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(810 ILCS 5/9-607)
Collection and enforcement by secured party.
(a) Collection and enforcement generally. If so agreed, and in
any event after default, a secured party:
(1) may notify an account debtor or other person
obligated on collateral to make payment or otherwise render performance to or for the benefit of the secured party;
(2) may take any proceeds to which the secured party
is entitled under Section 9-315;
(3) may enforce the obligations of an account debtor
or other person obligated on collateral and exercise the rights of the debtor with respect to the obligation of the account debtor or other person obligated on collateral to make payment or otherwise render performance to the debtor, and with respect to any property that secures the obligations of the account debtor or other person obligated on the collateral;
(4) if it holds a security interest in a deposit
account perfected by control under Section 9-104(a)(1), may apply the balance of the deposit account to the obligation secured by the deposit account; and
(5) if it holds a security interest in a deposit
account perfected by control under Section 9-104(a)(2) or (3), may instruct the bank to pay the balance of the deposit account to or for the benefit of the secured party.
(b) Nonjudicial enforcement of mortgage. If necessary to enable
a secured party to exercise under subsection (a)(3) the right of a debtor to enforce a
mortgage nonjudicially, the secured party may record in the office in which a
record of the mortgage is recorded:
(1) a copy of the security agreement that creates or
provides for a security interest in the obligation secured by the mortgage; and
(2) the secured party's sworn affidavit in recordable
(A) a default has occurred with respect to the
obligation secured by the mortgage; and
(B) the secured party is entitled to enforce the
(c) Commercially reasonable collection and enforcement. A
secured party shall proceed in a commercially reasonable manner if the secured
(1) undertakes to collect from or enforce an
obligation of an account debtor or other person obligated on collateral; and
(2) is entitled to charge back uncollected collateral
or otherwise to full or limited recourse against the debtor or a secondary obligor.
(d) Expenses of collection and enforcement. A secured party may
deduct from the collections made pursuant to subsection (c) reasonable expenses of
collection and enforcement, including reasonable attorney's fees and legal
incurred by the secured party.
(e) Duties to secured party not affected. This Section does not
determine whether an account debtor, bank, or other person obligated on
owes a duty to a secured party.
(Source: P.A. 97-1034, eff. 7-1-13