810 ILCS 5/9-620
2021 Illinois Compiled Statutes|Chapter 810 - COMMERCIAL CODE|810 ILCS 5/ - Uniform Commercial Code.|Article 9 - Secured Transactions

Sec. 9-620.         Acceptance of collateral in full or partial satisfaction of  obligation; compulsory disposition of collateral.(a) Conditions to acceptance in satisfaction.  Except as otherwise  provided in subsection (g), a secured party may accept collateral in full or  partial  satisfaction of the obligation it secures only if:(1) the debtor consents to the acceptance under     subsection (c);(2) the secured party does not receive, within the     time set forth in subsection (d), a notification of objection to the proposal authenticated by:(A) a person to which the secured party was         required to send a proposal under Section 9-621; or(B) any other person, other than the debtor,         holding an interest in the collateral subordinate to the security interest that is the subject of the proposal;(3) if the collateral is consumer goods, the     collateral is not in the possession of the debtor when the debtor consents to the acceptance; and(4) subsection (e) does not require the secured party     to dispose of the collateral or the debtor waives the requirement pursuant to Section 9-624.(b) Purported acceptance ineffective.  A purported or apparent  acceptance of collateral under this Section is ineffective unless:(1) the secured party consents to the acceptance in     an authenticated record or sends a proposal to the debtor; and(2) the conditions of subsection (a) are met.(c) Debtor's consent.  For purposes of this Section:(1) a debtor consents to an acceptance of collateral     in partial satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record authenticated after default; and(2) a debtor consents to an acceptance of collateral     in full satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record authenticated after default or the secured party:(A) sends to the debtor after default a proposal         that is unconditional or subject only to a condition that collateral not in the possession of the secured party be preserved or maintained;(B) in the proposal, proposes to accept         collateral in full satisfaction of the obligation it secures; and(C) does not receive a notification of objection         authenticated by the debtor within 20 days after the proposal is sent.(d) Effectiveness of notification.  To be effective under subsection  (a)(2), a notification of objection must be received by the secured party:(1) in the case of a person to which the proposal was     sent pursuant to Section 9-621, within 20 days after notification was sent to that person; and(2) in other cases:(A) within 20 days after the last notification         was sent pursuant to Section 9-621; or(B) if a notification was not sent, before the         debtor consents to the acceptance under subsection (c).(e) Mandatory disposition of consumer goods.  A secured party  that has taken possession of collateral shall dispose of the collateral pursuant to  Section 9-610 within the time specified in subsection (f) if:(1) 60 percent of the cash price has been paid in the     case of a purchase-money security interest in consumer goods; or(2) 60 percent of the principal amount of the     obligation secured has been paid in the case of a non-purchase-money security interest in consumer goods.(f) Compliance with mandatory disposition requirement.  To  comply with subsection (e), the secured party shall dispose of the collateral:(1) within 90 days after taking possession; or(2) within any longer period to which the debtor and     all secondary obligors have agreed in an agreement to that effect entered into and authenticated after default.(g) No partial satisfaction in consumer transaction.  In a  consumer transaction, a secured party may not accept collateral in partial  satisfaction of the obligation it secures.    (Source: P.A. 91-893, eff. 7-1-01.)