Source: http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=081000050HArt.+9+Pt.+7&ActID=2301&ChapterID=66&SeqStart=72100000&SeqEnd=73299805
Timestamp: 2013-12-05 03:56:12
Document Index: 267885915

Matched Legal Cases: ['art 3', 'art 3', 'art 5', 'art 5', 'art 3', 'art 3']

Illinois Compiled StatutesBack to Article Listing Public Acts Search Guide Disclaimer Printer-Friendly Version Information maintained by the Legislative Reference BureauUpdating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide. Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.COMMERCIAL CODE(810 ILCS 5/) Uniform Commercial Code.810 ILCS 5/9-628
Sec. 9-628. Nonliability and limitation on liability of secured party;
liability of secondary obligor.
(a) Limitation of liability to debtor or obligor. Unless a secured
party knows that a person is a debtor or obligor, knows the identity of the
and knows how to communicate with the person:
(b) Limitation of liability to debtor, obligor, another secured
party, or lienholder. A secured party is not liable because of its status as secured
(c) Limitation of liability if reasonable belief that transaction
not a consumer-goods transaction or consumer transaction. A secured party is
not liable to any person, and a person's liability for a deficiency is not
because of any act or omission arising out of the secured party's reasonable
that a transaction is not a consumer-goods transaction or a consumer
that goods are not consumer goods, if the secured party's belief is based on
reasonable reliance on:
(d) Limitation of liability for statutory damages. A secured party
is not liable to any person under Section 9-625(c)(2) for its failure to comply
Section 9-616.
(e) Limitation of multiple liability for statutory damages. A
secured party is not liable under Section 9-625(c)(2) more than once with
any one secured obligation.
Sec. 9-701. Effective date. (See Section 99 of the Public Act adding this
Section to this Act.)
Sec. 9-702. Savings clause. (a) Pre-effective-date transactions or liens. Except as otherwise
provided in this Part, this Act applies to a transaction or lien within its
scope, even
if the transaction or lien was entered into or created before the effective
(b) Continuing validity. Except as otherwise provided in
subsection (c) and Sections 9-703 through 9-709:
(1) transactions and liens that were not governed by Article 9 as it existed before the effective date of this amendatory Act of the 91st General Assembly, were validly entered into or created before the effective date of this amendatory Act of the 91st General Assembly, and would be subject to this Act if they had been entered into or created after the effective date of this amendatory Act of the 91st General Assembly, and the rights, duties, and interests flowing from those transactions and liens remain valid after the effective date of this amendatory Act of the 91st General Assembly; and
(2) the transactions and liens may be terminated, completed, consummated, and enforced as required or permitted by this Act or by the law that otherwise would apply if this Act had not taken effect.
(c) Pre-effective-date proceedings. This amendatory Act of the
91st General Assembly does not affect an action, case, or proceeding commenced
before the effective date of this amendatory Act of the 91st General
Sec. 9-703. Security interest perfected before effective date. (a) Continuing priority over lien creditor: perfection
requirements satisfied. A security interest that is enforceable immediately
the effective date of this amendatory Act of the 91st General Assembly and
have priority over the rights of a person that becomes a lien creditor at that
perfected security interest under this Act if, on the effective date of this
Act of the 91st General Assembly, the applicable requirements for enforceability
and perfection under this Act are satisfied without further action.
(b) Continuing priority over lien creditor: perfection
requirements not satisfied. Except as otherwise provided in Section 9-705, if,
immediately before the effective date of this amendatory Act of the 91st General
Assembly, a security interest is enforceable and would have priority over the rights
of a person that becomes a lien creditor at that time, but the applicable requirements
for enforceability or perfection under this Act are not satisfied on the effective date
of this amendatory Act of the 91st General Assembly, the security interest:
(1) is a perfected security interest for one year after the effective date of this amendatory Act of the 91st General Assembly;
Sec. 9-704. Security interest unperfected before effective date. A
security interest that is enforceable immediately before the effective date of
amendatory Act of the 91st General Assembly but which would be subordinate to
the rights of a person that becomes a lien creditor at that time:
(1) remains an enforceable security interest for one year after the effective date of this amendatory Act of the 91st General Assembly;
(2) remains enforceable thereafter if the security interest becomes enforceable under Section 9-203 on the effective date of this amendatory Act of the 91st General Assembly or within one year thereafter; and
(A) without further action, on the effective date of this amendatory Act of the 91st General Assembly if the applicable requirements for perfection under this Act are satisfied before or at that time; or
Sec. 9-705. Effectiveness of action taken before effective date. (a) Pre-effective-date action; one-year perfection period unless
reperfected. If action, other than the filing of a financing statement, is
before the effective date of this amendatory Act of the 91st General Assembly
the action would have resulted in priority of a security interest over the
person that becomes a lien creditor had the security interest become
before the effective date of this amendatory Act of the 91st General Assembly, the
action is effective to perfect a security interest that attaches under this Act within
one year after the effective date of this amendatory Act of the 91st General
Assembly. An attached security interest becomes unperfected one year after the
effective date of this amendatory Act of the 91st General Assembly unless the
security interest becomes a perfected security interest under this Act before the
expiration of that period.
(b) Pre-effective-date filing. The filing of a financing statement
before the effective date of this amendatory Act of the 91st General Assembly is
effective to perfect a security interest to the extent the filing would satisfy the
applicable requirements for perfection under this Act.
(c) Pre-effective-date filing in jurisdiction formerly governing
perfection. This Act does not render ineffective an effective financing statement
that, before the effective date of this amendatory Act of the 91st General
is filed and satisfies the applicable requirements for perfection under the law
jurisdiction governing perfection as provided in Section 9-103
of the Uniform Commercial Code as it existed before the effective date of
this amendatory Act of the 91st General Assembly.
except as otherwise provided in subsections (d) and (e) and Section 9-706, the
financing statement ceases to be effective at the earlier of:
(d) Continuation statement. The filing of a continuation statement
after the effective date of this amendatory Act of the 91st General Assembly
not continue the effectiveness of the financing statement filed before the
date of this amendatory Act of the 91st General Assembly. However, upon the
timely filing of a continuation statement after the effective date of this
Act of the 91st General Assembly and in accordance with the law of the
jurisdiction governing perfection as provided in Part 3, the effectiveness of a
financing statement filed in the same office in that jurisdiction before the effective
date of this amendatory Act of the 91st General Assembly continues for the period
provided by the law of that jurisdiction.
(e) Application of subsection (c)(2) to transmitting utility
financing statement. Subsection (c)(2) applies to a financing statement that,
before the effective date of this amendatory Act of the 91st General Assembly,
filed against a transmitting utility and satisfies the applicable requirements
perfection under the law of the jurisdiction governing perfection as provided
in Section 9-103, as that Section existed before the effective date of this
amendatory Act of the 91st General Assembly, only to the extent that Part 3
provides that the law of
jurisdiction other than jurisdiction in which the financing statement is filed
perfection of a security interest in collateral covered by the financing
(f) Application of Part 5. A financing statement that includes a
financing statement filed before the effective date of this amendatory Act of
91st General Assembly and a continuation statement filed after the effective
this amendatory Act of the 91st General Assembly is effective only to the
that it satisfies the requirements of Part 5 for an initial financing
Sec. 9-707. Amendment of pre-effective-date financing statement. (a) "Pre-effective-date financing statement". In this Section,
"pre-effective-date financing statement" means a financing statement filed
the effective date of this amendatory Act of the 91st General Assembly.
(b) Applicable law. After the effective date of this amendatory Act of the
91st General Assembly, a person may add or
delete collateral covered by, continue or terminate the effectiveness of, or
otherwise amend the information provided in, a pre-effective-date financing
statement only in accordance with the law of the jurisdiction governing
perfection as provided in Part 3. However, the effectiveness of a
pre-effective-date financing statement also may be terminated in accordance
the law of the jurisdiction in which the financing statement is filed.
(c) Method of amending: general rule. Except as otherwise provided in
subsection (d), if the law of this State governs perfection of a security
interest, the information in a pre-effective-date financing statement may be
amended after the effective date of this amendatory Act of the 91st General
Assembly only if:
(d) Method of amending: continuation. If the law of this State governs
perfection of a security interest, the effectiveness of a pre-effective-date
financing statement may be continued only under Section 9-705(d) and (f) or
Section 9-706.
(e) Method of amending: additional termination rule. Whether or not the
law of this State governs perfection of a security interest, the effectiveness
of a pre-effective-date financing statement filed in this State may be
terminated after the effective date of this amendatory Act of the 91st General
Assembly by filing a termination statement in
the office in which the pre-effective-date financing statement is filed,
unless an initial financing statement that satisfies Section 9-706(c) has been
filed in the office specified by the law of the jurisdiction governing
perfection as provided in Part 3 as the office in which to file a financing
Sec. 9-708. Persons entitled to file initial financing
continuation statement. A person may file an initial financing statement or a
continuation statement under this Part if:
(A) to continue the effectiveness of a financing statement filed before the effective date of this amendatory Act of the 91st General Assembly; or
Sec. 9-709. Priority. (a) Law governing priority. This Act determines the priority of
conflicting claims to collateral. However, if the relative priorities of the
were established before the effective date of this amendatory Act of the 91st
General Assembly, Article 9 as it existed before the effective date of this
amendatory Act of the 91st General Assembly determines priority.
(b) Priority if security interest becomes enforceable under
Section 9-203. For purposes of Section 9-322(a), the priority of a security
that becomes enforceable under Section 9-203 of this Act dates from the
date of this amendatory Act of the 91st General Assembly if the security
perfected under this Act by the filing of a financing statement before the
date of this amendatory Act of the 91st General Assembly which would not have
been effective to perfect the security interest under Article 9 as it existed
effective date of this amendatory Act of the 91st General Assembly. This
subsection does not apply to conflicting security interests each of which is
perfected by the filing of such a financing statement.
Sec. 9-710. Local-filing office responsibilities for filings under the
Uniform Commercial Code prior to this amendatory Act of the 91st General
(1) "Local-filing office" means a filing office, other than the office of the Secretary of State, that is designated as the proper place to file a financing statement under Section 9-401(1) of the Uniform Commercial Code as in effect immediately before the effective date of this amendatory Act of the 91st General Assembly. The term applies only with respect to a record that covers a type of collateral as to which the filing office is designated in that Section as the proper place to file.
(A) financing statements and other records that have been filed in a local-filing office before July 1, 2001, and that are, or upon processing and indexing will be, reflected in the index maintained, as of June 30, 2001, by the local-filing office for financing statements and other records filed in the local filing office before July 1, 2001.
(b) Except for a record terminating a former-Article-9 record, a
local-filing office must not accept for filing a record presented after June
2001, whether or not the record relates to a financing statement filed in the
local-filing office before July 1, 2001. If the record terminating such
former-Article-9 record statement is in the standard form prescribed by the
Secretary of State, the uniform fee for filing and indexing the termination
statement in the office of a county recorder shall be $5 and otherwise shall
be $10, plus in each case an additional fee of $5 for each name more than one
at each address listed against which the record is required to be indexed.
(c) Until July 1, 2001, each local-filing office must maintain all
former-Article-9 records in accordance with the Uniform Commercial Code as in
effect immediately before the effective date of this amendatory Act of the
91st General Assembly. A former-Article-9 record that is not reflected on the
index maintained on June 30, 2001, by the local-filing office must be
processed and indexed, and reflected on the index as of June 30, 2001, as soon
as practicable but in any event no later than July 30, 2001.
(d) Until at least June 30, 2008, each local-filing office must respond
to requests for information with respect to former-Article-9 records relating
to a debtor and issue certificates, in accordance with the Uniform Commercial
Code as in effect immediately before this amendatory Act of the 91st General
Assembly. The fees charged for responding to requests for information relating
to the debtor issuing the certificates with respect to former-Article-9
records must be the fees in effect under the Uniform Commercial Code as in
91st General Assembly on June 30, 2001, unless a different fee is later set by
the local filing office. However, the different fee must not exceed $10 for
responding to a request for information relating to a debtor or $10 for
(e) After June 30, 2008, each local-filing office may remove and
destroy, in accordance with any then applicable record retention law of this
State, all former-Article-9 records, including the related index.
(f) This Section does not apply, with respect to financing statements
and other records, to a filing office in which mortgages or records of
mortgages on real property are required to be filed or recorded if:
(1) the collateral is timber to be cut or as-extracted collateral, or
(2) the record is or relates to a financing statement filed as a fixture filing and the collateral is goods that are or are to become fixtures.