is consumer goods in
consumer-goods transaction . | ||
Except as otherwise provided in Section 9-628:
| ||
(1) a person that, at the time of the failure, was a | ||
debtor, was
an obligor, or held a security interest in or |
other lien on the collateral may
recover in an individual | ||
action
damages under subsection (b) for its loss; and
| ||
(2) if the collateral is consumer goods, a person that | ||
was a
debtor or a secondary obligor at the time a secured | ||
party failed to comply with
this
Part may recover in an | ||
individual action for that failure in any event an
amount | ||
not less than the credit
service charge plus 10 percent of | ||
the principal amount of the obligation or the
time-price | ||
differential plus 10 percent of the cash price.
| ||
(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 | ||
file under
Section 9-509(a); or
| ||
(4) fails to cause the secured party of record to file |
or send a
termination statement as required by Section | ||
9-513(a) or (c).
| ||
(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.)
| ||
(810 ILCS 5/Art. 9 Pt. 8 heading new) | ||
PART 8. TRANSITION PROVISIONS FOR 2010 AMENDMENTS | ||
(810 ILCS 5/9-801 new) | ||
Sec. 9-801. Effective date. (See Section 99 of the Public |
Act adding this Section to this Act.) | ||
(810 ILCS 5/9-802 new) | ||
Sec. 9-802. Savings clause. | ||
(a) Pre-effective-date transactions or liens. Except as | ||
otherwise provided in this Part, this Act applies to a | ||
transaction or lien within its scope, even if the transaction | ||
or lien was entered into or created before the effective date | ||
of this amendatory Act of the 97th General Assembly. | ||
(b) Pre-effective-date proceedings. This amendatory Act of | ||
the 97th General Assembly does not affect an action, case, or | ||
proceeding commenced before the effective date of this | ||
amendatory Act of the 97th General Assembly. | ||
(810 ILCS 5/9-803 new) | ||
Sec. 9-803. Security interest perfected before effective | ||
date. | ||
(a) Continuing perfection: perfection requirements | ||
satisfied. A security interest that is a perfected security | ||
interest immediately before the effective date of this | ||
amendatory Act of the 97th General Assembly is a perfected | ||
security interest under Article 9 as amended by this amendatory | ||
Act of the 97th General Assembly if, on the effective date of | ||
this amendatory Act of the 97th General Assembly, the | ||
applicable requirements for attachment and perfection under | ||
Article 9 as amended by this amendatory Act of the 97th General |
Assembly are satisfied without further action. | ||
(b) Continuing perfection: perfection requirements not | ||
satisfied. Except as otherwise provided in Section 9-805, if, | ||
immediately before the effective date of this amendatory Act of | ||
the 97th General Assembly, a security interest is a perfected | ||
security interest, but the applicable requirements for | ||
perfection under Article 9 as amended by this amendatory Act of | ||
the 97th General Assembly are not satisfied when this | ||
amendatory Act of the 97th General Assembly takes effect, the | ||
security interest remains perfected thereafter only if the | ||
applicable requirements for perfection under Article 9 as | ||
amended by this amendatory Act of the 97th General Assembly are | ||
satisfied within one year after the effective date of this | ||
amendatory Act of the 97th General Assembly. | ||
(810 ILCS 5/9-804 new) | ||
Sec. 9-804. Security interest unperfected before the | ||
effective date of this amendatory Act of the 97th General | ||
Assembly. A security interest that is an unperfected security | ||
interest immediately before the effective date of this | ||
amendatory Act of the 97th General Assembly becomes a perfected | ||
security interest: | ||
(1) without further action, when this amendatory Act of | ||
the 97th General Assembly takes effect if the applicable | ||
requirements for perfection under Article 9 as amended by | ||
this amendatory Act of the 97th General Assembly are |
satisfied before or at that time; or | ||
(2) when the applicable requirements for perfection | ||
are satisfied if the requirements are satisfied after that | ||
time. | ||
(810 ILCS 5/9-805 new) | ||
Sec. 9-805. Effectiveness of action taken before the | ||
effective date of this amendatory Act of the 97th General | ||
Assembly. | ||
(a) Pre-effective-date filing effective. The filing of a | ||
financing statement before the effective date of this | ||
amendatory Act of the 97th General Assembly is effective to | ||
perfect a security interest to the extent the filing would | ||
satisfy the applicable requirements for perfection under | ||
Article 9 as amended by this amendatory Act of the 97th General | ||
Assembly. | ||
(b) When pre-effective-date filing becomes ineffective. | ||
This amendatory Act of the 97th General Assembly does not | ||
render ineffective an effective financing statement that, | ||
before the effective date of this amendatory Act of the 97th | ||
General Assembly, is filed and satisfies the applicable | ||
requirements for perfection under the law of the jurisdiction | ||
governing perfection as provided in Article 9 as it existed | ||
before the effective date of this amendatory Act of the 97th | ||
General Assembly. However, except as otherwise provided in | ||
subsections (c) and (d) and Section 9-806, the financing |
statement ceases to be effective: | ||
(1) if the financing statement is filed in this State, | ||
at the time the financing statement would have ceased to be | ||
effective had this amendatory Act of the 97th General | ||
Assembly not taken effect; or | ||
(2) if the financing statement is filed in another | ||
jurisdiction, at the earlier of: | ||
(A) the time the financing statement would have | ||
ceased to be effective under the law of that | ||
jurisdiction; or | ||
(B) June 30, 2018. | ||
(c) Continuation statement. The filing of a continuation | ||
statement after the effective date of this amendatory Act of | ||
the 97th General Assembly does not continue the effectiveness | ||
of a financing statement filed before the effective date of | ||
this amendatory Act of the 97th General Assembly. However, upon | ||
the timely filing of a continuation statement after the | ||
effective date of this amendatory Act of the 97th General | ||
Assembly and in accordance with the law of the jurisdiction | ||
governing perfection as provided in Article 9, the | ||
effectiveness of a financing statement filed in the same office | ||
in that jurisdiction before the effective date of this | ||
amendatory Act of the 97th General Assembly continues for the | ||
period provided by the law of that jurisdiction. | ||
(d) Application of subsection (b)(2)(B) to transmitting | ||
utility financing statement. Subsection (b)(2)(B) applies to a |
financing statement that, before the effective date of this | ||
amendatory Act of the 97th General Assembly, is filed against a | ||
transmitting utility and satisfies the applicable requirements | ||
for perfection under the law of the jurisdiction governing | ||
perfection as provided in Article 9 as it existed before the | ||
effective date of this amendatory Act of the 97th General | ||
Assembly, only to the extent that Article 9 as amended by this | ||
amendatory Act of the 97th General Assembly provides that the | ||
law of a jurisdiction other than the jurisdiction in which the | ||
financing statement is filed governs perfection of a security | ||
interest in collateral covered by the financing statement. | ||
(e) Application of Part 5. A financing statement that | ||
includes a financing statement filed before the effective date | ||
of this amendatory Act of the 97th General Assembly and a | ||
continuation statement filed after the effective date of this | ||
amendatory Act of the 97th General Assembly is effective only | ||
to the extent that it satisfies the requirements of Part 5 as | ||
amended by this amendatory Act of the 97th General Assembly for | ||
an initial financing statement. A financing statement that | ||
indicates that the debtor is a decedent's estate indicates that | ||
the collateral is being administered by a personal | ||
representative within the meaning of Section 9-503(a)(2) as | ||
amended by this amendatory Act of the 97th General Assembly. A | ||
financing statement that indicates that the debtor is a trust | ||
or is a trustee acting with respect to property held in trust | ||
indicates that the collateral is held in a trust within the |
meaning of Section 9-503(a)(3) as amended by this amendatory | ||
Act of the 97th General Assembly. | ||
(810 ILCS 5/9-806 new) | ||
Sec. 9-806. When initial financing statement suffices to | ||
continue effectiveness of financing statement. | ||
(a) Initial financing statement in lieu of continuation | ||
statement. The filing of an initial financing statement in the | ||
office specified in Section 9-501 continues the effectiveness | ||
of a financing statement filed before the effective date of | ||
this amendatory Act of the 97th General Assembly if: | ||
(1) the filing of an initial financing statement in | ||
that office would be effective to perfect a security | ||
interest under Article 9 as amended by this amendatory Act | ||
of the 97th General Assembly; | ||
(2) the pre-effective-date financing statement was | ||
filed in an office in another State; and | ||
(3) the initial financing statement satisfies | ||
subsection (c). | ||
(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 before | ||
the effective date of this amendatory Act of the 97th | ||
General Assembly, for the period provided in Section 9-515 | ||
as it existed before the effective date of this amendatory |
Act of the 97th General Assembly with respect to an initial | ||
financing statement; and | ||
(2) if the initial financing statement is filed after | ||
the effective date of this amendatory Act of the 97th | ||
General Assembly, for the period provided in Section 9-515 | ||
as amended by this amendatory Act of the 97th General | ||
Assembly with respect to an initial financing statement. | ||
(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 as amended by | ||
this amendatory Act of the 97th General Assembly for an | ||
initial financing statement; | ||
(2) identify the pre-effective-date financing | ||
statement by indicating the office in which the financing | ||
statement was filed and providing the dates of filing and | ||
file numbers, if any, of the financing statement and of the | ||
most recent continuation statement filed with respect to | ||
the financing statement; and | ||
(3) indicate that the pre-effective-date financing | ||
statement remains effective. | ||
(810 ILCS 5/9-807 new) | ||
Sec. 9-807. Amendment of pre-effective-date financing | ||
statement. | ||
(a) "Pre-effective-date financing statement". In this |
Section, "pre-effective-date financing statement" means a | ||
financing statement filed before the effective date of this | ||
amendatory Act of the 97th General Assembly. | ||
(b) Applicable law. After this amendatory Act of the 97th | ||
General Assembly takes effect, a person may add or delete | ||
collateral covered by, continue or terminate the effectiveness | ||
of, or otherwise amend the information provided in, a | ||
pre-effective-date financing statement only in accordance with | ||
the law of the jurisdiction governing perfection as provided in | ||
Article 9 as amended by this amendatory Act of the 97th General | ||
Assembly. However, the effectiveness of a pre-effective-date | ||
financing statement also may be terminated in accordance with | ||
the law of the jurisdiction in which the financing statement is | ||
filed. | ||
(c) Method of amending: general rule. Except as otherwise | ||
provided in subsection (d), if the law of this State governs | ||
perfection of a security interest, the information in a | ||
pre-effective-date financing statement may be amended after | ||
the effective date of this amendatory Act of the 97th General | ||
Assembly only if: | ||
(1) the pre-effective-date financing statement and an | ||
amendment are filed in the office specified in Section | ||
9-501; | ||
(2) an amendment is filed in the office specified in | ||
Section 9-501 concurrently with, or after the filing in | ||
that office of, an initial financing statement that |
satisfies Section 9-806(c); or | ||
(3) an initial financing statement that provides the | ||
information as amended and satisfies Section 9-806(c) is | ||
filed in the office specified in Section 9-501. | ||
(d) Method of amending: continuation. If the law of this | ||
State governs perfection of a security interest, the | ||
effectiveness of a pre-effective-date financing statement may | ||
be continued only under Section 9-805(c) and (e) or 9-806. | ||
(e) Method of amending: additional termination rule. | ||
Whether or not the law of this State governs perfection of a | ||
security interest, the effectiveness of a pre-effective-date | ||
financing statement filed in this State may be terminated after | ||
the effective date of this amendatory Act of the 97th General | ||
Assembly by filing a termination statement in the office in | ||
which the pre-effective-date financing statement is filed, | ||
unless an initial financing statement that satisfies Section | ||
9-806(c) has been filed in the office specified by the law of | ||
the jurisdiction governing perfection as provided in Article 9 | ||
as amended by this amendatory Act of the 97th General Assembly | ||
as the office in which to file a financing statement. | ||
(810 ILCS 5/9-808 new) | ||
Sec. 9-808. Person entitled to file initial financing | ||
statement or continuation statement. A person may file an | ||
initial financing statement or a continuation statement under | ||
this part if: |
(1) the secured party of record authorizes the filing; | ||
and | ||
(2) the filing is necessary under this Part: | ||
(A) to continue the effectiveness of a financing | ||
statement filed before the effective date of this | ||
amendatory Act of the 97th General Assembly; or | ||
(B) to perfect or continue the perfection of a | ||
security interest. | ||
(810 ILCS 5/9-809 new) | ||
Sec. 9-809. Priority. This Act determines the priority of | ||
conflicting claims to collateral. However, if the relative | ||
priorities of the claims were established before the effective | ||
date of this amendatory Act of the 97th General Assembly, | ||
Article 9 as it existed before the effective date of this | ||
amendatory Act of the 97th General Assembly determines | ||
priority.
| ||
Section 99. Effective date. This Act takes effect July 1, | ||
2013. |