State of Illinois
90th General Assembly
Legislation

   [ Search ]   [ Legislation ]   [ Bill Summary ]
[ Home ]   [ Back ]   [ Bottom ]


[ Introduced ][ Enrolled ][ House Amendment 001 ]

90_HB1280eng

      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
HB1280 Engrossed                               LRB9002326SMdv
 1        AN  ACT  regarding  secured  transactions  involving farm
 2    related items, amending named Acts.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.   The  Counties  Code  is amended by changing
 6    Section 3-5018 as follows:
 7        (55 ILCS 5/3-5018) (from Ch. 34, par. 3-5018)
 8        Sec. 3-5018.  Fees.  The recorder elected as provided for
 9    in this Division shall receive such fees as  are  or  may  be
10    provided  for  him  by  law,  in  case of provision therefor:
11    otherwise he shall receive the same fees as  are  or  may  be
12    provided  in  this  Section,  except when increased by county
13    ordinance pursuant to the provisions of this Section,  to  be
14    paid  to  the  county clerk for his services in the office of
15    recorder for like services. No filing fee  shall  be  charged
16    for providing informational copies of financing statements to
17    the  recorder  pursuant to subsection (8) of Section 9-403 of
18    the Uniform Commercial Code.
19        For recording deeds or  other  instruments  $12  for  the
20    first  4  pages  thereof,  plus  $1  for each additional page
21    thereof, plus $1 for each additional document number  therein
22    noted.  The  aggregate  minimum  fee  for  recording  any one
23    instrument shall not be less than $12.
24        For recording deeds  or  other  instruments  wherein  the
25    premises  affected thereby are referred to by document number
26    and not by legal description a fee of $1 in addition to  that
27    hereinabove  referred  to  for  each  document number therein
28    noted.
29        For recording assignments of mortgages, leases  or  liens
30    $12  for  the  first  4  pages  thereof,  plus  $1  for  each
31    additional  page  thereof.   However,  except  for leases and
HB1280 Engrossed            -2-                LRB9002326SMdv
 1    liens pertaining to oil, gas and other minerals,  whenever  a
 2    mortgage,  lease  or  lien  assignment  assigns more than one
 3    mortgage, lease or lien document, a $7 fee shall  be  charged
 4    for  the  recording  of  each  such  mortgage,  lease or lien
 5    document after the first one.
 6        For recording maps or plats of additions or  subdivisions
 7    approved   by  the  county  or  municipality  (including  the
 8    spreading of the same of record in map case or  other  proper
 9    books)  or plats of condominiums $50 for the first page, plus
10    $1 for each additional page thereof except that in  the  case
11    of  recording  a  single page, legal size 8 1/2 x 14, plat of
12    survey in which there are no more than two lots or parcels of
13    land, the fee shall be $12.  In each county where  such  maps
14    or  plats  are  to  be recorded, the recorder may require the
15    same to be accompanied by such  number  of  exact,  true  and
16    legible  copies  thereof  as the recorder deems necessary for
17    the efficient conduct and operation of his office.
18        For certified copies of records  the  same  fees  as  for
19    recording,  but in no case shall the fee for a certified copy
20    of a map or plat of an  addition,  subdivision  or  otherwise
21    exceed $10.
22        Each certificate of such recorder of the recording of the
23    deed  or  other writing and of the date of recording the same
24    signed by such recorder, shall be sufficient evidence of  the
25    recording   thereof,   and  such  certificate  including  the
26    indexing of record, shall be furnished upon  the  payment  of
27    the  fee  for recording the instrument, and no additional fee
28    shall be allowed for the certificate or indexing.
29        The recorder shall charge an additional fee, in an amount
30    equal to the fee otherwise provided by law, for  recording  a
31    document  (other  than a document filed under the Plat Act or
32    the Uniform Commercial Code) that does not conform  to    the
33    following standards:
34             (1)  The  document  shall  consist  of  one  or more
HB1280 Engrossed            -3-                LRB9002326SMdv
 1        individual sheets measuring 8.5 inches by 11 inches,  not
 2        permanently  bound  and  not  a continuous form.  Graphic
 3        displays accompanying a  document  to  be  recorded  that
 4        measure  up  to  11 inches by 17 inches shall be recorded
 5        without charging an additional fee.
 6             (2)  The document shall be legibly printed in  black
 7        ink,  by  hand,  type, or computer.  Signatures and dates
 8        may be in  contrasting  colors  if  they  will  reproduce
 9        clearly.
10             (3)  The  document  shall  be  on white paper of not
11        less than 20-pound weight and shall have a  clean  margin
12        of  at  least  one-half  inch on the top, the bottom, and
13        each  side.   Margins  may  be  used  for   non-essential
14        notations  that  will  not  affect  the  validity  of the
15        document, including but not limited to form numbers, page
16        numbers, and customer notations.
17             (4)  The first page of the document shall contain  a
18        blank  space,  measuring  at  least 3 inches by 5 inches,
19        from the upper right corner.
20             (5)  The document  shall  not  have  any  attachment
21        stapled or otherwise affixed to any page.
22    A document that does not conform to these standards shall not
23    be  recorded  except  upon  payment  of  the  additional  fee
24    required under this paragraph.  This paragraph, as amended by
25    this  amendatory Act of 1995, applies only to documents dated
26    after the effective date of this amendatory Act of 1995.
27        The county  board  of  any  county  may  provide  for  an
28    additional  charge  of $3 for filing every instrument, paper,
29    or notice  for  record,  in  order  to  defray  the  cost  of
30    converting  the  county recorder's document storage system to
31    computers or micrographics.
32        A special fund shall be set up by the  treasurer  of  the
33    county  and  such  funds  collected  pursuant  to  Public Act
34    83-1321 shall be used solely for a document storage system to
HB1280 Engrossed            -4-                LRB9002326SMdv
 1    provide  the  equipment,  materials  and  necessary  expenses
 2    incurred  to  help  defray  the  costs  of  implementing  and
 3    maintaining such a document records system.
 4        The foregoing  fees  allowed  by  this  Section  are  the
 5    maximum  fees that may be collected from any officer, agency,
 6    department or other instrumentality of the State.  The county
 7    board may, however, by ordinance, increase the  fees  allowed
 8    by  this  Section  and  collect  such increased fees from all
 9    persons  and  entities   other   than   officers,   agencies,
10    departments  and  other instrumentalities of the State if the
11    increase is justified by an  acceptable  cost  study  showing
12    that  the  fees allowed by this Section are not sufficient to
13    cover the cost of providing the service.
14        A statement of  the  costs  of  providing  each  service,
15    program  and  activity shall be prepared by the county board.
16    All supporting documents shall be public record  and  subject
17    to  public  examination  and  audit.  All direct and indirect
18    costs, as defined in the United States Office  of  Management
19    and   Budget   Circular   A-87,   may   be  included  in  the
20    determination of the  costs  of  each  service,  program  and
21    activity.
22    (Source: P.A. 88-691, eff. 1-24-95; 89-160, eff. 7-19-95.)
23        Section  10.   The  Uniform Commercial Code is amended by
24    changing Sections 9-401 and 9-403 and adding  Section  9-401A
25    as follows:
26        (810 ILCS 5/9-401) (from Ch. 26, par. 9-401)
27        Sec. 9-401. Place of Filing; Erroneous Filing; Removal of
28    Collateral.
29        (1)  The  proper  place  to  file  in  order to perfect a
30    security interest is as follows:
31             (a)  when  the  collateral  is  equipment  used   in
32        farming  operations,  or  farm  products,  or accounts or
HB1280 Engrossed            -5-                LRB9002326SMdv
 1        general intangibles arising from or relating to the  sale
 2        of  farm products by a farmer, or consumer goods, then in
 3        the office of the recorder in the county of the  debtor's
 4        residence  or  if  the  debtor  is not a resident of this
 5        State then in the office of the Recorder of Deeds in  the
 6        county where the goods are kept, and in addition when the
 7        collateral  is crops growing or to be grown in the office
 8        of the Recorder of Deeds in the county where the land  is
 9        located;
10             (b)  when  the  collateral is timber to be cut or is
11        minerals or the like (including oil and gas) or  accounts
12        subject  to  subsection (5) of Section 9-103, or when the
13        financing statement is filed as a fixture filing (Section
14        9-313) and the collateral is goods which are  or  are  to
15        become  fixtures,  then in the office where a mortgage on
16        the real estate would be filed or recorded;
17             (c)  in all  other  cases,  in  the  office  of  the
18        Secretary of State.
19        (2)  A  filing which is made in good faith in an improper
20    place or not in all of the places required by this section is
21    nevertheless effective with regard to any  collateral  as  to
22    which  the  filing  complied  with  the  requirements of this
23    Article and is  also  effective  with  regard  to  collateral
24    covered by the financing statement against any person who has
25    knowledge of the contents of such financing statement.
26        (3)  A  filing  which is made in the proper place in this
27    State continues effective even though the debtor's  residence
28    or place of business or the location of the collateral or its
29    use,  whichever controlled the original filing, is thereafter
30    changed.
31        (4)  The rules stated in Section 9-103 determine  whether
32    filing is necessary in this State.
33        (5)  Notwithstanding   the   preceding  subsections,  and
34    subject to subsection (3) of Section 9-302, the proper  place
HB1280 Engrossed            -6-                LRB9002326SMdv
 1    to   file   in  order  to  perfect  a  security  interest  in
 2    collateral, including fixtures, of a transmitting utility  is
 3    the office of the Secretary of State. This filing constitutes
 4    a  fixture  filing  (Section  9-313)  as  to  the  collateral
 5    described therein which is or is to become fixtures.
 6        (6)  For  the  purposes of this Section, the residence of
 7    an organization is its place of business if it has one or its
 8    chief executive office if it  has  more  than  one  place  of
 9    business.
10    (Source: P.A. 83-358.)
11        (810 ILCS 5/9-401A new)
12        Sec.   9-401A.    Continuation   of   certain   financing
13    statements filed before January 1, 1998.  The following rules
14    apply to a financing statement or continuation statement that
15    was  properly filed before January 1, 1998 in the office of a
16    county recorder, but which, if filed on or after  January  1,
17    1998,  is required by Section 9-401 to be filed in the office
18    of the Secretary of State:
19        (1)  The financing statement shall remain effective until
20    it lapses as provided in Section 9-403.
21        (2)  The effectiveness of the financing statement may  be
22    continued  only  by  filing  a  continuation statement in the
23    office of the Secretary of State that provides the  name  and
24    address of the debtor and secured party, indicates the county
25    where  the  financing  statement  is filed, complies with the
26    requirements of Section 9-403, and either:
27             (A)  indicates the types or describes the  items  of
28        collateral  included  in the original financing statement
29        as modified by any releases or amendments; or
30             (B)  has attached a copy  of  the  originally  filed
31        financing    statement    together    with    amendments,
32        assignments, and releases affecting it.
33        A  continuation  statement filed as provided in this item
HB1280 Engrossed            -7-                LRB9002326SMdv
 1    (2) may be further continued by a continuation statement that
 2    complies with the requirements of Section 9-403.
 3        (3)  The financing statement may be terminated, assigned,
 4    released, or amended only by an  appropriate  filing  in  the
 5    office  of the county recorder where it is filed, except that
 6    if the financing statement has been continued as provided  in
 7    item  (2)  of  this Section, it may thereafter be terminated,
 8    assigned, released, or amended only by an appropriate  filing
 9    in the office of the Secretary of State.
10        (810 ILCS 5/9-403) (from Ch. 26, par. 9-403)
11        Sec.  9-403. What Constitutes Filing; Duration of Filing;
12    Effect of Lapsed Filing; Duties of Filing Officer; Fees.
13        (1)  Presentation for filing of a financing statement and
14    tender of the filing fee or acceptance of  the  statement  by
15    the filing officer constitutes filing under this Article.
16        (2)  Except   as  provided  in  subsection  (6)  a  filed
17    financing statement is effective for a period of 5 years from
18    the date of filing. The effectiveness of  a  filed  financing
19    statement  lapses  on  the  expiration  of  the 5 year period
20    unless a continuation statement is filed prior to the  lapse.
21    If a security interest perfected by filing exists at the time
22    insolvency  proceedings  are  commenced  by  or  against  the
23    debtor,   the   security  interest  remains  perfected  until
24    termination of the insolvency proceedings and thereafter  for
25    a period of 60 days or until expiration of the 5 year period,
26    whichever  occurs  later.  Upon  lapse  the security interest
27    becomes unperfected, unless it is perfected  without  filing.
28    If  the  security interest becomes unperfected upon lapse, it
29    is deemed to have been unperfected as against  a  person  who
30    became a purchaser or lien creditor before lapse.
31        (3)  A continuation statement may be filed by the secured
32    party  within  6 months prior to the expiration of the 5 year
33    period specified in subsection  (2).  Any  such  continuation
HB1280 Engrossed            -8-                LRB9002326SMdv
 1    statement  must  be signed by the secured party, identify the
 2    original statement by file number and state that the original
 3    statement is still effective. A continuation statement signed
 4    by a person other than the secured party of  record  must  be
 5    accompanied  by  a  separate  written statement of assignment
 6    signed by the secured party  of  record  and  complying  with
 7    subsection  (2)  of  Section  9-405, including payment of the
 8    required  fee.  Upon  timely  filing  of   the   continuation
 9    statement,  the  effectiveness  of  the original statement is
10    continued for 5 years after the last date to which the filing
11    was effective whereupon it  lapses  in  the  same  manner  as
12    provided   in  subsection  (2)  unless  another  continuation
13    statement  is  filed  prior   to   such   lapse.   Succeeding
14    continuation  statements  may  be filed in the same manner to
15    continue the effectiveness of the original statement.  Unless
16    a   statute   on   disposition  of  public  records  provides
17    otherwise, the filing officer may remove a  lapsed  statement
18    from  the files and destroy it immediately if he has retained
19    a microfilm or other photographic record, or in  other  cases
20    after  one  year after the lapse. The filing officer shall so
21    arrange  matters  by   physical   annexation   of   financing
22    statements   to  continuation  statements  or  other  related
23    filings, or by other means, that if  he  physically  destroys
24    the  financing statements of a period more than 5 years past,
25    those which have been continued by a  continuation  statement
26    or  which  are  still effective under subsection (6) shall be
27    retained.
28        (4)  Except  as  provided  in  subsection  (7)  a  filing
29    officer shall mark each statement with a file number and with
30    the date and hour of filing and shall hold the statement or a
31    microfilm or  other  photographic  copy  thereof  for  public
32    inspection.  In  addition  the filing officer shall index the
33    statement according to the name of the debtor and shall  note
34    in  the  index  the file number and the address of the debtor
HB1280 Engrossed            -9-                LRB9002326SMdv
 1    given in the statement.
 2        (5)  The uniform fee for  filing  and  indexing  and  for
 3    stamping  a  copy  furnished by the secured party to show the
 4    date and place of filing for an original financing statement,
 5    amended statement, or for a continuation statement  shall  be
 6    $20.
 7        (6)  If  the debtor is a transmitting utility (subsection
 8    (5) of Section 9-401  and  a  filed  financing  statement  so
 9    states,  it  is  effective  until  a termination statement is
10    filed. A real estate mortgage which is effective as a fixture
11    filing  under  subsection  (6)  of  Section   9-402   remains
12    effective  as a fixture filing until the mortgage is released
13    or  satisfied  of  record  or  its  effectiveness   otherwise
14    terminates as to the real estate.
15        (7)  When  a  financing statement covers timber to be cut
16    or covers minerals or the like (including  oil  and  gas)  or
17    accounts  subject  to  subsection (5) of Section 9-103, or is
18    filed as a fixture filing, the filing officer shall index  it
19    under  the  names of the debtor and any owner of record shown
20    on the financing statement in the same  fashion  as  if  they
21    were  the  mortgagors  in  a  mortgage  of  the  real  estate
22    described,  and,  to  the  extent  that the law of this State
23    provides for indexing of mortgages  under  the  name  of  the
24    mortgagee,  under the name of the secured party as if he were
25    the mortgagee thereunder, or where indexing is by description
26    in the same fashion as if  the  financing  statement  were  a
27    mortgage of the real estate described.
28        (8)  For  financing  statements filed on or after January
29    1, 1998 as to a debtor who is a  resident  of  the  State  of
30    Illinois,  if  the  collateral  is  equipment used in farming
31    operations, farm products, or accounts or general intangibles
32    arising from the sale of  farm  products  by  a  farmer,  the
33    secured  party  shall,  within  30 days after filing with the
34    office of the Secretary of State, remit to the office of  the
HB1280 Engrossed            -10-               LRB9002326SMdv
 1    recorder in the county of the debtor's residence a fee of $10
 2    together  with a copy of the financing statement filed in the
 3    office of the Secretary of State.  This fee is in addition to
 4    payment of the fee provided in subsection (5) of this Section
 5    and is imposed to defray the cost of  converting  the  county
 6    recorder's   document   storage   system   to   computers  or
 7    micrographics.  The copy of the financing statement  provided
 8    to  the  office  of  the  recorder shall be for informational
 9    purposes only and shall not be for filing with the office  of
10    the  recorder  nor  shall  the provision of the informational
11    copy be subject to imposition of any filing fee under Section
12    3-5018 of the Counties Code or otherwise. The  provisions  of
13    this subsection (8) other than this sentence, are inoperative
14    after  the  earlier of (i) July 1, 1999 or (ii) the effective
15    date of a change to  the  Illinois  Uniform  Commercial  Code
16    which  adopts  a recommendation by the National Conference of
17    Commissioners on Uniform State Laws to amend Section 9-401 of
18    this Code to make the office of the Secretary  of  State  the
19    proper  place to file a financing statement described in this
20    subsection (8).
21        (9)  The failure to  send  an  informational  copy  of  a
22    financing statement to the appropriate office of the recorder
23    or to pay the fee as set forth in subsection (8) shall not in
24    any   manner  affect  the  existence,  validity,  perfection,
25    priority, or enforceability of the security interest  of  the
26    secured party.
27    (Source: P.A. 89-503, eff. 1-1-97.)
28        Section  99.   Effective  date.   This  Act  takes effect
29    January 1, 1998.

[ Top ]