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Illinois Compiled Statutes
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COMMERCIAL CODE (810 ILCS 5/) Uniform Commercial Code. 810 ILCS 5/Art. 9 Pt. 5 Sub. 1
(810 ILCS 5/Art. 9 Pt. 5 Sub. 1 heading)
SUBPART 1.
FILING OFFICE; CONTENTS AND
EFFECTIVENESS OF FINANCING STATEMENT
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810 ILCS 5/9-501
(810 ILCS 5/9-501) (from Ch. 26, par. 9-501)
Sec. 9-501.
Filing office.
(a) Filing offices. Except as otherwise provided in subsection (b),
if the local law of this State governs perfection of a security interest or
agricultural
lien, the office in which to file a financing statement to perfect the security
interest
or agricultural lien is:
(1) the office designated for the filing or recording | | of a record of a mortgage on the related real property, if:
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(A) the collateral is as-extracted collateral or
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(B) the financing statement is filed as a fixture
| | filing and the collateral is goods that are or are to become fixtures; or
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(2) the office of the Secretary of State in all other
| | cases, including a case in which the collateral is goods that are or are to become fixtures and the financing statement is not filed as a fixture filing.
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(b) Filing office for transmitting utilities. The office in which to
file a financing statement to perfect a security interest in collateral,
including
fixtures, of a transmitting utility is the office of the Secretary of State.
The
financing statement also
constitutes a fixture filing as to the collateral indicated in the financing
statement
which is or is to become fixtures.
(Source: P.A. 91-357, eff. 7-29-99; 91-893, eff. 7-1-01.)
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810 ILCS 5/9-501.1 (810 ILCS 5/9-501.1) Sec. 9-501.1. Fraudulent records. (a) No person shall cause to be communicated to the filing office for filing a false record the person knows or reasonably should know: (1) is not authorized or permitted under Section | | 9-509, 9-708, or 9-808 of this Article;
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| (2) is not related to a valid existing or potential
| | commercial or financial transaction, an existing agricultural or other lien, or a judgment of a court of competent jurisdiction; and
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| (3) is filed with the intent to harass or defraud the
| | person identified as debtor in the record or any other person.
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| (b) A person who violates subsection (a) is guilty of a Class A misdemeanor for a first offense and a Class 4 felony for a second or subsequent offense.
(c) A person who violates subsection (a) shall be liable in a civil action to each injured person for:
(1) the greater of the actual damages caused by the
| | violation or up to $10,000 in lieu of actual damages;
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| (2) reasonable attorney's fees;
(3) court costs and other related expenses of
| | bringing an action, including reasonable investigative expenses; and
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| (4) in the discretion of the court, exemplary damages
| | in an amount determined by the court or jury.
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| (d) A person identified as debtor in a filed record the person believes was caused to be communicated to the filing office in violation of subsection (a) may, under penalty of perjury, file with the Secretary of State an affidavit to that effect. The Secretary of State shall adopt and make available a form affidavit for use under this Section.
(e) Upon receipt of an affidavit filed under this Section, or upon administrative action by the Secretary of State, the Secretary of State shall communicate to the secured party of record on the record to which the affidavit or administrative action relates and to the person that communicated the record to the filing office, if different and known to the office, a request for additional documentation supporting the effectiveness of the record. The Department of Business Services of the Office of the Secretary of State and the Office of the General Counsel shall review all such documentation received within 30 days after the first request for additional documentation is sent. The Secretary of State may terminate the record effective 30 days after the first request for additional documentation is sent if it has a reasonable basis for concluding that the record was communicated to the filing office in violation of subsection (a).
The Secretary of State may initiate an administrative action under the first paragraph of this subsection (e) with regard to a filed record if it has reason to believe, from information contained in the record or obtained from the person that communicated the record to the filing office, that the record was communicated to the filing office in violation of subsection (a). The Secretary of State may give heightened scrutiny to a record that indicates that the debtor is a transmitting utility or that indicates that the transaction to which the record relates is a manufactured-home transaction or a public-finance transaction.
(f) The Secretary of State shall not charge a fee to file an affidavit under this Section and shall not return any fee paid for filing a record terminated under this Section.
(g) The Secretary of State shall promptly communicate to the secured party of record a notice of the termination of a record under subsection (e). A secured party of record that believes in good faith that the record was not communicated to the filing office in violation of subsection (a) may file an action to require that the record be reinstated by the filing office. A person that communicated a record to the filing office that the filing office rejected in reliance on Section 9-516(b)(3.5), who believes in good faith that the record was not communicated to the filing office in violation of Section 9-516(b)(3.5), may file an action to require that the record be accepted by the filing office.
(h) If a court or tribunal in an action under this Section determines that a record terminated under this Section or rejected in reliance on Section 9-516(b)(3.5) should be reinstated or accepted, the court or tribunal shall provide a copy of its order to that effect to the Secretary of State. On receipt of an order reinstating a terminated record, the Secretary of State shall refile the record along with a notice indicating that the record was refiled pursuant to this Section and its initial filing date. On receipt of an order requiring that a rejected record be accepted, the Secretary of State shall promptly file the record along with a notice indicating that the record was filed pursuant to this Section and the date on which it was communicated for filing. A rejected record that is filed pursuant to an order of a court or tribunal shall have the effect described in Section 9-516(d) for a record the filing office refuses to accept for a reason other than one set forth in Section 9-516(b).
(i) A terminated record that is refiled under subsection (h) is effective as a filed record from the initial filing date. If the period of effectiveness of a refiled record would have lapsed during the period of termination, the secured party may file a continuation statement within 30 days after the record is refiled and the continuation statement shall have the same effect as if it had been filed during the 6-month period described in Section 9-515(d). A refiled record shall be considered never to have been ineffective against all persons and for all purposes except that it shall not be effective as against a purchaser of the collateral that gave value in reasonable reliance on the absence of the record from the files.
(j) Neither the filing office nor any of its employees shall incur liability for the termination or failure to terminate a record under this Section or for the refusal to accept a record for filing in the lawful performance of the duties of the office or employee.
(k) This Section does not apply to a record communicated to the filing office by a regulated financial institution or by a representative of a regulated financial institution except that the Secretary of State may request from the secured party of record on the record or from the person that communicated the record to the filing office, if different and known to the office, additional documentation supporting that the record was communicated to the filing office by a regulated financial institution or by a representative of a regulated financial institution. The term "regulated financial institution" means a financial institution subject to regulatory oversight or examination by a State or federal agency and includes banks, savings banks, savings associations, building and loan associations, credit unions, consumer finance companies, industrial banks, industrial loan companies, insurance companies, investment companies, investment funds, installment sellers, mortgage servicers, sales finance companies, and leasing companies.
(l) If a record was communicated to the filing office for filing before the effective date of this Section and its communication would have constituted a violation of subsection (a) if it had occurred on or after the effective date of the Section: (i) subsections (b) and (c) are not applicable; and (ii) the other subsections of this Section are applicable.
(Source: P.A. 97-836, eff. 7-20-12.)
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810 ILCS 5/9-502
(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
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(3) indicates the collateral covered by the financing
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(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
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(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
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(4) if the debtor does not have an interest of record
| | in the real property, provide the name of a record owner.
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(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
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(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;
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(3) the record satisfies the requirements for a
| | financing statement in this Section, but:
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| (A) the record need not indicate that it is to be
| | filed in the real property records; and
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(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
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(4) the record is recorded.
(d) Filing before security agreement or attachment. A financing
statement may be filed before a security agreement is made or a security
interest
otherwise attaches.
(Source: P.A. 97-1034, eff. 7-1-13 .)
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810 ILCS 5/9-503
(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 on the public organic record most recently filed with or issued or enacted by the registered organization's jurisdiction of organization which purports to state, amend, or restate the registered organization's name;
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(2) subject to subsection (f), if the collateral is
| | being administered by the personal representative of a decedent, 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;
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(3) if the collateral is held in a trust that is not
| | a registered organization, only if the financing statement:
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(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
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| (ii) if the organic record of the trust does
| | not specify a name for the trust, the name of the settlor or testator; and
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(B) in a separate part of the financing
| | (i) if the name is provided in accordance
| | with subparagraph (A)(i), indicates that the collateral is held in a trust; or
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| (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;
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| (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;
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| (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; and
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(6) in other cases:
(A) if the debtor has a name, only if the
| | financing statement provides the organizational name of the debtor; and
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(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.
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(b) Additional debtor-related information. A financing statement
that provides the name of the debtor in accordance with subsection (a) is not
rendered ineffective by the absence of:
(1) a trade name or other name of the debtor; or
(2) unless required under subsection (a)(6)(B), names
| | of partners, members, associates, or other persons comprising the debtor.
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(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
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| (2) in other cases, the name of the settlor or
| | testator indicated in the trust's organic record.
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| (Source: P.A. 97-1034, eff. 7-1-13 .)
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810 ILCS 5/9-504
(810 ILCS 5/9-504) (from Ch. 26, par. 9-504)
Sec. 9-504.
Indication of collateral.
A financing statement sufficiently
indicates the collateral that it covers if the financing statement
provides:
(1) a description of the collateral pursuant to | |
(2) an indication that the financing statement covers
| | all assets or all personal property.
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(Source: P.A. 91-893, eff. 7-1-01.)
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810 ILCS 5/9-505
(810 ILCS 5/9-505) (from Ch. 26, par. 9-505)
Sec. 9-505.
Filing and compliance with other statutes and treaties for
consignments, leases, other bailments, and other transactions.
(a) Use of terms other than "debtor" and "secured party." A
consignor, lessor, or other bailor of goods, a licensor, or a buyer of a
payment
intangible or promissory note may file a financing statement, or may comply
with a
statute or treaty described in Section 9-311(a), using the terms "consignor",
"consignee", "lessor", "lessee", "bailor", "bailee", "licensor", "licensee",
"owner",
"registered owner", "buyer", "seller", or words of similar import, instead of
the
terms "secured party" and "debtor".
(b) Effect of financing statement under subsection (a). This part
applies to the filing of a financing statement under subsection (a) and, as
appropriate, to compliance that is equivalent to filing a financing statement
under
Section 9-311(b), but the filing or compliance is not of itself a factor in
determining
whether the collateral secures an obligation. If it is determined for another
reason
that the collateral secures an obligation, a security interest held by the
consignor,
lessor, bailor, licensor, owner, or buyer which attaches to the collateral is
perfected
by the filing or compliance.
(Source: P.A. 91-893, eff. 7-1-01.)
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810 ILCS 5/9-506
(810 ILCS 5/9-506) (from Ch. 26, par. 9-506)
Sec. 9-506.
Effect of errors or omissions.
(a) Minor errors and omissions. A financing statement
substantially satisfying the requirements of this Part is effective, even if it
has
minor errors or omissions, unless the errors or omissions make the financing
statement seriously misleading.
(b) Financing statement seriously misleading. Except as
otherwise provided in subsection (c), a financing statement that fails
sufficiently to
provide the name of the debtor in accordance with Section 9-503(a) is seriously
misleading.
(c) Financing statement not seriously misleading. If a search of
the records of the filing office under the debtor's correct name, using the
filing
office's standard search logic, if any, would disclose a financing statement
that fails
sufficiently to provide the name of the debtor in accordance with Section
9-503(a),
the name provided does not make the financing statement seriously misleading.
(d) "Debtor's correct name." For purposes of Section 9-508(b),
the "debtor's correct name" in subsection (c) means the correct name of the new
debtor.
(Source: P.A. 91-893, eff. 7-1-01.)
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810 ILCS 5/9-507
(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 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; and
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(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, 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.
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(Source: P.A. 97-1034, eff. 7-1-13 .)
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810 ILCS 5/9-508
(810 ILCS 5/9-508)
Sec. 9-508.
Effectiveness of financing statement if new debtor becomes
bound by security agreement.
(a) Financing statement naming original debtor. Except as
otherwise provided in this Section, a filed financing statement naming an
original
debtor is effective to perfect a security interest in collateral in which a new
debtor
has or acquires rights to the extent that the financing statement would have
been
effective had the original debtor acquired rights in the collateral.
(b) Financing statement becoming seriously misleading. If the
difference between the name of the original debtor and that of the new debtor
causes a filed financing statement that is effective under subsection (a) to be
seriously misleading under Section 9-506:
(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); and
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(2) the financing statement is not effective to
| | perfect a security interest in collateral acquired by the new debtor more than four months after the new debtor becomes bound under Section 9-203(d) unless an initial financing statement providing the name of the new debtor is filed before the expiration of that time.
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(c) When Section not applicable. This Section does not apply to
collateral as to which a filed financing statement remains effective against
the new
debtor under Section 9-507(a).
(Source: P.A. 91-893, eff. 7-1-01.)
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810 ILCS 5/9-509
(810 ILCS 5/9-509)
Sec. 9-509.
Persons entitled to file a record.
(a) Person entitled to file record. A person may file an initial
financing statement, amendment that adds collateral covered by a financing
statement, or amendment that adds a debtor to a financing statement only if:
(1) the debtor authorizes the filing in an | | authenticated record or pursuant to subsection (b) or (c); or
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(2) the person holds an agricultural lien that has
| | become effective at the time of filing and the financing statement covers only collateral in which the person holds an agricultural lien.
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(b) Security agreement as authorization. By authenticating or
becoming bound as debtor by a security agreement, a debtor or new debtor
authorizes the filing of an initial financing statement, and an amendment,
covering:
(1) the collateral described in the security
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(2) property that becomes collateral under Section
| | 9-315(a)(2), whether or not the security agreement expressly covers proceeds.
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(c) Acquisition of collateral as authorization. By acquiring
collateral in which a security interest or agricultural lien continues under Section
9-315(a)(1), a debtor authorizes the filing of an initial financing statement, and an
amendment, covering the collateral and property that becomes collateral under
Section 9-315(a)(2).
(d) Person entitled to file certain amendments. A person may
file an amendment other than an amendment that adds collateral covered by a
financing statement or an amendment that adds a debtor to a financing statement
only if:
(1) the secured party of record authorizes the
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(2) the amendment is a termination statement for a
| | financing statement as to which the secured party of record has failed to file or send a termination statement as required by Section 9-513(a) or (c), the debtor authorizes the filing, and the termination statement indicates that the debtor authorized it to be filed.
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(e) Multiple secured parties of record. If there is more than one
secured party of record for a financing statement, each secured party of record
may
authorize the filing of an amendment under subsection (d).
(Source: P.A. 91-893, eff. 7-1-01.)
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810 ILCS 5/9-510
(810 ILCS 5/9-510)
Sec. 9-510. Effectiveness of filed record.
(a) Filed record effective if authorized. A filed record is effective
only to the extent that it was filed by a person that may file it under Section
9-509.
(b) Authorization by one secured party of record. A record
authorized by one secured party of record does not affect the financing
statement
with respect to another secured party of record.
(c) Continuation statement not timely filed. A continuation
statement that is not filed within the six-month period prescribed by Section
9-515(d) is ineffective.
(d) A filed record ceases to be effective if the filing office terminates the record pursuant to Section 9-501.1. (Source: P.A. 97-836, eff. 7-20-12.)
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810 ILCS 5/9-511
(810 ILCS 5/9-511)
Sec. 9-511.
Secured party of record.
(a) Secured party of record. A secured party of record with
respect to a financing statement is a person whose name is provided as the name
of
the secured party or a representative of the secured party in an initial
financing
statement that has been filed. If an initial financing statement is filed
under Section
9-514(a), the assignee named in the initial financing statement is the secured
party
of record with respect to the financing statement.
(b) Amendment naming secured party of record. If an
amendment of a financing statement which provides the name of a person as a
secured party or a representative of a secured party is filed, the person named
in the
amendment is a secured party of record. If an amendment is filed under Section
9-514(b), the assignee named in the amendment is a secured party of record.
(c) Amendment deleting secured party of record. A person
remains a secured party of record until the filing of an amendment of the
financing
statement which deletes the person.
(Source: P.A. 91-893, eff. 7-1-01.)
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810 ILCS 5/9-512
(810 ILCS 5/9-512)
Sec. 9-512.
Amendment of financing statement.
(a) Amendment of information in financing statement. Subject
to Section 9-509, a person may add or delete collateral covered by, continue or
terminate the effectiveness of, or, subject to subsection (e), otherwise amend
the
information provided in, a financing statement by filing an amendment that:
(1) identifies, by its file number, the initial | | financing statement to which the amendment relates; and
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(2) if the amendment relates to an initial financing
| | statement filed or recorded in a filing office described in Section 9-501(a)(1), provides the date and time that the initial financing statement was filed and the information specified in Section 9-502(b).
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(b) Period of effectiveness not affected. Except as otherwise
provided in Section 9-515, the filing of an amendment does not extend the
period
of effectiveness of the financing statement.
(c) Effectiveness of amendment adding collateral. A financing
statement that is amended by an amendment that adds collateral is effective as
to
the added collateral only from the date of the filing of the amendment.
(d) Effectiveness of amendment adding debtor. A financing
statement that is amended by an amendment that adds a debtor is effective as to
the
added debtor only from the date of the filing of the amendment.
(e) Certain amendments ineffective. An amendment is ineffective
to the extent it:
(1) purports to delete all debtors and fails to
| | provide the name of a debtor to be covered by the financing statement; or
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(2) purports to delete all secured parties of record
| | and fails to provide the name of a new secured party of record.
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(Source: P.A. 91-893, eff. 7-1-01.)
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810 ILCS 5/9-513
(810 ILCS 5/9-513)
Sec. 9-513.
Termination statement.
(a) Consumer goods. A secured party shall cause the secured party
of record for a financing statement to file a termination statement for the
financing
statement if the financing statement covers consumer goods and:
(1) there is no obligation secured by the collateral | | covered by the financing statement and no commitment to make an advance, incur an obligation, or otherwise give value; or
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(2) the debtor did not authorize the filing of the
| | initial financing statement.
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(b) Time for compliance with subsection (a). To comply with
subsection (a), a secured party shall cause the secured party of record to file the
termination statement:
(1) within one month after there is no obligation
| | secured by the collateral covered by the financing statement and no commitment to make an advance, incur an obligation, or otherwise give value; or
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(2) if earlier, within 20 days after the secured
| | party receives an authenticated demand from a debtor.
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(c) Other collateral. In cases not governed by subsection (a),
within 20 days after a secured party receives an authenticated demand from a
debtor, the secured party shall cause the secured party of record for a financing
statement to send to the debtor a termination statement for the financing statement
or file the termination statement in the filing office if:
(1) except in the case of a financing statement
| | covering accounts or chattel paper that has been sold or goods that are the subject of a consignment, there is no obligation secured by the collateral covered by the financing statement and no commitment to make an advance, incur an obligation, or otherwise give value;
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(2) the financing statement covers accounts or
| | chattel paper that has been sold but as to which the account debtor or other person obligated has discharged its obligation;
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(3) the financing statement covers goods that were
| | the subject of a consignment to the debtor but are not in the debtor's possession; or
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(4) the debtor did not authorize the filing of the
| | initial financing statement.
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(d) Effect of filing termination statement. Except as otherwise
provided in Section 9-510, upon the filing of a termination statement with the
filing
office, the financing statement to which the termination statement relates
ceases to
be
effective. Except
as otherwise provided in Section 9-510, for purposes of Sections 9-519(g),
9-522(a), and 9-523(c) the filing with the filing office of a termination
statement relating to a financing statement that indicates that the debtor is a
transmitting utility also causes the effectiveness of the financing statement
to lapse.
(Source: P.A. 91-893, eff. 7-1-01.)
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810 ILCS 5/9-514
(810 ILCS 5/9-514)
Sec. 9-514.
Assignment of powers of secured party of record.
(a) Assignment reflected on initial financing statement. Except
as otherwise provided in subsection (c), an initial financing statement may
reflect
an assignment of all of the secured party's power to authorize an amendment to
the
financing statement by providing the name and mailing address of the assignee
as
the name and address of the secured party.
(b) Assignment of filed financing statement. Except as otherwise
provided in subsection (c), a secured party of record may assign of record all or part
of its power to authorize an amendment to a financing statement by filing in the
filing office an amendment of the financing statement which:
(1) identifies, by its file number, the initial | | financing statement to which it relates;
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(2) provides the name of the assignor; and
(3) provides the name and mailing address of the
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(c) Assignment of record of mortgage. An assignment of record
of a security interest in a fixture covered by a record of a mortgage which is
effective as a financing statement filed as a fixture filing under Section
9-502(c)
may be made only by an assignment of record of the mortgage in the manner
provided by law of this State other than the Uniform Commercial Code.
(Source: P.A. 91-893, eff. 7-1-01.)
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810 ILCS 5/9-515
(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. 97-1034, eff. 7-1-13 .)
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810 ILCS 5/9-516
(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;
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(2) an amount equal to or greater than the applicable
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(3) the filing office is unable to index the record
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(A) in the case of an initial financing
| | statement, the record does not provide a name for the debtor;
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(B) in the case of an amendment or information
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(i) does not identify the initial financing
| | statement as required by Section 9-512 or 9-518, as applicable;
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(ii) identifies an initial financing
| | statement whose effectiveness has lapsed under Section 9-515; or
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(iii) identifies an initial financing
| | statement which was terminated pursuant to Section 9-501.1;
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(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;
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(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
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(E) in the case of a record submitted to the
| | filing office described in Section 9-501(a)(1), the filing office has reason to believe, from information contained in the record or from the person that communicated the record to the office, that: (i) if the record indicates that the debtor is a transmitting utility, the debtor does not meet the definition of a transmitting utility as described in Section 9-102(a)(81); (ii) if the record indicates that the transaction relating to the record is a manufactured-home transaction, the transaction does not meet the definition of a manufactured-home transaction as described in Section 9-102(a)(54); or (iii) if the record indicates that the transaction relating to the record is a public-finance transaction, the transaction does not meet the definition of a public-finance transaction as described in Section 9-102(a)(67);
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| | or an amendment, if the filing office believes in good faith that the record was communicated to the filing office in violation of Section 9-501.1(a);
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(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;
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(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:
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(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;
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(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
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(7) in the case of a continuation statement, the
| | record is not filed within the six-month period prescribed by Section 9-515(d).
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(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
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(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.
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(d) Refusal to accept record; record effective as filed record. A
record that is communicated to the filing office with tender of the filing fee,
but
which the filing office refuses to accept for a reason other than one set forth
in
subsection (b), is effective as a filed record except as against a purchaser of
the
collateral which gives value in reasonable reliance upon the absence of the
record
from the files.
(e) The Secretary of State may refuse to accept a record for filing under subdivision (b)(3)(E) or (b)(3.5) only if the refusal is approved by the Department of Business Services of the Secretary of State and the General Counsel to the Secretary of State.
(Source: P.A. 97-836, eff. 7-20-12; 97-1034, eff. 7-1-13; 98-463, eff. 8-16-13.)
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810 ILCS 5/9-517
(810 ILCS 5/9-517)
Sec. 9-517.
Effect of indexing errors.
The failure of the filing office
to index a record correctly does not affect the effectiveness of the filed
record.
(Source: P.A. 91-893, eff. 7-1-01.)
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810 ILCS 5/9-518
(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. A person may file in the filing office an information statement with respect to a record indexed there under the person's
name
if the person believes that the record is inaccurate or was wrongfully filed.
(b) Contents of statement under subsection (a). An information statement under subsection (a)
must:
(1) identify the record to which it relates by the | | file number assigned to the initial financing statement to which the record relates;
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(2) indicate that it is an information 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.
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(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;
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(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).
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| (e) Record not affected by information statement. The filing of an information statement does not affect the effectiveness of an initial financing
statement or other filed record.
(Source: P.A. 97-1034, eff. 7-1-13 .)
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