810 ILCS 5/9-316
2021 Illinois Compiled Statutes|Chapter 810 - COMMERCIAL CODE|810 ILCS 5/ - Uniform Commercial Code.|Article 9 - Secured Transactions

 (from Ch. 26, par. 9-316)Sec. 9-316. Effect of change  in governing law.(a) General rule:  effect on perfection of change in governing  law.  A security interest perfected pursuant to the law of the jurisdiction  designated  in Section 9-301(1) or 9-305(c) remains perfected until the earliest of:(1) the time perfection would have ceased under the     law of that jurisdiction;(2) the expiration of four months after a change of     the debtor's location to another jurisdiction; or(3) the expiration of one year after a transfer of     collateral to a person that thereby becomes a debtor and is located in another jurisdiction.(b) Security interest perfected or unperfected under law of new  jurisdiction.  If a security interest described in subsection (a) becomes perfected  under the law of the other jurisdiction before the earliest time or event described in  that subsection, it remains perfected thereafter.  If the security interest does not  become perfected under the law of the other jurisdiction before the earliest time or  event, it becomes unperfected and is deemed never to have been perfected as  against a purchaser of the collateral for value.(c) Possessory security interest in collateral moved to new  jurisdiction.  A possessory security interest in collateral, other than goods covered  by a certificate of title and as-extracted collateral consisting of goods, remains  continuously perfected if:(1) the collateral is located in one jurisdiction and     subject to a security interest perfected under the law of that jurisdiction;(2) thereafter the collateral is brought into another     jurisdiction; and(3) upon entry into the other jurisdiction, the     security interest is perfected under the law of the other jurisdiction.(d) Goods covered by certificate of title from this State.  Except  as otherwise provided in subsection (e), a security interest in goods covered by a  certificate of title which is perfected by any method under the law of another  jurisdiction when the goods become covered by a certificate of title from this State  remains perfected until the security interest would have become unperfected  under  the law of the other jurisdiction had the goods not become so covered.(e) When subsection (d) security interest becomes unperfected  against purchasers.  A security interest described in subsection (d) becomes  unperfected as against a purchaser of the goods for value and is deemed never  to  have been perfected as against a purchaser of the goods for value if the  applicable  requirements for perfection under Section 9-311(b) or 9-313 are not satisfied  before  the earlier of:(1) the time the security interest would have become     unperfected under the law of the other jurisdiction had the goods not become covered by a certificate of title from this State; or(2) the expiration of four months after the goods had     become so covered.(f) Change in jurisdiction of bank, issuer, nominated person,  securities intermediary, or commodity intermediary.  A security interest in  deposit accounts, letter-of-credit rights, or investment property which is perfected  under the law of the bank's jurisdiction, the issuer's jurisdiction, a nominated  person's jurisdiction, the securities intermediary's jurisdiction, or the commodity  intermediary's jurisdiction, as applicable, remains perfected until the earlier of:(1) the time the security interest would have become     unperfected under the law of that jurisdiction; or(2) the expiration of four months after a change of     the applicable jurisdiction to another jurisdiction.(g) Subsection (f) security interest perfected or unperfected  under law of new jurisdiction.  If a security interest described in subsection  (f)  becomes perfected under the law of the other jurisdiction before the earlier of  the  time or the end of the period described in that subsection, it remains  perfected  thereafter.  If the security interest does not become perfected under the law  of the  other jurisdiction before the earlier of that time or the end of that period,  it becomes  unperfected and is deemed never to have been perfected as against a purchaser  of  the collateral for value.(h)  Effect on filed financing statement of change in governing law.  The following rules apply to collateral to which a security interest attaches within four months after the debtor changes its location to another jurisdiction:(1)  A financing statement filed before the change     pursuant to the law of the jurisdiction designated in Section 9-301(1) or 9-305(c) is effective to perfect a security interest in the collateral if the financing statement would have been effective to perfect a security interest in the collateral had the debtor not changed its location.(2)  If a security interest perfected by a financing     statement that is effective under paragraph (1) becomes perfected under the law of the other jurisdiction before the earlier of the time the financing statement would have become ineffective under the law of the jurisdiction designated in Section 9-301(1) or 9-305(c) or the expiration of the four-month period, it remains perfected thereafter.  If the security interest does not become perfected under the law of the other jurisdiction before the earlier time or event, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value.(i)  Effect of change in governing law on financing statement filed against original debtor.  If a financing statement naming an original debtor is filed pursuant to the law of the jurisdiction designated in Section 9-301(1) or 9-305(c) and the new debtor is located in another jurisdiction, the following rules apply:(1)  The financing statement is effective to perfect     a security interest in collateral acquired by the new debtor before, and within four months after, the new debtor becomes bound under Section 9-203(d), if the financing statement would have been effective to perfect a security interest in the collateral had the collateral been acquired by the original debtor.(2)  A security interest perfected by the financing     statement and which becomes perfected under the law of the other jurisdiction before the earlier of the time the financing statement would have become ineffective under the law of the jurisdiction designated in Section 9-301(1) or 9-305(c) or the expiration of the four-month period remains perfected thereafter.  A security interest that is perfected by the financing statement but which does not become perfected under the law of the other jurisdiction before the earlier time or event becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value. (Source: P.A. 97-1034, eff. 7-1-13.)