(810 ILCS 5/9-326)
(Text of Section before amendment by P.A. 97-1034)
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 created by a new debtor which is
perfected by a filed financing statement that is effective solely under Section
9-508
in collateral in which a new debtor has or acquires rights is subordinate to a
security interest in the same collateral which is perfected other than by a
filed
financing statement that is effective solely under Section 9-508.
(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 that
are
effective solely under Section 9-508. 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. 91-893, eff. 7-1-01.)
(Text of Section after amendment by P.A. 97-1034)
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.)
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