(810 ILCS 5/9-508)
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
debtor is effective to perfect a security interest in collateral in which a new
has or acquires rights to the extent that the financing statement would have
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
debtor under Section 9-507(a).
(Source: P.A. 91-893, eff. 7-1-01.)