Public Act 90-0214 of the 90th General Assembly

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Public Act 90-0214

HB1412 Enrolled                                LRB9004774SMdv

    AN ACT to amend the Uniform Commercial Code  by  changing
Section 9-507.

    Be  it  enacted  by  the People of the State of Illinois,
represented in the General Assembly:

    Section 5.  The Uniform Commercial  Code  is  amended  by
changing Section 9-507 as follows:

    (810 ILCS 5/9-507) (from Ch. 26, par. 9-507)
    Sec.  9-507.  Secured  party's  liability  for failure to
comply with this part.
    (1)  If it is established that the secured party  is  not
proceeding  in  accordance  with  the provisions of this Part
disposition may be ordered or restrained on appropriate terms
and conditions. If the disposition has occurred the debtor or
any  person  entitled  to  notification  or  whose   security
interest  has  been  made known to the secured party prior to
the disposition has a right to recover from the secured party
any loss caused by a failure to comply with the provisions of
this Part. If the collateral is consumer goods, the debtor in
an individual action has a right to recover in any  event  an
amount  not  less  than the credit service charge plus 10% of
the  principal  amount  of  the  debt  or  the   time   price
differential plus 10% of the cash price.
    (2)  The  fact  that  a  better  price  could  have  been
obtained  by  a  sale  at  a different time or in a different
method from that selected by the  secured  party  is  not  of
itself  sufficient to establish that the sale was not made in
a commercially reasonable manner. If the secured party either
sells the collateral in the usual manner  in  any  recognized
market  therefor  or if he sells at the price current in such
market at the time of his sale or if he has otherwise sold in
conformity with reasonable commercial practices among dealers
in the type of property sold he has sold  in  a  commercially
reasonable manner. The principles stated in the two preceding
sentences  with  respect  to  sales  also  apply  as  may  be
appropriate  to  other  types  of  disposition. A disposition
which has been approved in any judicial proceeding or by  any
bona fide creditors' committee or representative of creditors
shall  conclusively  be deemed to be commercially reasonable,
but this sentence does not indicate that  any  such  approval
must  be  obtained  in any case nor does it indicate that any
disposition not so approved is not commercially reasonable.
(Source: Laws 1961, p. 2101.)

    Section 99.  Effective date.  This Act takes effect  upon
becoming law.

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