State of Illinois
2011 and 2012


Introduced 2/10/2012, by Sen. John G. Mulroe


New Act

    Creates the Uniform Assignment of Rents Act. Provides for the creation, perfection, priority, and enforcement of a security interest in rents. Includes provisions concerning: assignments of rents; appointment of a receiver; enforcement by notices; and coordination with the Uniform Commercial Code.

LRB097 17588 AJO 62794 b





SB3810LRB097 17588 AJO 62794 b

1    AN ACT concerning rent assignments.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the
5Uniform Assignment of Rents Act.
6    Section 2. Definitions. In this Act:
7    (1) "Assignee" means a person entitled to enforce an
8assignment of rents.
9    (2) "Assignment of rents" means a transfer of an interest
10in rents in connection with an obligation secured by real
11property located in this State and from which the rents arise.
12    (3) "Assignor" means a person that makes an assignment of
13rents or the successor owner of the real property from which
14the rents arise.
15    (4) "Cash proceeds" means proceeds that are money, checks,
16deposit accounts, or the like.
17    (5) "Day" means calendar day.
18    (6) "Deposit account" means a demand, time, savings,
19passbook, or similar account maintained with a bank, savings
20bank, savings and loan association, credit union, or trust
22    (7) "Document" means information that is inscribed on a
23tangible medium or that is stored on an electronic or other



SB3810- 2 -LRB097 17588 AJO 62794 b

1medium and is retrievable in perceivable form.
2    (8) "Notification" means a document containing information
3that this Act requires a person to provide to another, signed
4by the person required to provide the information.
5    (9) "Person" means an individual, corporation, business
6trust, estate, trust, partnership, limited liability company,
7association, joint venture, public corporation, government, or
8governmental subdivision, agency, or instrumentality, or any
9other legal or commercial entity.
10    (10) "Proceeds" means personal property that is received or
11collected on account of a tenant's obligation to pay rents.
12    (11) "Purchase" means to take by sale, lease, discount,
13negotiation, mortgage, pledge, lien, security interest, issue
14or reissue, gift, or any other voluntary transaction creating
15an interest in property.
16    (12) "Rents" means:
17        (A) sums payable for the right to possess or occupy, or
18    for the actual possession or occupation of, real property
19    of another person;
20        (B) sums payable to an assignor under a policy of
21    rental interruption insurance covering real property;
22        (C) claims arising out of a default in the payment of
23    sums payable for the right to possess or occupy real
24    property of another person;
25        (D) sums payable to terminate an agreement to possess
26    or occupy real property of another person;



SB3810- 3 -LRB097 17588 AJO 62794 b

1        (E) sums payable to an assignor for payment or
2    reimbursement of expenses incurred in owning, operating
3    and maintaining, or constructing or installing
4    improvements on, real property; or
5        (F) any other sums payable under an agreement relating
6    to the real property of another person that constitute
7    rents under law of this State other than this Act.
8    (13) "Secured obligation" means an obligation the
9performance of which is secured by an assignment of rents.
10    (14) "Security instrument" means a document, however
11denominated, that creates or provides for a security interest
12in real property, whether or not it also creates or provides
13for a security interest in personal property.
14    (15) "Security interest" means an interest in property that
15arises by agreement and secures performance of an obligation.
16    (16) "Sign" means, with present intent to authenticate or
17adopt a document:
18        (A) to execute or adopt a tangible symbol; or
19        (B) to attach to or logically associate with the
20    document an electronic sound, symbol, or process.
21    (17) "State" means a state of the United States, the
22District of Columbia, Puerto Rico, the United States Virgin
23Islands, or any territory or insular possession subject to the
24jurisdiction of the United States.
25    (18) "Submit for recording" means to submit a document
26complying with applicable legal standards, with required fees



SB3810- 4 -LRB097 17588 AJO 62794 b

1and taxes, to the appropriate governmental office under the
2Conveyance Act.
3    (19) "Tenant" means a person that has an obligation to pay
4sums for the right to possess or occupy, or for possessing or
5occupying, the real property of another person.
6    Section 3. Manner of giving notification.
7    (a) Except as otherwise provided in subsections (c) and
8(d), a person gives a notification or a copy of a notification
9under this Act:
10        (1) by depositing it with the United States Postal
11    Service or with a commercially reasonable delivery
12    service, properly addressed to the intended recipient's
13    address as specified in subsection (b), with first-class
14    postage or cost of delivery provided for; or
15        (2) if the recipient agreed to receive notification by
16    facsimile transmission, electronic mail, or other
17    electronic transmission, by sending it to the recipient in
18    the agreed manner at the address specified in the
19    agreement.
20    (b) The following rules determine the proper address for
21giving a notification under subsection (a):
22        (1) A person giving a notification to an assignee shall
23    use the address for notices to the assignee provided in the
24    document creating the assignment of rents, but, if the
25    assignee has provided the person giving the notification



SB3810- 5 -LRB097 17588 AJO 62794 b

1    with a more recent address for notices, the person giving
2    the notification shall use that address.
3        (2) A person giving a notification to an assignor shall
4    use the address for notices to the assignor provided in the
5    document creating the assignment of rents, but, if the
6    assignor has provided the person giving the notification
7    with a more recent address for notices, the person giving
8    the notification shall use that address.
9        (3) If a tenant's agreement with an assignor provides
10    an address for notices to the tenant and the person giving
11    notification has received a copy of the agreement or knows
12    the address for notices specified in the agreement, the
13    person giving the notification shall use that address in
14    giving a notification to the tenant. Otherwise, the person
15    shall use the address of the premises covered by the
16    agreement.
17    (c) If a person giving a notification pursuant to this Act
18and the recipient have agreed to the method for giving a
19notification, any notification must be given by that method.
20    (d) If a notification is received by the recipient, it is
21effective even if it was not given in accordance with
22subsection (a) or (c).
23    Section 4. Security instrument creates assignment of
24rents; assignment of rents creates security interest.
25    (a) An enforceable security instrument creates an



SB3810- 6 -LRB097 17588 AJO 62794 b

1assignment of rents arising from the real property described in
2the security instrument, unless the security instrument
3provides otherwise.
4    (b) An assignment of rents creates a presently effective
5security interest in all accrued and unaccrued rents arising
6from the real property described in the document creating the
7assignment, regardless of whether the document is in the form
8of an absolute assignment, an absolute assignment conditioned
9upon default, an assignment as additional security, or any
10other form. The security interest in rents is separate and
11distinct from any security interest held by the assignee in the
12real property.
13    Section 5. Recordation; perfection of security interest in
14rents; priority of conflicting interests in rents.
15    (a) A document creating an assignment of rents may be
16submitted for recording in the recorder's office in the same
17manner as any other document evidencing a conveyance of an
18interest in real property.
19    (b) Upon recording, the security interest in rents created
20by an assignment of rents is fully perfected, even if a
21provision of the document creating the assignment or law of
22this State other than this Act would preclude or defer
23enforcement of the security interest until the occurrence of a
24subsequent event, including a subsequent default of the
25assignor, the assignee's obtaining possession of the real



SB3810- 7 -LRB097 17588 AJO 62794 b

1property, or the appointment of a receiver.
2    (c) Except as otherwise provided in subsection (d), a
3perfected security interest in rents takes priority over the
4rights of a person that, after the security interest is
6        (1) acquires a judicial lien against the rents or the
7    real property from which the rents arise; or
8        (2) purchases an interest in the rents or the real
9    property from which the rents arise.
10    (d) A perfected security interest in rents has priority
11over the rights of a person described in subsection (c) with
12respect to future advances to the same extent as the assignee's
13security interest in the real property has priority over the
14rights of that person with respect to future advances.
15    Section 6. Enforcement of security interest in rents.
16    (a) An assignee may enforce an assignment of rents using
17one or more of the methods specified in Sections 7, 8, and 9 or
18any other method sufficient to enforce the assignment under law
19of this State other than this Act.
20    (b) From the date of enforcement, the assignee or, in the
21case of enforcement by appointment of a receiver under Section
227, the receiver, is entitled to collect all rents that:
23        (1) have accrued but remain unpaid on that date; and
24        (2) accrue on or after that date, as those rents
25    accrue.



SB3810- 8 -LRB097 17588 AJO 62794 b

1    Section 7. Enforcement by appointment of receiver.
2    (a) An assignee is entitled to the appointment of a
3receiver for the real property subject to the assignment of
4rents if:
5        (1) the assignor is in default and:
6            (A) the assignor has agreed in a signed document to
7        the appointment of a receiver in the event of the
8        assignor's default;
9            (B) it appears likely that the real property may
10        not be sufficient to satisfy the secured obligation;
11            (C) the assignor has failed to turn over to the
12        assignee proceeds that the assignee was entitled to
13        collect; or
14            (D) a subordinate assignee of rents obtains the
15        appointment of a receiver for the real property; or
16(2) other circumstances exist that would justify the
17appointment of a receiver under law of this State other than
18this Act.
19    (b) An assignee may file a petition for the appointment of
20a receiver in connection with an action:
21        (1) to foreclose the security instrument;
22        (2) for specific performance of the assignment;
23        (3) seeking a remedy on account of waste or threatened
24    waste of the real property subject to the assignment; or
25        (4) otherwise to enforce the secured obligation or the



SB3810- 9 -LRB097 17588 AJO 62794 b

1    assignee's remedies arising from the assignment.
2    (c) An assignee that files a petition under subsection (b)
3shall also give a copy of the petition in the manner specified
4in Section 3 to any other person that, 10 days before the date
5the petition is filed, held a recorded assignment of rents
6arising from the real property.
7    (d) If an assignee enforces an assignment of rents under
8this Section, the date of enforcement is the date on which the
9court enters an order appointing a receiver for the real
10property subject to the assignment.
11    (e) From the date of its appointment, a receiver is
12entitled to collect rents as provided in Section 6(b). The
13receiver also has the authority provided in the order of
14appointment and law of this State other than this Act.
15    (f) The following rules govern priority among receivers:
16        (1) If more than one assignee qualifies under this
17    Section for the appointment of a receiver, a receivership
18    requested by an assignee entitled to priority in rents
19    under this Act has priority over a receivership requested
20    by a subordinate assignee, even if a court has previously
21    appointed a receiver for the subordinate assignee.
22        (2) If a subordinate assignee obtains the appointment
23    of a receiver, the receiver may collect the rents and apply
24    the proceeds in the manner specified in the order
25    appointing the receiver until a receiver is appointed under
26    a senior assignment of rents.



SB3810- 10 -LRB097 17588 AJO 62794 b

1    Section 8. Enforcement by notification to assignor.
2    (a) Upon the assignor's default, or as otherwise agreed by
3the assignor, the assignee may give the assignor a notification
4demanding that the assignor pay over the proceeds of any rents
5that the assignee is entitled to collect under Section 6. The
6assignee shall also give a copy of the notification to any
7other person that, 10 days before the notification date, held a
8recorded assignment of rents arising from the real property.
9    (b) If an assignee enforces an assignment of rents under
10this Section, the date of enforcement is the date on which the
11assignor receives a notification under subsection (a).
12    (c) An assignee's failure to give a notification under
13subsection (a) to any person holding a recorded assignment of
14rents does not affect the effectiveness of the notification as
15to the assignor, but the other person is entitled to any relief
16permitted under law of this State other than this Act.
17    (d) An assignee that holds a security interest in rents
18solely by virtue of Section 4(a) may not enforce the security
19interest under this Section while the assignor occupies the
20real property as the assignor's primary residence.
21    Section 9. Enforcement by notification to tenant.
22    (a) Upon the assignor's default, or as otherwise agreed by
23the assignor, the assignee may give to a tenant of the real
24property a notification demanding that the tenant pay to the



SB3810- 11 -LRB097 17588 AJO 62794 b

1assignee all unpaid accrued rents and all unaccrued rents as
2they accrue. The assignee shall give a copy of the notification
3to the assignor and to any other person that, 10 days before
4the notification date, held a recorded assignment of rents
5arising from the real property. The notification must be signed
6by assignee and:
7        (1) identify the tenant, assignor, assignee, premises
8    covered by the agreement between the tenant and the
9    assignor, and assignment of rents being enforced;
10        (2) provide the recording data for the document
11    creating the assignment or other reasonable proof that the
12    assignment was made;
13        (3) state that the assignee has the right to collect
14    rents in accordance with the assignment;
15        (4) direct the tenant to pay to the assignee all unpaid
16    accrued rents and all unaccrued rents as they accrue;
17        (5) describe the manner in which subsections (c) and
18    (d) affect the tenant's payment obligations;
19        (6) provide the name and telephone number of a contact
20    person and an address to which the tenant can direct
21    payment of rents and any inquiry for additional information
22    about the assignment or the assignee's right to enforce the
23    assignment; and
24        (7) contain a statement that the tenant may consult a
25    lawyer if the tenant has questions about its rights and
26    obligations.



SB3810- 12 -LRB097 17588 AJO 62794 b

1    (b) If an assignee enforces an assignment of rents under
2this Section, the date of enforcement is the date on which the
3tenant receives a notification substantially complying with
4subsection (a).
5    (c) Subject to subsection (d) and any other claim or
6defense that a tenant has under law of this State other than
7this Act, following receipt of a notification substantially
8complying with subsection (a):
9        (1) a tenant is obligated to pay to the assignee all
10    unpaid accrued rents and all unaccrued rents as they
11    accrue, unless the tenant has previously received a
12    notification from another assignee of rents given by that
13    assignee in accordance with this Section and the other
14    assignee has not canceled that notification;
15        (2) unless the tenant occupies the premises as the
16    tenant's primary residence, a tenant that pays rents to the
17    assignor is not discharged from the obligation to pay rents
18    to the assignee;
19        (3) a tenant's payment to the assignee of rents then
20    due satisfies the tenant's obligation under the tenant's
21    agreement with the assignor to the extent of the payment
22    made; and
23        (4) a tenant's obligation to pay rents to the assignee
24    continues until the tenant receives a court order directing
25    the tenant to pay the rent in a different manner or a
26    signed document from the assignee canceling its



SB3810- 13 -LRB097 17588 AJO 62794 b

1    notification, whichever occurs first.
2    (d) A tenant that has received a notification under
3subsection (a) is not in default for nonpayment of rents
4accruing within 30 days after the date the notification is
5received before the earlier of:
6        (1) 10 days after the date the next regularly scheduled
7    rental payment would be due; or
8        (2) 30 days after the date the tenant receives the
9    notification.
10    (e) Upon receiving a notification from another creditor
11that is entitled to priority under Section 5(c) that the other
12creditor has enforced and is continuing to enforce its interest
13in rents, an assignee that has given a notification to a tenant
14under subsection (a) shall immediately give another
15notification to the tenant canceling the earlier notification.
16    (f) An assignee's failure to give a notification under
17subsection (a) to any person holding a recorded assignment of
18rents does not affect the effectiveness of the notification as
19to the assignor and those tenants receiving the notification.
20However, the person entitled to the notification is entitled to
21any relief permitted by law of this State other than this Act.
22    (g) An assignee that holds a security interest in rents
23solely by virtue of Section 4(a) may not enforce the security
24interest under this Section while the assignor occupies the
25real property as the assignor's primary residence.



SB3810- 14 -LRB097 17588 AJO 62794 b

1    Section 10. Notification to tenant; form. No particular
2phrasing is required for the notification specified in Section
39. However, the following form of notification, when properly
4completed, is sufficient to satisfy the requirements of Section

8    Tenant:..................................................
9    Property Occupied by Tenant
10    (the "Address"):.....................................
11    Landlord:............................................
12    Assignee:............................................
13    Address of Assignee and Telephone Number
14    of Contact Person:...................................
15    Address of assignee:.................................
16    Telephone number of person to contact................
17    1. The Assignee named above has become the person entitled
18to collect your rents on the Premises listed above under (Name
19of document)............... (the "Assignment of Rents") dated
20..........., and recorded at (recording data) ........... in
21the (Appropriate governmental office under the recording Act of
22this State).................................. You may obtain
23additional information about the Assignment of Rents and the
24Assignee's right to enforce it at the address listed above.



SB3810- 15 -LRB097 17588 AJO 62794 b

1    2. The Landlord is in default under the Assignment of
2Rents. Under the Assignment of Rents, the Assignee is entitled
3to collect rents from the Premises.
4    3. This notification affects your rights and obligations
5under the agreement under which you occupy the Premises (your
6"Agreement"). In order to provide you with an opportunity to
7consult with a lawyer, if your next scheduled rental payment is
8due within 30 days after you receive this notification, neither
9the Assignee nor the Landlord can hold you in default under
10your Agreement for nonpayment of that rental payment until 10
11days after the due date of that payment or 30 days following
12the date you receive this notification, whichever occurs first.
13You may consult a lawyer at your expense concerning your rights
14and obligations under your Agreement and the effect of this
16    4. You must pay to the Assignee at the address listed above
17all rents under your Agreement which are due and payable on the
18date you receive this notification and all rents accruing under
19your Agreement after you receive this notification. If you pay
20rents to the Assignee after receiving this notification, the
21payment will satisfy your rental obligation to the extent of
22that payment.
23    5. Unless you occupy the Premises as your primary
24residence, if you pay any rents to the Landlord after receiving
25this notification, your payment to the Landlord will not
26discharge your rental obligation, and the Assignee may hold you



SB3810- 16 -LRB097 17588 AJO 62794 b

1liable for that rental obligation notwithstanding your payment
2to the Landlord.
3    6. If you have previously received a notification from
4another person that also holds an assignment of the rents due
5under your Agreement, you should continue paying your rents to
6the person that sent that notification until that person
7cancels that notification. Once that notification is canceled,
8you must begin paying rents to the Assignee in accordance with
9this notification.
10    7. Your obligation to pay rents to the Assignee will
11continue until you receive either:
12        (a) a written order from a court directing you to pay
13    the rent in a manner specified in that order; or
14        (b) written instructions from the Assignee canceling
15    this notification.
16Name of assignee.............................................
17By: (Officer/authorized agent of assignee)
18    Section 11. Effect of enforcement. The enforcement of an
19assignment of rents by one or more of the methods identified in
20Sections 7, 8, and 9, the application of proceeds by the
21assignee under Section 12 after enforcement, the payment of
22expenses under Section 13, or an action under Section 14(d)
23does not:
24        (1) make the assignee a mortgagee in possession of the
25    real property;



SB3810- 17 -LRB097 17588 AJO 62794 b

1        (2) make the assignee an agent of the assignor;
2        (3) constitute an election of remedies that precludes a
3    later action to enforce the secured obligation;
4        (4) make the secured obligation unenforceable; or
5        (5) limit any right available to the assignee with
6    respect to the secured obligation.
7    Section 12. Application of proceeds. Unless otherwise
8agreed, an assignee that collects rents under this Act or
9collects upon a judgment in an action under Section 14(d) shall
10apply the sums collected in the following order to:
11        (1) the assignee's reasonable expenses of enforcing
12    its assignment of rents, including, to the extent provided
13    for by agreement and not prohibited by law of this State
14    other than this Act, reasonable attorney's fees and costs
15    incurred by the assignee;
16        (2) reimbursement of any expenses incurred by the
17    assignee to protect or maintain the real property subject
18    to the assignment;
19        (3) payment of the secured obligation;
20        (4) payment of any obligation secured by a subordinate
21    security interest or other lien on the rents if, before
22    distribution of the proceeds, the assignor and assignee
23    receive a notification from the holder of the interest or
24    lien demanding payment of the proceeds; and
25        (5) the assignor.



SB3810- 18 -LRB097 17588 AJO 62794 b

1    Section 13. Application of proceeds to expenses of
2protection real property; claims and defenses of tenant.
3    (a) Unless otherwise agreed by the assignee, and subject to
4subsection (c), an assignee that collects rents following
5enforcement under Section 8 or 9 need not apply them to the
6payment of expenses of protecting or maintaining the real
7property subject to the assignment.
8    (b) Unless a tenant has made an enforceable agreement not
9to assert claims or defenses, the right of the assignee to
10collect rents from the tenant is subject to the terms of the
11agreement between the assignor and tenant and any claim or
12defense arising from the assignor's nonperformance of that
14    (c) This Act does not limit the standing or right of a
15tenant to request a court to appoint a receiver for the real
16property subject to the assignment or to seek other relief on
17the ground that the assignee's nonpayment of expenses of
18protecting or maintaining the real property has caused or
19threatened harm to the tenant's interest in the property.
20Whether the tenant is entitled to the appointment of a receiver
21or other relief is governed by law of this state other than
22this Act.
23    Section 14. Turnover of rents; commingling and
24identifiably of rents; liability of assignor.



SB3810- 19 -LRB097 17588 AJO 62794 b

1    (a) In this Section, "good faith" means honesty in fact and
2the observance of reasonable commercial standards of fair
4    (b) If an assignor collects rents that the assignee is
5entitled to collect under this Act:
6        (1) the assignor shall turn over the proceeds to the
7    assignee, less any amount representing payment of expenses
8    authorized by the assignee; and
9        (2) the assignee continues to have a security interest
10    in the proceeds so long as they are identifiable.
11    (c) For purposes of this Act, cash proceeds are
12identifiable if they are maintained in a segregated account or,
13if commingled with other funds, to the extent the assignee can
14identify them by a method of tracing, including application of
15equitable principles, that is permitted under law of this State
16other than this Act with respect to commingled funds.
17    (d) In addition to any other remedy available to the
18assignee under law of this State other than this Act, if an
19assignor fails to turn over proceeds to the assignee as
20required by subsection (b), the assignee may recover from the
21assignor in a civil action:
22        (1) the proceeds, or an amount equal to the proceeds,
23    that the assignor was obligated to turn over under
24    subsection (b); and
25        (2) reasonable attorney's fees and costs incurred by
26    the assignee to the extent provided for by agreement and



SB3810- 20 -LRB097 17588 AJO 62794 b

1    not prohibited by law of this State other than this Act.
2    (e) The assignee may maintain an action under subsection
3(d) without bringing an action to foreclose any security
4interest that it may have in the real property. Any sums
5recovered in the action must be applied in the manner specified
6in Section 12.
7    (f) Unless otherwise agreed, if an assignee entitled to
8priority under Section 5(c) enforces its interest in rents
9after another creditor holding a subordinate security interest
10in rents has enforced its interest under Section 8 or 9, the
11creditor holding the subordinate security interest in rents is
12not obligated to turn over any proceeds that it collects in
13good faith before the creditor receives notification that the
14senior assignee has enforced its interest in rents. The
15creditor shall turn over to the senior assignee any proceeds
16that it collects after it receives the notification.
17    Section 15. Perfection and priority of assignees security
18interest in proceeds.
19    (a) In this Section:
20        (1) "Article 9" means Article 9 of the Uniform
21    Commercial Code or, to the extent applicable to any
22    particular issue, Article 9 as adopted by the state whose
23    laws govern that issue under the choice-of-laws rules
24    contained in Article 9 as adopted by this State.
25        (2) "Conflicting interest" means an interest in



SB3810- 21 -LRB097 17588 AJO 62794 b

1    proceeds, held by a person other than an assignee, that is:
2            (A) a security interest arising under Article 9; or
3            (B) any other interest if Article 9 resolves the
4        priority conflict between that person and a secured
5        party with a conflicting security interest in the
6        proceeds.
7    (b) An assignee's security interest in identifiable cash
8proceeds is perfected if its security interest in rents is
9perfected. An assignee's security interest in identifiable
10noncash proceeds is perfected only if the assignee perfects
11that interest in accordance with Article 9.
12    (c) Except as otherwise provided in subsection (d),
13priority between an assignee's security interest in
14identifiable proceeds and a conflicting interest is governed by
15the priority rules in Article 9.
16    (d) An assignee's perfected security interest in
17identifiable cash proceeds is subordinate to a conflicting
18interest that is perfected by control under Article 9 but has
19priority over a conflicting interest that is perfected other
20than by control.
21    Section 16. Priority subject to subordination. This Act
22does not preclude subordination by agreement as to rents or
24    Section 17. Uniformity of Application and Construction. In



SB3810- 22 -LRB097 17588 AJO 62794 b

1applying and construing this uniform act, consideration must be
2given to the need to promote uniformity of the law with respect
3to its subject matter among states that enact it.
4    Section 18. Relation to Electronic Signatures in Global and
5National Commerce Act. This Act modifies, limits, and
6supersedes the federal Electronic Signatures in Global and
7National Commerce Act (15 U.S.C. Section 7001, et. seq.) but
8does not modify, limit, or supersede Section 101(c) of that Act
9(15 U.S.C. Section 7001(c)) or authorize electronic delivery of
10any of the notices described in Section 103(b) of that Act (15
11U.S.C. Section 7003(b)).
12    Section 19. Application to existing relationships.
13    (a) Except as otherwise provided in this Section, this Act
14governs the enforcement of an assignment of rents and the
15perfection and priority of a security interest in rents, even
16if the document creating the assignment was signed and
17delivered before the effective date of this Act.
18    (b) This Act does not affect an action or proceeding
19commenced before the effective date of this Act.
20    (c) Section 4(a) of this Act does not apply to any security
21instrument signed and delivered before the effective date of
22this Act.
23    (d) This Act does not affect:
24        (1) the enforceability of an assignee's security



SB3810- 23 -LRB097 17588 AJO 62794 b

1    interest in rents or proceeds if, immediately before the
2    effective date of this Act, that security interest was
3    enforceable;
4        (2) the perfection of an assignee's security interest
5    in rents or proceeds if, immediately before the effective
6    date of this Act, that security interest was perfected; or
7        (3) the priority of an assignee's security interest in
8    rents or proceeds with respect to the interest of another
9    person if, immediately before the effective date of this
10    Act, the interest of the other person was enforceable and
11    perfected, and that priority was established.