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(810 ILCS 5/9-507)
(from Ch. 26, par. 9-507)
Effect of certain events on effectiveness of financing
(a) Disposition. A filed financing statement remains effective with
respect to collateral that is sold, exchanged, leased, licensed, or otherwise
of and in which a security interest or agricultural lien continues, even if the
party knows of or consents to the disposition.
(b) Information becoming seriously misleading. Except as
otherwise provided in subsection (c) and Section 9-508, a financing statement
rendered ineffective if, after the financing statement is filed, the
provided in the financing statement becomes seriously misleading under Section
(c) Change in debtor's name. If the name that
a filed financing statement provides for a debtor becomes insufficient as the name of the debtor under Section 9-503(a) so that the financing statement becomes seriously misleading under Section 9-506:
(1) the financing statement is effective to perfect a
security interest in collateral acquired by the debtor before, or within four months after, the filed financing statement becomes seriously misleading; and
(2) the financing statement is not effective to
perfect a security interest in collateral acquired by the debtor more than four months after the filed financing statement becomes seriously misleading, unless an amendment to the financing statement which renders the financing statement not seriously misleading is filed within four months after the filed financing statement becomes seriously misleading.
(Source: P.A. 97-1034, eff. 7-1-13