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90_HB1280
810 ILCS 5/9-401 from Ch. 26, par. 9-401
810 ILCS 5/9-401A new
Amends the Secured Transactions Article of the Uniform
Commercial Code. Removes the provision that in order to
perfect a security interest in equipment used in farming,
farm products, items related to the sale of farm products by
a farmer, or crops growing or to be grown, filing must occur
in the office of the appropriate county recorder, instead
requiring filing in the office of the Secretary of State.
Makes provisions for filings completed at county recorders
offices before the effective date of this Amendatory Act of
1997. Effective January 1, 1998.
LRB9002326SMdv
LRB9002326SMdv
1 AN ACT to amend the Uniform Commercial Code by changing
2 Section 9-401 and adding Section 9-401A.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Uniform Commercial Code is amended by
6 changing Section 9-401 and adding Section 9-401A as follows:
7 (810 ILCS 5/9-401) (from Ch. 26, par. 9-401)
8 Sec. 9-401. Place of Filing; Erroneous Filing; Removal of
9 Collateral.
10 (1) The proper place to file in order to perfect a
11 security interest is as follows:
12 (a) when the collateral is equipment used in
13 farming operations, or farm products, or accounts or
14 general intangibles arising from or relating to the sale
15 of farm products by a farmer, or consumer goods, then in
16 the office of the recorder in the county of the debtor's
17 residence or if the debtor is not a resident of this
18 State then in the office of the Recorder of Deeds in the
19 county where the goods are kept, and in addition when the
20 collateral is crops growing or to be grown in the office
21 of the Recorder of Deeds in the county where the land is
22 located;
23 (b) when the collateral is timber to be cut or is
24 minerals or the like (including oil and gas) or accounts
25 subject to subsection (5) of Section 9-103, or when the
26 financing statement is filed as a fixture filing (Section
27 9-313) and the collateral is goods which are or are to
28 become fixtures, then in the office where a mortgage on
29 the real estate would be filed or recorded;
30 (c) in all other cases, in the office of the
31 Secretary of State.
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1 (2) A filing which is made in good faith in an improper
2 place or not in all of the places required by this section is
3 nevertheless effective with regard to any collateral as to
4 which the filing complied with the requirements of this
5 Article and is also effective with regard to collateral
6 covered by the financing statement against any person who has
7 knowledge of the contents of such financing statement.
8 (3) A filing which is made in the proper place in this
9 State continues effective even though the debtor's residence
10 or place of business or the location of the collateral or its
11 use, whichever controlled the original filing, is thereafter
12 changed.
13 (4) The rules stated in Section 9-103 determine whether
14 filing is necessary in this State.
15 (5) Notwithstanding the preceding subsections, and
16 subject to subsection (3) of Section 9-302, the proper place
17 to file in order to perfect a security interest in
18 collateral, including fixtures, of a transmitting utility is
19 the office of the Secretary of State. This filing constitutes
20 a fixture filing (Section 9-313) as to the collateral
21 described therein which is or is to become fixtures.
22 (6) For the purposes of this Section, the residence of
23 an organization is its place of business if it has one or its
24 chief executive office if it has more than one place of
25 business.
26 (Source: P.A. 83-358.)
27 (810 ILCS 5/9-401A new)
28 Sec. 9-401A. Continuation of certain financing
29 statements filed before January 1, 1998. The following rules
30 shall apply to a financing statement or continuation
31 statement that was properly filed before January 1, 1998 in
32 the office of a county recorder, but which, if filed on or
33 after January 1, 1998, is required by Section 9-401 to be
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1 filed in the office of the Secretary of State:
2 (a) The financing statement shall remain effective until
3 it lapses as provided in Section 9-403.
4 (b) The effectiveness of the financing statement may be
5 continued only by filing a continuation statement in the
6 office of the Secretary of State that provides the name and
7 address of the debtor and secured party, indicates the county
8 where the financing statement is filed, complies with the
9 requirements of Section 9-403, and either:
10 (1) Indicates the types or describes the items of
11 collateral included in the original financing statement
12 as modified by any releases or amendments; or
13 (2) Has attached a copy of the originally filed
14 financing statement together with amendments,
15 assignments, and releases affecting it.
16 A continuation statement filed as provided in this
17 subsection (b) may be further continued by a continuation
18 statement that complies with the requirements of Section
19 9-403.
20 (c) The financing statement can be terminated, assigned,
21 released, or amended only by an appropriate filing in the
22 office of the county recorder where it is filed, except that
23 if the financing statement has been continued as provided in
24 subsection (b) of this Section, it can thereafter be
25 terminated, assigned, released, or amended only by an
26 appropriate filing in the office of the Secretary of State.
27 Section 99. Effective date. This Act takes effect
28 January 1, 1998.