(810 ILCS 5/9-315.02)
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
(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
(Source: P.A. 91-893, eff. 7-1-01; 92-16, eff. 6-28-01.)