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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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.