(810 ILCS 5/9-328)
Priority of security interests in investment property.
following rules govern priority among conflicting security interests in the
(1) A security interest held by a secured party having control of
investment property under Section 9-106 has priority over a security interest
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
under Section 9-106 rank according to priority in time of:
(A) if the collateral is a security, obtaining
(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
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
(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
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.)