810 ILCS 5/9-322
2021 Illinois Compiled Statutes|Chapter 810 - COMMERCIAL CODE|810 ILCS 5/ - Uniform Commercial Code.|Article 9 - Secured Transactions

Sec. 9-322.         Priorities among conflicting security interests in and  agricultural liens on same collateral.(a) General priority rules.  Except as otherwise provided in this  Section, priority among conflicting security interests and agricultural liens  in the  same collateral is determined according to the following rules:(1) Conflicting perfected security interests and     agricultural liens rank according to priority in time of filing or perfection.  Priority dates from the earlier of the time a filing covering the collateral is first made or the security interest or agricultural lien is first perfected, if there is no period thereafter when there is neither filing nor perfection.(2) A perfected security interest or agricultural     lien has priority over a conflicting unperfected security interest or agricultural lien.(3) The first security interest or agricultural lien     to attach or become effective has priority if conflicting security interests and agricultural liens are unperfected.(b) Time of perfection:  proceeds and supporting obligations.  For the purposes of subsection (a)(1):(1) the time of filing or perfection as to a security     interest in collateral is also the time of filing or perfection as to a security interest in proceeds; and(2) the time of filing or perfection as to a security     interest in collateral supported by a supporting obligation is also the time of filing or perfection as to a security interest in the supporting obligation.(c) Special priority rules:  proceeds and supporting obligations.  Except as otherwise provided in subsection (f), a security interest in  collateral  which qualifies for priority over a conflicting security interest under Section  9-327,  9-328, 9-329, 9-329.1, 9-330, or 9-331 also has priority over a conflicting  security interest  in:(1) any supporting obligation for the collateral; and(2) proceeds of the collateral if:(A) the security interest in proceeds is         perfected;(B) the proceeds are cash proceeds or of the same         type as the collateral; and(C) in the case of proceeds that are proceeds of         proceeds, all intervening proceeds are cash proceeds, proceeds of the same type as the collateral, or an account relating to the collateral.(d) First-to-file priority rule for certain collateral.  Subject to  subsection (e) and except as otherwise provided in subsection (f), if a  security  interest in chattel paper, deposit accounts, negotiable documents, instruments,  investment property, letter-of-credit rights,  or beneficial interests in Illinois land trusts  is perfected by a method other than  filing, conflicting perfected security interests in proceeds of the collateral  rank  according to priority in time of filing.(e) Applicability of subsection (d).  Subsection (d) applies only if  the proceeds of the collateral are not cash proceeds, chattel paper, negotiable  documents, instruments, investment property,  beneficial interests in Illinois land trusts,  or letter-of-credit rights.(f) Limitations on subsections (a) through (e).  Subsections (a)  through (e) are subject to:(1) subsection (g) and the other provisions of this     Part;(2) Section 4-210 with respect to a security interest     of a collecting bank;(3) Section 5-118 with respect to a security interest     of an issuer or nominated person; and(4) Section 9-110 with respect to a security interest     arising under Article 2 or 2A.(g) Priority under agricultural lien statute.  A perfected  agricultural lien on collateral has priority over a conflicting security  interest in or  agricultural lien on the same collateral if the statute creating the  agricultural lien so  provides.    (Source: P.A. 91-893, eff. 7-1-01; 92-234, eff. 1-1-02.)