810 ILCS 5/9-203
2021 Illinois Compiled Statutes|Chapter 810 - COMMERCIAL CODE|810 ILCS 5/ - Uniform Commercial Code.|Article 9 - Secured Transactions

 (from Ch. 26, par. 9-203)Sec. 9-203. Attachment and enforceability of security interest; proceeds;  supporting obligations; formal requisites.(a) Attachment.  A security interest attaches to collateral when it becomes  enforceable against the debtor with respect to the collateral, unless an  agreement  expressly postpones the time of attachment.(b) Enforceability.  Except as otherwise provided in subsections (c)  through (i), a security interest is enforceable against the debtor and third  parties  with respect to the collateral only if:(1) value has been given;(2) the debtor has rights in the collateral or the     power to transfer rights in the collateral to a secured party; and(3) one of the following conditions is met:(A) the debtor has authenticated a security         agreement that provides a description of the collateral and, if the security interest covers timber to be cut, a description of the land concerned;(B) the collateral is not a certificated security         and is in the possession of the secured party under Section 9-313 pursuant to the debtor's security agreement;(C) the collateral is a certificated security in         registered form and the security certificate has been delivered to the secured party under Section 8-301 pursuant to the debtor's security agreement; or(D) the collateral is deposit accounts,         electronic chattel paper, investment property,  letter-of-credit rights, or electronic documents, and the secured party has control under Section 7-106, 9-104, 9-105, 9-106, or 9-107 pursuant to the debtor's security agreement.(c) Other UCC provisions.  Subsection (b) is subject to Section 4-210 on  the security interest of a collecting bank, Section 5-118 on the security interest of a  letter-of-credit issuer or nominated person, Section 9-110 on a security interest  arising under Article 2 or 2A, and Section 9-206 on security interests in investment  property.(d) When person becomes bound by another person's security  agreement.  A person becomes bound as debtor by a security agreement entered  into by another person if, by operation of law other than this Article or by contract:(1) the security agreement becomes effective to     create a security interest in the person's property; or(2) the person becomes generally obligated for the     obligations of the other person, including the obligation secured under the security agreement, and acquires or succeeds to all or substantially all of the assets of the other person.(e) Effect of new debtor becoming bound.  If a new debtor becomes  bound as debtor by a security agreement entered into by another person:(1) the agreement satisfies subsection (b)(3) with     respect to existing or after-acquired property of the new debtor to the extent the property is described in the agreement; and(2) another agreement is not necessary to make a     security interest in the property enforceable.(f) Proceeds and supporting obligations.  The attachment of a security  interest in collateral gives the secured party the rights to proceeds provided  by  Section 9-315 and is also attachment of a security interest in a supporting  obligation for the collateral.(g) Lien securing right to payment.  The attachment of a security interest  in a right to payment or performance secured by a security interest or other  lien on  personal or real property is also attachment of a security interest in the  security  interest, mortgage, or other lien.(h) Security entitlement carried in securities account.  The attachment  of a security interest in a securities account is also attachment of a security  interest  in the security entitlements carried in the securities account.(i) Commodity contracts carried in commodity account.  The  attachment of a security interest in a commodity account is also attachment of  a  security interest in the commodity contracts carried in the commodity  account.  (Source: P.A. 95-895, eff. 1-1-09.)