2023 Illinois Compiled Statutes › Chapter 810 - COMMERCIAL CODE › 810 ILCS 5/ - Uniform Commercial Code. › Article 9 - Secured Transactions

(810 ILCS 5/Art. 9 heading)
ARTICLE 9
SECURED TRANSACTIONS
(810 ILCS 5/Art. 9 Pt. 1 heading)
PART 1.  
		GENERAL PROVISIONS
(810 ILCS 5/Art. 9 Pt. 1 Sub. 1 heading)
SUBPART 1.  
		SHORT TITLE, DEFINITIONS, AND GENERAL CONCEPTS
(810 ILCS 5/9-101) (from Ch. 26, par. 9-101)
Sec. 9-101. 
		Short title. 
		This Article may be cited as Uniform Commercial
Code - Secured Transactions.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-102) (from Ch. 26, par. 9-102)
Sec. 9-102. Definitions and index of definitions.
(a) Article 9 definitions.  In this Article:
(1) "Accession" means goods that are physically     united with other goods in such a manner that the identity of the original goods is not lost.
(2) "Account", except as used in "account for", means     a right to payment of a monetary obligation, whether or not earned by performance, (i) for property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of, (ii) for services rendered or to be rendered, (iii) for a policy of insurance issued or to be issued, (iv) for a secondary obligation incurred or to be incurred, (v) for energy provided or to be provided, (vi) for the use or hire of a vessel under a charter or other contract, (vii) arising out of the use of a credit or charge card or information contained on or for use with the card, or (viii) as winnings in a lottery or other game of chance operated or sponsored by a State, governmental unit of a State, or person licensed or authorized to operate the game by a State or governmental unit of a State.  The term includes health-care-insurance receivables.  The term does not include (i) rights to payment evidenced by chattel paper or an instrument, (ii) commercial tort claims, (iii) deposit accounts, (iv) investment property, (v) letter-of-credit rights or letters of credit, or (vi) rights to payment for money or funds advanced or sold, other than rights arising out of the use of a credit or charge card or information contained on or for use with the card.
(3) "Account debtor" means a person obligated on an     account, chattel paper, or general intangible.  The term does not include persons obligated to pay a negotiable instrument, even if the instrument constitutes part of chattel paper.
(4) "Accounting", except as used in "accounting for",     means a record:
(A) authenticated by a secured party;
(B) indicating the aggregate unpaid secured         obligations as of a date not more than 35 days earlier or 35 days later than the date of the record; and
(C) identifying the components of the obligations         in reasonable detail.
(5) "Agricultural lien" means an interest, other than     a security interest, in farm products:
(A) which secures payment or performance of an         obligation for goods or services furnished in connection with a debtor's farming operation;
(B) which is created by statute in favor of a         person that in the ordinary course of its business furnished goods or services to a debtor in connection with a debtor's farming operation; and
(C) whose effectiveness does not depend on the         person's possession of the personal property.
(6) "As-extracted collateral" means:
(A) oil, gas, or other minerals that are subject         to a security interest that:
(i) is created by a debtor having an interest             in the minerals before extraction; and
(ii) attaches to the minerals as extracted; or
(B) accounts arising out of the sale at the         wellhead or minehead of oil, gas, or other minerals in which the debtor had an interest before extraction.
(7) "Authenticate" means:
(A) to sign; or
(B) with present intent to adopt or accept a         record, to attach to or logically associate with the record an electronic sound, symbol, or process.
(8) "Bank" means an organization that is engaged in     the business of banking.  The term includes savings banks, savings and loan associations, credit unions, and trust companies.
(9) "Cash proceeds" means proceeds that are money,     checks, deposit accounts, or the like.
(10) "Certificate of title" means a certificate of     title with respect to which a statute provides for the security interest in question to be indicated on the certificate as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the collateral. The term includes another record maintained as an alternative to a certificate of title by the governmental unit that issues certificates of title if a statute permits the security interest in question to be indicated on the record as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the collateral.
(11) "Chattel paper" means a record or records that     evidence both a monetary obligation and a security interest in specific goods, a security interest in specific goods and software used in the goods, a security interest in specific goods and license of software used in the goods, a lease of specific goods, or a lease of specified goods and a license of software used in the goods.  In this paragraph, "monetary obligation" means a monetary obligation secured by the goods or owed under a lease of the goods and includes a monetary obligation with respect to software used in the goods.  The term does not include (i) charters or other contracts involving the use or hire of a vessel or (ii) records that evidence a right to payment arising out of the use of a credit or charge card or information contained on or for use with the card.  If a transaction is evidenced by records that include an instrument or series of instruments, the group of records taken together constitutes chattel paper.
(12) "Collateral" means the property subject to a     security interest or agricultural lien.  The term includes:
(A) proceeds to which a security interest         attaches;
(B) accounts, chattel paper, payment intangibles,         and promissory notes that have been sold; and
(C) goods that are the subject of a consignment.
(13) "Commercial tort claim" means a claim arising in     tort with respect to which:
(A) the claimant is an organization; or
(B) the claimant is an individual and the claim:
(i) arose in the course of the claimant's             business or profession; and
(ii) does not include damages arising out of             personal injury to or the death of an individual.
(14) "Commodity account" means an account maintained     by a commodity intermediary in which a commodity contract is carried for a commodity customer.
(15) "Commodity contract" means a commodity futures     contract, an option on a commodity futures contract, a commodity option, or another contract if the contract or option is:
(A) traded on or subject to the rules of a board         of trade that has been designated as a contract market for such a contract pursuant to federal commodities laws; or
(B) traded on a foreign commodity board of trade,         exchange, or market, and is carried on the books of a commodity intermediary for a commodity customer.
(16) "Commodity customer" means a person for which a     commodity intermediary carries a commodity contract on its books.
(17) "Commodity intermediary" means a person that:
(A) is registered as a futures commission         merchant under federal commodities law; or
(B) in the ordinary course of its business         provides clearance or settlement services for a board of trade that has been designated as a contract market pursuant to federal commodities law.
(18) "Communicate" means:
(A) to send a written or other tangible record;
(B) to transmit a record by any means agreed upon         by the persons sending and receiving the record; or
(C) in the case of transmission of a record to or         by a filing office, to transmit a record by any means prescribed by filing-office rule.
(19) "Consignee" means a merchant to which goods are     delivered in a consignment.
(20) "Consignment" means a transaction, regardless of     its form, in which a person delivers goods to a merchant for the purpose of sale and:
(A) the merchant:
(i) deals in goods of that kind under a name             other than the name of the person making delivery;
(ii) is not an auctioneer; and
(iii) is not generally known by its creditors             to be substantially engaged in selling the goods of others;
(B) with respect to each delivery, the aggregate         value of the goods is $1,000 or more at the time of delivery;
(C) the goods are not consumer goods immediately         before delivery; and
(D) the transaction does not create a security         interest that secures an obligation.
(21) "Consignor" means a person that delivers goods     to a consignee in a consignment.
(22) "Consumer debtor" means a debtor in a consumer     transaction.
(23) "Consumer goods" means goods that are used or     bought for use primarily for personal, family, or household purposes.
(24) "Consumer-goods transaction" means a consumer     transaction in which:
(A) an individual incurs an obligation primarily         for personal, family, or household purposes; and
(B) a security interest in consumer goods secures         the obligation.
(25) "Consumer obligor" means an obligor who is an     individual and who incurred the obligation as part of a transaction entered into primarily for personal, family, or household purposes.
(26) "Consumer transaction" means a transaction in     which (i) an individual incurs an obligation primarily for personal, family, or household purposes, (ii) a security interest secures the obligation, and (iii) the collateral is held or acquired primarily for personal, family, or household purposes.  The term includes consumer-goods transactions.
(27) "Continuation statement" means an amendment of a     financing statement which:
(A) identifies, by its file number, the initial         financing statement to which it relates; and
(B) indicates that it is a continuation statement         for, or that it is filed to continue the effectiveness of, the identified financing statement.
(28) "Debtor" means:
(A) a person having an interest, other than a         security interest or other lien, in the collateral, whether or not the person is an obligor;
(B) a seller of accounts, chattel paper, payment         intangibles, or promissory notes; or
(C) a consignee.
(29) "Deposit account" means a demand, time, savings,     passbook, nonnegotiable certificates of deposit, uncertificated certificates of deposit, nontransferrable certificates of deposit, or similar account maintained with a bank.  The term does not include investment property or accounts evidenced by an instrument.
(30) "Document" means a document of title or a     receipt of the type described in Section 7-201(b).
(31) "Electronic chattel paper" means chattel paper     evidenced by a record or records consisting of information stored in an electronic medium.
(32) "Encumbrance" means a right, other than an     ownership interest, in real property.  The term includes mortgages and other liens on real property.
(33) "Equipment" means goods other than inventory,     farm products, or consumer goods.
(34) "Farm products" means goods, other than standing     timber, with respect to which the debtor is engaged in a farming operation and which are:
(A) crops grown, growing, or to be grown,         including:
(i) crops produced on trees, vines, and             bushes; and
(ii) aquatic goods produced in aquacultural             operations;
(B) livestock, born or unborn, including aquatic         goods produced in aquacultural operations;
(C) supplies used or produced in a farming         operation; or
(D) products of crops or livestock in their         unmanufactured states.
(35) "Farming operation" means raising, cultivating,     propagating, fattening, grazing, or any other farming, livestock, or aquacultural operation.
(36) "File number" means the number assigned to an     initial financing statement pursuant to Section 9-519(a).
(37) "Filing office" means an office designated in     Section 9-501 as the place to file a financing statement.
(38) "Filing-office rule" means a rule adopted     pursuant to Section 9-526.
(39) "Financing statement" means a record or records     composed of an initial financing statement and any filed record relating to the initial financing statement.
(40) "Fixture filing" means the filing of a financing     statement covering goods that are or are to become fixtures and satisfying Section 9-502(a) and (b). The term includes the filing of a financing statement covering goods of a transmitting utility which are or are to become fixtures.
(41) "Fixtures" means goods that have become so     related to particular real property that an interest in them arises under real property law.
(42) "General intangible" means any personal     property, including things in action, other than accounts, chattel paper, commercial tort claims, deposit accounts, documents, goods, instruments, investment property, letter-of-credit rights, letters of credit, money, and oil, gas, or other minerals before extraction. The term includes payment intangibles and software.
(43) "Good faith" means honesty in fact and the     observance of reasonable commercial standards of fair dealing.
(44) "Goods" means all things that are movable when a     security interest attaches.  The term includes (i) fixtures, (ii) standing timber that is to be cut and removed under a conveyance or contract for sale, (iii) the unborn young of animals, (iv) crops grown, growing, or to be grown, even if the crops are produced on trees, vines, or bushes, and (v) manufactured homes.  The term also includes a computer program embedded in goods and any supporting information provided in connection with a transaction relating to the program if (i) the program is associated with the goods in such a manner that it customarily is considered part of the goods, or (ii) by becoming the owner of the goods, a person acquires a right to use the program in connection with the goods.  The term does not include a computer program embedded in goods that consist solely of the medium in which the program is embedded.  The term also does not include accounts, chattel paper, commercial tort claims, deposit accounts, documents, general intangibles, instruments, investment property, letter-of-credit rights, letters of credit, money, or oil, gas, or other minerals before extraction.
(45) "Governmental unit" means a subdivision, agency,     department, county, parish, municipality, or other unit of the government of the United States, a State, or a foreign country.  The term includes an organization having a separate corporate existence if the organization is eligible to issue debt on which interest is exempt from income taxation under the laws of the United States.
(46) "Health-care-insurance receivable" means an     interest in or claim under a policy of insurance which is a right to payment of a monetary obligation for health-care goods or services provided.
(47) "Instrument" means a negotiable instrument or     any other writing that evidences a right to the payment of a monetary obligation, is not itself a security agreement or lease, and is of a type that in ordinary course of business is transferred by delivery with any necessary indorsement or assignment.  The term does not include (i) investment property, (ii) letters of credit, (iii) nonnegotiable certificates of deposit, (iv) uncertificated certificates of deposit, (v) nontransferrable certificates of deposit, or (vi) writings that evidence a right to payment arising out of the use of a credit or charge card or information contained on or for use with the card.
(48) "Inventory" means goods, other than farm     products, which:
(A) are leased by a person as lessor;
(B) are held by a person for sale or lease or to         be furnished under a contract of service;
(C) are furnished by a person under a contract of         service; or
(D) consist of raw materials, work in process, or         materials used or consumed in a business.
(49) "Investment property" means a security, whether     certificated or uncertificated, security entitlement, securities account, commodity contract, or commodity account.
(50) "Jurisdiction of organization", with respect to     a registered organization, means the jurisdiction under whose law the organization is formed or organized.
(51) "Letter-of-credit right" means a right to     payment or performance under a letter of credit, whether or not the beneficiary has demanded or is at the time entitled to demand payment or performance.  The term does not include the right of a beneficiary to demand payment or performance under a letter of credit.
(52) "Lien creditor" means:
(A) a creditor that has acquired a lien on the         property involved by attachment, levy, or the like;
(B) an assignee for benefit of creditors from the         time of assignment;
(C) a trustee in bankruptcy from the date of the         filing of the petition; or
(D) a receiver in equity from the time of         appointment.
(53) "Manufactured home" means a structure,     transportable in one or more sections, which, in the traveling mode, is eight body feet or more in width or 40 body feet or more in length, or, when erected on site, is 320 or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air-conditioning, and electrical systems contained therein. The term includes any structure that meets all of the requirements of this paragraph except the size requirements and with respect to which the manufacturer voluntarily files a certification required by the United States Secretary of Housing and Urban Development and complies with the standards established under Title 42 of the United States Code.  The term "manufactured home" does not include campers and recreational vehicles.
(54) "Manufactured-home transaction" means a secured     transaction:
(A) that creates a purchase-money security         interest in a manufactured home, other than a manufactured home held as inventory; or
(B) in which a manufactured home, other than a         manufactured home held as inventory, is the primary collateral.
(55) "Mortgage" means a consensual interest in real     property, including fixtures, which secures payment or performance of an obligation.
(56) "New debtor" means a person that becomes bound     as debtor under Section 9-203(d) by a security agreement previously entered into by another person.
(57) "New value" means (i) money, (ii) money's worth     in property, services, or new credit, or (iii) release by a transferee of an interest in property previously transferred to the transferee.  The term does not include an obligation substituted for another obligation.
(58) "Noncash proceeds" means proceeds other than     cash proceeds.
(59) "Obligor" means a person that, with respect to     an obligation secured by a security interest in or an agricultural lien on the collateral, (i) owes payment or other performance of the obligation, (ii) has provided property other than the collateral to secure payment or other performance of the obligation, or (iii) is otherwise accountable in whole or in part for payment or other performance of the obligation.  The term does not include issuers or nominated persons under a letter of credit.
(60) "Original debtor", except as used in Section     9-310(c), means a person that, as debtor, entered into a security agreement to which a new debtor has become bound under Section 9-203(d).
(61) "Payment intangible" means a general intangible     under which the account debtor's principal obligation is a monetary obligation.
(62) "Person related to", with respect to an     individual, means:
(A) the spouse of the individual;
(B) a brother, brother-in-law, sister, or         sister-in-law of the individual;
(C) an ancestor or lineal descendant of the         individual or the individual's spouse; or
(D) any other relative, by blood or marriage, of         the individual or the individual's spouse who shares the same home with the individual.
(63) "Person related to", with respect to an     organization, means:
(A) a person directly or indirectly controlling,         controlled by, or under common control with the organization;
(B) an officer or director of, or a person         performing similar functions with respect to, the organization;
(C) an officer or director of, or a person         performing similar functions with respect to, a person described in subparagraph (A);
(D) the spouse of an individual described in         subparagraph (A), (B), or (C); or
(E) an individual who is related by blood or         marriage to an individual described in subparagraph (A), (B), (C), or (D) and shares the same home with the individual.
(64) "Proceeds", except as used in Section 9-609(b),     means the following property:
(A) whatever is acquired upon the sale, lease,         license, exchange, or other disposition of collateral;
(B) whatever is collected on, or distributed on         account of, collateral;
(C) rights arising out of collateral;
(D) to the extent of the value of collateral,         claims arising out of the loss, nonconformity, or interference with the use of, defects or infringement of rights in, or damage to, the collateral; or
(E) to the extent of the value of collateral and         to the extent payable to the debtor or the secured party, insurance payable by reason of the loss or nonconformity of, defects or infringement of rights in, or damage to, the collateral.
(65) "Promissory note" means an instrument that     evidences a promise to pay a monetary obligation, does not evidence an order to pay, and does not contain an acknowledgment by a bank that the bank has received for deposit a sum of money or funds.
(66) "Proposal" means a record authenticated by a     secured party which includes the terms on which the secured party is willing to accept collateral in full or partial satisfaction of the obligation it secures pursuant to Sections 9-620, 9-621, and 9-622.
(67) "Public-finance transaction" means a secured     transaction in connection with which:
(A) debt securities are issued;
(B) all or a portion of the securities issued         have an initial stated maturity of at least 20 years; and
(C) the debtor, obligor, secured party, account         debtor or other person obligated on collateral, assignor or assignee of a secured obligation, or assignor or assignee of a security interest is a State or a governmental unit of a State.
(68) "Public organic record" means a record that is     available to the public for inspection and is:
(A) a record consisting of the record initially         filed with or issued by a State or the United States to form or organize an organization and any record filed with or issued by the State or the United States which amends or restates the initial record;
(B) an organic record of a business trust         consisting of the record initially filed with a State and any record filed with the State which amends or restates the initial record, if a statute of the State governing business trusts requires that the record be filed with the State; or
(C) a record consisting of legislation enacted by         the legislature of a State or the Congress of the United States which forms or organizes an organization, any record amending the legislation, and any record filed with or issued by the State or the United States which amends or restates the name of the organization.
(69) "Pursuant to commitment", with respect to an     advance made or other value given by a secured party, means pursuant to the secured party's obligation, whether or not a subsequent event of default or other event not within the secured party's control has relieved or may relieve the secured party from its obligation.
(70) "Record", except as used in "for record", "of     record", "record or legal title", and "record owner", means information that is inscribed on a tangible medium or which is stored in an electronic or other medium and is retrievable in perceivable form.
(71) "Registered organization" means an organization     formed or organized solely under the law of a single State or the United States by the filing of a public organic record with, the issuance of a public organic record by, or the enactment of legislation by the State or the United States. The term includes a business trust that is formed or organized under the law of a single State if a statute of the State governing business trusts requires that the business trust's organic record be filed with the State.
(72) "Secondary obligor" means an obligor to the     extent that:
(A) the obligor's obligation is secondary; or
(B) the obligor has a right of recourse with         respect to an obligation secured by collateral against the debtor, another obligor, or property of either.
(73) "Secured party" means:
(A) a person in whose favor a security interest         is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding;
(B) a person that holds an agricultural lien;
(C) a consignor;
(D) a person to which accounts, chattel paper,         payment intangibles, or promissory notes have been sold;
(E) a trustee, indenture trustee, agent,         collateral agent, or other representative in whose favor a security interest or agricultural lien is created or provided for; or
(F) a person that holds a security interest         arising under Section 2-401, 2-505, 2-711(3), 2A-508(5), 4-210, or 5-118.
(74) "Security agreement" means an agreement that     creates or provides for a security interest.
(75) "Send", in connection with a record or     notification, means:
(A) to deposit in the mail, deliver for         transmission, or transmit by any other usual means of communication, with postage or cost of transmission provided for, addressed to any address reasonable under the circumstances; or
(B) to cause the record or notification to be         received within the time that it would have been received if properly sent under subparagraph (A).
(76) "Software" means a computer program and any     supporting information provided in connection with a transaction relating to the program. The term does not include a computer program that is included in the definition of goods.
(77) "State" means a State of the United States, the     District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.
(78) "Supporting obligation" means a letter-of-credit     right or secondary obligation that supports the payment or performance of an account, chattel paper, a document, a general intangible, an instrument, or investment property.
(79) "Tangible chattel paper" means chattel paper     evidenced by a record or records consisting of information that is inscribed on a tangible medium.
(80) "Termination statement" means an amendment of a     financing statement which:
(A) identifies, by its file number, the initial         financing statement to which it relates; and
(B) indicates either that it is a termination         statement or that the identified financing statement is no longer effective.
(81) "Transmitting utility" means a person primarily     engaged in the business of:
(A) operating a railroad, subway, street railway,         or trolley bus;
(B) transmitting communications electrically,         electromagnetically, or by light;
(C) transmitting goods by pipeline or sewer; or
(D) transmitting or producing and transmitting         electricity, steam, gas, or water.
(b) Definitions in other Articles.  "Control" as provided in Section 7-106 and the
 following definitions in other
Articles apply to this Article:
"Applicant". Section 5-102.
"Beneficiary". Section 5-102.
"Broker". Section 8-102.
"Certificated security".  Section 8-102.
"Check".  Section 3-104.
"Clearing corporation".  Section 8-102.
"Contract for sale".  Section 2-106.
"Customer".  Section 4-104.
"Entitlement holder".  Section 8-102.
"Financial asset".  Section 8-102.
"Holder in due course".  Section 3-302.
"Issuer" (with respect to a letter of
credit or letter-of-credit right).  Section 5-102.
"Issuer" (with respect to a security).  Section 8-201.
"Issuer" (with respect to documents of title).  Section 7-102.
"Lease".  Section 2A-103.
"Lease agreement".  Section 2A-103.
"Lease contract".  Section 2A-103.
"Leasehold interest".  Section 2A-103.
"Lessee".  Section 2A-103.
"Lessee in ordinary course of business".  Section 2A-103.
"Lessor".  Section 2A-103.
"Lessor's residual interest".  Section 2A-103.
"Letter of credit".  Section 5-102.
"Merchant".  Section 2-104.
"Negotiable instrument".  Section 3-104.
"Nominated person".  Section 5-102.
"Note".  Section 3-104.
"Proceeds of a letter of credit".  Section 5-114.
"Prove".  Section 3-103.
"Sale".  Section 2-106.
"Securities account".  Section 8-501.
"Securities intermediary".  Section 8-102.
"Security".  Section 8-102.
"Security certificate".  Section 8-102.
"Security entitlement".  Section 8-102.
"Uncertificated security".  Section 8-102.
(c) Article 1 definitions and principles.  Article 1 contains general
definitions and principles of construction and interpretation applicable
throughout
this Article.
(Source: P.A. 97-1034, eff. 7-1-13; 98-749, eff. 7-16-14.)
(810 ILCS 5/9-103) (from Ch. 26, par. 9-103)
Sec. 9-103. 
		
		Purchase-money security interest; application of payments;
burden of establishing.
(a) Definitions.  In this Section:
(1) "purchase-money collateral" means goods or     software that secures a purchase-money obligation incurred with respect to that collateral; and
(2) "purchase-money obligation" means an obligation     of an obligor incurred as all or part of the price of the collateral or for value given to enable the debtor to acquire rights in or the use of the collateral if the value is in fact so used.
(b) Purchase-money security interest in goods.  A security interest in
goods is a purchase-money security interest:
(1) to the extent that the goods are purchase-money     collateral with respect to that security interest;
(2) if the security interest is in inventory that is     or was purchase-money collateral, also to the extent that the security interest secures a purchase-money obligation incurred with respect to other inventory in which the secured party holds or held a purchase-money security interest; and
(3) also to the extent that the security interest     secures a purchase-money obligation incurred with respect to software in which the secured party holds or held a purchase-money security interest.
(c) Purchase-money security interest in software.  A security interest in
software is a purchase-money security interest to the extent that the security
interest
also secures a purchase-money obligation incurred with respect to goods in
which
the secured party holds or held a purchase-money security interest if:
(1) the debtor acquired its interest in the software     in an integrated transaction in which it acquired an interest in the goods; and
(2) the debtor acquired its interest in the software     for the principal purpose of using the software in the goods.
(d) Consignor's inventory purchase-money security interest.  The
security interest of a consignor in goods that are the subject of a consignment
is a
purchase-money security interest in inventory.
(e) Application of payment in non-consumer-goods transaction.  In a
transaction other than a consumer-goods transaction, if the extent to which a
security interest is a purchase-money security interest depends on the
application of
a payment to a particular obligation, the payment must be applied:
(1) in accordance with any reasonable method of     application to which the parties agree;
(2) in the absence of the parties' agreement to a     reasonable method, in accordance with any intention of the obligor manifested at or before the time of payment; or
(3) in the absence of an agreement to a reasonable     method and a timely manifestation of the obligor's intention, in the following order:
(A) to obligations that are not secured; and
(B) if more than one obligation is secured, to         obligations secured by purchase-money security interests in the order in which those obligations were incurred.
(f) No loss of status of purchase-money security interest in
non-consumer-goods transaction.  In a transaction other than a consumer-goods
transaction, a purchase-money security interest does not lose its status as
such, even
if:
(1) the purchase-money collateral also secures an     obligation that is not a purchase-money obligation;
(2) collateral that is not purchase-money collateral     also secures the purchase-money obligation; or
(3) the purchase-money obligation has been renewed,     refinanced, consolidated, or restructured.
(g) Burden of proof in non-consumer-goods transaction.  In a
transaction other than a consumer-goods transaction, a secured party claiming a
purchase-money security interest has the burden of establishing the extent to
which
the security interest is a purchase-money security interest.
(h) Non-consumer-goods transactions; no inference.  The limitation of
the rules in subsections (e), (f), and (g) to transactions other than
consumer-goods
transactions is intended to leave to the court the determination of the proper
rules in
consumer-goods transactions.  The court may not infer from that limitation the
nature of the proper rule in consumer-goods transactions and may continue to
apply
established approaches.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-104) (from Ch. 26, par. 9-104)
Sec. 9-104. 
		Control of deposit account.
(a) Requirements for control.  A secured party has control of a deposit
account if:
(1) the secured party is the bank with which the     deposit account is maintained;
(2) the debtor, secured party, and bank have agreed     in an authenticated record that the bank will comply with instructions originated by the secured party directing disposition of the funds in the deposit account without further consent by the debtor; or
(3) the secured party becomes the bank's customer     with respect to the deposit account.
(b) Debtor's right to direct disposition.  A secured party that has
satisfied
subsection (a) has control, even if the debtor retains the right to direct the
disposition of funds from the deposit account.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-105) (from Ch. 26, par. 9-105)
Sec. 9-105. Control of electronic chattel paper.
(a) General rule: Control of electronic chattel paper. A secured party has
control
of electronic chattel paper if a system employed for evidencing the transfer of interests in the chattel paper reliably establishes the secured party as the person to which the chattel paper was assigned.
(b) Specific facts giving control. A system satisfies subsection (a) if the record or records comprising the chattel
paper are
created, stored, and assigned in such a manner that:
(1) a single authoritative copy of the record or     records exists which is unique, identifiable and, except as otherwise provided in paragraphs (4), (5), and (6), unalterable;
(2) the authoritative copy identifies the secured     party as the assignee of the record or records;
(3) the authoritative copy is communicated to and     maintained by the secured party or its designated custodian;
(4) copies or amendments that add or change an     identified assignee of the authoritative copy can be made only with the consent of the secured party;
(5) each copy of the authoritative copy and any copy     of a copy is readily identifiable as a copy that is not the authoritative copy; and
(6) any amendment of the authoritative copy is     readily identifiable as  authorized or unauthorized.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-106) (from Ch. 26, par. 9-106)
Sec. 9-106. 
		Control of investment property.
(a) Control under Section 8-106.  A person has control of a certificated
security, uncertificated security, or security entitlement as provided in
Section
8-106.
(b) Control of commodity contract.  A secured party has control of a
commodity contract if:
(1) the secured party is the commodity intermediary     with which the commodity contract is carried; or
(2) the commodity customer, secured party, and     commodity intermediary have agreed that the commodity intermediary will apply any value distributed on account of the commodity contract as directed by the secured party without further consent by the commodity customer.
(c) Effect of control of securities account or commodity account.  A
secured party having control of all security entitlements or commodity
contracts
carried in a securities account or commodity account has control over the
securities
account or commodity account.
(Source: P.A. 90-665, eff. 7-30-98; 91-893, eff. 7-1-01.)
(810 ILCS 5/9-107) (from Ch. 26, par. 9-107)
Sec. 9-107. 
		Control of letter-of-credit right. 
		A secured party has
control of a
letter-of-credit right to the extent of any right to payment or performance by
the
issuer or any nominated person if the issuer or nominated person has consented
to
an assignment of proceeds of the letter of credit under Section 5-114(c) or
otherwise applicable law or practice.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-107.1)
Sec. 9-107.1. 
		Control of Beneficial Interest in Illinois Land Trust.
(a) Requirements for Control. A secured party has control of the beneficial
interest in an Illinois land trust if:
(1) the secured party shall have transmitted to the     trustee for the trust a record authenticated by the debtor that contains a collateral assignment by the debtor of, or the grant of a security interest in, a beneficial interest in the trust; and
(2)  in an authenticated record, the trustee for the     trust has accepted the collateral assignment or security agreement.
(b) Debtor's right to direct disposition and proceeds. A secured party that
has
satisfied subsection (a) has control, even if the debtor retains, subject to
the terms and conditions of the collateral assignment or security agreement,
the power of direction
of
the trustee and the right to receive the rents, income and profits thereof.
(Source: P.A. 92-234, eff. 1-1-02.)
(810 ILCS 5/9-108) (from Ch. 26, par. 9-108)
Sec. 9-108. 
		Sufficiency of description.
(a) Sufficiency of description.  Except as otherwise provided in
subsections (c), (d), and (e), a description of personal or real property is
sufficient,
whether or not it is specific, if it reasonably identifies what is described.
(b) Examples of reasonable identification.  Except as otherwise provided
in subsection (d), a description of collateral reasonably identifies the
collateral if it
identifies the collateral by:
(1) specific listing;
(2) category;
(3) except as otherwise provided in subsection (e), a     type of collateral defined in the Uniform Commercial Code;
(4) quantity;
(5) computational or allocational formula or     procedure; or
(6) except as otherwise provided in subsection (c),     any other method, if the identity of the collateral is objectively determinable.
(c) Supergeneric description not sufficient.  A description of collateral as
"all the debtor's assets" or "all the debtor's personal property" or using words of
similar import does not reasonably identify the collateral.
(d) Investment property.  Except as otherwise provided in subsection (e),
a description of a security entitlement, securities account, or commodity account is
sufficient if it describes:
(1) the collateral by those terms or as investment     property; or
(2) the underlying financial asset or commodity     contract.
(e) When description by type insufficient.  A description only by type of
collateral defined in the Uniform Commercial Code is an insufficient
description
of:
(1) a commercial tort claim; or
(2) in a consumer transaction, consumer goods, a     security entitlement, a securities account, or a commodity account.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/Art. 9 Pt. 1 Sub. 2 heading)
SUBPART 2.  
		APPLICABILITY OF ARTICLE
(810 ILCS 5/9-109) (from Ch. 26, par. 9-109)
Sec. 9-109. 
		Scope.
(a) General scope of Article.  Except as otherwise provided in subsections
(c) and (d), this Article applies to:
(1) a transaction, regardless of its form, that     creates a security interest in personal property or fixtures by contract;
(2) an agricultural lien;
(3) a sale of accounts, chattel paper, payment     intangibles, or promissory notes;
(4) a consignment;
(5) a security interest arising under Section 2-401,     2-505, 2-711(3), or 2A-508(5), as provided in Section 9-110; and
(6) a security interest arising under Section 4-210     or 5-118.
(b) Security interest in secured obligation.  The application of this
Article to a security interest in a secured obligation is not affected by the fact that
the obligation is itself secured by a transaction or interest to which this Article does
not apply.
(c) Extent to which Article does not apply.  This Article does not apply
to the extent that:
(1) a statute, regulation, or treaty of the United     States preempts this Article;
(2) another statute of this State expressly governs     the creation, perfection, priority, or enforcement of a security interest created by this State or a governmental unit of this State;
(3) a statute of another State, a foreign country, or     a governmental unit of another State or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority, or enforcement of a security interest created by the State, country, or governmental unit;
(4) the rights of a transferee beneficiary or     nominated person under a letter of credit are independent and superior under Section 5-114;
(5) this Article is in conflict with Section 205-410     of the Department of Agriculture Law of the Civil Administrative Code of Illinois or the Grain Code; or
(6) this Article is in conflict with Section 18-107     of the Public Utilities Act.
(d) Inapplicability of Article.  This Article does not apply to:
(1) a landlord's lien;
(2) a lien, other than an agricultural lien, given by     statute or other rule of law for services or materials, but Section 9-333 applies with respect to priority of the lien;
(3) an assignment of a claim for wages, salary, or     other compensation of an employee;
(4) a sale of accounts, chattel paper, payment     intangibles, or promissory notes as part of a sale of the business out of which they arose;
(5) an assignment of accounts, chattel paper, payment     intangibles, or promissory notes which is for the purpose of collection only;
(6) an assignment of a right to payment under a     contract to an assignee that is also obligated to perform under the contract;
(7) an assignment of a single account, payment     intangible, or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness;
(8) a transfer of  an interest in or an assignment of     a claim under a policy of insurance, other than an assignment by or to a health-care provider of a health-care-insurance receivable and any subsequent assignment of the right to payment, but Sections 9-315 and 9-322 apply with respect to proceeds and priorities in proceeds;
(9) an assignment of a right represented by a     judgment, other than a judgment taken on a right to payment that was collateral;
(10) a right of recoupment or set-off, but:
(A) Section 9-340 applies with respect to the         effectiveness of rights of recoupment or set-off against deposit accounts; and
(B) Section 9-404 applies with respect to         defenses or claims of an account debtor;
(11) the creation or transfer of an interest in or     lien on real property, including a lease or rents thereunder, except to the extent that provision is made for:
(A) liens on real property in Sections 9-203 and         9-308;
(B) fixtures in Section 9-334;
(C) fixture filings in Sections 9-501, 9-502,         9-512, 9-516, and 9-519; and
(D) security agreements covering personal and         real property in Section 9-604;
(12) an assignment of a claim arising in tort, other     than a commercial tort claim, but Sections 9-315 and 9-322 apply with respect to proceeds and priorities in proceeds;
(13) a transfer by a government or governmental     subdivision or agency;
(14) a claim or a right to receive compensation for     injuries or sickness as described in Section 104(a)(1) or (2) of Title 26 of the United States Code, as amended from time to time; or
(15) a claim or right to receive benefits under a     special needs trust as described in Section 1396p(d)(4) of Title 42 of the United States Code, as amended from time to time.
(Source: P.A. 91-893, eff. 7-1-01; 92-819, eff. 8-21-02.)
(810 ILCS 5/9-110) (from Ch. 26, par. 9-110)
Sec. 9-110. 
		Security interests arising under Article 2 or 2A. 
		A security
interest arising under Section 2-401, 2-505, 2-711(3), or 2A-508(5) is subject
to
this Article.  However, until the debtor obtains possession of the goods:
(1) the security interest is enforceable, even if     Section 9-203(b)(3) has not been satisfied;
(2) filing is not required to perfect the security     interest;
(3) the rights of the secured party after default by     the debtor are governed by Article 2 or 2A; and
(4) the security interest has priority over a     conflicting security interest created by the debtor.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-112) (from Ch. 26, par. 9-112)
Sec. 9-112. 
		(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-113) (from Ch. 26, par. 9-113)
Sec. 9-113. 
		(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-114) (from Ch. 26, par. 9-114)
Sec. 9-114. 
		(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-115) (from Ch. 26, par. 9-115)
Sec. 9-115. 
		(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-116)
Sec. 9-116. 
		(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-150)
Sec. 9-150. 
		(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/Art. 9 Pt. 2 heading)
PART 2.  
		EFFECTIVENESS OF SECURITY AGREEMENT;
ATTACHMENT OF SECURITY INTEREST;
RIGHTS OF PARTIES TO SECURITY AGREEMENT
(810 ILCS 5/Art. 9 Pt. 2 Sub. 1 heading)
SUBPART 1.  
		EFFECTIVENESS AND ATTACHMENT
(810 ILCS 5/9-201) (from Ch. 26, par. 9-201)
Sec. 9-201. 
		General effectiveness of security agreement.
(a) General effectiveness.  Except as otherwise provided in the Uniform
Commercial Code, a security agreement is effective according to its terms
between
the parties, against purchasers of the collateral, and against creditors.
(b) Applicable consumer laws and other law.  A transaction subject to
this Article is subject to any applicable rule of law, statute, or regulation
which establishes a
different
rule for
consumers, including:
(1) the Retail Installment Sales Act;
(2) the Motor Vehicle Retail Installment Sales Act;
(3) Article II of Chapter 3 of the Illinois Vehicle     Code;
(4) Article IIIB of the Boat Registration and Safety     Act;
(5) the Pawnbroker Regulation Act;
(6) the Motor Vehicle Leasing Act;
(7) the Consumer Installment Loan Act; and
(8) the Consumer Deposit Security Act of 1987.
(c) Other applicable law controls.  In case of conflict between this Article
and a rule of law, statute, or regulation described in subsection
(b), the rule
of law,
statute, or regulation controls.  Failure to comply with a rule of law,
statute, or
regulation
described in subsection (b) has only the effect such rule of law, statute, or
regulation
specifies.
(d) Further deference to other applicable law.  This Article does not:
(1) validate any rate, charge, agreement, or practice     that violates a rule of law, statute, or regulation described in subsection (b); or
(2) extend the application of the rule of law,     statute, or regulation to a transaction not otherwise subject to it.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-202) (from Ch. 26, par. 9-202)
Sec. 9-202. 
		Title to collateral immaterial. 
		Except as otherwise provided
with
respect to consignments or sales of accounts, chattel paper, payment
intangibles, or
promissory notes, the provisions of this Article with regard to rights and
obligations
apply whether title to collateral is in the secured party or the debtor.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-203) (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.)
(810 ILCS 5/9-204) (from Ch. 26, par. 9-204)
Sec. 9-204. 
		After-acquired property; future advances.
(a) After-acquired collateral.  Except as otherwise provided in subsection
(b), a security agreement may create or provide for a security interest in
after-acquired collateral.
(b) When after-acquired property clause not effective.  A security
interest does not attach under a term constituting an after-acquired property
clause
to:
(1) consumer goods, other than an accession when     given as additional security, unless the debtor acquires rights in them within 10 days after the secured party gives value; or
(2) a commercial tort claim.
(c) Future advances and other value.  A security agreement may provide
that collateral secures, or that accounts, chattel paper, payment intangibles,
or
promissory notes are sold in connection with, future advances or other value,
whether or not the advances or value are given pursuant to commitment.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-205) (from Ch. 26, par. 9-205)
Sec. 9-205. 
		Use or disposition of collateral permissible.
(a) When security interest not invalid or fraudulent.  A security interest
is not invalid or fraudulent against creditors solely because:
(1) the debtor has the right or ability to:
(A) use, commingle, or dispose of all or part of         the collateral, including returned or repossessed goods;
(B) collect, compromise, enforce, or otherwise         deal with collateral;
(C) accept the return of collateral or make         repossessions; or
(D) use, commingle, or dispose of proceeds; or
(2) the secured party fails to require the debtor to     account for proceeds or replace collateral.
(b) Requirements of possession not relaxed.  This Section does not relax
the requirements of possession if attachment, perfection, or enforcement of a
security interest depends upon possession of the collateral by the secured
party.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-205.1) (from Ch. 26, par. 9-205.1)
Sec. 9-205.1. 
		
		Listing by debtor of purchasers or receivers of
collateral.  A secured party may require that the debtor include as
part of the security agreement a list of persons to whom the debtor desires
to sell or otherwise dispose of the collateral.
The debtor shall not sell or otherwise dispose of the collateral to a person
not included in that list unless the debtor has notified the secured party
of his desire to sell or otherwise dispose of the collateral to such person
at least 7 days prior to the sale or other disposition.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-206) (from Ch. 26, par. 9-206)
Sec. 9-206. 
		
		Security interest arising in purchase or delivery of financial
asset.
(a) Security interest when person buys through securities
intermediary.  A security interest in favor of a securities intermediary
attaches to a
person's security entitlement if:
(1) the person buys a financial asset through the     securities intermediary in a transaction in which the person is obligated to pay the purchase price to the securities intermediary at the time of the purchase; and
(2) the securities intermediary credits the financial     asset to the buyer's securities account before the buyer pays the securities intermediary.
(b) Security interest secures obligation to pay for financial asset.  The
security interest described in subsection (a) secures the person's obligation
to pay
for the financial asset.
(c) Security interest in payment against delivery transaction.  A
security interest in favor of a person that delivers a certificated security or other
financial asset represented by a writing attaches to the security or other financial
asset if:
(1) the security or other financial asset:
(A) in the ordinary course of business is         transferred by delivery with any necessary indorsement or assignment; and
(B) is delivered under an agreement between         persons in the business of dealing with such securities or financial assets; and
(2) the agreement calls for delivery against payment.
(d) Security interest secures obligation to pay for delivery.  The security
interest described in subsection (c) secures the obligation to make payment for
the
delivery.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/Art. 9 Pt. 2 Sub. 2 heading)
SUBPART 2.  
		RIGHTS AND DUTIES
(810 ILCS 5/9-207) (from Ch. 26, par. 9-207)
Sec. 9-207. Rights and duties of secured party having possession or
control
of collateral.
(a) Duty of care when secured party in possession.  Except as otherwise
provided in subsection (d), a secured party shall use reasonable care in the
custody
and preservation of collateral in the secured party's possession.  In the case
of
chattel paper or an instrument, reasonable care includes taking necessary steps
to
preserve rights against prior parties unless otherwise agreed.
(b) Expenses, risks, duties, and rights when secured party in
possession.  Except as otherwise provided in subsection (d), if a secured party
has
possession of collateral:
(1) reasonable expenses, including the cost of     insurance and payment of taxes or other charges, incurred in the custody, preservation, use, or operation of the collateral are chargeable to the debtor and are secured by the collateral;
(2) the risk of accidental loss or damage is on the     debtor to the extent of a deficiency in any effective insurance coverage;
(3) the secured party shall keep the collateral     identifiable, but fungible collateral may be commingled; and
(4) the secured party may use or operate the     collateral:
(A) for the purpose of preserving the collateral         or its value;
(B) as permitted by an order of a court having         competent jurisdiction; or
(C) except in the case of consumer goods, in the         manner and to the extent agreed by the debtor.
(c) Duties and rights when secured party in possession or control.
Except as otherwise provided in subsection (d), a secured party having possession
of collateral or control of collateral under Section 7-106, 9-104, 9-105, 9-106, or 9-107:
(1) may hold as additional security any proceeds,     except money or funds, received from the collateral;
(2) shall apply money or funds received from the     collateral to reduce the secured obligation, unless remitted to the debtor; and
(3) may create a security interest in the collateral.
(d) Buyer of certain rights to payment.  If the secured party is a buyer of
accounts, chattel paper, payment intangibles, or promissory notes or a
consignor:
(1) subsection (a) does not apply unless the secured     party is entitled under an agreement:
(A) to charge back uncollected collateral; or
(B) otherwise to full or limited recourse against         the debtor or a secondary obligor based on the nonpayment or other default of an account debtor or other obligor on the collateral; and
(2) subsections (b) and (c) do not apply.
(Source: P.A. 95-895, eff. 1-1-09.)
(810 ILCS 5/9-208) (from Ch. 26, par. 9-208)
Sec. 9-208. Additional duties of secured party having control of
collateral.
(a) Applicability of Section.  This Section applies to cases in which there
is no outstanding secured obligation and the secured party is not committed to
make advances, incur obligations, or otherwise give value.
(b) Duties of secured party after receiving demand from debtor.
Within 10 days after receiving an authenticated demand by the debtor:
(1) a secured party having control of a deposit     account under Section 9-104(a)(2) shall send to the bank with which the deposit account is maintained an authenticated statement that releases the bank from any further obligation to comply with instructions originated by the secured party;
(2) a secured party having control of a deposit     account under Section 9-104(a)(3) shall:
(A) pay the debtor the balance on deposit in the         deposit account; or
(B) transfer the balance on deposit into a         deposit account in the debtor's name;
(3) a secured party, other than a buyer, having     control of electronic chattel paper under Section 9-105 shall:
(A) communicate the authoritative copy of the         electronic chattel paper to the debtor or its designated custodian;
(B) if the debtor designates a custodian that is         the designated custodian with which the authoritative copy of the electronic chattel paper is maintained for the secured party, communicate to the custodian an authenticated record releasing the designated custodian from any further obligation to comply with instructions originated by the secured party and instructing the custodian to comply with instructions originated by the debtor; and
(C) take appropriate action to enable the debtor         or its designated custodian to make copies of or revisions to the authoritative copy which add or change an identified assignee of the authoritative copy without the consent of the secured party;
(4) a secured party having control of investment     property under Section 8-106(d)(2) or 9-106(b) shall send to the securities intermediary or commodity intermediary with which the security entitlement or commodity contract is maintained an authenticated record that releases the securities intermediary or commodity intermediary from any further obligation to comply with entitlement orders or directions originated by the secured party;
(5) a secured party having control of a     letter-of-credit right under Section 9-107 shall send to each person having an unfulfilled obligation to pay or deliver proceeds of the letter of credit to the secured party an authenticated release from any further obligation to pay or deliver proceeds of the letter of credit to the secured party; and
(6) a secured party having control of an electronic     document shall:
(A) give control of the electronic document to         the debtor or its designated custodian;
(B) if the debtor designates a custodian that is         the designated custodian with which the authoritative copy of the electronic document is maintained for the secured party, communicate to the custodian an authenticated record releasing the designated custodian from any further obligation to comply with instructions originated by the secured party and instructing the custodian to comply with instructions originated by the debtor; and
(C) take appropriate action to enable the debtor         or its designated custodian to make copies of or revisions to the authoritative copy which add or change an identified assignee of the authoritative copy without the consent of the secured party. (Source: P.A. 95-895, eff. 1-1-09.)
(810 ILCS 5/9-209)
Sec. 9-209. 
		
		Duties of secured party if account debtor has been notified of
assignment.
(a) Applicability of Section.  Except as otherwise provided in subsection
(c), this Section applies if:
(1) there is no outstanding secured obligation; and
(2) the secured party is not committed to make     advances, incur obligations, or otherwise give value.
(b) Duties of secured party after receiving demand from debtor.
Within 10 days after receiving an authenticated demand by the debtor, a secured
party shall send to an account debtor that has received notification of an
assignment
to the secured party as assignee under Section 9-406(a) an authenticated record
that
releases the account debtor from any further obligation to the secured party.
(c) Inapplicability to sales.  This Section does not apply to an assignment
constituting the sale of an account, chattel paper, or payment intangible.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-210)
Sec. 9-210. 
		
		Request for accounting; request regarding list of collateral
or
statement of account.
(a) Definitions.  In this Section:
(1) "Request" means a record of a type described in     paragraph (2), (3), or (4).
(2) "Request for an accounting" means a record     authenticated by a debtor requesting that the recipient provide an accounting of the unpaid obligations secured by collateral and reasonably identifying the transaction or relationship that is the subject of the request.
(3) "Request regarding a list of collateral" means a     record authenticated by a debtor requesting that the recipient approve or correct a list of what the debtor believes to be the collateral securing an obligation and reasonably identifying the transaction or relationship that is the subject of the request.
(4) "Request regarding a statement of account" means     a record authenticated by a debtor requesting that the recipient approve or correct a statement indicating what the debtor believes to be the aggregate amount of unpaid obligations secured by collateral as of a specified date and reasonably identifying the transaction or relationship that is the subject of the request.
(b) Duty to respond to requests.  Subject to subsections (c), (d), (e), and
(f), a secured party, other than a buyer of accounts, chattel paper, payment
intangibles, or promissory notes or a consignor, shall comply with a request within
14 days after receipt:
(1) in the case of a request for an accounting, by     authenticating and sending to the debtor an accounting; and
(2) in the case of a request regarding a list of     collateral or a request regarding a statement of account, by authenticating and sending to the debtor an approval or correction.
(c) Request regarding list of collateral; statement concerning type of
collateral.  A secured party that claims a security interest in all of a particular type
of collateral owned by the debtor may comply with a request regarding a list of
collateral by sending to the debtor an authenticated record including a statement to
that effect within 14 days after receipt.
(d) Request regarding list of collateral; no interest claimed.  A person
that receives a request regarding a list of collateral, claims no interest in the
collateral when it receives the request, and claimed an interest in the collateral at an
earlier time shall comply with the request within 14 days after receipt by sending to
the debtor an authenticated record:
(1) disclaiming any interest in the collateral; and
(2) if known to the recipient, providing the name and     mailing address of any assignee of or successor to the recipient's interest in the collateral.
(e) Request for accounting or regarding statement of account; no
interest in obligation claimed.  A person that receives a request for an
accounting
or a request regarding a statement of account, claims no interest in the
obligations
when it receives the request, and claimed an interest in the obligations at an
earlier
time shall comply with the request within 14 days after receipt by sending to
the
debtor an authenticated record:
(1) disclaiming any interest in the obligations; and
(2) if known to the recipient, providing the name and     mailing address of any assignee of or successor to the recipient's interest in the obligations.
(f) Charges for responses.  A debtor is entitled without charge to one
response to a request under this Section during any six-month period.  The
secured
party may require payment of a charge not exceeding $25 for each additional
response.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/Art. 9 Pt. 3 heading)
PART 3.  
		PERFECTION AND PRIORITY
(810 ILCS 5/Art. 9 Pt. 3 Sub. 1 heading)
SUBPART 1.  
		LAW GOVERNING PERFECTION AND PRIORITY
(810 ILCS 5/9-301) (from Ch. 26, par. 9-301)
Sec. 9-301. Law governing perfection and priority of security interests. Except as otherwise provided in Sections 9-303 through 9-306.1,
the following
rules
determine the law governing perfection, the effect of perfection or
nonperfection,
and the priority of a security interest in collateral:
(1) Except as otherwise provided in this Section,     while a debtor is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral.
(2) While collateral is located in a jurisdiction,     the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a possessory security interest in that collateral.
(3) Except as otherwise provided in paragraph (4),     while tangible negotiable documents, goods, instruments, money, or tangible chattel paper is located in a jurisdiction, the local law of that jurisdiction governs:
(A) perfection of a security interest in the         goods by filing a fixture filing;
(B) perfection of a security interest in timber         to be cut; and
(C) the effect of perfection or nonperfection and         the priority of a nonpossessory security interest in the collateral.
(4) The local law of the jurisdiction in which the     wellhead or minehead is located governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in as-extracted collateral.
(Source: P.A. 95-895, eff. 1-1-09.)
(810 ILCS 5/9-302) (from Ch. 26, par. 9-302)
Sec. 9-302. 
		Law governing perfection and priority of agricultural liens. 
		While farm products are located in a jurisdiction, the local law of that
jurisdiction
governs perfection, the effect of perfection or nonperfection, and the priority
of an
agricultural lien on the farm products.
(Source: P.A. 90-665, eff. 7-30-98; 91-893, eff. 7-1-01.)
(810 ILCS 5/9-303) (from Ch. 26, par. 9-303)
Sec. 9-303. 
		
		Law governing perfection and priority of security interests in
goods covered by a certificate of title.
(a) Applicability of Section.  This Section applies to goods covered by a
certificate of title, even if there is no other relationship between the
jurisdiction
under whose certificate of title the goods are covered and the goods or the
debtor.
(b) When goods covered by certificate of title.  Goods become covered by
a certificate of title when a valid application for the certificate of title
and the
applicable fee are delivered to the appropriate authority.  Goods cease to be
covered
by a certificate of title at the earlier of the time the certificate of title
ceases to be
effective under the law of the issuing jurisdiction or the time the goods
become
covered subsequently by a certificate of title issued by another jurisdiction.
(c) Applicable law.  The local law of the jurisdiction under whose
certificate of title the goods are covered governs perfection, the effect of
perfection
or nonperfection, and the priority of a security interest in goods covered by a
certificate of title from the time the goods become covered by the certificate
of title
until the goods cease to be covered by the certificate of title.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-304) (from Ch. 26, par. 9-304)
Sec. 9-304. 
		
		Law governing perfection and priority of security interests
in deposit accounts.
(a) Law of bank's jurisdiction governs.  The local law of a bank's
jurisdiction governs perfection, the effect of perfection or nonperfection, and
the
priority of a security interest in a deposit account maintained with that bank.
(b) Bank's jurisdiction.  The following rules determine a bank's
jurisdiction for purposes of this Part:
(1) If an agreement between the bank and the debtor     governing the deposit account expressly provides that a particular jurisdiction is the bank's jurisdiction for purposes of this Part, this Article, or the Uniform Commercial Code, that jurisdiction is the bank's jurisdiction.
(2) If paragraph (1) does not apply and an agreement     between the bank and its customer governing the deposit account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the bank's jurisdiction.
(3) If neither paragraph (1) nor paragraph (2)     applies and an agreement between the bank and its customer governing the deposit account expressly provides that the deposit account is maintained at an office in a particular jurisdiction, that jurisdiction is the bank's jurisdiction.
(4) If none of the preceding paragraphs applies, the     bank's jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the customer's account is located.
(5) If none of the preceding paragraphs applies, the     bank's jurisdiction is the jurisdiction in which the chief executive office of the bank is located.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-305) (from Ch. 26, par. 9-305)
Sec. 9-305. 
		
		Law governing perfection and priority of security interests
in investment property.
(a) Governing law:  general rules. Except as otherwise provided
in subsection (c), the following rules apply:
(1) While a security certificate is located in a     jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in the certificated security represented thereby.
(2) The local law of the issuer's jurisdiction as     specified in Section 8-110(d) governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in an uncertificated security.
(3) The local law of the securities intermediary's     jurisdiction as specified in Section 8-110(e) governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a security entitlement or securities account.
(4) The local law of the commodity intermediary's     jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a commodity contract or commodity account.
(b) Commodity intermediary's jurisdiction.  The following rules
determine a commodity intermediary's jurisdiction for purposes of this Part:
(1) If an agreement between the commodity     intermediary and commodity customer governing the commodity account expressly provides that a particular jurisdiction is the commodity intermediary's jurisdiction for purposes of this Part, this Article, or the Uniform Commercial Code, that jurisdiction is the commodity intermediary's jurisdiction.
(2) If paragraph (1) does not apply and an agreement     between the commodity intermediary and commodity customer governing the commodity account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the commodity intermediary's jurisdiction.
(3) If neither paragraph (1) nor paragraph (2)     applies and an agreement between the commodity intermediary and commodity customer governing the commodity account expressly provides that the commodity account is maintained at an office in a particular jurisdiction, that jurisdiction is the commodity intermediary's jurisdiction.
(4) If none of the preceding paragraphs applies, the     commodity intermediary's jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the commodity customer's account is located.
(5) If none of the preceding paragraphs applies, the     commodity intermediary's jurisdiction is the jurisdiction in which the chief executive office of the commodity intermediary is located.
(c) When perfection governed by law of  jurisdiction where
debtor located.  The local law of the jurisdiction in which the debtor is located
governs:
(1) perfection of a security interest in investment     property by filing;
(2) automatic perfection of a security interest in     investment property created by a broker or securities intermediary; and
(3) automatic perfection of a security interest in a     commodity contract or commodity account created by a commodity intermediary.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-306) (from Ch. 26, par. 9-306)
Sec. 9-306. 
		
		Law governing perfection and priority of security interests
in letter-of-credit rights.
(a) Governing law:  issuer's or nominated person's jurisdiction.
Subject to subsection (c), the local law of the issuer's jurisdiction or a
nominated
person's jurisdiction governs perfection, the effect of perfection or
nonperfection,
and the priority of a security interest in a letter-of-credit right if the
issuer's
jurisdiction or nominated person's jurisdiction is a State.
(b) Issuer's or nominated person's jurisdiction.  For purposes of
this Part, an issuer's jurisdiction or nominated person's jurisdiction is the
jurisdiction whose law governs the liability of the issuer or nominated person
with
respect to the letter-of-credit right as provided in Section 5-116.
(c) When Section not applicable.  This Section does not apply to a
security interest that is perfected only under Section 9-308(d).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-306.01) (from Ch. 26, par. 9-306.01)
Sec. 9-306.01. 
		(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-306.02) (from Ch. 26, par. 9-306.02)
Sec. 9-306.02. 
		(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-306.1)
Sec. 9-306.1. 
		
		Law Governing Perfection and Priority of Collateral
Assignments
of
Beneficial Interests in Illinois Land Trusts. The local law of the State of
Illinois governs perfection, the effect of perfection or nonperfection, and the
priority of a collateral assignment of, or other security interest in, a
beneficial interest in an Illinois
land
trust.  This Section implements the important interest of this State in matters
associated with the administration of Illinois land trusts created for the
principal purpose of owning an interest in Illinois land and the regulation of
restrictions on the transfer of beneficial interests in, and of the power of
appointments under, such trusts.
(Source: P.A. 92-234, eff. 1-1-02.)
(810 ILCS 5/9-307) (from Ch. 26, par. 9-307)
Sec. 9-307. Location of debtor.
(a) "Place of business."  In this Section, "place of business" means
a place where a debtor conducts its affairs.
(b) Debtor's location:  general rules.  Except as otherwise
provided in this Section, the following rules determine a debtor's location:
(1) A debtor who is an individual is located at the     individual's principal residence.
(2) A debtor that is an organization and has only one     place of business is located at its place of business.
(3) A debtor that is an organization and has more     than one place of business is located at its chief executive office.
(c) Limitation of applicability of subsection (b).  Subsection (b)
applies only if a debtor's residence, place of business, or chief executive
office, as applicable, is located in a jurisdiction whose law generally
requires information concerning the existence of a nonpossessory security
interest to be made generally available in a filing, recording, or registration
system as a condition or result of the security interest's obtaining priority
over the rights of a lien creditor with respect to the collateral.  If
subsection (b) does not apply, the debtor is located in the District of
Columbia.
(d) Continuation of location:  cessation of existence, etc.  A person that
ceases to exist, have a residence, or have a place of business continues
to be located in the jurisdiction specified by subsections (b) and (c).
(e) Location of registered organization organized under State
law.  A registered organization that is organized under the law of a State is
located in that State.
(f) Location of registered organization organized under federal law; bank
branches and agencies.  Except as otherwise provided in subsection (i), a
registered organization that is organized under the law of the United States
and a branch or agency of a bank that is not organized under the law of the
United States or a State are located:
(1) in the State that the law of the United States     designates, if the law designates a State of location;
(2) in the State that the registered organization,     branch, or agency designates, if the law of the United States authorizes the registered organization, branch, or agency to designate its State of location, including by designating its main office, home office, or other comparable office; or
(3) in the District of Columbia, if neither paragraph     (1) nor paragraph (2) applies.
(g) Continuation of location:  change in status of registered organization.
A registered organization continues to be located in the jurisdiction specified
by subsection (e) or (f) notwithstanding:
(1) the suspension, revocation, forfeiture, or lapse     of the registered organization's status as such in its jurisdiction of organization; or
(2) the dissolution, winding up, or cancellation of     the existence of the registered organization.
(h) Location of United States.  The United States is located in the
District of Columbia.
(i) Location of foreign bank branch or agency if licensed in only one
State.  A branch or agency of a bank that is not organized under the law
of the United States or a State is located in the State in which the branch
or agency is licensed, if all branches and agencies of the bank are licensed
in only one State.
(j) Location of foreign air carrier.  A foreign air carrier under the
Federal Aviation Act of 1958, as amended, is located at the designated office
of the agent upon which service of process may be made on behalf of the
carrier.
(k) Section applies only to this Part.  This Section applies only for
purposes of this Part.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-307.1) (from Ch. 26, par. 9-307.1)
Sec. 9-307.1. 
		(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-307.2) (from Ch. 26, par. 9-307.2)
Sec. 9-307.2. 
		(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/Art. 9 Pt. 3 Sub. 2 heading)
SUBPART 2.  
		PERFECTION
(810 ILCS 5/9-308) (from Ch. 26, par. 9-308)
Sec. 9-308. 
		
		When security interest or agricultural lien is perfected;
continuity of perfection.
(a) Perfection of security interest.  Except as otherwise provided
in this Section and Section 9-309, a security interest is perfected if it has
attached
and all of the applicable requirements for perfection in Sections 9-310 through
9-316 have been satisfied.  A security interest is perfected when it attaches
if the
applicable requirements are satisfied before the security interest attaches.
(b) Perfection of agricultural lien.  An agricultural lien is
perfected if it has become effective and all of the applicable requirements for
perfection in Section 9-310 have been satisfied.  An agricultural lien is
perfected
when it becomes effective if the applicable requirements are satisfied before
the
agricultural lien becomes effective.
(c) Continuous perfection; perfection by different methods.  A
security interest or agricultural lien is perfected continuously if it is originally
perfected by one method under this Article and is later perfected by another method
under this Article, without an intermediate period when it was unperfected.
(d) Supporting obligation.  Perfection of a security interest in
collateral also perfects a security interest in a supporting obligation for the
collateral.
(e) Lien securing right to payment.  Perfection of a security
interest in a right to payment or performance also perfects a security interest in a
security interest, mortgage, or other lien on personal or real property securing the
right.
(f) Security entitlement carried in securities account.  Perfection
of a security interest in a securities account also perfects a security
interest in the
security entitlements carried in the securities account.
(g) Commodity contract carried in commodity account.
Perfection of a security interest in a commodity account also perfects a
security
interest in the commodity contracts carried in the commodity account.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-309) (from Ch. 26, par. 9-309)
Sec. 9-309. 
		Security interest perfected upon attachment. 
		The following
security interests are perfected when they attach:
(1) a purchase-money security interest in consumer     goods, except as otherwise provided in Section 9-311(b) with respect to consumer goods that are subject to a statute or treaty described in Section 9-311(a);
(2) an assignment of accounts or payment intangibles     which does not by itself or in conjunction with other assignments to the same assignee transfer a significant part of the assignor's outstanding accounts or payment intangibles;
(3) a sale of a payment intangible;
(4) a sale of a promissory note;
(5) a security interest created by the assignment of     a health-care-insurance receivable to the provider of the health-care goods or services;
(6) a security interest arising under Section 2-401,     2-505, 2-711(3), or 2A-508(5), until the debtor obtains possession of the collateral;
(7) a security interest of a collecting bank arising     under Section 4-210;
(8) a security interest of an issuer or nominated     person arising under Section 5-118;
(9) a security interest arising in the delivery of a     financial asset under Section 9-206(c);
(10) a security interest in investment property     created by a broker or securities intermediary;
(11) a security interest in a commodity contract or a     commodity account created by a commodity intermediary;
(12) an assignment for the benefit of all creditors     of the transferor and subsequent transfers by the assignee thereunder; and
(13) a security interest created by an assignment of     a beneficial interest in a decedent's estate.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-310) (from Ch. 26, par. 9-310)
Sec. 9-310. When filing required to perfect security interest or
agricultural lien; security interests and agricultural liens to which filing
provisions do not apply.
(a) General rule:  perfection by filing.  Except as otherwise
provided in subsection (b) and Section 9-312(b), a financing statement must be
filed to perfect all security interests and agricultural  liens.
(b) Exceptions:  filing not necessary.  The filing of a financing
statement is not necessary to perfect a security interest:
(1) that is perfected under Section 9-308(d), (e),     (f), or (g);
(2) that is perfected under Section 9-309 when it     attaches;
(3) in property subject to a statute, regulation, or     treaty described in Section 9-311(a);
(4) in goods in possession of a bailee which is     perfected under Section 9-312(d)(1) or (2);
(5) in certificated securities, documents, goods, or     instruments which is perfected without filing, control, or possession under Section 9-312(e), (f), or (g);
(6) in collateral in the secured party's possession     under Section 9-313;
(7) in a certificated security which is perfected by     delivery of the security certificate to the secured party under Section 9-313;
(8) in deposit accounts, electronic chattel paper,     electronic documents, investment property, letter-of-credit rights, or beneficial interests in Illinois land trusts which is perfected by control under Section 9-314;
(9) in proceeds which is perfected under Section     9-315; or
(10) that is perfected under Section 9-316.
(c) Assignment of perfected security interest.  If a secured party
assigns a perfected security interest or agricultural lien, a filing under this
Article is
not required to continue the perfected status of the security interest against
creditors
of and transferees from the original debtor.
(Source: P.A. 95-895, eff. 1-1-09.)
(810 ILCS 5/9-311) (from Ch. 26, par. 9-311)
Sec. 9-311. Perfection of security interests in property subject to
certain
statutes, regulations, and treaties.
(a) Security interest subject to other law.  Except as otherwise
provided in subsection (d), the filing of a financing statement is not
necessary or
effective to perfect a security interest in property subject to:
(1) a statute, regulation, or treaty of the United     States whose requirements for a security interest's obtaining priority over the rights of a lien creditor with respect to the property preempt Section 9-310(a);
(2) the Illinois Vehicle Code or the Boat     Registration and Safety Act; or
(3) a statute of another jurisdiction which provides     for a security interest to be indicated on a certificate of title as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the property.
(b) Compliance with other law.  Compliance with the
requirements of a statute, regulation, or treaty described in subsection (a)
for
obtaining priority over the rights of a lien creditor is equivalent to the
filing of a
financing statement under this Article.  Except as otherwise provided in subsection
(d) and Sections 9-313 and 9-316(d) and (e) for goods covered by a certificate of
title, a security interest in property subject to a statute, regulation, or treaty
described in subsection (a) may be perfected only by compliance with those
requirements, and a security interest so perfected remains perfected
notwithstanding a change in the use or transfer of possession of the collateral.
(c) Duration and renewal of perfection.  Except as otherwise
provided in subsection (d) and Section 9-316(d) and (e), duration and renewal
of
perfection of a security interest perfected by compliance with the requirements
prescribed by a statute, regulation, or treaty described in subsection (a) are
governed by the statute, regulation, or treaty.  In other respects, the
security interest
is subject to this Article.
(d) Inapplicability to certain inventory.  During any period in
which
collateral subject to a
statute specified in subsection (a)(2)
is inventory held for sale or lease by a person or leased by
that
person as lessor and that person is in the business of selling or leasing goods
of that
kind, this Section does not apply to a security interest in that collateral
created by
that person as debtor.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-312) (from Ch. 26, par. 9-312)
Sec. 9-312. Perfection of security interests in chattel paper, deposit
accounts, documents, goods covered by documents, instruments, investment
property, letter-of-credit rights, and money; perfection by permissive filing;
temporary perfection without filing or transfer of possession.
(a) Perfection by filing permitted.  A security interest in chattel
paper, negotiable documents, instruments,
beneficial interests in Illinois land trusts,
or investment property may be
perfected
by filing.
(b) Control or possession of certain collateral.  Except as
otherwise provided in Section 9-315(c) and (d) for proceeds:
(1) a security interest in a deposit account may be     perfected only by control under Section 9-314;
(2) and except as otherwise provided in Section     9-308(d), a security interest in a letter-of-credit right may be perfected only by control under Section 9-314; and
(3) a security interest in money may be perfected     only by the secured party's taking possession under Section 9-313.
(c) Goods covered by negotiable document.  While goods are in
the possession of a bailee that has issued a negotiable document covering the
goods:
(1) a security interest in the goods may be perfected     by perfecting a security interest in the document; and
(2) a security interest perfected in the document has     priority over any security interest that becomes perfected in the goods by another method during that time.
(d) Goods covered by nonnegotiable document.  While goods are
in the possession of a bailee that has issued a nonnegotiable document covering the
goods, a security interest in the goods may be perfected by:
(1) issuance of a document in the name of the secured     party;
(2) the bailee's receipt of notification of the     secured party's interest; or
(3) filing as to the goods.
(e) Temporary perfection:  new value.  A security interest in
certificated securities, negotiable documents, or instruments is perfected without
filing or the taking of possession or control for a period of 20 days from the time it attaches to
the extent that it arises for new value given under an authenticated security
agreement.
(f) Temporary perfection:  goods or documents made available
to debtor.  A perfected security interest in a negotiable document or goods in
possession of a bailee, other than one that has issued a negotiable document for the
goods, remains perfected for 20 days without filing if the secured party makes
available to the debtor the goods or documents representing the goods for the
purpose of:
(1) ultimate sale or exchange; or
(2) loading, unloading, storing, shipping,     transshipping, manufacturing, processing, or otherwise dealing with them in a manner preliminary to their sale or exchange.
(g) Temporary perfection:  delivery of security certificate or
instrument to debtor.  A perfected security interest in a certificated security
or
instrument remains perfected for 20 days without filing if the secured party
delivers
the security certificate or instrument to the debtor for the purpose of:
(1) ultimate sale or exchange; or
(2) presentation, collection, enforcement, renewal,     or registration of transfer.
(h) Expiration of temporary perfection.  After the 20-day period
specified in subsection (e), (f), or (g) expires, perfection depends upon
compliance
with this Article.
(Source: P.A. 95-895, eff. 1-1-09.)
(810 ILCS 5/9-313) (from Ch. 26, par. 9-313)
Sec. 9-313. When possession by or delivery to secured party perfects
security interest without filing.
(a) Perfection by possession or delivery.  Except as otherwise provided
in subsection (b), a secured party may perfect a security interest in
tangible negotiable documents, goods, instruments, money, or tangible chattel paper by
taking possession of the collateral.  A secured party may perfect a security
interest in certificated securities by taking delivery of the certificated
securities under Section 8-301.
(b) Goods covered by certificate of title.  With respect to goods covered
by a certificate of title issued by this State, a secured party may perfect a
security interest in the goods by taking possession of the goods only in the
circumstances described in Section 9-316(d).
(c) Collateral in possession of person other than debtor.  With respect to
collateral other than certificated securities and goods covered by a document,
a secured party takes possession of collateral in the possession of a person
other than the debtor, the secured party, or a lessee of the collateral from
the debtor in the ordinary course of the debtor's business, when:
(1) the person in possession authenticates a record     acknowledging that it holds possession of the collateral for the secured party's benefit; or
(2) the person takes possession of the collateral     after having authenticated a record acknowledging that it will hold possession of collateral for the secured party's benefit.
(d) Time of perfection by possession; continuation of perfection.  If
perfection of a security interest depends upon possession of the collateral by
a secured party, perfection occurs no earlier than the time the secured party
takes possession and continues only while the secured party retains possession.
(e) Time of perfection by delivery; continuation of perfection.  A security
interest in a certificated security in registered form is perfected by
delivery when delivery of the certificated security occurs under Section 8-301
and remains perfected by delivery until the debtor obtains possession of the
security certificate.
(f) Acknowledgment not required.  A person in possession of
collateral is not required to acknowledge that it holds possession for a
secured party's benefit.
(g) Effectiveness of acknowledgment; no duties or confirmation.
If a person acknowledges that it holds possession for the secured party's
benefit:
(1) the acknowledgment is effective under subsection     (c) or Section 8-301(a), even if the acknowledgment violates the rights of a debtor; and
(2) unless the person otherwise agrees or law other     than this Article otherwise provides, the person does not owe any duty to the secured party and is not required to confirm the acknowledgment to another person.
(h) Secured party's delivery to person other than debtor.  A secured
party having possession of collateral does not relinquish possession by
delivering the collateral to a person other than the debtor or a lessee
of the collateral from the debtor in the ordinary course of the debtor's
business if the person was instructed before the delivery or is instructed
contemporaneously with the delivery:
(1) to hold possession of the collateral for the     secured party's benefit; or
(2) to redeliver the collateral to the secured party.
(i) Effect of delivery under subsection (h); no duties or confirmation.
A secured party does not relinquish possession, even if a delivery under
subsection (h) violates the rights of a debtor.  A person to which collateral
is delivered under subsection (h) does not owe any duty to the secured party
and is not required to confirm the delivery to another person unless the
person otherwise agrees or law other than this Article otherwise provides.
(Source: P.A. 95-895, eff. 1-1-09.)
(810 ILCS 5/9-314) (from Ch. 26, par. 9-314)
Sec. 9-314. Perfection by control.
(a) Perfection by control.  A security interest in investment
property, deposit accounts,
electronic chattel paper, letter-of-credit rights,
electronic documents, or beneficial interests in Illinois land trusts may be
perfected by control of the collateral under Section 7-106, 9-104, 9-105, 9-106,
9-107, or 9-107.1.
(b) Specified collateral:  time of perfection by control;
continuation of perfection.  A security interest in deposit accounts,
electronic
chattel paper, letter-of-credit rights,
electronic documents, or beneficial interests in Illinois land trusts
is perfected by control under Section
7-106, 9-104,
9-105, 9-107, or 9-107.1 when the secured party obtains control and
remains perfected by
control only while the secured party retains control.
(c) Investment property:  time of perfection by control;
continuation of perfection.  A security interest in investment property is
perfected
by control under Section 9-106 from the time the secured party obtains control
and
remains perfected by control until:
(1) the secured party does not have control; and
(2) one of the following occurs:
(A) if the collateral is a certificated security,         the debtor has or acquires possession of the security certificate;
(B) if the collateral is an uncertificated         security, the issuer has registered or registers the debtor as the registered owner; or
(C) if the collateral is a security entitlement,         the debtor is or becomes the entitlement holder.
(Source: P.A. 95-895, eff. 1-1-09.)
(810 ILCS 5/9-315) (from Ch. 26, par. 9-315)
Sec. 9-315. 
		
		Secured party's rights on disposition of collateral and in
proceeds.
(a) Disposition of collateral:  continuation of security interest or
agricultural lien; proceeds.  Except as otherwise provided in this Article and
in
Section 2-403(2):
(1) a security interest or agricultural lien     continues in collateral notwithstanding sale, lease, license, exchange, or other disposition thereof unless the secured party authorized the disposition free of the security interest or agricultural lien; and
(2) a security interest attaches to any identifiable     proceeds of collateral.
(b) When commingled proceeds identifiable.  Proceeds that are
commingled with other property are identifiable proceeds:
(1) if the proceeds are goods, to the extent provided     by Section 9-336; and
(2) if the proceeds are not goods, to the extent that     the secured party identifies the proceeds by a method of tracing, including application of equitable principles, that is permitted under law other than this Article with respect to commingled property of the type involved.
(c) Perfection of security interest in proceeds.  A security interest
in proceeds is a perfected security interest if the security interest in the original
collateral was perfected.
(d) Continuation of perfection.  A perfected security interest in
proceeds becomes unperfected on the 21st day after the security interest attaches to
the proceeds unless:
(1) the following conditions are satisfied:
(A) a filed financing statement covers the         original collateral;
(B) the proceeds are collateral in which a         security interest may be perfected by filing in the office in which the financing statement has been filed; and
(C) the proceeds are not acquired with cash         proceeds;
(2) the proceeds are identifiable cash proceeds; or
(3) the security interest in the proceeds is     perfected other than under subsection (c) when the security interest attaches to the proceeds or within 20 days thereafter.
(e) When perfected security interest in proceeds becomes
unperfected.  If a filed financing statement covers the original collateral, a
security
interest in proceeds which remains perfected under subsection (d)(1) becomes
unperfected at the later of:
(1) when the effectiveness of the filed financing     statement lapses under Section 9-515 or is terminated under Section 9-513; or
(2) the 21st day after the security interest attaches     to the proceeds.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-315.01)
Sec. 9-315.01. 
		
		Debtor disposing of collateral and failing to pay secured
party
amount due under security agreement; penalties for violation.
(1) It is unlawful for a debtor under the terms of a security agreement
(a)
who has
no right of sale or other disposition of the collateral or (b) who has a right
of sale or other
disposition of the collateral and is to account to the secured party for the
proceeds of any
sale or other disposition of the collateral, to sell or otherwise dispose of
the collateral and
willfully and wrongfully to fail to pay the secured party the amount of said
proceeds due
under the security agreement.  Failure to pay such proceeds to the secured
party within 10
days after the sale or other disposition of the collateral is prima facie
evidence of a willful
and wanton failure to pay.
(2) An individual convicted of a violation of this Section shall be guilty
of
a Class
3 felony.
(3) A corporation convicted of a violation of this Section shall be guilty
of
a
business offense and shall be fined not less than $2,000 nor more than $10,000.
(4) In the event the debtor under the terms of a security agreement is a
corporation
or a partnership, any officer, director, manager, or managerial agent of the
debtor who
violates this Section or causes the debtor to violate this Section shall be
guilty of a Class
3 felony.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-315.02)
Sec. 9-315.02. 
		
		Disposal of collateral by debtor to persons
other than those previously disclosed to secured party - penalties for
violation - defense.
(1) Where, pursuant to Section 9-205.1, a secured party has required that
before the debtor sells or otherwise disposes of collateral in the debtor's
possession he disclose to the secured party the persons to whom he desires to
sell or otherwise dispose of such collateral, it is unlawful for the debtor to
sell or otherwise dispose of the collateral to a person other than a person so
disclosed to the secured party.
(2) An individual convicted of a violation of this Section shall be guilty
of a Class A misdemeanor.
(3) A corporation convicted of a violation of this Section shall be guilty
of a business offense and shall be fined not less than $2,000 nor more than
$10,000.
(4) In the event the debtor under the terms of a security agreement is a
corporation or a partnership, any officer, director, manager, or managerial
agent of the debtor who violates this Section or causes the debtor to violate
this Section shall be guilty of a Class A misdemeanor.
(5) It is an affirmative defense to a prosecution for the violation of this
Section that the debtor has paid to the secured party the proceeds from the
sale or other disposition of the collateral within 10 days after such sale or
disposition.
(Source: P.A. 91-893, eff. 7-1-01; 92-16, eff. 6-28-01.)
(810 ILCS 5/9-316) (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.)
(810 ILCS 5/Art. 9 Pt. 3 Sub. 3 heading)
SUBPART 3.  
		PRIORITY
(810 ILCS 5/9-317) (from Ch. 26, par. 9-317)
Sec. 9-317. Interests that take priority over or take free of
security interest or agricultural lien.
(a) Conflicting security interests and rights of lien creditors.  A
security interest or agricultural lien is subordinate to the rights
of:
(1) a person entitled to priority under Section     9-322; and
(2) except as otherwise provided in subsection (e) or     (f), a person that becomes a lien creditor before the earlier of the time:
(A) the security interest or agricultural lien is         perfected; or
(B) one of the conditions specified in Section         9-203(b)(3) is met and a financing statement covering the collateral is filed.
(b) Buyers that receive delivery.  Except as otherwise provided in
subsection (e), a buyer, other than a secured party, of tangible chattel paper,
tangible documents, goods, instruments, or a certificated security takes free of a
security
interest or agricultural lien if the buyer gives value and receives delivery of
the
collateral without knowledge of the security interest or agricultural lien and
before
it is perfected.
(c) Lessees that receive delivery.  Except as otherwise provided in
subsection (e), a lessee of goods takes free of a security interest or agricultural lien
if the lessee gives value and receives delivery of the collateral without knowledge
of the security interest or agricultural lien and before it is perfected.
(d) Licensees and buyers of certain collateral.  A licensee of a
general intangible or a buyer, other than a secured party, of collateral other than tangible chattel paper, tangible documents, goods, instruments, or a certificated
security takes free of a security interest if the licensee or buyer gives value
without
knowledge of the security interest and before it is perfected.
(e) Purchase-money security interest.  Except as otherwise
provided in Sections 9-320 and 9-321, if a person files a financing statement
with
respect to a purchase-money security interest before or within 20 days after
the
debtor receives delivery of the collateral, the security interest takes
priority over the
rights of a buyer, lessee, or lien creditor which arise between the time the
security
interest
attaches and the time of filing.
(f) Public deposits.  An unperfected security interest shall take priority
over the rights of
a lien creditor if (i) the lien creditor is a trustee or receiver of a bank
or acting in furtherance of its
supervisory authority over such bank and (ii) a security interest is granted by
the bank to secure a deposit of
public funds with the bank or a repurchase agreement
with the bank pursuant to the Government Securities
Act of 1986, as amended.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-318) (from Ch. 26, par. 9-318)
Sec. 9-318. 
		
		No interest retained in right to payment that is sold; rights
and title of seller of account or chattel paper with respect to creditors and
purchasers.
(a) Seller retains no interest.  A debtor that has sold an account,
chattel paper, payment intangible, or promissory note does not retain a legal
or
equitable interest in the collateral sold.
(b) Deemed rights of debtor if buyer's security interest
unperfected.  For purposes of determining the rights of creditors of, and
purchasers for value of an account or chattel paper from, a debtor that has
sold an
account or chattel paper, while the buyer's security interest is unperfected,
the
debtor is deemed to have rights and title to the account or chattel paper
identical to
those the debtor sold.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-319)
Sec. 9-319. 
		
		Rights and title of consignee with respect to creditors and
purchasers.
(a) Consignee has consignor's rights.  Except as otherwise
provided in subsection (b), for purposes of determining the rights of creditors
of,
and purchasers for value of goods from, a consignee, while the goods are in the
possession of the consignee, the consignee is deemed to have rights and title
to the
goods identical to those the consignor had or had power to transfer.
(b) Applicability of other law.  For purposes of determining the
rights of a creditor of a consignee, law other than this Article determines the
rights
and title of a consignee while goods are in the consignee's possession if,
under this
Part, a perfected security interest held by the consignor would have priority
over
the rights of the creditor.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-320)
Sec. 9-320. 
		Buyer of goods and farm products.
(a) Buyer in ordinary course of business.  Except as otherwise
provided in subsections (e) and (f), a buyer in the ordinary course of business
takes free of a
security interest created by the buyer's seller, even if the security
interest
is perfected and the buyer knows of its existence.
(b) Buyer of consumer goods.  Except as otherwise provided in
subsection (e), a buyer of goods from a person who used or bought the goods for
use primarily for personal, family, or household purposes takes free of a
security
interest, even if perfected, if the buyer buys:
(1) without knowledge of the security interest;
(2) for value;
(3) primarily for the buyer's personal, family, or     household purposes; and
(4) before the filing of a financing statement     covering the goods.
(c) Effectiveness of filing for subsection (b).  To the extent that it
affects the priority of a security interest over a buyer of goods under subsection (b),
the period of effectiveness of a filing made in the jurisdiction in which the
seller is
located is governed by Section 9-316(a) and (b).
(d) Buyer in ordinary course of business at wellhead or
minehead. A buyer in ordinary course of business buying oil, gas, or other
minerals at the wellhead or minehead or after extraction takes free of an
interest
arising out of an encumbrance.
(e) Possessory security interest not affected.  Subsections (a) and
(b) do not affect a security interest in goods in the possession of the secured
party
under Section 9-313.
(f) Buyer of farm products.
(1) A buyer of farm products takes subject to a     security interest created by the seller if:
(A) within one year before the sale of the farm         products, the buyer has received from the secured party or the seller written notice of the security interest organized according to farm products that:
(i) is an original or reproduced copy thereof;
(ii) contains: (a) the name and address of             the secured party; (b) the name and address of the person indebted to the secured party; (c) the social security number of the debtor or, in the case of a debtor doing business other than as an individual, the Internal Revenue Service taxpayer identification number of such debtor; (d) a description of the farm products subject to the security interest created by the debtor, including the amount of such products where applicable, crop year, county, and a reasonable description of the property;
(iii) must be amended in writing, within 3             months, similarly signed and transmitted, to reflect material changes;
(iv) will lapse on either the expiration             period of the statement or the transmission of a notice signed by the secured party that the statement has lapsed, whichever occurs first; and
(v) sets forth any payment obligations             imposed on the buyer by the secured party as conditions for waiver or release of the security interest; and
(B) the buyer has failed to perform the payment         obligations.
(2) For the purposes of this subsection (f), a buyer     of farm products has received notice from the secured party or seller when written notice of the security interest is sent to the buyer  by registered or certified mail.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-320.1)
Sec. 9-320.1. 
		
		Liability of commission merchant or selling agent engaged in
sale of livestock or other farm products to holder of security interest.
(a) A commission merchant or selling agent
who sells a farm product for others shall be subject to a security interest
created by the seller in
such farm product if:
(1) within one year before the sale of the farm     products, the buyer has received from the secured party or the seller written notice of the security interest organized according to farm products that:
(A) is an original or reproduced copy thereof;
(B) contains: (i) the name and address of the         secured party; (ii) the name and address of the person indebted to the secured party; (iii) the social security number of the debtor or, in case of a debtor doing business other than as an individual, the Internal Revenue Service taxpayer identification number of such debtor; (iv) a description of the farm products subject to the security interest created by the debtor, including the amount of such products where applicable, crop year, county, and a reasonable description of the property;
(C) must be amended in writing, within 3 months,         similarly signed and transmitted, to reflect material changes;
(D) will lapse on either the expiration period of         the statement or the transmission of a notice signed by the secured party that the statement has lapsed, whichever occurs first; and
(E) sets forth any payment obligations imposed on         the buyer by the secured party as conditions for waiver or release of the security interest; and
(2) the commission merchant or selling agent has     failed to perform the payment obligations.
(b) For the purposes of this Section, a commission merchant or selling
agent has received notice from the secured party or seller when written
notice of the security
interest is sent to the commission merchant or selling agent by registered or
certified mail.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-320.2)
Sec. 9-320.2. 
		Notice to seller of farm products. 
		A commission merchant or selling agent who sells farm products for others,
and
any person
buying farm products in the ordinary course of business from a person engaged
in farming
operations, shall post at each licensed location where the merchant, agent, or
person buying farm
products in the ordinary course of business does business a notice that shall
read as follows:
"NOTICE TO SELLERS OF FARM PRODUCTS
It is a criminal offense to sell farm products subject to a security interest
without
making payment to the secured party.  You should notify the purchaser if there
is a
security interest in the farm products you are selling.".
The notice shall be posted in a conspicuous manner and shall be in
contrasting type, large enough
to be read from a distance of 10 feet.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-321)
Sec. 9-321. 
		
		Licensee of general intangible and lessee of goods in ordinary
course of business.
(a) "Licensee in ordinary course of business."  In this Section,
"licensee in ordinary course of business" means a person that becomes a
licensee of
a general intangible in good faith, without knowledge that the license violates
the
rights of another person in the general intangible, and in the ordinary course
from a
person in the business of licensing general intangibles of that kind.  A person
becomes a licensee in the ordinary course if the license to the person comports with
the usual or customary practices in the kind of business in which the licensor is
engaged or with the licensor's own usual or customary practices.
(b) Rights of licensee in ordinary course of business.  A licensee
in ordinary course of business takes its rights under a nonexclusive license free of a
security interest in the general intangible created by the licensor, even if
the
security interest is perfected and the licensee knows of its existence.
(c) Rights of lessee in ordinary course of business. A lessee in
ordinary course of business takes its leasehold interest free of a security
interest in
the goods created by the lessor, even if the security interest is perfected and
the
lessee knows of its existence.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-322)
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.)
(810 ILCS 5/9-323)
Sec. 9-323. 
		Future advances.
(a) When priority based on time of advance.  Except as otherwise
provided in subsection (c), for purposes of determining the priority of a
perfected
security interest under Section 9-322(a)(1), perfection of the security interest dates
from the time an advance is made to the extent that the security interest secures an
advance that:
(1) is made while the security interest is perfected     only:
(A) under Section 9-309 when it attaches; or
(B) temporarily under Section 9-312(e), (f), or         (g); and
(2) is not made pursuant to a commitment entered into     before or while the security interest is perfected by a method other than under Section 9-309 or 9-312(e), (f), or (g).
(b) Lien creditor.  Except as otherwise provided in subsection (c),
a security interest is subordinate to the
rights of a person that becomes a lien creditor to the extent that the
security interest secures an advance made more than 45 days after the
person
becomes a lien creditor unless
the advance is made:
(1) without knowledge of the lien; or
(2) pursuant to a commitment entered into without     knowledge of the lien.
(c) Buyer of receivables.  Subsections (a) and (b) do not apply to a
security interest held by a secured party that is a buyer of accounts, chattel paper,
payment intangibles, or promissory notes or a consignor.
(d) Buyer of goods.  Except as otherwise provided in subsection
(e), a buyer of goods other than a buyer in ordinary course of business takes free of
a security interest to the extent that it secures advances made after the earlier of:
(1) the time the secured party acquires knowledge of     the buyer's purchase; or
(2) 45 days after the purchase.
(e) Advances made pursuant to commitment:  priority of buyer
of goods.  Subsection (d) does not apply if the advance is made pursuant to a
commitment entered into without knowledge of the buyer's purchase and before the
expiration of the 45-day period.
(f) Lessee of goods.  Except as otherwise provided in subsection
(g), a lessee of goods, other than a lessee in ordinary course of business,
takes the
leasehold interest free of a security interest to the extent that it secures
advances
made after the earlier of:
(1) the time the secured party acquires knowledge of     the lease; or
(2) 45 days after the lease contract becomes     enforceable.
(g) Advances made pursuant to commitment:  priority of lessee
of goods.  Subsection (f) does not apply if the advance is made pursuant to a
commitment entered into without knowledge of the lease and before the
expiration
of the 45-day period.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-324)
Sec. 9-324. 
		Priority of purchase-money security interests.
(a) General rule:  purchase-money priority.  Except as otherwise
provided in subsection (g), a perfected purchase-money security interest in
goods
other than inventory or livestock has priority over a conflicting security
interest in
the same goods, and, except as otherwise provided in Section 9-327, a perfected
security interest in its identifiable proceeds also has priority, if the
purchase-money
security interest is perfected when the debtor receives possession of the
collateral or
within 20 days thereafter.
(b) Inventory purchase-money priority.  Subject to subsection (c)
and except as otherwise provided in subsection (g), a perfected purchase-money
security interest in inventory has priority over a conflicting security
interest in the
same inventory, has priority over a conflicting security interest in chattel paper or
an instrument constituting proceeds of the inventory and in proceeds of the chattel
paper, if so provided in Section 9-330, and, except as otherwise provided in Section
9-327, also has priority in identifiable cash proceeds of the inventory to the extent
the identifiable cash proceeds are received on or before the delivery of the
inventory to a buyer, if:
(1) the purchase-money security interest is perfected     when the debtor receives possession of the inventory;
(2) the purchase-money secured party sends an     authenticated notification to the holder of the conflicting security interest;
(3) the holder of the conflicting security interest     receives the notification within five years before the debtor receives possession of the inventory; and
(4) the notification states that the person sending     the notification has or expects to acquire a purchase-money security interest in inventory of the debtor and describes the inventory.
(c) Holders of conflicting inventory security interests to be
notified.  Subsections (b)(2) through (4) apply only if the holder of the conflicting
security interest had filed a financing statement covering the same types of
inventory:
(1) if the purchase-money security interest is     perfected by filing, before the date of the filing; or
(2) if the purchase-money security interest is     temporarily perfected without filing or possession under Section 9-312(f), before the beginning of the 20-day period thereunder.
(d) Livestock purchase-money priority.  Subject to subsection (e)
and except as otherwise provided in subsection (g), a perfected purchase-money
security interest in livestock that are farm products has priority over a conflicting
security interest in the same livestock, and, except as otherwise provided in Section
9-327, a perfected security interest in their identifiable proceeds and identifiable
products in their unmanufactured states also has priority, if:
(1) the purchase-money security interest is perfected     when the debtor receives possession of the livestock;
(2) the purchase-money secured party sends an     authenticated notification to the holder of the conflicting security interest;
(3) the holder of the conflicting security interest     receives the notification within six months before the debtor receives possession of the livestock; and
(4) the notification states that the person sending     the notification has or expects to acquire a purchase-money security interest in livestock of the debtor and describes the livestock.
(e) Holders of conflicting livestock security interests to be
notified.  Subsections (d)(2) through (4) apply only if the holder of the conflicting
security interest had filed a financing statement covering the same types of
livestock:
(1) if the purchase-money security interest is     perfected by filing, before the date of the filing; or
(2) if the purchase-money security interest is     temporarily perfected without filing or possession under Section 9-312(f), before the beginning of the 20-day period thereunder.
(f) Software purchase-money priority.  Except as otherwise
provided in subsection (g), a perfected purchase-money security interest in software
has priority over a conflicting security interest in the same collateral, and, except as
otherwise provided in Section 9-327, a perfected security interest in its identifiable
proceeds also has priority, to the extent that the purchase-money security interest in
the goods in which the software was acquired for use has priority in the goods and
proceeds of the goods under this Section.
(g) Conflicting purchase-money security interests.  If more than
one security interest qualifies for priority in the same collateral under
subsection
(a), (b), (d), or (f):
(1) a security interest securing an obligation     incurred as all or part of the price of the collateral has priority over a security interest securing an obligation incurred for value given to enable the debtor to acquire rights in or the use of collateral; and
(2) in all other cases, Section 9-322(a) applies to     the qualifying security interests.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-325)
Sec. 9-325. 
		Priority of security interests in transferred collateral.
(a) Subordination of security interest in transferred collateral.
Except as otherwise provided in subsection (b), a security interest created by
a
debtor is subordinate to a security interest in the same collateral created by
another
person if:
(1) the debtor acquired the collateral subject to the     security interest created by the other person;
(2) the security interest created by the other person     was perfected when the debtor acquired the collateral; and
(3) there is no period thereafter when the security     interest is unperfected.
(b) Limitation of subsection (a) subordination.  Subsection (a)
subordinates a security interest only if the security interest:
(1) otherwise would have priority solely under     Section 9-322(a) or 9-324; or
(2) arose solely under Section 2-711(3) or 2A-508(5).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-326)
Sec. 9-326. Priority of security interests created by new debtor.
(a) Subordination of security interest created by new debtor.
Subject to subsection (b), a security interest that is created by a new debtor in collateral in which the new debtor has or acquires rights and is
perfected solely by a filed financing statement that would be ineffective to perfect the security interest but for the application of Section 9-316(i)(1) or 9-508 is subordinate to a
security interest in the same collateral which is perfected other than by such a
filed
financing statement.
(b) Priority under other provisions; multiple original debtors.
The other provisions of this Part determine the priority among conflicting
security
interests in the same collateral perfected by filed financing statements described in subsection (a).  However, if the security agreements to
which
a new debtor became bound as debtor were not entered into by the same original
debtor, the conflicting security interests rank according to priority in time
of the
new debtor's having become bound.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-327)
Sec. 9-327. 
		Priority of security interests in deposit account. 
		The
following rules govern priority among conflicting security interests in the
same
deposit account:
(1) A security interest held by a secured party having control of the
deposit account under Section 9-104 has priority over a conflicting security
interest
held by a secured party that does not have control.
(2) Except as otherwise provided in paragraphs (3) and (4), security
interests perfected by control under Section 9-314 rank according to priority
in time
of obtaining control.
(3) Except as otherwise provided in paragraph (4), a security
interest held by the bank with which the deposit account is maintained has
priority
over a conflicting security interest held by another secured party.
(4) A security interest perfected by control under Section
9-104(a)(3) has priority over a security interest held by the bank with which
the
deposit account is maintained.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-328)
Sec. 9-328. 
		Priority of security interests in investment property. 
		The
following rules govern priority among conflicting security interests in the
same
investment property:
(1) A security interest held by a secured party having control of
investment property under Section 9-106 has priority over a security interest
held
by a secured party that does not have control of the investment property.
(2) Except as otherwise provided in paragraphs (3) and (4),
conflicting security interests held by secured parties each of which has
control
under Section 9-106 rank according to priority in time of:
(A) if the collateral is a security, obtaining     control;
(B) if the collateral is a security entitlement     carried in a securities account and:
(i) if the secured party obtained control under         Section 8-106(d)(1), the secured party's becoming the person for which the securities account is maintained;
(ii) if the secured party obtained control under         Section 8-106(d)(2), the securities intermediary's agreement to comply with the secured party's entitlement orders with respect to security entitlements carried or to be carried in the securities account; or
(iii) if the secured party obtained control         through another person under Section 8-106(d)(3), the time on which priority would be based under this paragraph if the other person were the secured party; or
(C) if the collateral is a commodity contract carried     with a commodity intermediary, the satisfaction of the requirement for control specified in Section 9-106(b)(2) with respect to commodity contracts carried or to be carried with the commodity intermediary.
(3) A security interest held by a securities intermediary in a security
entitlement or a securities account maintained with the securities intermediary
has
priority over a conflicting security interest held by another secured party.
(4) A security interest held by a commodity intermediary in a
commodity contract or a commodity account maintained with the commodity
intermediary has priority over a conflicting security interest held by another
secured party.
(5) A security interest in a certificated security in registered form
which is perfected by taking delivery under Section 9-313(a) and not by control
under Section 9-314 has priority over a conflicting security interest perfected
by a
method other than control.
(6) Conflicting security interests created by a broker, securities
intermediary, or commodity intermediary which are perfected without control
under Section 9-106 rank equally.
(7) In all other cases, priority among conflicting security interests in
investment property is governed by Sections 9-322 and 9-323.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-329)
Sec. 9-329. 
		Priority of security interests in letter-of-credit right. 
		The
following rules govern priority among conflicting security interests in the
same
letter-of-credit right:
(1) A security interest held by a secured party     having control of the letter-of-credit right under Section 9-107 has priority to the extent of its control over a conflicting security interest held by a secured party that does not have control.
(2) Security interests perfected by control under     Section 9-314 rank according to priority in time of obtaining control.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-329.1)
Sec. 9-329.1. 
		
		Priority of Security Interests in
Beneficial  Interest in an Illinois Land Trust. The following rules govern
priority among conflicting security interests
in the same beneficial interest in an Illinois land trust:
(1) A security interest held by a secured party     having control of the beneficial interest under Section 9-107.1 has priority to the extent of its control over a conflicting security interest held by a secured party that does not have control.
(2) Security interests perfected by control under     Section 9-314 rank according to priority in time of obtaining control.
(Source: P.A. 92-234, eff. 1-1-02.)
(810 ILCS 5/9-330)
Sec. 9-330. 
		Priority of purchaser of chattel paper or instrument.
(a) Purchaser's priority:  security interest claimed merely as
proceeds.  A purchaser of chattel paper has priority over a security interest
in the
chattel paper which is claimed merely as proceeds of inventory subject to a
security
interest if:
(1) in good faith and in the ordinary course of the     purchaser's business, the purchaser gives new value and takes possession of the chattel paper or obtains control of the chattel paper under Section 9-105; and
(2) the chattel paper does not indicate that it has     been assigned to an identified assignee other than the purchaser.
(b) Purchaser's priority:  other security interests.  A purchaser
of chattel paper has priority over a security interest in the chattel paper which is
claimed other than merely as proceeds of inventory subject to a security interest if
the purchaser gives new value and takes possession of the chattel paper or obtains
control of the chattel paper under Section 9-105 in good faith, in the ordinary
course of the purchaser's business, and without knowledge that the purchase
violates the rights of the secured party.
(c) Chattel paper purchaser's priority in proceeds.  Except as
otherwise provided in Section 9-327, a purchaser having priority in chattel paper
under subsection (a) or (b) also has priority in proceeds of the chattel paper to the
extent that:
(1) Section 9-322 provides for priority in the     proceeds; or
(2) the proceeds consist of the specific goods     covered by the chattel paper or cash proceeds of the specific goods, even if the purchaser's security interest in the proceeds is unperfected.
(d) Instrument purchaser's priority.  Except as otherwise
provided in Section 9-331(a), a purchaser of an instrument has priority over a
security interest in the instrument perfected by a method other than possession if
the purchaser gives value and takes possession of the instrument in good faith and
without knowledge that the purchase violates the rights of the secured party.
(e) Holder of purchase-money security interest gives new value.
For purposes of subsections (a) and (b), the holder of a purchase-money
security
interest in inventory gives new value for chattel paper constituting proceeds
of the
inventory.
(f) Indication of assignment gives knowledge.  For purposes of
subsections (b) and (d), if chattel paper or an instrument indicates that it
has been
assigned to an identified secured party other than the purchaser, a purchaser
of the
chattel paper or instrument has knowledge that the purchase violates the rights
of
the secured party.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-331)
Sec. 9-331. 
		
		Priority of rights of purchasers of instruments, documents,
and securities under other Articles; priority of interests in financial assets
and
security entitlements under Article 8.
(a) Rights under Articles 3, 7, and 8 not limited.  This Article
does not limit the rights of a holder in due course of a negotiable instrument,
a
holder to which a negotiable document of title has been duly negotiated, or a
protected purchaser of a security.  These holders or purchasers take priority
over an
earlier security interest, even if perfected, to the extent provided in
Articles 3, 7,
and 8.
(b) Protection under Article 8.  This Article does not limit the
rights of or impose liability on a person to the extent that the person is
protected
against the assertion of a claim under Article 8.
(c) Filing not notice.  Filing under this Article does not constitute
notice of a claim or defense to the holders, or purchasers, or persons
described in
subsections (a) and (b).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-332)
Sec. 9-332. 
		Transfer of money; transfer of funds from deposit account.
(a) Transferee of money.  A transferee of money takes the money
free of a security interest unless the transferee acts in collusion with the
debtor in
violating the rights of the secured party.
(b) Transferee of funds from deposit account.  A transferee of
funds from a deposit account takes the funds free of a security interest in the
deposit account unless the transferee acts in collusion with the debtor in
violating
the rights of the secured party.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-333)
Sec. 9-333. 
		Priority of certain liens arising by operation of law.
(a) "Possessory lien."  In this Section, "possessory lien" means an
interest, other than a security interest or an agricultural lien:
(1) which secures payment or performance of an     obligation for services or materials furnished with respect to goods by a person in the ordinary course of the person's business;
(2) which is created by statute or rule of law in     favor of the person; and
(3) whose effectiveness depends on the person's     possession of the goods.
(b) Priority of possessory lien.  A possessory lien on goods has
priority over a security interest in the goods unless the lien is created by a
statute
that expressly provides otherwise.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-334)
Sec. 9-334. 
		Priority of security interests in fixtures and crops.
(a) Security interest in fixtures under this Article.  A security
interest under this Article may be created in goods that are fixtures or may
continue
in goods that become fixtures.  A security interest does not exist under this
Article
in ordinary building materials incorporated into an improvement on land.
(b) Security interest in fixtures under real-property law.  This
Article does not prevent creation of an encumbrance upon fixtures under real
property law.
(c) General rule:  subordination of security interest in fixtures.
In cases not governed by subsections (d) through (h), a security interest in
fixtures
is subordinate to a conflicting interest of an encumbrancer or owner of the
related
real property other than the debtor.
(d) Fixtures purchase-money priority.  Except as otherwise
provided in subsection (h), a perfected security interest in fixtures has
priority over
a conflicting interest of an encumbrancer or owner of the real property if the
debtor
has an interest of record in or is in possession of the real property and:
(1) the security interest is a purchase-money     security interest;
(2) the interest of the encumbrancer or owner arises     before the goods become fixtures; and
(3) the security interest is perfected by a fixture     filing before the goods become fixtures or within 20 days thereafter.
(e) Priority of security interest in fixtures over interests in real
property.  A perfected security interest in fixtures has priority over a conflicting
interest of an encumbrancer or owner of the real property if:
(1) the debtor has an interest of record in the real     property or is in possession of the real property and the security interest:
(A) is perfected by a fixture filing before the         interest of the encumbrancer or owner is of record; and
(B) has priority over any conflicting interest of         a predecessor in title of the encumbrancer or owner;
(2) before the goods become fixtures, the security     interest is perfected by any method permitted by this Article and the fixtures are readily removable:
(A) factory or office machines;
(B) equipment that is not primarily used or         leased for use in the operation of the real property; or
(C) replacements of domestic appliances that are         consumer goods;
(3) the conflicting interest is a lien on the real     property obtained by legal or equitable proceedings after the security interest was perfected by any method permitted by this Article; or
(4) the security interest is:
(A) created in a manufactured home in a         manufactured-home transaction; and
(B) perfected pursuant to a statute described in         Section 9-311(a)(2).
(f) Priority based on consent, disclaimer, or right to remove.  A
security interest in fixtures, whether or not perfected, has priority over a
conflicting
interest of an encumbrancer or owner of the real property if:
(1) the encumbrancer or owner has, in an     authenticated record, consented to the security interest or disclaimed an interest in the goods as fixtures; or
(2) the debtor has a right to remove the goods as     against the encumbrancer or owner.
(g) Continuation of subsection (f)(2) priority.  The priority of the
security interest under subsection (f)(2) continues for a reasonable time if
the debtor's
right to remove the goods as against the encumbrancer or owner terminates.
(h) Priority of construction mortgage.  A mortgage is a
construction mortgage to the extent that it secures an obligation incurred for the
construction of an improvement on land, including the acquisition cost of the land,
if a recorded record of the mortgage so indicates.  Except as otherwise
provided in
subsections (e) and (f), a security interest in fixtures is subordinate to a
construction
mortgage if a record of the mortgage is recorded before the goods become
fixtures
and the goods become fixtures before the completion of the construction.  A
mortgage has this priority to the same extent as a construction mortgage to the
extent that it is given to refinance a construction mortgage.
(i) Priority of security interest in crops.
(1) Subject to Section 9-322(g), a perfected security     interest in crops growing on real property has priority over:
(A) a conflicting interest of an encumbrancer or         owner of the real property; and
(B) the rights of a holder of an obligation         secured by a collateral assignment of beneficial interest in a land trust, including rights by virtue of an equitable lien.
(2) For purposes of this subsection:
(A) "Collateral assignment of beneficial         interest" means any pledge or assignment of the beneficial interest in a land trust to a person to secure a debt to other obligation.
(B) "Land trust" means any trust arrangement         under which the legal and equitable title to real estate is held by a trustee, the interest of the beneficiary of the trust is personal property, and the beneficiary or any person designated in writing by the beneficiary has (i) the exclusive power to direct or control the trustee in dealing with the title to the trust property, (ii) the exclusive control of the management, operation, renting, and selling of the trust property, and (iii) the exclusive right to the earnings, avails, and proceeds of trust property.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-335)
Sec. 9-335. 
		Accessions.
(a) Creation of security interest in accession.  A security interest
may be created in an accession and continues in collateral that becomes an
accession.
(b) Perfection of security interest.  If a security interest is
perfected when the collateral becomes an accession, the security interest
remains
perfected in the collateral.
(c) Priority of security interest.  Except as otherwise provided in
subsection (d), the other provisions of this Part determine the priority of a
security
interest in an accession.
(d) Compliance with certificate-of-title statute.  A security
interest in an accession is subordinate to a security interest in the whole which is
perfected by compliance with the requirements of a certificate-of-title statute under
Section 9-311(b).
(e) Removal of accession after default.  After default, subject to
Part 6, a secured party may remove an accession from other goods if the
security
interest in the accession has priority over the claims of every person having
an
interest in the whole.
(f) Reimbursement following removal.  A secured party that
removes an accession from other goods under subsection (e) shall promptly
reimburse any holder of a security interest or other lien on, or owner of, the
whole
or of the other goods, other than the debtor, for the cost of repair of any
physical
injury to the whole or the other goods.  The secured party need not reimburse
the
holder or owner for any diminution in value of the whole or the other goods
caused
by the absence of the accession removed or by any necessity for replacing it.
A
person entitled to reimbursement may refuse permission to remove until the
secured party gives adequate assurance for the performance of the obligation to
reimburse.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-336)
Sec. 9-336. 
		Commingled goods.
(a) "Commingled goods."  In this Section, "commingled goods"
means goods that are physically united with other goods in such a manner that
their
identity is lost in a product or mass.
(b) No security interest in commingled goods as such.  A security
interest does not exist in commingled goods as such.  However, a security
interest
may attach to a product or mass that results when goods become commingled
goods.
(c) Attachment of security interest to product or mass.  If
collateral becomes commingled goods, a security interest attaches to the product or
mass.
(d) Perfection of security interest.  If a security interest in
collateral is perfected before the collateral becomes commingled goods, the
security interest that attaches to the product or mass under subsection (c) is
perfected.
(e) Priority of security interest.  Except as otherwise provided in
subsection (f), the other provisions of this Part determine the priority of a security
interest that attaches to the product or mass under subsection (c).
(f) Conflicting security interests in product or mass  If more than
one security interest attaches to the product or mass under subsection (c), the
following rules determine priority:
(1) A security interest that is perfected under     subsection (d) has priority over a security interest that is unperfected at the time the collateral becomes commingled goods.
(2) If more than one security interest is perfected     under subsection (d), the security interests rank equally in proportion to the value of the collateral at the time it became commingled goods.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-337)
Sec. 9-337. 
		
		Priority of security interests in goods covered by certificate
of title.  If, while a security interest in goods is perfected by any method
under the
law of another jurisdiction, this State issues a certificate of title that does
not show
that the goods are subject to the security interest or contain a statement that
they
may be subject to security interests not shown on the certificate:
(1) a buyer of the goods, other than a person in the     business of selling goods of that kind, takes free of the security interest if the buyer gives value and receives delivery of the goods after issuance of the certificate and without knowledge of the security interest; and
(2) the security interest is subordinate to a     conflicting security interest in the goods that attaches, and is perfected under Section 9-311(b), after issuance of the certificate and without the conflicting secured party's knowledge of the security interest.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-338)
Sec. 9-338. Priority of security interest or agricultural lien perfected
by
filed financing statement providing certain incorrect information.  If a
security
interest or agricultural lien is perfected by a filed financing statement
providing
information described in Section 9-516(b)(5) which is incorrect at the time the
financing statement is filed:
(1) the security interest or agricultural lien is     subordinate to a conflicting perfected security interest in the collateral to the extent that the holder of the conflicting security interest gives value in reasonable reliance upon the incorrect information; and
(2) a purchaser, other than a secured party, of the     collateral takes free of the security interest or agricultural lien to the extent that, in reasonable reliance upon the incorrect information, the purchaser gives value and, in the case of tangible chattel paper, tangible documents, goods, instruments, or a security certificate, receives delivery of the collateral.
(Source: P.A. 95-895, eff. 1-1-09.)
(810 ILCS 5/9-339)
Sec. 9-339. 
		Priority subject to subordination. 
		This Article does not
preclude subordination by agreement by a person entitled to priority.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/Art. 9 Pt. 3 Sub. 4 heading)
SUBPART 4.  
		RIGHTS OF BANK
(810 ILCS 5/9-340)
Sec. 9-340. 
		
		Effectiveness of right of recoupment or set-off against
deposit account.
(a) Exercise of recoupment or set-off.  Except as otherwise
provided in subsection (c), a bank with which a deposit account is maintained
may
exercise any right of recoupment or set-off against a secured party that holds
a
security interest in the deposit account.
(b) Recoupment or set-off not affected by security interest.
Except as otherwise provided in subsection (c), the application of this Article
to a
security interest in a deposit account does not affect a right of recoupment or
set-off
of the secured party as to a deposit account maintained with the secured party.
(c) When set-off ineffective.  The exercise by a bank of a set-off
against a deposit account is ineffective against a secured party that holds a
security
interest in the deposit account which is perfected by control under Section
9-104(a)(3), if the set-off is based on a claim against the debtor.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-341)
Sec. 9-341. 
		Bank's rights and duties with respect to deposit account. 
		Except as otherwise provided in Section 9-340(c), and unless the bank otherwise
agrees in an authenticated record, a bank's rights and duties with respect to a
deposit account maintained with the bank are not terminated, suspended, or
modified by:
(1) the creation, attachment, or perfection of a     security interest in the deposit account;
(2) the bank's knowledge of the security interest; or
(3) the bank's receipt of instructions from the     secured party.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-342)
Sec. 9-342. 
		
		Bank's right to refuse to enter into or disclose existence of
control agreement.  This Article does not require a bank to enter into an
agreement of the kind described in Section 9-104(a)(2), even if its customer so
requests or directs.  A bank that has entered into such an agreement is not
required
to confirm the existence of the agreement to another person unless requested to
do
so by its customer.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/Art. 9 Pt. 4 heading)
PART 4.  
		RIGHTS OF THIRD PARTIES
(810 ILCS 5/9-401) (from Ch. 26, par. 9-401)
Sec. 9-401. 
		Alienability of debtor's rights.
(a) Other law governs alienability; exceptions.  Except as
otherwise provided in subsection (b) and Sections 9-406, 9-407, 9-408, and
9-409,
whether a debtor's rights in collateral may be voluntarily or involuntarily
transferred is governed by law other than this Article.
(b) Agreement does not prevent transfer.  An agreement between
the debtor and secured party which prohibits a transfer of the debtor's rights
in
collateral or makes the transfer a default does not prevent the transfer from
taking
effect.
(Source: P.A. 90-300, eff. 1-1-98; 91-893, eff. 7-1-01.)
(810 ILCS 5/9-401A)
Sec. 9-401A. 
		(Blank).
(Source: P.A. 90-300, eff. 1-1-98; 91-893, eff. 7-1-01.)
(810 ILCS 5/9-402) (from Ch. 26, par. 9-402)
Sec. 9-402. 
		Secured party not obligated on contract of debtor or in tort. 
		The existence of a security interest, agricultural lien, or authority given to
a debtor
to dispose of or use collateral, without more, does not subject a secured party
to
liability in contract or tort for the debtor's acts or omissions.
(Source: P.A. 91-357, eff. 7-29-99; 91-893, eff. 7-1-01.)
(810 ILCS 5/9-403) (from Ch. 26, par. 9-403)
Sec. 9-403. 
		Agreement not to assert defenses against assignee.
(a) "Value."  In this Section, "value" has the meaning provided in
Section 3-303(a).
(b) Agreement not to assert claim or defense.  Except as
otherwise provided in this Section, an agreement between an account debtor and
an
assignor not to assert against an assignee any claim or defense that the
account
debtor may have against the assignor is enforceable by an assignee that takes
an
assignment:
(1) for value;
(2) in good faith;
(3) without notice of a claim of a property or     possessory right to the property assigned; and
(4) without notice of a defense or claim in     recoupment of the type that may be asserted against a person entitled to enforce a negotiable instrument under Section 3-305(a).
(c) When subsection (b) not applicable.  Subsection (b) does not
apply to defenses of a type that may be asserted against a holder in due course of a
negotiable instrument under Section 3-305(b).
(d) Omission of required statement in consumer transaction.  In
a consumer transaction, if a record evidences the account debtor's obligation, law
other than this Article requires that the record include a statement to the effect that
the rights of an assignee are subject to claims or defenses that the account debtor
could assert against the original obligee, and the record does not include such a
statement:
(1) the record has the same effect as if the record     included such a statement; and
(2) the account debtor may assert against an assignee     those claims and defenses that would have been available if the record included such a statement.
(e) Rule for individual under other law.  This Section is subject
to law other than this Article which establishes a different rule for an account
debtor who is an individual and who incurred the obligation primarily for personal,
family, or household purposes.
(f) Other law not displaced.  Except as otherwise provided in
subsection (d), this Section does not displace law other than this Article which
gives effect to an agreement by an account debtor not to assert a claim or
defense
against an assignee.
(Source: P.A. 90-300, eff. 1-1-98; 91-357, eff. 7-29-99; 91-893, eff.
7-1-01.)
(810 ILCS 5/9-404) (from Ch. 26, par. 9-404)
Sec. 9-404. 
		
		Rights acquired by assignee; claims and defenses against
assignee.
(a) Assignee's rights subject to terms, claims, and defenses;
exceptions.  Unless an account debtor has made an enforceable agreement not to
assert defenses or claims, and subject to subsections (b) through (e), the
rights of an
assignee are subject to:
(1) all terms of the agreement between the account     debtor and assignor and any defense or claim in recoupment arising from the transaction that gave rise to the contract; and
(2) any other defense or claim of the account debtor     against the assignor which accrues before the account debtor receives a notification of the assignment authenticated by the assignor or the assignee.
(b) Account debtor's claim reduces amount owed to assignee.
Subject to subsection (c) and except as otherwise provided in subsection (d), the
claim of an account debtor against an assignor may be asserted against an assignee
under subsection (a) only to reduce the amount the account debtor owes.
(c) Rule for individual under other law.  This Section is subject
to law other than this Article which establishes a different rule for an account
debtor who is an individual and who incurred the obligation primarily for personal,
family, or household purposes.
(d) Omission of required statement in consumer transaction.  In
a consumer transaction, if a record evidences the account debtor's obligation,
law
other than this Article requires that the record include a statement to the
effect that
the account debtor's recovery against an assignee with respect to claims and
defenses against the assignor may not exceed amounts paid by the account debtor
under the record, and the record does not include such a statement, the extent
to
which a claim of an account debtor against the assignor may be asserted against
an
assignee is determined as if the record included such a statement.
(e) Inapplicability to health-care-insurance receivable.  This
Section does not apply to an assignment of a health-care-insurance
receivable.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-404.5)
Sec. 9-404.5. 
		Termination statement; duties of filing officer.
(1) If a financing statement covering consumer goods is filed on or
after July 1, 1973, then within one
month or within 10 days following written demand by the debtor after there
is no outstanding secured obligation and no commitment to make advances,
incur obligations or otherwise give value, the secured party must file with
each filing officer with whom the financing statement was filed, a
termination statement to the effect that he no longer claims a security
interest under the financing statement, which shall be identified by file
number. In other cases whenever there is no outstanding secured obligation
and no commitment to make advances, incur obligations or otherwise give
value, the secured party must on written demand by the debtor send the
debtor, for each filing officer with whom the financing statement was
filed, a termination statement to the effect that he no longer claims a
security interest under the financing statement, which shall be identified
by file number. A termination statement signed by a person other than the
secured party of record must be accompanied by a separate written statement
of assignment signed by the secured party of record.  If
the affected secured party fails to file such a termination statement as
required by this subsection, or to send such a termination statement within
10 days after proper demand therefor, he shall be liable to the debtor for
$100 and in addition for any loss caused to the debtor by such failure.
(2) On presentation to the filing officer of such a termination
statement he must note it in the index. If he has received the termination
statement in duplicate, he shall return one copy of the termination
statement to the secured party stamped to show the time of receipt thereof.
If the filing officer has a microfilm or other photographic record of the
financing statement, and of any related continuation statement, statement
of assignment and statement of release, he may remove the originals from
the files at any time after receipt of the termination statement, or if he
has no such record, he may remove them from the files at any time after one
year after receipt of the termination statement.
(3) If the termination 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
termination statement is required to be indexed.
(Source: P.A. 91-893, eff. 7-6-00.)
(810 ILCS 5/9-405) (from Ch. 26, par. 9-405)
Sec. 9-405. 
		Modification of assigned contract.
(a) Effect of modification on assignee.  A modification of or
substitution for an assigned contract is effective against an assignee if made
in good
faith.  The assignee acquires corresponding rights under the modified or
substituted
contract.  The assignment may provide that the modification or substitution is
a
breach of contract by the assignor.  This subsection is subject to subsections
(b)
through (d).
(b) Applicability of subsection (a).  Subsection (a) applies to the
extent that:
(1) the right to payment or a part thereof under an     assigned contract has not been fully earned by performance; or
(2) the right to payment or a part thereof has been     fully earned by performance and the account debtor has not received notification of the assignment under Section 9-406(a).
(c) Rule for individual under other law.  This Section is subject
to law other than this Article which establishes a different rule for an
account
debtor who is an individual and who incurred the obligation primarily for
personal,
family, or household purposes.
(d) Inapplicability to health-care-insurance receivable.  This
Section does not apply to an assignment of a health-care-insurance
receivable.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-406) (from Ch. 26, par. 9-406)
Sec. 9-406. Discharge of account debtor; notification of assignment;
identification and proof of assignment; restrictions on assignment of accounts,
chattel paper, payment intangibles, and promissory notes ineffective.
(a) Discharge of account debtor; effect of notification.  Subject to
subsections (b) through (i), an account debtor on an account, chattel paper, or
a
payment intangible may discharge its obligation by paying the assignor until,
but
not after, the account debtor receives a notification, authenticated by the
assignor or
the assignee, that the amount due or to become due has been assigned and that
payment is to be made to the assignee.  After receipt of the notification, the
account
debtor may discharge its obligation by paying the assignee and may not
discharge
the obligation by paying the assignor.
(b) When notification ineffective.  Subject to subsection (h),
notification is ineffective under subsection (a):
(1) if it does not reasonably identify the rights     assigned;
(2) to the extent that an agreement between an     account debtor and a seller of a payment intangible limits the account debtor's duty to pay a person other than the seller and the limitation is effective under law other than this Article; or
(3) at the option of an account debtor, if the     notification notifies the account debtor to make less than the full amount of any installment or other periodic payment to the assignee, even if:
(A) only a portion of the account, chattel paper,         or payment intangible has been assigned to that assignee;
(B) a portion has been assigned to another         assignee; or
(C) the account debtor knows that the assignment         to that assignee is limited.
(c) Proof of assignment.  Subject to subsection (h), if requested by
the account debtor, an assignee shall seasonably furnish reasonable proof that
the
assignment has been made.  Unless the assignee complies, the account debtor may
discharge its obligation by paying the assignor, even if the account debtor has
received a notification under subsection (a).
(d) Term restricting assignment generally ineffective.  Except as
otherwise provided in subsection (e) and Sections 2A-303 and 9-407, and subject
to
subsection (h), a term in an agreement between an account debtor and an
assignor
or in a promissory note is ineffective to the extent that it:
(1) prohibits, restricts, or requires the consent of     the account debtor or person obligated on the promissory note to the assignment or transfer of, or the creation, attachment, perfection, or enforcement of a security interest in, the account, chattel paper, payment intangible, or promissory note; or
(2) provides that the assignment or transfer or the     creation, attachment, perfection, or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the account, chattel paper, payment intangible, or promissory note.
(e) Inapplicability of subsection (d) to certain sales.  Subsection
(d) does not apply to the sale of a payment intangible or promissory note, other than a sale pursuant to a disposition under Section 9-610 or an acceptance of collateral under Section 9-620.
(f) Legal restrictions on assignment generally ineffective.
Except as otherwise provided in Sections 2A-303 and 9-407 and subject to
subsections (h) and (i), a rule of law, statute, or regulation that prohibits, restricts,
or requires the consent of a government, governmental body or official, or account
debtor to the assignment or transfer of, or creation of a security interest in, an
account or chattel paper is ineffective to the extent that the rule of law, statute, or
regulation:
(1) prohibits, restricts, or requires the consent of     the government, governmental body or official, or account debtor to the assignment or transfer of, or the creation, attachment, perfection, or enforcement of a security interest in the account or chattel paper; or
(2) provides that the assignment or transfer or the     creation, attachment, perfection, or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the account or chattel paper.
(g) Subsection (b)(3) not waivable.  Subject to subsection (h), an
account debtor may not waive or vary its option under subsection (b)(3).
(h) Rule for individual under other law.  This Section is subject
to law other than this Article which establishes a different rule for an
account
debtor who is an individual and who incurred the obligation primarily for
personal,
family, or household purposes.
(i) Inapplicability to health-care-insurance receivable.  This
Section does not apply to an assignment of a health-care-insurance
receivable.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-407) (from Ch. 26, par. 9-407)
Sec. 9-407. 
		
		Restrictions on creation or enforcement of security interest
in leasehold interest or in lessor's residual interest.
(a) Term restricting assignment generally ineffective.  Except as
otherwise provided in subsection (b), a term in a lease agreement is
ineffective to
the extent that it:
(1) prohibits, restricts, or requires the consent of     a party to the lease to the assignment or transfer or the creation, attachment, perfection, or enforcement of a security interest in an interest of a party under the lease contract or in the lessor's residual interest in the goods; or
(2) provides that the assignment or transfer or the     creation, attachment, perfection, or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the lease.
(b) Effectiveness of certain terms.  Except as otherwise provided
in Section 2A-303(7), a term described in subsection (a)(2) is effective to the
extent
that there is:
(1) a transfer by the lessee of the lessee's right of     possession or use of the goods in violation of the term; or
(2) a delegation of a material performance of either     party to the lease contract in violation of the term.
(c) Security interest not material impairment.  The creation,
attachment, perfection, or enforcement of a security interest in the lessor's
interest
under the lease contract or the lessor's residual interest in the goods is not
a transfer
that materially impairs the lessee's prospect of obtaining return performance
or
materially changes the duty of or materially increases the burden or risk
imposed
on the lessee within the purview of Section 2A-303(4) unless, and then only to
the
extent that, enforcement actually results in a delegation of material
performance of
the lessor.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-408) (from Ch. 26, par. 9-408)
Sec. 9-408. Restrictions on assignment of promissory notes,
health-care-insurance receivables, and certain general intangibles ineffective.
(a) Term restricting assignment generally ineffective.  Except as
otherwise provided in subsection (b), a term in a promissory note or in
an agreement between an account debtor and a debtor which relates to a
health-care-insurance receivable or a general intangible, including a
contract, permit, license, or franchise, and which term prohibits, restricts,
or requires the consent of the person obligated on the promissory note or the
account debtor to, the assignment or transfer of, or creation, attachment, or
perfection of a security interest in, the promissory note,
health-care-insurance receivable, or general intangible, is ineffective to the
extent that the term:
(1) would impair the creation, attachment, or     perfection of a security interest; or
(2) provides that the assignment or transfer or the     creation, attachment, or perfection of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the promissory note, health-care-insurance receivable, or general intangible.
(b) Applicability of subsection (a) to sales of certain rights to payment.
Subsection (a) applies to a security interest in a payment intangible or
promissory note only if the security interest arises out of a sale of the
payment intangible or promissory note, other than a sale pursuant to a disposition under Section 9-610 or an acceptance of collateral under Section 9-620.
(c) Legal restrictions on assignment generally ineffective.  A rule of law,
statute, or regulation that prohibits, restricts, or requires the consent of
a government, governmental body or official, person obligated on a promissory
note, or account debtor to the assignment or transfer of, or creation of a
security interest in, a promissory note, health-care-insurance receivable, or
general intangible, including a contract, permit, license, or franchise between
an account debtor and a debtor, is ineffective to the extent that the rule of
law, statute, or regulation:
(1) would impair the creation, attachment, or     perfection of a security interest; or
(2) provides that the assignment or transfer or the     creation, attachment, or perfection of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the promissory note, health-care-insurance receivable, or general intangible.
(d) Limitation on ineffectiveness under subsections (a) and (c).
To the extent that a term in a promissory note or in an agreement between an
account debtor and a debtor which relates to a health-care-insurance receivable
or general intangible or a rule of law, statute, or regulation described in
subsection (c) would be effective under law other than this Article but is
ineffective under subsection (a) or (c), the creation, attachment, or
perfection of a security interest in the promissory note, health-care-insurance
receivable, or general intangible:
(1) is not enforceable against the person obligated     on the promissory note or the account debtor;
(2) does not impose a duty or obligation on the     person obligated on the promissory note or the account debtor;
(3) does not require the person obligated on the     promissory note or the account debtor to recognize the security interest, pay or render performance to the secured party, or accept payment or performance from the secured party;
(4) does not entitle the secured party to use or     assign the debtor's rights under the promissory note, health-care-insurance receivable, or general intangible, including any related information or materials furnished to the debtor in the transaction giving rise to the promissory note, health-care-insurance receivable, or general intangible;
(5) does not entitle the secured party to use,     assign, possess, or have access to any trade secrets or confidential information of the person obligated on the promissory note or the account debtor; and
(6) does not entitle the secured party to enforce the     security interest in the promissory note, health-care-insurance receivable, or general intangible.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-409)
Sec. 9-409. 
		
		Restrictions on assignment of letter-of-credit rights
ineffective.
(a) Term or law restricting assignment generally ineffective.  A
term in a letter of credit or a rule of law, statute, regulation, custom, or
practice
applicable to the letter of credit which prohibits, restricts, or requires the
consent of
an applicant, issuer, or nominated person to a beneficiary's assignment of or
creation of a security interest in a letter-of-credit right is ineffective to
the extent
that the term or rule of law, statute, regulation, custom, or practice:
(1) would impair the creation, attachment, or     perfection of a security interest in the letter-of-credit right; or
(2) provides that the assignment or the creation,     attachment, or perfection of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the letter-of-credit right.
(b) Limitation on ineffectiveness under subsection (a).  To the
extent that a term in a letter of credit is ineffective under subsection (a) but would
be effective under law other than this Article or a custom or practice applicable to
the letter of credit, to the transfer of a right to draw or otherwise demand
performance under the letter of credit, or to the assignment of a right to proceeds of
the letter of credit, the creation, attachment, or perfection of a security interest in
the letter-of-credit right:
(1) is not enforceable against the applicant, issuer,     nominated person, or transferee beneficiary;
(2) imposes no duties or obligations on the     applicant, issuer, nominated person, or transferee beneficiary; and
(3) does not require the applicant, issuer, nominated     person, or transferee beneficiary to recognize the security interest, pay or render performance to the secured party, or accept payment or other performance from the secured party.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-410)
Sec. 9-410. 
		(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/Art. 9 Pt. 5 heading)
PART 5.  
		FILING
(810 ILCS 5/Art. 9 Pt. 5 Sub. 1 heading)
SUBPART 1.  
		FILING OFFICE; CONTENTS AND
EFFECTIVENESS OF FINANCING STATEMENT
(810 ILCS 5/9-501) (from Ch. 26, par. 9-501)
Sec. 9-501. 
		Filing office.
(a) Filing offices.  Except as otherwise provided in subsection (b),
if the local law of this State governs perfection of a security interest or
agricultural
lien, the office in which to file a financing statement to perfect the security
interest
or agricultural lien is:
(1) the office designated for the filing or recording     of a record of a mortgage on the related real property, if:
(A) the collateral is as-extracted collateral or         timber to be cut; or
(B) the financing statement is filed as a fixture         filing and the collateral is goods that are or are to become fixtures; or
(2) the office of the Secretary of State in all other     cases, including a case in which the collateral is goods that are or are to become fixtures and the financing statement is not filed as a fixture filing.
(b) Filing office for transmitting utilities.  The office in which to
file a financing statement to perfect a security interest in collateral,
including
fixtures, of a transmitting utility is the office of the Secretary of State.
The
financing statement also
constitutes a fixture filing as to the collateral indicated in the financing
statement
which is or is to become fixtures.
(Source: P.A. 91-357, eff. 7-29-99; 91-893, eff. 7-1-01.)
(810 ILCS 5/9-501.1)
Sec. 9-501.1. Fraudulent records.
(a) No person shall cause to be communicated to the filing office for filing a false record the person knows or reasonably should know:
(1) is not authorized or permitted under Section     9-509, 9-708, or 9-808 of this Article;
(2) is not related to a valid existing or potential     commercial or financial transaction, an existing agricultural or other lien, or a judgment of a court of competent jurisdiction; and
(3) is filed with the intent to harass or defraud the     person identified as debtor in the record or any other person.
(b) A person who violates subsection (a) is guilty of a Class A misdemeanor for a first offense and a Class 4 felony for a second or subsequent offense.
(c) A person who violates subsection (a) shall be liable in a civil action to each injured person for:
(1) the greater of the actual damages caused by the     violation or up to $10,000 in lieu of actual damages;
(2) reasonable attorney's fees;
(3) court costs and other related expenses of     bringing an action, including reasonable investigative expenses; and
(4) in the discretion of the court, exemplary damages     in an amount determined by the court or jury.
(d) A person identified as debtor in a filed record the person believes was caused to be communicated to the filing office in violation of subsection (a) may, under penalty of perjury, file with the Secretary of State an affidavit to that effect. The Secretary of State shall adopt and make available a form affidavit for use under this Section.
(e) Upon receipt of an affidavit filed under this Section, or upon administrative action by the Secretary of State, the Secretary of State shall communicate to the secured party of record on the record to which the affidavit or administrative action relates and to the person that communicated the record to the filing office, if different and known to the office, a request for additional documentation supporting the effectiveness of the record. The Department of Business Services of the Office of the Secretary of State and the Office of the General Counsel shall review all such documentation received within 30 days after the first request for additional documentation is sent. The Secretary of State may terminate the record effective 30 days after the first request for additional documentation is sent if it has a reasonable basis for concluding that the record was communicated to the filing office in violation of subsection (a).
The Secretary of State may initiate an administrative action under the first paragraph of this subsection (e) with regard to a filed record if it has reason to believe, from information contained in the record or obtained from the person that communicated the record to the filing office, that the record was communicated to the filing office in violation of subsection (a). The Secretary of State may give heightened scrutiny to a record that indicates that the debtor is a transmitting utility or that indicates that the transaction to which the record relates is a manufactured-home transaction or a public-finance transaction.
(f) The Secretary of State shall not charge a fee to file an affidavit under this Section and shall not return any fee paid for filing a record terminated under this Section.
(g) The Secretary of State shall promptly communicate to the secured party of record a notice of the termination of a record under subsection (e). A secured party of record that believes in good faith that the record was not communicated to the filing office in violation of subsection (a) may file an action to require that the record be reinstated by the filing office. A person that communicated a record to the filing office that the filing office rejected in reliance on Section 9-516(b)(3.5), who believes in good faith that the record was not communicated to the filing office in violation of Section 9-516(b)(3.5), may file an action to require that the record be accepted by the filing office.
(h) If a court or tribunal in an action under this Section determines that a record terminated under this Section or rejected in reliance on Section 9-516(b)(3.5) should be reinstated or accepted, the court or tribunal shall provide a copy of its order to that effect to the Secretary of State. On receipt of an order reinstating a terminated record, the Secretary of State shall refile the record along with a notice indicating that the record was refiled pursuant to this Section and its initial filing date. On receipt of an order requiring that a rejected record be accepted, the Secretary of State shall promptly file the record along with a notice indicating that the record was filed pursuant to this Section and the date on which it was communicated for filing. A rejected record that is filed pursuant to an order of a court or tribunal shall have the effect described in Section 9-516(d) for a record the filing office refuses to accept for a reason other than one set forth in Section 9-516(b).
(i) A terminated record that is refiled under subsection (h) is effective as a filed record from the initial filing date. If the period of effectiveness of a refiled record would have lapsed during the period of termination, the secured party may file a continuation statement within 30 days after the record is refiled and the continuation statement shall have the same effect as if it had been filed during the 6-month period described in Section 9-515(d). A refiled record shall be considered never to have been ineffective against all persons and for all purposes except that it shall not be effective as against a purchaser of the collateral that gave value in reasonable reliance on the absence of the record from the files.
(j) Neither the filing office nor any of its employees shall incur liability for the termination or failure to terminate a record under this Section or for the refusal to accept a record for filing in the lawful performance of the duties of the office or employee.
(k) This Section does not apply to a record communicated to the filing office by a regulated financial institution or by a representative of a regulated financial institution except that the Secretary of State may request from the secured party of record on the record or from the person that communicated the record to the filing office, if different and known to the office, additional documentation supporting that the record was communicated to the filing office by a regulated financial institution or by a representative of a regulated financial institution. The term "regulated financial institution" means a financial institution subject to regulatory oversight or examination by a State or federal agency and includes banks, savings banks, savings associations, building and loan associations, credit unions, consumer finance companies, industrial banks, industrial loan companies, insurance companies, investment companies, investment funds, installment sellers, mortgage servicers, sales finance companies, and leasing companies.
(l) If a record was communicated to the filing office for filing before the effective date of this Section and its communication would have constituted a violation of subsection (a) if it had occurred on or after the effective date of the Section: (i) subsections (b) and (c) are not applicable; and (ii) the other subsections of this Section are applicable.
(Source: P.A. 97-836, eff. 7-20-12.)
(810 ILCS 5/9-502) (from Ch. 26, par. 9-502)
Sec. 9-502. Contents of financing statement; record of mortgage as
financing statement; time of filing financing statement.
(a) Sufficiency of financing statement.  Subject to subsection (b),
a financing statement is sufficient only if it:
(1) provides the name of the debtor;
(2) provides the name of the secured party or a     representative of the secured party; and
(3) indicates the collateral covered by the financing     statement.
(b) Real-property-related financing statements.  Except as
otherwise provided in Section 9-501(b), to be sufficient, a financing statement
that
covers as-extracted collateral or timber to be cut, or which is filed as a
fixture filing
and covers goods that are or are to become fixtures, must satisfy subsection (a) and
also:
(1) indicate that it covers this type of collateral;
(2) indicate that it is to be filed in the real     property records;
(3) provide a description of the real property to     which the collateral is related sufficient to give constructive notice of a mortgage under the law of this State if the description were contained in a record of the mortgage of the real property; and
(4) if the debtor does not have an interest of record     in the real property, provide the name of a record owner.
(c) Record of mortgage as financing statement.  A record of a
mortgage is effective, from the date of recording, as a financing statement
filed as a
fixture filing or as a financing statement covering as-extracted collateral or
timber
to be cut only if:
(1) the record indicates the goods or accounts that     it covers;
(2) the goods are or are to become fixtures related     to the real property described in the record or the collateral is related to the real property described in the record and is as-extracted collateral or timber to be cut;
(3) the record satisfies the requirements for a     financing statement in this Section, but:
(A) the record need not indicate that it is to be         filed in the real property records; and
(B) the record sufficiently provides the name of         a debtor who is an individual if it provides the individual name of the debtor or the surname and first personal name of the debtor, even if the debtor is an individual to whom Section 9-503(a)(4) applies; and
(4) the record is recorded.
(d) Filing before security agreement or attachment.  A financing
statement may be filed before a security agreement is made or a security
interest
otherwise attaches.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-503) (from Ch. 26, par. 9-503)
Sec. 9-503. Name of debtor and secured party.
(a) Sufficiency of debtor's name.  A financing statement
sufficiently provides the name of the debtor:
(1) except as otherwise provided in paragraph (3), if     the debtor is a registered organization or the collateral is held in a trust that is a registered organization, only if the financing statement provides the name that is stated to be the registered organization's name on the public organic record most recently filed with or issued or enacted by  the registered organization's jurisdiction of organization which purports to state, amend, or restate the registered organization's name;
(2) subject to subsection (f), if the collateral is     being administered by the personal representative of a decedent, only if the financing statement provides, as the name of the debtor, the name of the decedent and, in a separate part of the financing statement, indicates that the collateral is being administered by a personal representative;
(3) if the collateral is held in a trust that is not     a registered organization, only if the financing statement:
(A) provides, as the name of the debtor:
(i) if the organic record of the trust             specifies a name for the trust, the name specified; or
(ii) if the organic record of the trust does             not specify a name for the trust, the name of the settlor or testator; and
(B) in a separate part of the financing         statement:
(i) if the name is provided in accordance             with subparagraph (A)(i), indicates that the collateral is held in a trust; or
(ii) if the name is provided in accordance             with subparagraph (A)(ii), provides additional information sufficient to distinguish the trust from other trusts having one or more of the same settlors or the same testator and indicates that the collateral is held in a trust, unless the additional information so indicates;
(4) subject to subsection (g), if the debtor is an     individual to whom this State has issued a  driver's license  that has not expired, only if the financing statement provides the name of the individual which is indicated on the  driver's license;
(5) if the debtor is an individual to whom paragraph     (4) does not apply, only if the financing statement provides the individual name of the debtor or the surname and first personal name of the debtor; and
(6) in other cases:
(A) if the debtor has a name, only if the         financing statement provides the  organizational name of the debtor; and
(B) if the debtor does not have a name, only if         it provides the names of the partners, members, associates, or other persons comprising the debtor, in a manner that each name provided would be sufficient if the person named were the debtor.
(b) Additional debtor-related information.  A financing statement
that provides the name of the debtor in accordance with subsection (a) is not
rendered ineffective by the absence of:
(1) a trade name or other name of the debtor; or
(2) unless required under subsection (a)(6)(B), names     of partners, members, associates, or other persons comprising the debtor.
(c) Debtor's trade name insufficient.  A financing statement that
provides only the debtor's trade name does not sufficiently provide the name of the
debtor.
(d) Representative capacity.  Failure to indicate the representative
capacity of a secured party or representative of a secured party does not affect the
sufficiency of a financing statement.
(e) Multiple debtors and secured parties.  A financing statement
may provide the name of more than one debtor and the name of more than one
secured party.
(f)   Name of decedent. The name of the decedent indicated on the order appointing the personal representative of the decedent issued by the court having jurisdiction over the collateral is sufficient as the "name of the decedent" under subsection (a)(2).
(g)    Multiple driver's licenses. If this State has issued to an individual more than one driver's license of a kind described in subsection (a)(4), the one that was issued most recently is the one to which subsection (a)(4) refers.
(h)   Definition.  In this Section, the "name of the settlor or testator" means:
(1) if the settlor is a registered organization, the     name that is stated to be the settlor's name on the public organic record most recently filed with or issued or enacted by the settlor's jurisdiction of organization which purports to state, amend, or restate the settlor's name; or
(2) in other cases, the name of the settlor or     testator indicated in the trust's organic record. (Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-504) (from Ch. 26, par. 9-504)
Sec. 9-504. 
		Indication of collateral. 
		A financing statement sufficiently
indicates the collateral that it covers if the financing statement
provides:
(1) a description of the collateral pursuant to     Section 9-108; or
(2) an indication that the financing statement covers     all assets or all personal property.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-505) (from Ch. 26, par. 9-505)
Sec. 9-505. 
		
		Filing and compliance with other statutes and treaties for
consignments, leases, other bailments, and other transactions.
(a) Use of terms other than "debtor" and "secured party."  A
consignor, lessor, or other bailor of goods, a licensor, or a buyer of a
payment
intangible or promissory note may file a financing statement, or may comply
with a
statute or treaty described in Section 9-311(a), using the terms "consignor",
"consignee", "lessor", "lessee", "bailor", "bailee", "licensor", "licensee",
"owner",
"registered owner", "buyer", "seller", or words of similar import, instead of
the
terms "secured party" and "debtor".
(b) Effect of financing statement under subsection (a).  This part
applies to the filing of a financing statement under subsection (a) and, as
appropriate, to compliance that is equivalent to filing a financing statement
under
Section 9-311(b), but the filing or compliance is not of itself a factor in
determining
whether the collateral secures an obligation.  If it is determined for another
reason
that the collateral secures an obligation, a security interest held by the
consignor,
lessor, bailor, licensor, owner, or buyer which attaches to the collateral is
perfected
by the filing or compliance.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-506) (from Ch. 26, par. 9-506)
Sec. 9-506. 
		Effect of errors or omissions.
(a) Minor errors and omissions.  A financing statement
substantially satisfying the requirements of this Part is effective, even if it
has
minor errors or omissions, unless the errors or omissions make the financing
statement seriously misleading.
(b) Financing statement seriously misleading.  Except as
otherwise provided in subsection (c), a financing statement that fails
sufficiently to
provide the name of the debtor in accordance with Section 9-503(a) is seriously
misleading.
(c) Financing statement not seriously misleading.  If a search of
the records of the filing office under the debtor's correct name, using the
filing
office's standard search logic, if any, would disclose a financing statement
that fails
sufficiently to provide the name of the debtor in accordance with Section
9-503(a),
the name provided does not make the financing statement seriously misleading.
(d) "Debtor's correct name."  For purposes of Section 9-508(b),
the "debtor's correct name" in subsection (c) means the correct name of the new
debtor.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-507) (from Ch. 26, par. 9-507)
Sec. 9-507. Effect of certain events on effectiveness of financing
statement.
(a) Disposition.  A filed financing statement remains effective with
respect to collateral that is sold, exchanged, leased, licensed, or otherwise
disposed
of and in which a security interest or agricultural lien continues, even if the
secured
party knows of or consents to the disposition.
(b) Information becoming seriously misleading.  Except as
otherwise provided in subsection (c) and Section 9-508, a financing statement
is not
rendered ineffective if, after the financing statement is filed, the
information
provided in the financing statement becomes seriously misleading under Section
9-506.
(c) Change in debtor's name.  If the name that
a filed financing statement provides for a debtor becomes insufficient as the name of the debtor under Section 9-503(a) so that the financing statement becomes seriously misleading under Section 9-506:
(1) the financing statement is effective to perfect a     security interest in collateral acquired by the debtor before, or within four months after, the filed financing statement becomes seriously misleading; and
(2) the financing statement is not effective to     perfect a security interest in collateral acquired by the debtor more than four months after the filed financing statement becomes seriously misleading, unless an amendment to the financing statement which renders the financing statement not seriously misleading is filed within four months after the filed financing statement becomes seriously misleading.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-508)
Sec. 9-508. 
		
		Effectiveness of financing statement if new debtor becomes
bound by security agreement.
(a) Financing statement naming original debtor.  Except as
otherwise provided in this Section, a filed financing statement naming an
original
debtor is effective to perfect a security interest in collateral in which a new
debtor
has or acquires rights to the extent that the financing statement would have
been
effective had the original debtor acquired rights in the collateral.
(b) Financing statement becoming seriously misleading.  If the
difference between the name of the original debtor and that of the new debtor
causes a filed financing statement that is effective under subsection (a) to be
seriously misleading under Section 9-506:
(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); and
(2) the financing statement is not effective to     perfect a security interest in collateral acquired by the new debtor more than four months after the new debtor becomes bound under Section 9-203(d) unless an initial financing statement providing the name of the new debtor is filed before the expiration of that time.
(c) When Section not applicable.  This Section does not apply to
collateral as to which a filed financing statement remains effective against
the new
debtor under Section 9-507(a).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-509)
Sec. 9-509. 
		Persons entitled to file a record.
(a) Person entitled to file record.  A person may file an initial
financing statement, amendment that adds collateral covered by a financing
statement, or amendment that adds a debtor to a financing statement only if:
(1) the debtor authorizes the filing in an     authenticated record or pursuant to subsection (b) or (c); or
(2) the person holds an agricultural lien that has     become effective at the time of filing and the financing statement covers only collateral in which the person holds an agricultural lien.
(b) Security agreement as authorization.  By authenticating or
becoming bound as debtor by a security agreement, a debtor or new debtor
authorizes the filing of an initial financing statement, and an amendment,
covering:
(1) the collateral described in the security     agreement; and
(2) property that becomes collateral under Section     9-315(a)(2), whether or not the security agreement expressly covers proceeds.
(c) Acquisition of collateral as authorization.  By acquiring
collateral in which a security interest or agricultural lien continues under Section
9-315(a)(1), a debtor authorizes the filing of an initial financing statement, and an
amendment, covering the collateral and property that becomes collateral under
Section 9-315(a)(2).
(d) Person entitled to file certain amendments.  A person may
file an amendment other than an amendment that adds collateral covered by a
financing statement or an amendment that adds a debtor to a financing statement
only if:
(1) the secured party of record authorizes the     filing; or
(2) the amendment is a termination statement for a     financing statement as to which the secured party of record has failed to file or send a termination statement as required by Section 9-513(a) or (c), the debtor authorizes the filing, and the termination statement indicates that the debtor authorized it to be filed.
(e) Multiple secured parties of record.  If there is more than one
secured party of record for a financing statement, each secured party of record
may
authorize the filing of an amendment under subsection (d).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-510)
Sec. 9-510. Effectiveness of filed record.
(a) Filed record effective if authorized.  A filed record is effective
only to the extent that it was filed by a person that may file it under Section
9-509.
(b) Authorization by one secured party of record.  A record
authorized by one secured party of record does not affect the financing
statement
with respect to another secured party of record.
(c) Continuation statement not timely filed.  A continuation
statement that is not filed within the six-month period prescribed by Section
9-515(d) is ineffective.
(d) A filed record ceases to be effective if the filing office terminates the record pursuant to Section 9-501.1.
(Source: P.A. 97-836, eff. 7-20-12.)
(810 ILCS 5/9-511)
Sec. 9-511. 
		Secured party of record.
(a) Secured party of record.  A secured party of record with
respect to a financing statement is a person whose name is provided as the name
of
the secured party or a representative of the secured party in an initial
financing
statement that has been filed.  If an initial financing statement is filed
under Section
9-514(a), the assignee named in the initial financing statement is the secured
party
of record with respect to the financing statement.
(b) Amendment naming secured party of record.  If an
amendment of a financing statement which provides the name of a person as a
secured party or a representative of a secured party is filed, the person named
in the
amendment is a secured party of record.  If an amendment is filed under Section
9-514(b), the assignee named in the amendment is a secured party of record.
(c) Amendment deleting secured party of record.  A person
remains a secured party of record until the filing of an amendment of the
financing
statement which deletes the person.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-512)
Sec. 9-512. 
		Amendment of financing statement.
(a) Amendment of information in financing statement.  Subject
to Section 9-509, a person may add or delete collateral covered by, continue or
terminate the effectiveness of, or, subject to subsection (e), otherwise amend
the
information provided in, a financing statement by filing an amendment that:
(1) identifies, by its file number, the initial     financing statement to which the amendment relates; and
(2) if the amendment relates to an initial financing     statement filed or recorded in a filing office described in Section 9-501(a)(1), provides the date and time that the initial financing statement was filed and the information specified in Section 9-502(b).
(b) Period of effectiveness not affected.  Except as otherwise
provided in Section 9-515, the filing of an amendment does not extend the
period
of effectiveness of the financing statement.
(c) Effectiveness of amendment adding collateral.  A financing
statement that is amended by an amendment that adds collateral is effective as
to
the added collateral only from the date of the filing of the amendment.
(d) Effectiveness of amendment adding debtor.  A financing
statement that is amended by an amendment that adds a debtor is effective as to
the
added debtor only from the date of the filing of the amendment.
(e) Certain amendments ineffective.  An amendment is ineffective
to the extent it:
(1) purports to delete all debtors and fails to     provide the name of a debtor to be covered by the financing statement; or
(2) purports to delete all secured parties of record     and fails to provide the name of a new secured party of record.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-513)
Sec. 9-513. 
		Termination statement.
(a) Consumer goods.  A secured party shall cause the secured party
of record for a financing statement to file a termination statement for the
financing
statement if  the financing statement covers consumer goods and:
(1) there is no obligation secured by the collateral     covered by the financing statement and no commitment to make an advance, incur an obligation, or otherwise give value; or
(2) the debtor did not authorize the filing of the     initial financing statement.
(b) Time for compliance with subsection (a).  To comply with
subsection (a), a secured party shall cause the secured party of record to file the
termination statement:
(1) within one month after there is no obligation     secured by the collateral covered by the financing statement and no commitment to make an advance, incur an obligation, or otherwise give value; or
(2) if earlier, within 20 days after the secured     party receives an authenticated demand from a debtor.
(c) Other collateral.  In cases not governed by subsection (a),
within 20 days after a secured party receives an authenticated demand from a
debtor, the secured party shall cause the secured party of record for a financing
statement to send to the debtor a termination statement for the financing statement
or file the termination statement in the filing office if:
(1) except in the case of a financing statement     covering accounts or chattel paper that has been sold or goods that are the subject of a consignment, there is no obligation secured by the collateral covered by the financing statement and no commitment to make an advance, incur an obligation, or otherwise give value;
(2) the financing statement covers accounts or     chattel paper that has been sold but as to which the account debtor or other person obligated has discharged its obligation;
(3) the financing statement covers goods that were     the subject of a consignment to the debtor but are not in the debtor's possession; or
(4) the debtor did not authorize the filing of the     initial financing statement.
(d) Effect of filing termination statement.  Except as otherwise
provided in Section 9-510, upon the filing of a termination statement with the
filing
office, the financing statement to which the termination statement relates
ceases to
be
effective.  Except
as otherwise provided in Section 9-510, for purposes of Sections 9-519(g),
9-522(a), and 9-523(c) the filing with the filing office of a termination
statement relating to a financing statement that indicates that the debtor is a
transmitting utility also causes the effectiveness of the financing statement
to lapse.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-514)
Sec. 9-514. 
		Assignment of powers of secured party of record.
(a) Assignment reflected on initial financing statement.  Except
as otherwise provided in subsection (c), an initial financing statement may
reflect
an assignment of all of the secured party's power to authorize an amendment to
the
financing statement by providing the name and mailing address of the assignee
as
the name and address of the secured party.
(b) Assignment of filed financing statement.  Except as otherwise
provided in subsection (c), a secured party of record may assign of record all or part
of its power to authorize an amendment to a financing statement by filing in the
filing office an amendment of the financing statement which:
(1) identifies, by its file number, the initial     financing statement to which it relates;
(2) provides the name of the assignor; and
(3) provides the name and mailing address of the     assignee.
(c) Assignment of record of mortgage.  An assignment of record
of a security interest in a fixture covered by a record of a mortgage which is
effective as a financing statement filed as a fixture filing under Section
9-502(c)
may be made only by an assignment of record of the mortgage in the manner
provided by law of this State other than the Uniform Commercial Code.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-515)
Sec. 9-515. Duration and effectiveness of financing statement; effect of
lapsed financing statement.
(a) Five-year effectiveness.  Except as otherwise provided in
subsections (b), (e), (f), and (g), a filed financing statement is effective
for a period
of five years after the date of filing.
(b) Public-finance or manufactured-home transaction.  Except
as otherwise provided in subsections (e), (f), and (g), an initial financing
statement
filed in connection with a public-finance transaction or manufactured-home
transaction is effective for a period of 30 years after the date of filing if it indicates
that it is filed in connection with a public-finance transaction or
manufactured-home transaction.
(c) Lapse and continuation of financing statement.  The
effectiveness of a filed financing statement lapses on the expiration of the period of
its effectiveness unless before the lapse a continuation statement is filed pursuant to
subsection (d).  Upon lapse, a financing statement ceases to be effective and any
security interest or agricultural lien that was perfected by the financing statement
becomes unperfected, unless the security interest is perfected otherwise.  If the
security interest or agricultural lien becomes unperfected upon lapse, it is deemed
never to have been perfected as against a purchaser of the collateral for value.
(d) When continuation statement may be filed.  A continuation
statement may be filed only within six months before the expiration of the five-year
period specified in subsection (a) or the 30-year period specified in subsection (b),
whichever is applicable.
(e) Effect of filing continuation statement.  Except as otherwise
provided in Section 9-510, upon timely filing of a continuation statement, the
effectiveness of the initial financing statement continues for a period of five years
commencing on the day on which the financing statement would have become
ineffective in the absence of the filing.  Upon the expiration of the five-year period,
the financing statement lapses in the same manner as provided in subsection (c),
unless, before the lapse, another continuation statement is filed pursuant to
subsection (d).  Succeeding continuation statements may be filed in the same
manner to continue the effectiveness of the initial financing statement.
(f) Transmitting utility financing statement.  If a debtor is a
transmitting utility and a filed initial financing statement so indicates, the financing
statement is effective until a termination statement is filed.
(g) Record of mortgage as financing statement.  A record of a
mortgage that is effective as a financing statement filed as a fixture filing under
Section 9-502(c) remains effective as a financing statement filed as a fixture
filing
until the mortgage is released or satisfied of record or its effectiveness
otherwise
terminates as to the real property.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-516)
Sec. 9-516. What constitutes filing; effectiveness of filing.
(a) What constitutes filing.  Except as otherwise provided in
subsection (b), communication of a record to a filing office and tender of the
filing
fee or acceptance of the record by the filing office constitutes filing.
(b) Refusal to accept record; filing does not occur.  Filing does
not occur with respect to a record that a filing office refuses to accept
because:
(1) the record is not communicated by a method or     medium of communication authorized by the filing office;
(2) an amount equal to or greater than the applicable     filing fee is not tendered;
(3) the filing office is unable to index the record     because:
(A) in the case of an initial financing         statement, the record does not provide a name for the debtor;
(B) in the case of an amendment or information         statement, the record:
(i) does not identify the initial financing             statement as required by Section 9-512 or 9-518, as applicable;
(ii) identifies an initial financing             statement whose effectiveness has lapsed under Section 9-515; or
(iii) identifies an initial financing             statement which was terminated pursuant to Section 9-501.1;
(C) in the case of an initial financing statement         that provides the name of a debtor identified as an individual or an amendment that provides a name of a debtor identified as an individual which was not previously provided in the financing statement to which the record relates, the record does not identify the debtor's surname;
(D) in the case of a record filed or recorded in         the filing office described in Section 9-501(a)(1), the record does not provide a sufficient description of the real property to which it relates; or
(E) in the case of a record submitted to the         filing office described in Section 9-501(a)(1), the filing office has reason to believe, from information contained in the record or from the person that communicated the record to the office, that: (i) if the record indicates that the debtor is a transmitting utility, the debtor does not meet the definition of a transmitting utility as described in Section 9-102(a)(81); (ii) if the record indicates that the transaction relating to the record is a manufactured-home transaction, the transaction does not meet the definition of a manufactured-home transaction as described in Section 9-102(a)(54); or (iii) if the record indicates that the transaction relating to the record is a public-finance transaction, the transaction does not meet the definition of a public-finance transaction as described in Section 9-102(a)(67);
(3.5) in the case of an initial financing statement     or an amendment, if the filing office believes in good faith that the record was communicated to the filing office in violation of Section 9-501.1(a);
(4) in the case of an initial financing statement or     an amendment that adds a secured party of record, the record does not provide a name and mailing address for the secured party of record;
(5) in the case of an initial financing statement or     an amendment that provides a name of a debtor which was not previously provided in the financing statement to which the amendment relates, the record does not:
(A) provide a mailing address for the debtor; or
(B) indicate whether the name provided as the         name of the debtor is the name of an individual or an organization;
(6) in the case of an assignment reflected in an     initial financing statement under Section 9-514(a) or an amendment filed under Section 9-514(b), the record does not provide a name and mailing address for the assignee; or
(7) in the case of a continuation statement, the     record is not filed within the six-month period prescribed by Section 9-515(d).
(c) Rules applicable to subsection (b).  For purposes of subsection
(b):
(1) a record does not provide information if the     filing office is unable to read or decipher the information; and
(2) a record that does not indicate that it is an     amendment or identify an initial financing statement to which it relates, as required by Section 9-512, 9-514, or 9-518, is an initial financing statement.
(d) Refusal to accept record; record effective as filed record.  A
record that is communicated to the filing office with tender of the filing fee,
but
which the filing office refuses to accept for a reason other than one set forth
in
subsection (b), is effective as a filed record except as against a purchaser of
the
collateral which gives value in reasonable reliance upon the absence of the
record
from the files.
(e) The Secretary of State may refuse to accept a record for filing under subdivision (b)(3)(E) or (b)(3.5) only if the refusal is approved by the Department of Business Services of the Secretary of State and the General Counsel to the Secretary of State.
(Source: P.A. 97-836, eff. 7-20-12; 97-1034, eff. 7-1-13; 98-463, eff. 8-16-13.)
(810 ILCS 5/9-517)
Sec. 9-517. 
		Effect of indexing errors. 
		The failure of the filing office
to index a record correctly does not affect the effectiveness of the filed
record.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-518)
Sec. 9-518. Claim concerning inaccurate or wrongfully filed record.
(a) Statement with respect to record indexed under a person's name.   A person may file in the filing office an information statement with respect to a record indexed there under the person's
name
if the person believes that the record is inaccurate or was wrongfully filed.
(b) Contents of statement under subsection (a).  An information statement under subsection (a)
must:
(1) identify the record to which it relates by the     file number assigned to the initial financing statement to which the record relates;
(2) indicate that it is an information statement; and
(3) provide the basis for the person's belief that     the record is inaccurate and indicate the manner in which the person believes the record should be amended to cure any inaccuracy or provide the basis for the person's belief that the record was wrongfully filed.
(c)  Statement by secured party of record.  A person may file in the filing office an information statement with respect to a record filed there if the person is a secured party of record with respect to the financing statement to which the record relates and believes that the person that filed the record was not entitled to do so under Section 9-509(d).
(d)  Contents of statement under subsection (c).  An information statement under subsection (c) must:
(1) identify the record to which it relates by the     file number assigned to the initial financing statement to which the record relates;
(2) indicate that it is an information statement; and
(3) provide the basis for the person's belief that     the person that filed the record was not entitled to do so under Section 9-509(d).
(e) Record not affected by information statement.  The filing of an information statement does not affect the effectiveness of an initial financing
statement or other filed record.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/Art. 9 Pt. 5 Sub. 2 heading)
SUBPART 2.  
		DUTIES AND OPERATION OF FILING OFFICE
(810 ILCS 5/9-519)
Sec. 9-519. 
		
		Numbering, maintaining, and indexing records;
communicating information provided in records.
(a) Filing office duties.  For each record filed in a filing office, the
filing office shall:
(1) assign a unique number to the filed record;
(2) create a record, which may be electronic,     microfilm, or otherwise, that bears the number assigned to the filed record and the date and time of filing;
(3) maintain the filed record for public inspection;     and
(4) index the filed record in accordance with     subsections (c), (d), and (e).
(b) File number.  A file number assigned after January 1, 2002,
must include a digit that:
(1) is mathematically derived from or related to the     other digits of the file number; and
(2) aids the filing office in determining whether a     number communicated as the file number includes a single-digit or transpositional error.
(c) Indexing:  general.  Except as otherwise provided in
subsections (d) and (e), the filing office shall:
(1) index an initial financing statement according to     the name of the debtor and index all filed records relating to the initial financing statement in a manner that associates with one another an initial financing statement and all filed records relating to the initial financing statement; and
(2) index a record that provides a name of a debtor     which was not previously provided in the financing statement to which the record relates also according to the name that was not previously provided.
(d) Indexing:  real-property-related financing statement.  If a
financing statement is filed as a fixture filing or covers as-extracted
collateral or
timber to be cut, it must be filed for record and the filing office shall index
it:
(1) under the names of the debtor and of each owner     of record shown on the financing statement as if they were the mortgagors under a mortgage of the real property described; and
(2) to the extent that the law of this State provides     for indexing of records of mortgages under the name of the mortgagee, under the name of the secured party as if the secured party were the mortgagee thereunder, or, if indexing is by description, as if the financing statement were a record of a mortgage of the real property described.
(e) Indexing:  real-property-related assignment.  If a financing
statement is filed as a fixture filing or covers as-extracted collateral or timber to be
cut, the filing office shall index an assignment filed under Section 9-514(a) or an
amendment filed under Section 9-514(b):
(1) under the name of the assignor as grantor; and
(2) to the extent that the law of this State provides     for indexing a record of the assignment of a mortgage under the name of the assignee, under the name of the assignee.
(f) Retrieval and association capability.  The filing office shall
maintain a capability:
(1) to retrieve a record by the name of the debtor     and by the file number assigned to the initial financing statement to which the record relates; and
(2) to associate and retrieve with one another an     initial financing statement and each filed record relating to the initial financing statement.
(g) Removal of debtor's name.  The filing office may not remove
a debtor's name from the index until one year after the effectiveness of a
financing
statement naming the debtor lapses under Section 9-515 with respect to all
secured
parties of record.
(h) Timeliness of filing office performance.  The filing office shall
perform the acts required by subsections (a) through (e) at the time and in the
manner prescribed by filing-office rule, but not later than two business days
after
the filing office receives the record in question.
(i) Inapplicability to real-property-related filing office.  Subsections
(b) and (h) do not apply to a filing office described in Section
9-501(a)(1).
(j) Unless a statute on disposition of public records provides otherwise,
if the filing officer has an electronic, microfilm, or other image record to be
maintained of the financing statement, continuation statement, statement of
assignment, statement of release, termination statement, or any other related
document, he or she may remove and destroy the original paper submission.
(Source: P.A. 91-893, eff. 7-1-01; 92-33, eff. 7-1-01.)
(810 ILCS 5/9-520)
Sec. 9-520. 
		Acceptance and refusal to accept record.
(a) Mandatory refusal to accept record.  A filing office shall
refuse to accept a record for filing for a reason set forth in Section 9-516(b)
and
may refuse to accept a record for filing only for a reason set forth in Section
9-516(b).
(b) Communication concerning refusal.  If a filing office refuses
to accept a record for filing, it shall communicate to the person that
presented the
record the fact of and reason for the refusal and the date and time the record
would
have been filed had the filing office accepted it.  The communication must be
made
at the time and in the manner prescribed by filing-office rule,
but in the case of a filing
office described in Section 9-501(a)(2),
in no event more than two
business
days after the filing office receives the record.
(c) When filed financing statement effective.  A filed financing
statement satisfying Section 9-502(a) and (b) is effective, even if the filing
office is
required to refuse to accept it for filing under subsection (a).  However,
Section
9-338 applies to a filed financing statement providing information described in
Section 9-516(b)(5) which is incorrect at the time the financing statement is
filed.
(d) Separate application to multiple debtors.  If a record
communicated to a filing office provides information that relates to more than
one
debtor, this Part applies as to each debtor separately.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-521)
Sec. 9-521. Uniform form of written financing statement and
amendment.
(a) Initial financing statement form.  A filing office that accepts
written records may not refuse to accept a
written initial financing statement
in the
form and format
set forth in the official text of the 2010 amendments to Article 9 of the
Uniform Commercial Code
promulgated by the American Law Institute and the National Conference of
Commissioners on Uniform State Laws,
except for a reason set forth in Section
9-516(b).
(b) Amendment form.  A filing office that accepts written records may not
refuse
to accept a written record in
the form and format
set forth as Form UCC3 and Form UCC3Ad in the final official text of the 2010 amendments to Article 9 of the
Uniform Commercial Code
promulgated by the American Law Institute and the National Conference of
Commissioners on Uniform State Laws, except for a
reason
set
forth in Section 9-516(b).
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-522)
Sec. 9-522. 
		Maintenance and destruction of records.
(a) Post-lapse maintenance and retrieval of information.  The
filing office shall maintain a record of the information provided in a filed
financing
statement for at least one year after the effectiveness of the financing
statement has
lapsed under Section 9-515 with respect to all secured parties of record.  The
record
must be retrievable by using the name of
the debtor and:
(1) if the record was filed in the filing office     described in Section 9-501(a)(1), by using the file number assigned to the initial financing statement to which the record relates and the date and time that the record was filed or recorded; or
(2) if the record was filed in the filing office     described in Section 9-501(a)(2), by using the file number assigned to the initial financing statement to which the record relates.
(b) Destruction of written records.  Except to the extent that a
statute governing disposition of public records provides otherwise, the filing
office
immediately may destroy any written record evidencing a financing statement.
However, if the filing office destroys a written record, it shall maintain
another
record of the financing statement which complies with subsection (a).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-523)
Sec. 9-523. 
		Information from filing office; sale or license of records.
(a) Acknowledgment of filing written record.  If a person that
files a written record requests an acknowledgment of the filing, the filing
office
shall send to the person an image of the record showing the number assigned to
the
record pursuant to Section 9-519(a)(1) and the date and time of the filing of
the
record.  However, if the person furnishes a copy of the record to the filing
office,
the filing office may instead:
(1) note upon the copy the number assigned to the     record pursuant to Section 9-519(a)(1) and the date and time of the filing of the record; and
(2) send the copy to the person.
(b) Acknowledgment of filing other record.  If a person files a
record other than a written record, the filing office shall communicate to the person
an acknowledgment that provides:
(1) the information in the record;
(2) the number assigned to the record pursuant to     Section 9-519(a)(1); and
(3) the date and time of the filing of the record.
(c) Communication of requested information.  The filing office
shall communicate or otherwise make available in a record the following
information to any person that requests it:
(1) whether there is on file on a date and time     specified by the filing office, but not a date earlier than three business days before the filing office receives the request, any financing statement that:
(A) designates a particular debtor or, if the         request so states, designates a particular debtor at the address specified in the request;
(B) has not lapsed under Section 9-515 with         respect to all secured parties of record; and
(C) if the request so states, has lapsed under         Section 9-515 and a record of which is maintained by the filing office under Section 9-522(a);
(2) the date and time of filing of each financing     statement; and
(3) the information provided in each financing     statement.
(d) Medium for communicating information.  In complying with
its duty under subsection (c), the filing office may communicate information in
any
medium.  However, if requested, the filing office shall communicate information
by
issuing a record that can be admitted into evidence in the courts of this
State without extrinsic evidence of its authenticity.
(e) Timeliness of filing office performance.  The filing office shall
perform the acts required by subsections (a) through (d) at the time and in the
manner prescribed by filing-office rule,
but in the case of a filing
office described in Section 9-501(a)(2),
not later than two business days
after
the filing office receives the request.
(f) Public availability of records.  At least weekly, the Secretary
of State shall offer to sell
or
license to the public on a nonexclusive basis, in bulk, copies of all records
filed in it
under this Part, in every medium from time to time available to the filing
office.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-524)
Sec. 9-524. 
		Delay by filing office. 
		Delay by the filing office beyond a
time
limit prescribed by this Part is excused if:
(1) the delay is caused by interruption of     communication or computer facilities, war, emergency conditions, failure of equipment, or other circumstances beyond control of the filing office; and
(2) the filing office exercises reasonable diligence     under the circumstances.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-525)
Sec. 9-525. Fees.
(a) Initial financing
statement or
other record: general rule.
Except as otherwise
provided in subsection (e), the fee for filing and indexing a record under this
Part,
other than an initial financing statement of the kind described in subsection
(b),
is:
(1) $20 if the record is communicated in writing and     consists of one or two pages;
(2) $20 if the record is communicated in writing and     consists of more than two pages; and
(3) $20 if the record is communicated by another     medium authorized by filing-office rule.
(b) Initial financing statement:
public-finance
and
manufactured-housing transactions.  Except as
otherwise provided in subsection (e), the fee for filing and indexing an
initial
financing statement of the following kind is:
(1) $20 if the financing statement indicates that it     is filed in connection with a public-finance transaction;
(2) $20 if the financing statement indicates that it     is filed in connection with a manufactured-home transaction.
(c) Number of names.  The number of names required to be
indexed does not affect the amount of the fee in subsections (a) and (b).
(d) Response to information request.  The fee for responding to a
request for information from the filing office, including for issuing a
certificate
showing communicating whether there is on file any financing
statement naming
a particular debtor, is:
(1) $10 if the request is communicated in writing; and
(2) $10 if the request is communicated by another     medium authorized by filing-office rule.
(e) Record of mortgage.  This Section does not require a fee with
respect to a record of a mortgage which is effective as a financing statement
filed as
a fixture filing or as a financing statement covering as-extracted collateral
or timber
to be cut under Section 9-502(c).  However, the recording and satisfaction fees
that
otherwise would be applicable to the record of the mortgage apply.
(f) Of the total money collected for each filing with the Secretary of State of an original financing statement, amended statement, continuation, or assignment, or for a release of collateral, $12 of the filing fee shall be paid into the Secretary of State Special Services Fund. The remaining $8 shall be deposited into the General Revenue Fund in the State treasury.
(Source: P.A. 93-990, eff. 8-23-04.)
(810 ILCS 5/9-526)
Sec. 9-526. 
		Filing-office rules.
(a) Adoption of filing-office rules.  The Secretary of State
shall adopt and publish rules to implement
this
Article.  The filing-office rules must be:
(1) consistent with this Article; and
(2) adopted and published in accordance with the     Illinois Administrative Procedure Act.
(b) Harmonization of rules.  To keep the filing-office rules and
practices of the filing office in harmony with the rules and practices of
filing offices
in other jurisdictions that enact substantially this Part, and to keep the
technology
used by the filing office compatible with the technology used by filing offices
in
other jurisdictions that enact substantially this Part, the Secretary of State,
so far as is consistent with the purposes,
policies,
and provisions of this Article, in adopting, amending, and repealing
filing-office
rules, shall:
(1) consult with filing offices in other     jurisdictions that enact substantially this Part; and
(2) consult the most recent version of the Model     Rules promulgated by the International Association of Corporate Administrators or any successor organization; and
(3) take into consideration the rules and practices     of, and the technology used by, filing offices in other jurisdictions that enact substantially this Part.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-527)
Sec. 9-527. 
		Duty to report. 
		The Secretary of State
shall report annually to the
Governor and
Legislature on the operation of the filing office.  The report must contain a
statement of the extent to which:
(1) the filing-office rules are not in harmony with     the rules of filing offices in other jurisdictions that enact substantially this Part and the reasons for these variations; and
(2) the filing-office rules are not in harmony with     the most recent version of the Model Rules promulgated by the International Association of Corporate Administrators, or any successor organization, and the reasons for these variations.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-528)
Sec. 9-528. 
		Liability of filing officer. 
		Neither the filing officer nor
any of the filing officer's employees or agents shall be subject to personal
liability by reason of any error or omission in the performance of any duty
under this Article except in the case of willful and wanton conduct.
(Source: P.A. 92-33, eff. 7-1-01.)
(810 ILCS 5/Art. 9 Pt. 6 heading)
PART 6.  
		DEFAULT
(810 ILCS 5/Art. 9 Pt. 6 Sub. 1 heading)
SUBPART 1.  
		DEFAULT AND ENFORCEMENT
OF SECURITY INTEREST
(810 ILCS 5/9-601)
Sec. 9-601. Rights after default; judicial enforcement; consignor or
buyer of accounts, chattel paper, payment intangibles, or promissory notes.
(a) Rights of secured party after default.  After default, a secured
party has the rights provided in this Part and, except as otherwise provided in
Section 9-602, those provided by agreement of the parties.  A secured party:
(1) may reduce a claim to judgment, foreclose, or     otherwise enforce the claim, security interest, or agricultural lien by any available judicial procedure; and
(2) if the collateral is documents, may proceed     either as to the documents or as to the goods they cover.
(b) Rights and duties of secured party in possession or control.
A secured party in possession of collateral or control of collateral under Section
7-106, 9-104, 9-105, 9-106, or 9-107 has the rights and duties provided in Section 9-207.
(c) Rights cumulative; simultaneous exercise.  The rights under
subsections (a) and (b) are cumulative and may be exercised simultaneously.
(d) Rights of debtor and obligor.  Except as otherwise provided in
subsection (g) and Section 9-605, after default, a debtor and an obligor have
the
rights provided in this Part and by agreement of the parties.
(e) Lien of levy after judgment.  If a secured party has reduced its
claim to judgment, the lien of any levy that may be made upon the collateral by
virtue of a judgment relates back to the earliest of:
(1) the date of perfection of the security interest     or agricultural lien in the collateral;
(2) the date of filing a financing statement covering     the collateral; or
(3) any date specified in a statute under which the     agricultural lien was created.
(f) Execution sale.  A sale pursuant to a judgment is a foreclosure
of the security interest or agricultural lien by judicial procedure within the
meaning
of this Section.  A secured party may purchase at the sale and thereafter hold
the
collateral free of any other requirements of this Article.
(g) Consignor or buyer of certain rights to payment.  Except as
otherwise provided in Section 9-607(c), this Part imposes no duties upon a
secured
party that is a consignor or is a buyer of accounts, chattel paper, payment
intangibles, or promissory notes.
(Source: P.A. 95-895, eff. 1-1-09.)
(810 ILCS 5/9-602)
Sec. 9-602. 
		Waiver and variance of rights and duties. 
		Except as
otherwise provided in Section 9-624, to the extent that they give rights to a
debtor
or obligor and impose duties on a secured party, the debtor or obligor may not
waive or vary the rules stated in the following listed Sections:
(1) Section 9-207(b)(4)(C), which deals with use and     operation of the collateral by the secured party;
(2) Section 9-210, which deals with requests for an     accounting and requests concerning a list of collateral and statement of account;
(3) Section 9-607(c), which deals with collection and     enforcement of collateral;
(4) Sections 9-608(a) and 9-615(c) to the extent that     they deal with application or payment of noncash proceeds of collection, enforcement, or disposition;
(5) Sections 9-608(a) and 9-615(d) to the extent that     they require accounting for or payment of surplus proceeds of collateral;
(6) Section 9-609 to the extent that it imposes upon     a secured party that takes possession of collateral without judicial process the duty to do so without breach of the peace;
(7) Sections 9-610(b), 9-611, 9-613, and 9-614, which     deal with disposition of collateral;
(8) Section 9-615(f), which deals with calculation of     a deficiency or surplus when a disposition is made to the secured party, a person related to the secured party, or a secondary obligor;
(9) Section 9-616, which deals with explanation of     the calculation of a surplus or deficiency;
(10) Sections 9-620, 9-621, and 9-622, which deal     with acceptance of collateral in satisfaction of obligation;
(11) Section 9-623, which deals with redemption of     collateral;
(12) Section 9-624, which deals with permissible     waivers; and
(13) Sections 9-625 and 9-626, which deal with the     secured party's liability for failure to comply with this Article.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-603)
Sec. 9-603. 
		Agreement on standards concerning rights and duties.
(a) Agreed standards.  The parties may determine by agreement
the standards measuring the fulfillment of the rights of a debtor or obligor
and the
duties of a secured party under a rule stated in Section 9-602 if the standards
are
not manifestly unreasonable.
(b) Agreed standards inapplicable to breach of peace.
Subsection (a) does not apply to the duty under Section 9-609 to refrain from
breaching the peace.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-604)
Sec. 9-604. 
		
		Procedure if security agreement covers real property or
fixtures.
(a) Enforcement:  personal and real property.  If a security
agreement covers both personal and real property, a secured party may proceed:
(1) under this Part as to the personal property     without prejudicing any rights with respect to the real property; or
(2) as to both the personal property and the real     property in accordance with the rights with respect to the real property, in which case the other provisions of this Part do not apply.
(b) Enforcement:  fixtures.  Subject to subsection (c), if a security
agreement covers goods that are or become fixtures, a secured party may
proceed:
(1) under this Part; or
(2) in accordance with the rights with respect to     real property, in which case the other provisions of this Part do not apply.
(c) Removal of fixtures.  Subject to the other provisions of this
Part, if a secured party holding a security interest in fixtures has priority over all
owners and encumbrancers of the real property, the secured party, after default,
may remove the collateral from the real property.
(d) Injury caused by removal.  A secured party that removes
collateral shall promptly reimburse any encumbrancer or owner of the real
property, other than the debtor, for the cost of repair of any physical injury caused
by the removal.  The secured party need not reimburse the encumbrancer or owner
for any diminution in value of the real property caused by the absence of the
goods
removed or by any necessity of replacing them.  A person entitled to
reimbursement may refuse permission to remove until the secured party gives
adequate assurance for the performance of the obligation to reimburse.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-605)
Sec. 9-605. 
		Unknown debtor or secondary obligor. 
		A secured party does
not owe a duty based on its status as secured party:
(1) to a person that is a debtor or obligor, unless     the secured party knows:
(A) that the person is a debtor or obligor;
(B) the identity of the person; and
(C) how to communicate with the person; or
(2) to a secured party or lienholder that has filed a     financing statement against a person, unless the secured party knows:
(A) that the person is a debtor; and
(B) the identity of the person.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-606)
Sec. 9-606. 
		Time of default for agricultural lien. 
		For purposes of this
Part, a default occurs in connection with an agricultural lien at the time the
secured party becomes entitled to enforce the lien in accordance with the
statute under which it was created.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-607)
Sec. 9-607. Collection and enforcement by secured party.
(a) Collection and enforcement generally.  If so agreed, and in
any event after default, a secured party:
(1) may notify an account debtor or other person     obligated on collateral to make payment or otherwise render performance to or for the benefit of the secured party;
(2) may take any proceeds to which the secured party     is entitled under Section 9-315;
(3) may enforce the obligations of an account debtor     or other person obligated on collateral and exercise the rights of the debtor with respect to the obligation of the account debtor or other person obligated on collateral to make payment or otherwise render performance to the debtor, and with respect to any property that secures the obligations of the account debtor or other person obligated on the collateral;
(4) if it holds a security interest in a deposit     account perfected by control under Section 9-104(a)(1), may apply the balance of the deposit account to the obligation secured by the deposit account; and
(5) if it holds a security interest in a deposit     account perfected by control under Section 9-104(a)(2) or (3), may instruct the bank to pay the balance of the deposit account to or for the benefit of the secured party.
(b) Nonjudicial enforcement of mortgage.  If necessary to enable
a secured party to exercise under subsection (a)(3) the right of a debtor to enforce a
mortgage nonjudicially, the secured party may record in the office in which a
record of the mortgage is recorded:
(1) a copy of the security agreement that creates or     provides for a security interest in the obligation secured by the mortgage; and
(2) the secured party's sworn affidavit in recordable     form stating that:
(A) a default has occurred with respect to the         obligation secured by the mortgage; and
(B) the secured party is entitled to enforce the         mortgage nonjudicially.
(c) Commercially reasonable collection and enforcement.  A
secured party shall proceed in a commercially reasonable manner if the secured
party:
(1) undertakes to collect from or enforce an     obligation of an account debtor or other person obligated on collateral; and
(2) is entitled to charge back uncollected collateral     or otherwise to full or limited recourse against the debtor or a secondary obligor.
(d) Expenses of collection and enforcement.  A secured party may
deduct from the collections made pursuant to subsection (c) reasonable expenses of
collection and enforcement, including reasonable attorney's fees and legal
expenses
incurred by the secured party.
(e) Duties to secured party not affected.  This Section does not
determine whether an account debtor, bank, or other person obligated on
collateral
owes a duty to a secured party.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-608)
Sec. 9-608. 
		
		Application of proceeds of collection or enforcement;
liability for deficiency and right to surplus.
(a) Application of proceeds, surplus, and deficiency if obligation
secured.  If a security interest or agricultural lien secures payment or
performance
of an obligation, the following rules apply:
(1) A secured party shall apply or pay over for     application the cash proceeds of collection or enforcement under Section 9-607 in the following order to:
(A) the reasonable expenses of collection and         enforcement and, to the extent provided for by agreement and not prohibited by law, reasonable attorney's fees and legal expenses incurred by the secured party;
(B) the satisfaction of obligations secured by         the security interest or agricultural lien under which the collection or enforcement is made; and
(C) the satisfaction of obligations secured by         any subordinate security interest in or other lien on the collateral subject to the security interest or agricultural lien under which the collection or enforcement is made if the secured party receives an authenticated demand for proceeds before distribution of the proceeds is completed.
(2) If requested by a secured party, a holder of a     subordinate security interest or other lien shall furnish reasonable proof of the interest or lien within a reasonable time.  Unless the holder complies, the secured party need not comply with the holder's demand under paragraph (1)(C).
(3) A secured party need not apply or pay over for     application noncash proceeds of collection and enforcement under Section 9-607 unless the failure to do so would be commercially unreasonable.  A secured party that applies or pays over for application noncash proceeds shall do so in a commercially reasonable manner.
(4) A secured party shall account to and pay a debtor     for any surplus, and the obligor is liable for any deficiency.
(b) No surplus or deficiency in sales of certain rights to
payment.  If the underlying transaction is a sale of accounts, chattel paper,
payment intangibles, or promissory notes, the debtor is not entitled to any
surplus,
and the obligor is not liable for any deficiency.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-609)
Sec. 9-609. 
		Secured party's right to take possession after default.
(a) Possession; rendering equipment unusable; disposition on
debtor's premises.  After default, a secured party:
(1) may take possession of the collateral; and
(2) without removal, may render equipment unusable     and dispose of collateral on a debtor's premises under Section 9-610.
(b) Judicial and nonjudicial process.  A secured party may
proceed under subsection (a):
(1) pursuant to judicial process; or
(2) without judicial process, if it proceeds without     breach of the peace.
(c) Assembly of collateral.  If so agreed, and in any event after
default, a secured party may require the debtor to assemble the collateral and make
it available to the secured party at a place to be designated by the secured party
which is reasonably convenient to both parties.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-610)
Sec. 9-610. Disposition of collateral after default.
(a) Disposition after default.  After default, a secured party may
sell, lease, license, or otherwise dispose of any or all of the collateral in
its present
condition or following any commercially reasonable preparation or processing.
(b) Commercially reasonable disposition.  Every aspect of a
disposition of collateral, including the method, manner, time, place, and other
terms, must be commercially reasonable.  If commercially reasonable, a secured
party may dispose of collateral by public or private proceedings, by one or
more
contracts, as a unit or in parcels, and at any time and place and on any terms.
(c) Purchase by secured party.  A secured party may purchase
collateral:
(1) at a public disposition; or
(2) at a private disposition only if the collateral     is of a kind that is customarily sold on a recognized market or the subject of widely distributed standard price quotations.
(d) Warranties on disposition.  A contract for sale, lease, license,
or other disposition includes the warranties relating to title, possession, quiet
enjoyment, and the like which by operation of law accompany a voluntary
disposition of property of the kind subject to the contract.
(e) Disclaimer of warranties.  A secured party may disclaim or
modify warranties under subsection (d):
(1) in a manner that would be effective to disclaim     or modify the warranties in a voluntary disposition of property of the kind subject to the contract of disposition; or
(2) by communicating to the purchaser a record     evidencing the contract for disposition and including an express disclaimer or modification of the warranties.
(f) Record sufficient to disclaim warranties.  A record is
sufficient to disclaim warranties under subsection (e) if it indicates "There
is no
warranty relating to title, possession, quiet enjoyment, or the like in this
disposition" or uses words of similar import.
(g)  The provisions of this Section are subject to Section 26.5 of the Retail Installment Sales Act.
(Source: P.A. 97-913, eff. 1-1-13.)
(810 ILCS 5/9-611)
Sec. 9-611. 
		Notification before disposition of collateral.
(a) "Notification date."  In this Section, "notification date" means
the earlier of the date on which:
(1) a secured party sends to the debtor and any     secondary obligor an authenticated notification of disposition; or
(2) the debtor and any secondary obligor waive the     right to notification.
(b) Notification of disposition required.  Except as otherwise
provided in subsection (d), a secured party that disposes of collateral under
Section
9-610 shall send to the persons specified in subsection (c) a reasonable
authenticated notification of disposition.
(c) Persons to be notified.  To comply with subsection (b), the
secured party shall send an authenticated notification of disposition to:
(1) the debtor;
(2) any secondary obligor; and
(3) if the collateral is other than consumer goods:
(A) any other person from which the secured party         has received, before the notification date, an authenticated notification of a claim of an interest in the collateral;
(B) any other secured party or lienholder that,         10 days before the notification date, held a security interest in or other lien on the collateral perfected by the filing of a financing statement that:
(i) identified the collateral;
(ii) was indexed under the debtor's name as             of that date; and
(iii) was filed in the office in which to             file a financing statement against the debtor covering the collateral as of that date; and
(C) any other secured party that, 10 days before         the notification date, held a security interest in the collateral perfected by compliance with a statute, regulation, or treaty described in Section 9-311(a).
(d) Subsection (b) inapplicable:  perishable collateral;
recognized market.   Subsection (b) does not apply if the collateral is perishable or
threatens to decline speedily in value or is of a type customarily sold on a
recognized market.
(e) Compliance with subsection (c)(3)(B).  A secured party
complies with the requirement for notification prescribed by subsection (c)(3)(B)
if:
(1) not later than 20 days or earlier than 30 days     before the notification date, the secured party requests, in a commercially reasonable manner, information concerning financing statements indexed under the debtor's name in the office indicated in subsection (c)(3)(B); and
(2) before the notification date, the secured party:
(A) did not receive a response to the request for         information; or
(B) received a response to the request for         information and sent an authenticated notification of disposition to each secured party or other lienholder named in that response whose financing statement covered the collateral.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-612)
Sec. 9-612. 
		Timeliness of notification before disposition of collateral.
(a) Reasonable time is question of fact.  Except as otherwise
provided in subsection (b), whether a notification is sent within a reasonable
time is
a question of
fact.  The limitation of the
rule in subsection (b) to transactions other than consumer-goods transactions
is intended to leave to the court the determination of the proper rules in
consumer-goods transactions.  The court may not infer from that limitation the
nature of the proper rule in consumer-goods transactions and may continue to
apply established approaches.
(b) 10-day period sufficient in non-consumer transaction.  In a
transaction other than a consumer transaction, a notification of disposition
sent
after default and 10 days or more before the earliest time of disposition set
forth in
the notification is sent within a reasonable time before the disposition.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-613)
Sec. 9-613. 
		
		Contents and form of notification before disposition of
collateral: general.  Except in a consumer-goods transaction, the following
rules
apply:
(1) The contents of a notification of disposition are     sufficient if the notification:
(A) describes the debtor and the secured party;
(B) describes the collateral that is the subject         of the intended disposition;
(C) states the method of intended disposition;
(D) states that the debtor is entitled to an         accounting of the unpaid indebtedness and states the charge, if any, for an accounting; and
(E) states the time and place of a public         disposition or the time after which any other disposition is to be made.
(2) Whether the contents of a notification that lacks     any of the information specified in paragraph (1) are nevertheless sufficient is a question of fact.
(3) The contents of a notification providing     substantially the information specified in paragraph (1) are sufficient, even if the notification is accompanied by or combined other notification or includes:
(A) information not specified by that paragraph;         or
(B) minor errors that are not seriously         misleading.
(4) A particular phrasing of the notification is not     required.
(5) The following form of notification and the form     appearing in Section 9-614(4), when completed, each provides sufficient information:
NOTIFICATION OF DISPOSITION OF COLLATERAL
To: ..................................... (Name of     debtor, obligor, or other person to which the notification is sent)
From: ................................... (Name,     address, and telephone number of secured party)
Name of Debtor(s): ..................... (Include     only if debtor(s) are not an addressee)
For a public disposition:
We will sell or lease or license, as applicable, the     ............................ (describe collateral) to the highest qualified bidder in public as follows:
Day and Date: ...................................
Time: ...........................................
Place: ..........................................
For a private disposition:
We will sell (or lease or license, as applicable) the     ........................... (describe collateral) privately sometime after ................ (day and date).
You are entitled to an accounting of the unpaid     indebtedness secured by the property that we intend to sell or lease or license, as applicable for a charge of $.................  You may request an accounting by calling us at .................. (telephone number).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-614)
Sec. 9-614. 
		
		Contents and form of notification before disposition of
collateral:  consumer-goods transaction.  In a consumer-goods transaction, the
following rules apply:
(1) A notification of disposition must provide the     following information:
(A) the information specified in Section 9-613(1);
(B) a description of any liability for a         deficiency of the person to which the notification is sent;
(C) a telephone number from which the amount that         must be paid to the secured party to redeem the collateral under Section 9-623 is available; and
(D) a telephone number or mailing address from         which additional information concerning the disposition and the obligation secured is available.
(2) A particular phrasing of the notification is not     required.
(3) The contents of a notification providing     substantially the information specified in paragraph (1) are sufficient, even if the notification:
(A) is accompanied by or combined with other         notifications;
(B) includes information not specified by that         paragraph; or
(C) includes minor errors that are not seriously         misleading.
(4) The following form of notification, when     completed, provides sufficient information:
............. (Name and address of secured party)
............. (Date)
NOTICE OF OUR PLAN TO SELL PROPERTY
......................................................
(Name and address of any obligor who is also a debtor)
Subject: ..................................
(Identification of Transaction)
We have your ..................... (describe     collateral), because you broke promises in our agreement.
For a public disposition:
We will sell ....................... (describe     collateral) at public sale.  A sale could include a lease or license.  The sale will be held as follows:
Date:  ................................
Time:  ................................
Place: ................................
You may attend the sale and bring bidders if you want.
For a private disposition:
We will sell ........................... (describe     collateral) at private sale sometime after .................... (date).  A sale could include a lease or license.
The money that we get from the sale (after paying our     costs) will reduce the amount you owe.  If we get less money than you owe, you ............ (will or will not, as applicable) still owe us the difference.  If we get more money than you owe, you will get the extra money, unless we must pay it to someone else.
You can get the property back at any time before we     sell it by paying us the full amount you owe (not just the past due payments), including our expenses.  To learn the exact amount you must pay, call us at ................ (telephone number).
If you want us to explain to you in writing how we     have figured the amount that you owe us, you may call us at .................. (telephone number) or write us at .................................... (secured party's address) and request a written explanation.  We will charge you $ ........... for the explanation if we sent you another written explanation of the amount you owe us within the last six months.
If you need more information about the sale call us     at .................. (telephone number) or write us at ......................... (secured party's address).
We are sending this notice to the following other     people who have an interest ...................... (describe collateral) or who owe money under your agreement:
.................................................
(Names of all other debtors and obligors, if any)
(5) A notification in the form of paragraph (4) is     sufficient, even if it includes errors in information not required by paragraph (1).
(6) If a notification under this Section is not in     the form of paragraph (4), law other than this Article determines the effect of including information not required by paragraph (1).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-615)
Sec. 9-615. 
		
		Application of proceeds of disposition; liability for
deficiency and right to surplus.
(a) Application of proceeds.  A secured party shall apply or pay
over for application the cash proceeds of disposition in the following order
to:
(1) the reasonable expenses of retaking, holding,     preparing for disposition, processing, and disposing, and, to the extent provided for by agreement and not prohibited by law, reasonable attorney's fees and legal expenses incurred by the secured party;
(2) the satisfaction of obligations secured by the     security interest or agricultural lien under which the disposition is made;
(3) the satisfaction of obligations secured by any     subordinate security interest in or other subordinate lien on the collateral if:
(A) the secured party receives from the holder of         the subordinate security interest or other lien an authenticated demand for proceeds before distribution of the proceeds is completed; and
(B) in a case in which a consignor has an         interest in the collateral, the subordinate security interest or other lien is senior to the interest of the consignor; and
(4) a secured party that is a consignor of the     collateral if the secured party receives from the consignor an authenticated demand for proceeds before distribution of the proceeds is completed.
(b) Proof of subordinate interest.  If requested by a secured party,
a holder of a subordinate security interest or other lien shall furnish reasonable
proof of the interest or lien within a reasonable time.  Unless the holder does so, the
secured party need not comply with the holder's demand under subsection (a)(3).
(c) Application of noncash proceeds.  A secured party need not
apply or pay over for application noncash proceeds of disposition under this
Section unless the failure to do so would be commercially unreasonable.  A secured
party that applies or pays over for application noncash proceeds shall do so in a
commercially reasonable manner.
(d) Surplus or deficiency if obligation secured.  If the security
interest under which a disposition is made secures payment or performance of an
obligation, after making the payments and applications required by subsection (a)
and permitted by subsection (c):
(1) unless subsection (a)(4) requires the secured     party to apply or pay over cash proceeds to a consignor, the secured party shall account to and pay a debtor for any surplus; and
(2) the obligor is liable for any deficiency.
(e) No surplus or deficiency in sales of certain rights to
payment.  If the underlying transaction is a sale of accounts, chattel paper,
payment intangibles, or promissory notes:
(1) the debtor is not entitled to any surplus; and
(2) the obligor is not liable for any deficiency.
(f) Calculation of surplus or deficiency in disposition to person
related to secured party.  The surplus or deficiency following a disposition is
calculated based on the amount of proceeds that would have been realized in a
disposition complying with this Part
and described in subsection
(f)(2) of this Section to
a transferee other than the secured party, a
person related to the secured party, or a secondary obligor if:
(1) the transferee in the disposition is the secured     party, a person related to the secured party, or a secondary obligor; and
(2) the amount of proceeds of the disposition is     significantly below the range of proceeds that would have been received from a complying disposition by a forced sale without reserve to a willing buyer other than the secured party, a person related to the secured party, or a secondary obligor.
(g) Cash proceeds received by junior secured party.  A secured
party that receives cash proceeds of a disposition in good faith and without
knowledge that the receipt violates the rights of the holder of a security
interest or
other lien that is not subordinate to the security interest or agricultural
lien under
which the disposition is made:
(1) takes the cash proceeds free of the security     interest or other lien;
(2) is not obligated to apply the proceeds of the     disposition to the satisfaction of obligations secured by the security interest or other lien; and
(3) is not obligated to account to or pay the holder     of the security interest or other lien for any surplus.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-616)
Sec. 9-616. 
		Explanation of calculation of surplus or deficiency.
(a) Definitions.  In this Section:
(1) "Explanation" means a writing that:
(A) states whether a surplus or deficiency is         owed and the amount of the surplus, if applicable;
(B) states, if applicable, that future debits,         credits, charges, including additional credit service charges or interest, rebates, and expenses may affect the amount of the surplus or deficiency;
(C) provides a telephone number or mailing         address from which the debtor or consumer obligor may obtain additional information concerning the transaction and from which such person may request the amount of the deficiency and further information regarding how the secured party calculated the surplus or deficiency; and
(D) at the sender's option, the information set         forth in subsection (c).
(2) "Request" means a record:
(A) authenticated by a debtor or consumer obligor;
(B) requesting that the recipient provide         information of how it calculated the surplus or deficiency; and
(C) sent after disposition of the collateral         under Section 9-610.
(b) Explanation of calculation.  In a consumer-goods transaction
in which the debtor is entitled to a surplus or a consumer obligor is liable
for a
deficiency under Section 9-615, the secured party shall:
(1) send an explanation to the debtor or consumer     obligor, as applicable, after the disposition and:
(A) before or when the secured party accounts to         the debtor and pays any surplus or first makes written demand on the consumer obligor after the disposition for payment of the deficiency, other than in instances in which such demand is made by a third-party debt collector covered by the Fair Debt Collection Practices Act; and
(B) within 14 days after receipt of a request         made by the debtor or consumer obligor within one year after the secured party has given an explanation under this Section or notice to such debtor or consumer obligor under Section 9-614 of this Article; or
(2) in the case of a consumer obligor who is liable     for a deficiency, within 14 days after receipt of a request, send to the consumer obligor a record waiving the secured party's right to a deficiency.
(c) Required information for response to request.  To comply with a
request, the secured party must provide a response in writing which includes
the following information:
(1) the aggregate amount of obligations secured by     the security interest under which the disposition was made, and, if the amount reflects a rebate of unearned interest or credit service charge, an indication of that fact, calculated as of a specified date:
(A) if the secured party takes or receives         possession of the collateral after default, not more than 35 days before the secured party takes or receives possession; or
(B) if the secured party takes or receives         possession of the collateral before default or does not take possession of the collateral, not more than 35 days before the disposition;
(2) the amount of proceeds of the disposition;
(3) the aggregate amount of the obligations after     deducting the amount of proceeds;
(4) the amount, in the aggregate or by type, and     types of expenses, including expenses of retaking, holding, preparing for disposition, processing, and disposing of the collateral, and attorney's fees secured by the collateral which are known to the secured party and relate to the current disposition;
(5) the amount, in the aggregate or by type, and     types of credits, including rebates of interest or credit service charges, to which the obligor is known to be entitled and which are not reflected in the amount in paragraph (1); and
(6) the amount of the surplus or deficiency.
(d) Substantial compliance.  A particular phrasing of
the explanation or response to a request is not required.  An explanation or
a response to a request complying substantially with the requirements of this
Section is sufficient even if it is:
(1) accompanied by or combined with other     notifications;
(2) includes information not specified by this     Section;
(3) includes minor errors that are not seriously     misleading; or
(4) includes errors in information not required by     this Section.
(e) Charges for responses.  A debtor or consumer obligor is
entitled without charge to one response to a request under this Section during
any
six-month period in which the secured party did not send to the debtor or
consumer
obligor an explanation pursuant to subsection (b)(1).  The secured party may
require payment of a charge not exceeding $25 for each additional response.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-617)
Sec. 9-617. 
		Rights of transferee of collateral.
(a) Effects of disposition.  A secured party's disposition of
collateral after default:
(1) transfers to a transferee for value all of the     debtor's rights in the collateral;
(2) discharges the security interest under which the     disposition is made; and
(3) discharges any subordinate security interest or     other subordinate lien.
(b) Rights of good-faith transferee.  A transferee that acts in good
faith takes free of the rights and interests described in subsection (a), even
if the
secured party fails to comply with this Article or the requirements of any
judicial
proceeding.
(c) Rights of other transferee.  If a transferee does not take free of
the rights and interests described in subsection (a), the transferee takes the
collateral subject to:
(1) the debtor's rights in the collateral;
(2) the security interest or agricultural lien under     which the disposition is made; and
(3) any other security interest or other lien.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-618)
Sec. 9-618. 
		Rights and duties of certain secondary obligors.
(a) Rights and duties of secondary obligor.  A secondary obligor
acquires the rights and becomes obligated to perform the duties of the secured
party
after the secondary obligor:
(1) receives an assignment of a secured obligation     from the secured party;
(2) receives a transfer of collateral from the     secured party and agrees to accept the rights and assume the duties of the secured party; or
(3) is subrogated to the rights of a secured party     with respect to collateral.
(b) Effect of assignment, transfer, or subrogation.  An
assignment, transfer, or subrogation described in subsection (a):
(1) is not a disposition of collateral under Section     9-610; and
(2) relieves the secured party of further duties     under this Article.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-619)
Sec. 9-619. 
		Transfer of record or legal title.
(a) "Transfer statement."  In this Section, "transfer statement"
means a record authenticated by a secured party stating:
(1) that the debtor has defaulted in connection with     an obligation secured by specified collateral;
(2) that the secured party has exercised its     post-default remedies with respect to the collateral;
(3) that, by reason of the exercise, a transferee has     acquired the rights of the debtor in the collateral; and
(4) the name and mailing address of the secured     party, debtor, and transferee.
(b) Effect of transfer statement.  A transfer statement entitles the
transferee to the transfer of record of all rights of the debtor in the collateral
specified in the statement in any official filing, recording, registration, or
certificate-of-title system covering the collateral.  If a transfer statement is
presented with the applicable fee and request form to the official or office
responsible for maintaining the system, the official or office shall:
(1) accept the transfer statement;
(2) promptly amend its records to reflect the     transfer; and
(3) if applicable, issue a new appropriate     certificate of title in the name of the transferee.
(c) Transfer not a disposition; no relief of secured party's
duties.  A transfer of the record or legal title to collateral to a secured
party under
subsection (b) or otherwise is not of itself a disposition of collateral under
this
Article and does not of itself relieve the secured party of its duties under
this
Article.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-620)
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.)
(810 ILCS 5/9-621)
Sec. 9-621. 
		Notification of proposal to accept collateral.
(a) Persons to which proposal to be sent.  A secured party that
desires to accept collateral in full or partial satisfaction of the obligation
it secures
shall send its proposal to:
(1) any person from which the secured party has     received, before the debtor consented to the acceptance, an authenticated notification of a claim of an interest in the collateral;
(2) any other secured party or lienholder that, 10     days before the debtor consented to the acceptance, held a security interest in or other lien on the collateral perfected by the filing of a financing statement that:
(A) identified the collateral;
(B) was indexed under the debtor's name as of         that date; and
(C) was filed in the office or offices in which         to file a financing statement against the debtor covering the collateral as of that date; and
(3) any other secured party that, 10 days before the     debtor consented to the acceptance, held a security interest in the collateral perfected by compliance with a statute, regulation, or treaty described in Section 9-311(a).
(b) Proposal to be sent to secondary obligor in partial
satisfaction.  A secured party that desires to accept collateral in partial
satisfaction
of the obligation it secures shall send its proposal to any secondary obligor
in
addition to the persons described in subsection (a).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-622)
Sec. 9-622. 
		Effect of acceptance of collateral.
(a) Effect of acceptance.  A secured party's acceptance of
collateral in full or partial satisfaction of the obligation it secures:
(1) discharges the obligation to the extent consented     to by the debtor;
(2) transfers to the secured party all of a debtor's     rights in the collateral;
(3) discharges the security interest or agricultural     lien that is the subject of the debtor's consent and any subordinate security interest or other subordinate lien; and
(4) terminates any other subordinate interest.
(b) Discharge of subordinate interest notwithstanding
noncompliance.  A subordinate interest is discharged or terminated under
subsection (a), even if the secured party fails to comply with this Article.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-623)
Sec. 9-623. 
		Right to redeem collateral.
(a) Persons that may redeem.  A debtor, any secondary obligor, or
any other secured party or lienholder may redeem collateral.
(b) Requirements for redemption.  To redeem collateral, a person
shall tender:
(1) fulfillment of all obligations secured by the     collateral; and
(2) the reasonable expenses and attorney's fees     described in Section 9-615(a)(1).
(c) When redemption may occur.  A redemption may occur at any
time before a secured party:
(1) has collected collateral under Section 9-607;
(2) has disposed of collateral or entered into a     contract for its disposition under Section 9-610; or
(3) has accepted collateral in full or partial     satisfaction of the obligation it secures under Section 9-622.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-624)
Sec. 9-624. 
		Waiver.
(a) Waiver of disposition notification.  A debtor or secondary
obligor may waive the right to notification of disposition of collateral under
Section
9-611 only by an agreement to that effect entered into and authenticated after
default.
(b) Waiver of mandatory disposition.  A debtor may waive the
right to require disposition of collateral under Section 9-620(e) only by an
agreement to that effect entered into and authenticated after default.
(c) Waiver of redemption right.
A debtor or secondary obligor may waive the right to redeem
collateral
under Section 9-623 only by an agreement to that effect entered into and
authenticated after default.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/Art 9, P6, Sub 2 heading)
SUBPART 2.  
		NONCOMPLIANCE WITH ARTICLE
(810 ILCS 5/9-625)
Sec. 9-625. Remedies for secured party's failure to comply with Article.
(a) Judicial orders concerning noncompliance.  If it is established
that a secured party is not proceeding in accordance with this Article, a court
may
order or restrain collection, enforcement, or disposition of collateral on
appropriate
terms and conditions.
(b) Damages for noncompliance.  Subject to subsections (c), (d),
and (f), a person is liable for damages in the amount of any loss caused by a
failure
to comply with this Article.  Loss caused by a failure to comply with a request
under Section 9-210 may include loss resulting from the debtor's inability to
obtain, or increased costs of, alternative financing.
(c) Persons entitled to recover damages; statutory damages if collateral is consumer goods.  Except as otherwise provided in Section 9-628:
(1) a person that, at the time of the failure, was a     debtor, was an obligor, or held a security interest in or other lien on the collateral may recover in an individual action damages under subsection (b) for its loss; and
(2) if the collateral is consumer goods, a person     that was a debtor or a secondary obligor at the time a secured party failed to comply with this Part may recover in an individual action for that failure in any event an amount not less than the credit service charge plus 10 percent of the principal amount of the obligation or the time-price differential plus 10 percent of the cash price.
(d) Recovery when deficiency eliminated or reduced.  A debtor
whose deficiency is eliminated under Section 9-626 may recover damages for the
loss of any surplus.  However, a debtor or secondary obligor whose deficiency
is
eliminated or reduced under Section 9-626 may not otherwise recover under
subsection (b) for noncompliance with the provisions of this Part relating to
collection, enforcement, disposition, or acceptance.
(e) Statutory damages:  noncompliance with specified
provisions.  In addition to any damages recoverable under subsection (b), the
debtor, consumer obligor, or person named as a debtor in a filed record, as
applicable, may recover in an individual action $500 for each instance that a
person:
(1) fails to comply with Section 9-208;
(2) fails to comply with Section 9-209;
(3) files a record that the person is not entitled to     file under Section 9-509(a); or
(4) fails to cause the secured party of record to     file or send a termination statement as required by Section 9-513(a) or (c).
(f) Statutory damages:  noncompliance with Section 9-210.  A
debtor or consumer obligor may recover damages under subsection (b) and, in
addition, may in an individual action recover $500 in each case from a person
that, without reasonable cause, fails
to
comply with a request under Section 9-210.  A recipient of a request under
Section
9-210 which never claimed an interest in the collateral or obligations that are
the
subject of a request under that Section has a reasonable excuse for failure to
comply
with the request within the meaning of this subsection.
(g) Limitation of security interest:  noncompliance with Section
9-210.  If a secured party fails to comply with a request regarding a list of
collateral
or a statement of account under Section 9-210, the secured party may claim a
security interest only as shown in the statement included in the request as
against a
person that is reasonably misled by the failure.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-626)
Sec. 9-626. 
		
		Action in which deficiency or surplus is in
issue; applicable rules if amount of deficiency or surplus is in issue.  In
an action in which the amount of a deficiency
or surplus is in issue, the following rules apply:
(1) A secured party need not prove compliance with     the provisions of this Part relating to collection, enforcement, disposition, or acceptance unless the debtor or a secondary obligor places the secured party's compliance in issue.
(2) If the secured party's compliance is placed in     issue, the secured party has the burden of establishing that the collection, enforcement, disposition, or acceptance was conducted in accordance with this Part.
(3) Except as otherwise provided in Section 9-628, if     a secured party fails to prove that the collection, enforcement, disposition, or acceptance was conducted in accordance with the provisions of this Part relating to collection, enforcement, disposition, or acceptance, the liability of a debtor or a secondary obligor for a deficiency is limited to an amount by which the sum of the secured obligation, expenses, and attorney's fees exceeds the greater of:
(A) the proceeds of the collection, enforcement,         disposition, or acceptance; or
(B) the amount of proceeds that would have been         realized had the noncomplying secured party proceeded in accordance with the provisions of this Part relating to collection, enforcement, disposition, or acceptance.
(4) For purposes of paragraph (3)(B), the amount of     proceeds that would have been realized is equal to the sum of the secured obligation, expenses, and attorney's fees unless the secured party proves that the amount is less than that sum.
(5) If a deficiency or surplus is calculated under     Section 9-615(f), the debtor or obligor has the burden of establishing that the amount of proceeds of the disposition is significantly below the range of prices that a complying disposition to a person other than the secured party, a person related to the secured party, or a secondary obligor would have brought.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-627)
Sec. 9-627. 
		
		Determination of whether conduct was commercially
reasonable.
(a) Greater amount obtainable under other circumstances; no
preclusion of commercial reasonableness.  The fact that a greater amount could
have been obtained by a collection, enforcement, disposition, or acceptance at
a
different time or in a different method from that selected by the secured party
is not
of itself sufficient to preclude the secured party from establishing that the
collection, enforcement, disposition, or acceptance was made in a commercially
reasonable manner.
(b) Dispositions that are commercially reasonable.  A disposition
of collateral is made in a commercially reasonable manner if the disposition is
made:
(1) in the usual manner on any recognized market;
(2) at the price current in any recognized market at     the time of the disposition; or
(3) otherwise in conformity with reasonable     commercial practices among dealers in the type of property that was the subject of the disposition.
(c) Approval by court or on behalf of creditors.  A collection,
enforcement, disposition, or acceptance is commercially reasonable if it has been
approved:
(1) in a judicial proceeding;
(2) by a bona fide creditors' committee;
(3) by a representative of creditors; or
(4) by an assignee for the benefit of creditors.
(d) Approval under subsection (c) not necessary; absence of
approval has no effect.  Approval under subsection (c) need not be obtained,
and
lack of approval does not mean that the collection, enforcement, disposition,
or
acceptance is not commercially reasonable.
(Source: P.A. 91-893, eff. 7-1-01.)
(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
person,
and knows how to communicate with the person:
(1) the secured party is not liable to the person, or     to a secured party or lienholder that has filed a financing statement against the person, for failure to comply with this Article; and
(2) the secured party's failure to comply with this     Article does not affect the liability of the person for a deficiency.
(b) Limitation of liability to debtor, obligor, another secured
party, or lienholder.  A secured party is not liable because of its status as secured
party:
(1) to a person that is a debtor or obligor, unless     the secured party knows:
(A) that the person is a debtor or obligor;
(B) the identity of the person; and
(C) how to communicate with the person; or
(2) to a secured party or lienholder that has filed a     financing statement against a person, unless the secured party knows:
(A) that the person is a debtor; and
(B) the identity of the person.
(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
affected,
because of any act or omission arising out of the secured party's reasonable
belief
that a transaction is not a consumer-goods transaction or a consumer
transaction or
that goods are not consumer goods, if the secured party's belief is based on
its
reasonable reliance on:
(1) a debtor's representation concerning the purpose     for which collateral was to be used, acquired, or held; or
(2) an obligor's representation concerning the     purpose for which a secured obligation was incurred.
(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
with
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
respect to
any one secured obligation.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/Art. 9 Pt. 7 heading)
PART 7.  
		TRANSITION
(810 ILCS 5/9-701)
Sec. 9-701. 
		Effective date. 
		(See Section 99 of the Public Act adding this
Section to this Act.)
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-702)
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
date of this
amendatory Act of the 91st General Assembly.
(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
Assembly.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-703)
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
before
the effective date of this amendatory Act of the 91st General Assembly and
would
have priority over the rights of a person that becomes a lien creditor at that
time is a
perfected security interest under this Act if, on the effective date of this
amendatory
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;
(2) remains enforceable thereafter only if the     security interest becomes enforceable under Section 9-203 before the year expires; and
(3) remains perfected thereafter only if the     applicable requirements for perfection under this Act are satisfied before the year expires.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-704)
Sec. 9-704. 
		Security interest unperfected before effective date. 
		A
security interest that is enforceable immediately before the effective date of
this
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
(3) becomes perfected:
(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
(B) when the applicable requirements for         perfection are satisfied if the requirements are satisfied after that time.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-705)
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
taken
before the effective date of this amendatory Act of the 91st General Assembly
and
the action would have resulted in priority of a security interest over the
rights of a
person that becomes a lien creditor had the security interest become
enforceable
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
Assembly,
is filed and satisfies the applicable requirements for perfection under the law
of the
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.
However,
except as otherwise provided in subsections (d) and (e) and Section 9-706, the
financing statement ceases to be effective at the earlier of:
(1) the time the financing statement would have     ceased to be effective under the law of the jurisdiction in which it is filed; or
(2) June 30, 2006.
(d) Continuation statement.  The filing of a continuation statement
after the effective date of this amendatory Act of the 91st General Assembly
does
not continue the effectiveness of the financing statement filed before the
effective
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
amendatory
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,
is
filed against a transmitting utility and satisfies the applicable requirements
for
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
a
jurisdiction other than jurisdiction in which the financing statement is filed
governs
perfection of a security interest in collateral covered by the financing
statement.
(f) Application of Part 5.  A financing statement that includes a
financing statement filed before the effective date of this amendatory Act of
the
91st General Assembly and a continuation statement filed after the effective
date of
this amendatory Act of the 91st General Assembly is effective only to the
extent
that it satisfies the requirements of Part 5 for an initial financing
statement.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-706)
Sec. 9-706. 
		
		When initial financing statement suffices to continue
effectiveness of financing statement.
(a) Initial financing statement in lieu of continuation statement.
The filing of an initial financing statement in the office specified in Section
9-501
continues the effectiveness of a financing statement filed before the effective
date
of this amendatory Act of the 91st General Assembly if:
(1) the filing of an initial financing statement in     that office would be effective to perfect a security interest under this Act;
(2) the pre-effective-date financing statement was     filed in an office in another State or another office in this State; and
(3) the initial financing statement satisfies     subsection (c).
(b) Period of continued effectiveness.  The filing of an initial
financing statement under subsection (a) continues the effectiveness of the
pre-effective-date financing statement:
(1) if the initial financing statement is filed     before the effective date of this amendatory Act of the 91st General Assembly, for the period provided in Section 9-403 of the Uniform Commercial Code as it existed before the effective date of this amendatory Act of the 91st General Assembly with respect to a financing statement; and
(2) if the initial financing statement is filed after     the effective date of this amendatory Act of the 91st General Assembly, for the period provided in Section 9-515 with respect to an initial financing statement.
(c) Requirements for initial financing statement under
subsection (a).  To be effective for purposes of subsection (a), an initial financing
statement must:
(1) satisfy the requirements of Part 5 for an initial     financing statement;
(2) identify the pre-effective-date financing     statement by indicating the office in which the financing statement was filed and providing the dates of filing and file numbers, if any, of the financing statement and of the most recent continuation statement filed with respect to the financing statement; and
(3) indicate that the pre-effective-date financing     statement remains effective.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-707)
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
before
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
with
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:
(1) the pre-effective-date financing statement and an     amendment are filed in the office specified in Section 9-501;
(2) an amendment is filed in the office specified in     Section 9-501 concurrently with, or after the filing in that office of, an initial financing statement that satisfies Section  9-706(c); or
(3) an initial financing statement that provides the     information as amended and satisfies Section 9-706(c) is filed in the office specified in Section 9-501.
(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
statement.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-708)
Sec. 9-708. 
		
		Persons entitled to file initial financing
statement or
continuation statement.  A person may file an initial financing statement or a
continuation statement under this Part if:
(1) the secured party of record authorizes the     filing; and
(2) the filing is necessary under this Part:
(A) to continue the effectiveness of a financing         statement filed before the effective date of this amendatory Act of the 91st General Assembly; or
(B) to perfect or continue the perfection of a         security interest.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-709)
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
claims
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
interest
that becomes enforceable under Section 9-203 of this Act dates from the
effective
date of this amendatory Act of the 91st General Assembly if the security
interest is
perfected under this Act by the filing of a financing statement before the
effective
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
before the
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.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-710)
Sec. 9-710. 
		
		Local-filing office responsibilities for filings under the
Uniform Commercial Code prior to this amendatory Act of the 91st General
Assembly.
(a) In this Section:
(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.
(2) "Former-Article-9 records" means:
(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) the index as of June 30, 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
30,
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
effect immediately before the effective date of this amendatory Act of the
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
issuing a certificate.
(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.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/Art. 9 Pt. 8 heading)
PART 8.  TRANSITION PROVISIONS FOR 2010 AMENDMENTS
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-801)
Sec. 9-801. Effective date.  (See Section 99 of the Public Act adding this Section to this Act.)
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-802)
Sec. 9-802. 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 date of this amendatory Act of the 97th General Assembly.
(b)   Pre-effective-date proceedings.   This  amendatory Act  of the 97th General Assembly does not affect an action, case, or proceeding commenced before the effective date of this amendatory Act of the 97th General Assembly.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-803)
Sec. 9-803. Security interest perfected before effective date.
(a)   Continuing perfection:  perfection requirements satisfied.   A security interest that is a perfected security interest immediately before the effective date of this amendatory Act of the 97th General Assembly  is a perfected security interest under  Article 9 as amended by this  amendatory Act of the 97th General Assembly   if, on the effective date of this amendatory Act of the 97th General Assembly, the applicable requirements for attachment and perfection under  Article 9 as amended by this  amendatory Act of the 97th General Assembly   are satisfied without further action.
(b)   Continuing perfection:  perfection requirements not satisfied.   Except as otherwise provided in Section 9-805, if, immediately before the effective date of this amendatory Act of the 97th General Assembly, a security interest is a perfected security interest, but the applicable requirements for perfection under  Article 9 as amended by this  amendatory Act of the 97th General Assembly   are not satisfied when this  amendatory Act of the 97th General Assembly  takes effect, the security interest remains perfected thereafter only if the applicable requirements for perfection under  Article 9 as amended by this  amendatory Act of the 97th General Assembly   are satisfied within one year after the effective date of this amendatory Act of the 97th General Assembly.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-804)
Sec. 9-804. Security interest unperfected before the effective date of this amendatory Act of the 97th General Assembly.  A security interest that is an unperfected security interest immediately before the effective date of this amendatory Act of the 97th General Assembly becomes a perfected security interest:
(1) without further action, when this  amendatory Act     of the 97th General Assembly  takes effect if the applicable requirements for perfection under  Article 9 as amended by this  amendatory Act of the 97th General Assembly   are satisfied before or at that time; or
(2) when the applicable requirements for perfection     are satisfied if the requirements are satisfied after that time.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-805)
Sec. 9-805. Effectiveness of action taken before the effective date of this amendatory Act of the 97th General Assembly.
(a)   Pre-effective-date filing effective.   The filing of a financing statement before the effective date of this amendatory Act of the 97th General Assembly is effective to perfect a security interest to the extent the filing would satisfy the applicable requirements for perfection under  Article 9 as amended by this  amendatory Act of the 97th General Assembly.
(b)   When pre-effective-date filing becomes ineffective.   This  amendatory Act of the 97th General Assembly  does not render ineffective an effective financing statement that, before the effective date of this amendatory Act of the 97th General Assembly, is filed and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in  Article 9 as it existed before the effective date of this amendatory Act of the 97th General Assembly.  However, except as otherwise provided in subsections (c) and (d) and Section 9-806, the financing statement ceases to be effective:
(1) if the financing statement is filed in this     State, at the time the financing statement would have ceased to be effective had this  amendatory Act of the 97th General Assembly  not taken effect; or
(2) if the financing statement is filed in another     jurisdiction, at the earlier of:
(A) the time the financing statement would have         ceased to be effective under the law of that jurisdiction; or
(B) June 30, 2018.
(c)   Continuation statement.   The filing of a continuation statement after the effective date of this amendatory Act of the 97th General Assembly does not continue the effectiveness of a financing statement filed before the effective date of this amendatory Act of the 97th General Assembly.  However, upon the timely filing of a continuation statement after the effective date of this amendatory Act of the 97th General Assembly and in accordance with the law of the jurisdiction governing perfection as provided in  Article 9, the effectiveness of a financing statement filed in the same office in that jurisdiction before the effective date of this  amendatory Act of the 97th General Assembly  continues for the period provided by the law of that jurisdiction.
(d)   Application of subsection (b)(2)(B) to transmitting utility financing statement.   Subsection (b)(2)(B) applies to a financing statement that, before the effective date of this amendatory Act of the 97th General Assembly, is filed against a transmitting utility and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in  Article 9 as it existed before the effective date of this amendatory Act of the 97th General Assembly, only to the extent that  Article 9 as amended by this  amendatory Act of the 97th General Assembly   provides that the law of a jurisdiction other than the jurisdiction in which the financing statement is filed governs perfection of a security interest in collateral covered by the financing statement.
(e)   Application of Part 5.   A financing statement that includes a financing statement filed before the effective date of this amendatory Act of the 97th General Assembly and a continuation statement filed after the effective date of this amendatory Act of the 97th General Assembly is effective only to the extent that it satisfies the requirements of  Part 5 as amended by this  amendatory Act of the 97th General Assembly   for an initial financing statement.  A financing statement that indicates that the debtor is a decedent's estate indicates that the collateral is being administered by a personal representative within the meaning of Section 9-503(a)(2) as amended by this  amendatory Act of the 97th General Assembly.  A financing statement that indicates that the debtor is a trust or is a trustee acting with respect to property held in trust indicates that the collateral is held in a trust within the meaning of Section 9-503(a)(3) as amended by this  amendatory Act of the 97th General Assembly.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-806)
Sec. 9-806. When initial financing statement suffices to continue effectiveness of financing statement.
(a)   Initial financing statement in lieu of continuation statement.   The filing of an initial financing statement in the office specified in Section 9-501 continues the effectiveness of a financing statement filed before the effective date of this amendatory Act of the 97th General Assembly if:
(1) the filing of an initial financing statement in     that office would be effective to perfect a security interest under  Article 9 as amended by this  amendatory Act of the 97th General Assembly;
(2) the pre-effective-date financing statement was     filed in an office in another State; and
(3) the initial financing statement satisfies     subsection (c).
(b)   Period of continued effectiveness.   The filing of an initial financing statement under subsection (a) continues the effectiveness of the pre-effective-date financing
statement:
(1) if the initial financing statement is filed     before the effective date of this amendatory Act of the 97th General Assembly, for the period provided in  Section 9-515 as it existed before the effective date of this amendatory Act of the 97th General Assembly  with respect to an initial financing statement; and
(2) if the initial financing statement is filed after     the effective date of this amendatory Act of the 97th General Assembly, for the period provided in Section 9-515 as amended by this  amendatory Act of the 97th General Assembly  with respect to an initial financing statement.
(c)   Requirements for initial financing statement under subsection (a).   To be effective for purposes of subsection (a), an initial financing statement must:
(1) satisfy the requirements of  Part 5 as amended by     this  amendatory Act of the 97th General Assembly   for an initial financing statement;
(2) identify the pre-effective-date financing     statement by indicating the office in which the financing statement was filed and providing the dates of filing and file numbers, if any, of the financing statement and of the most recent continuation statement filed with respect to the financing statement; and
(3) indicate that the pre-effective-date financing     statement remains effective.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-807)
Sec. 9-807. 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 before the effective date of this amendatory Act of the 97th General Assembly.
(b)   Applicable law.   After this  amendatory Act of the 97th General Assembly  takes effect, 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  Article 9 as amended by this  amendatory Act of the 97th General Assembly.  However, the effectiveness of a pre-effective-date financing statement also may be terminated in accordance with 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 97th General Assembly only if:
(1) the pre-effective-date financing statement and an     amendment are filed in the office specified in Section 9-501;
(2) an amendment is filed in the office specified in     Section 9-501 concurrently with, or after the filing in that office of, an initial financing statement that satisfies Section 9-806(c); or
(3) an initial financing statement that provides the     information as amended and satisfies Section 9-806(c) is filed in the office specified in Section 9-501.
(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 9-805(c) and (e) or 9-806.
(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 97th 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 9-806(c) has been filed in the office specified by the law of the jurisdiction governing perfection as provided in  Article 9 as amended by this  amendatory Act of the 97th General Assembly   as the office in which to file a financing statement.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-808)
Sec. 9-808. Person entitled to file initial financing statement or continuation statement.  A person may file an initial financing statement or a continuation statement under this part if:
(1) the secured party of record authorizes the     filing; and
(2) the filing is necessary under this Part:
(A) to continue the effectiveness of a financing         statement filed before the effective date of this amendatory Act of the 97th General Assembly; or
(B) to perfect or continue the perfection of a         security interest.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/9-809)
Sec. 9-809. Priority.  This  Act  determines the priority of conflicting claims to collateral.  However, if the relative priorities of the claims were established before the effective date of this amendatory Act of the 97th General Assembly,  Article 9 as it existed before the effective date of this amendatory Act of the 97th General Assembly  determines priority.
(Source: P.A. 97-1034, eff. 7-1-13.)
(810 ILCS 5/Art. 9 Pt. 99 heading)
PART 99.  
		(BLANK)
(810 ILCS 5/9-9901) (from Ch. 26, par. 9-9901)
Sec. 9-9901. 
		(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-9902) (from Ch. 26, par. 9-9902)
Sec. 9-9902. 
		(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)