(810 ILCS 5/9-318)
(from Ch. 26, par. 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
(a) Seller retains no interest. A debtor that has sold an account,
chattel paper, payment intangible, or promissory note does not retain a legal
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
account or chattel paper, while the buyer's security interest is unperfected,
debtor is deemed to have rights and title to the account or chattel paper
those the debtor sold.
(Source: P.A. 91-893, eff. 7-1-01.)