Public Act 095-0446
 		





SB0355 Enrolled
LRB095 04483 LCT 24531 b






    AN ACT concerning business.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:


 
    Section 5. The Uniform Commercial Code is amended  by 
changing Section 9-516 as follows:
 



    (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 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 last name; or


            (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;


            (B) indicate whether the debtor is 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. 91-893, eff. 7-1-01.)