Public Act 90-0300 of the 90th General Assembly
Public Act 90-0300
HB1280 Enrolled LRB9002326SMdv
AN ACT regarding secured transactions involving farm
related items, amending named Acts.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Counties Code is amended by changing
Section 3-5018 as follows:
(55 ILCS 5/3-5018) (from Ch. 34, par. 3-5018)
Sec. 3-5018. Fees. The recorder elected as provided for
in this Division shall receive such fees as are or may be
provided for him by law, in case of provision therefor:
otherwise he shall receive the same fees as are or may be
provided in this Section, except when increased by county
ordinance pursuant to the provisions of this Section, to be
paid to the county clerk for his services in the office of
recorder for like services. No filing fee shall be charged
for providing informational copies of financing statements to
the recorder pursuant to subsection (8) of Section 9-403 of
the Uniform Commercial Code.
For recording deeds or other instruments $12 for the
first 4 pages thereof, plus $1 for each additional page
thereof, plus $1 for each additional document number therein
noted. The aggregate minimum fee for recording any one
instrument shall not be less than $12.
For recording deeds or other instruments wherein the
premises affected thereby are referred to by document number
and not by legal description a fee of $1 in addition to that
hereinabove referred to for each document number therein
noted.
For recording assignments of mortgages, leases or liens
$12 for the first 4 pages thereof, plus $1 for each
additional page thereof. However, except for leases and
liens pertaining to oil, gas and other minerals, whenever a
mortgage, lease or lien assignment assigns more than one
mortgage, lease or lien document, a $7 fee shall be charged
for the recording of each such mortgage, lease or lien
document after the first one.
For recording maps or plats of additions or subdivisions
approved by the county or municipality (including the
spreading of the same of record in map case or other proper
books) or plats of condominiums $50 for the first page, plus
$1 for each additional page thereof except that in the case
of recording a single page, legal size 8 1/2 x 14, plat of
survey in which there are no more than two lots or parcels of
land, the fee shall be $12. In each county where such maps
or plats are to be recorded, the recorder may require the
same to be accompanied by such number of exact, true and
legible copies thereof as the recorder deems necessary for
the efficient conduct and operation of his office.
For certified copies of records the same fees as for
recording, but in no case shall the fee for a certified copy
of a map or plat of an addition, subdivision or otherwise
exceed $10.
Each certificate of such recorder of the recording of the
deed or other writing and of the date of recording the same
signed by such recorder, shall be sufficient evidence of the
recording thereof, and such certificate including the
indexing of record, shall be furnished upon the payment of
the fee for recording the instrument, and no additional fee
shall be allowed for the certificate or indexing.
The recorder shall charge an additional fee, in an amount
equal to the fee otherwise provided by law, for recording a
document (other than a document filed under the Plat Act or
the Uniform Commercial Code) that does not conform to the
following standards:
(1) The document shall consist of one or more
individual sheets measuring 8.5 inches by 11 inches, not
permanently bound and not a continuous form. Graphic
displays accompanying a document to be recorded that
measure up to 11 inches by 17 inches shall be recorded
without charging an additional fee.
(2) The document shall be legibly printed in black
ink, by hand, type, or computer. Signatures and dates
may be in contrasting colors if they will reproduce
clearly.
(3) The document shall be on white paper of not
less than 20-pound weight and shall have a clean margin
of at least one-half inch on the top, the bottom, and
each side. Margins may be used for non-essential
notations that will not affect the validity of the
document, including but not limited to form numbers, page
numbers, and customer notations.
(4) The first page of the document shall contain a
blank space, measuring at least 3 inches by 5 inches,
from the upper right corner.
(5) The document shall not have any attachment
stapled or otherwise affixed to any page.
A document that does not conform to these standards shall not
be recorded except upon payment of the additional fee
required under this paragraph. This paragraph, as amended by
this amendatory Act of 1995, applies only to documents dated
after the effective date of this amendatory Act of 1995.
The county board of any county may provide for an
additional charge of $3 for filing every instrument, paper,
or notice for record, in order to defray the cost of
converting the county recorder's document storage system to
computers or micrographics.
A special fund shall be set up by the treasurer of the
county and such funds collected pursuant to Public Act
83-1321 shall be used solely for a document storage system to
provide the equipment, materials and necessary expenses
incurred to help defray the costs of implementing and
maintaining such a document records system.
The foregoing fees allowed by this Section are the
maximum fees that may be collected from any officer, agency,
department or other instrumentality of the State. The county
board may, however, by ordinance, increase the fees allowed
by this Section and collect such increased fees from all
persons and entities other than officers, agencies,
departments and other instrumentalities of the State if the
increase is justified by an acceptable cost study showing
that the fees allowed by this Section are not sufficient to
cover the cost of providing the service.
A statement of the costs of providing each service,
program and activity shall be prepared by the county board.
All supporting documents shall be public record and subject
to public examination and audit. All direct and indirect
costs, as defined in the United States Office of Management
and Budget Circular A-87, may be included in the
determination of the costs of each service, program and
activity.
(Source: P.A. 88-691, eff. 1-24-95; 89-160, eff. 7-19-95.)
Section 10. The Uniform Commercial Code is amended by
changing Sections 9-401 and 9-403 and adding Section 9-401A
as follows:
(810 ILCS 5/9-401) (from Ch. 26, par. 9-401)
Sec. 9-401. Place of Filing; Erroneous Filing; Removal of
Collateral.
(1) The proper place to file in order to perfect a
security interest is as follows:
(a) when the collateral is equipment used in
farming operations, or farm products, or accounts or
general intangibles arising from or relating to the sale
of farm products by a farmer, or consumer goods, then in
the office of the recorder in the county of the debtor's
residence or if the debtor is not a resident of this
State then in the office of the Recorder of Deeds in the
county where the goods are kept, and in addition when the
collateral is crops growing or to be grown in the office
of the Recorder of Deeds in the county where the land is
located;
(b) when the collateral is timber to be cut or is
minerals or the like (including oil and gas) or accounts
subject to subsection (5) of Section 9-103, or when the
financing statement is filed as a fixture filing (Section
9-313) and the collateral is goods which are or are to
become fixtures, then in the office where a mortgage on
the real estate would be filed or recorded;
(c) in all other cases, in the office of the
Secretary of State.
(2) A filing which is made in good faith in an improper
place or not in all of the places required by this section is
nevertheless effective with regard to any collateral as to
which the filing complied with the requirements of this
Article and is also effective with regard to collateral
covered by the financing statement against any person who has
knowledge of the contents of such financing statement.
(3) A filing which is made in the proper place in this
State continues effective even though the debtor's residence
or place of business or the location of the collateral or its
use, whichever controlled the original filing, is thereafter
changed.
(4) The rules stated in Section 9-103 determine whether
filing is necessary in this State.
(5) Notwithstanding the preceding subsections, and
subject to subsection (3) of Section 9-302, the proper place
to file in order to perfect a security interest in
collateral, including fixtures, of a transmitting utility is
the office of the Secretary of State. This filing constitutes
a fixture filing (Section 9-313) as to the collateral
described therein which is or is to become fixtures.
(6) For the purposes of this Section, the residence of
an organization is its place of business if it has one or its
chief executive office if it has more than one place of
business.
(Source: P.A. 83-358.)
(810 ILCS 5/9-401A new)
Sec. 9-401A. Continuation of certain financing
statements filed before January 1, 1998. The following rules
apply to a financing statement or continuation statement that
was properly filed before January 1, 1998 in the office of a
county recorder, but which, if filed on or after January 1,
1998, is required by Section 9-401 to be filed in the office
of the Secretary of State:
(1) The financing statement shall remain effective until
it lapses as provided in Section 9-403.
(2) The effectiveness of the financing statement may be
continued only by filing a continuation statement in the
office of the Secretary of State that provides the name and
address of the debtor and secured party, indicates the county
where the financing statement is filed, complies with the
requirements of Section 9-403, and either:
(A) indicates the types or describes the items of
collateral included in the original financing statement
as modified by any releases or amendments; or
(B) has attached a copy of the originally filed
financing statement together with amendments,
assignments, and releases affecting it.
A continuation statement filed as provided in this item
(2) may be further continued by a continuation statement that
complies with the requirements of Section 9-403.
(3) The financing statement may be terminated, assigned,
released, or amended only by an appropriate filing in the
office of the county recorder where it is filed, except that
if the financing statement has been continued as provided in
item (2) of this Section, it may thereafter be terminated,
assigned, released, or amended only by an appropriate filing
in the office of the Secretary of State.
(810 ILCS 5/9-403) (from Ch. 26, par. 9-403)
Sec. 9-403. What Constitutes Filing; Duration of Filing;
Effect of Lapsed Filing; Duties of Filing Officer; Fees.
(1) Presentation for filing of a financing statement and
tender of the filing fee or acceptance of the statement by
the filing officer constitutes filing under this Article.
(2) Except as provided in subsection (6) a filed
financing statement is effective for a period of 5 years from
the date of filing. The effectiveness of a filed financing
statement lapses on the expiration of the 5 year period
unless a continuation statement is filed prior to the lapse.
If a security interest perfected by filing exists at the time
insolvency proceedings are commenced by or against the
debtor, the security interest remains perfected until
termination of the insolvency proceedings and thereafter for
a period of 60 days or until expiration of the 5 year period,
whichever occurs later. Upon lapse the security interest
becomes unperfected, unless it is perfected without filing.
If the security interest becomes unperfected upon lapse, it
is deemed to have been unperfected as against a person who
became a purchaser or lien creditor before lapse.
(3) A continuation statement may be filed by the secured
party within 6 months prior to the expiration of the 5 year
period specified in subsection (2). Any such continuation
statement must be signed by the secured party, identify the
original statement by file number and state that the original
statement is still effective. A continuation statement signed
by a person other than the secured party of record must be
accompanied by a separate written statement of assignment
signed by the secured party of record and complying with
subsection (2) of Section 9-405, including payment of the
required fee. Upon timely filing of the continuation
statement, the effectiveness of the original statement is
continued for 5 years after the last date to which the filing
was effective whereupon it lapses in the same manner as
provided in subsection (2) unless another continuation
statement is filed prior to such lapse. Succeeding
continuation statements may be filed in the same manner to
continue the effectiveness of the original statement. Unless
a statute on disposition of public records provides
otherwise, the filing officer may remove a lapsed statement
from the files and destroy it immediately if he has retained
a microfilm or other photographic record, or in other cases
after one year after the lapse. The filing officer shall so
arrange matters by physical annexation of financing
statements to continuation statements or other related
filings, or by other means, that if he physically destroys
the financing statements of a period more than 5 years past,
those which have been continued by a continuation statement
or which are still effective under subsection (6) shall be
retained.
(4) Except as provided in subsection (7) a filing
officer shall mark each statement with a file number and with
the date and hour of filing and shall hold the statement or a
microfilm or other photographic copy thereof for public
inspection. In addition the filing officer shall index the
statement according to the name of the debtor and shall note
in the index the file number and the address of the debtor
given in the statement.
(5) The uniform fee for filing and indexing and for
stamping a copy furnished by the secured party to show the
date and place of filing for an original financing statement,
amended statement, or for a continuation statement shall be
$20.
(6) If the debtor is a transmitting utility (subsection
(5) of Section 9-401 and a filed financing statement so
states, it is effective until a termination statement is
filed. A real estate mortgage which is effective as a fixture
filing under subsection (6) of Section 9-402 remains
effective as a fixture filing until the mortgage is released
or satisfied of record or its effectiveness otherwise
terminates as to the real estate.
(7) When a financing statement covers timber to be cut
or covers minerals or the like (including oil and gas) or
accounts subject to subsection (5) of Section 9-103, or is
filed as a fixture filing, the filing officer shall index it
under the names of the debtor and any owner of record shown
on the financing statement in the same fashion as if they
were the mortgagors in a mortgage of the real estate
described, and, to the extent that the law of this State
provides for indexing of mortgages under the name of the
mortgagee, under the name of the secured party as if he were
the mortgagee thereunder, or where indexing is by description
in the same fashion as if the financing statement were a
mortgage of the real estate described.
(8) For financing statements filed on or after January
1, 1998 as to a debtor who is a resident of the State of
Illinois, if the collateral is equipment used in farming
operations, farm products, or accounts or general intangibles
arising from the sale of farm products by a farmer, the
secured party shall, within 30 days after filing with the
office of the Secretary of State, remit to the office of the
recorder in the county of the debtor's residence a fee of $10
together with a copy of the financing statement filed in the
office of the Secretary of State. This fee is in addition to
payment of the fee provided in subsection (5) of this Section
and is imposed to defray the cost of converting the county
recorder's document storage system to computers or
micrographics. The copy of the financing statement provided
to the office of the recorder shall be for informational
purposes only and shall not be for filing with the office of
the recorder nor shall the provision of the informational
copy be subject to imposition of any filing fee under Section
3-5018 of the Counties Code or otherwise. The provisions of
this subsection (8) other than this sentence, are inoperative
after the earlier of (i) July 1, 1999 or (ii) the effective
date of a change to the Illinois Uniform Commercial Code
which adopts a recommendation by the National Conference of
Commissioners on Uniform State Laws to amend Section 9-401 of
this Code to make the office of the Secretary of State the
proper place to file a financing statement described in this
subsection (8).
(9) The failure to send an informational copy of a
financing statement to the appropriate office of the recorder
or to pay the fee as set forth in subsection (8) shall not in
any manner affect the existence, validity, perfection,
priority, or enforceability of the security interest of the
secured party.
(Source: P.A. 89-503, eff. 1-1-97.)
Section 99. Effective date. This Act takes effect
January 1, 1998.