State of Illinois
92nd General Assembly
Legislation

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92_SB0978eng

 
SB978 Engrossed                                LRB9205797WHcs

 1        AN ACT concerning business transactions.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The  Uniform  Commercial  Code is amended by
 5    changing Sections 9-301, 9-310, 9-312, 9-314, and  9-322  and
 6    adding Sections 9-107.1, 9-306.1, and 9-329.1 as follows:

 7        (810 ILCS 5/9-107.1 new)
 8        Sec. 9-107.1.  Control of Beneficial Interest in Illinois
 9    Land Trust.
10        (a)  Requirements   for  Control.  A  secured  party  has
11    control of the beneficial interest in an Illinois land  trust
12    if:
13             (1)  the secured party shall have transmitted to the
14        trustee  for  the  trust  a  record  authenticated by the
15        debtor that  contains  a  collateral  assignment  by  the
16        debtor  of,  or  the  grant  of a security interest in, a
17        beneficial interest in the trust; and
18             (2)   in an authenticated record,  the  trustee  for
19        the  trust  has  accepted  the  collateral  assignment or
20        security agreement.
21        (b)  Debtor's right to direct disposition and proceeds. A
22    secured party that has  satisfied subsection (a) has control,
23    even  if  the  debtor  retains,  subject  to  the  terms  and
24    conditions  of  the   collateral   assignment   or   security
25    agreement,  the  power  of  direction  of the trustee and the
26    right to receive the rents, income and profits thereof.

27        (810 ILCS 5/9-301) (from Ch. 26, par. 9-301)
28        (Text of Section before amendment by P.A. 91-893)
29        Sec. 9-301. Persons Who Take  Priority  Over  Unperfected
30    Security Interests; Rights of "Lien Creditor".
 
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 1        (1)  Except  as  otherwise provided in subsection (2), an
 2    unperfected security interest is subordinate to the rights of
 3             (a)  persons  entitled  to  priority  under  Section
 4        9-312;
 5             (b)  a person who becomes a lien creditor before the
 6        security interest is perfected;
 7             (c)  in the case of goods,  instruments,  documents,
 8        and  chattel  paper,  a person who is not a secured party
 9        and who is a transferee in bulk or  other  buyer  not  in
10        ordinary  course  of  business  or  is  a  buyer  of farm
11        products in ordinary course of business,  to  the  extent
12        that   he  gives  value  and  receives  delivery  of  the
13        collateral without knowledge of the security interest and
14        before it is perfected;
15             (d)  in the case of accounts,  general  intangibles,
16        and  investment  property,  a person who is not a secured
17        party and who is a transferee to the extent that he gives
18        value without knowledge  of  the  security  interest  and
19        before it is perfected;
20    provided,  however,  that  an  unperfected  security interest
21    shall take priority over the rights of a lien creditor if (i)
22    the lien creditor is a trustee or  receiver  of  a  state  or
23    federally   chartered   financial   institution   acting   in
24    furtherance  of its supervisory  authority over the financial
25    institution and (ii) a security interest is  granted  by  the
26    financial  institution  to  secure  a deposit of public funds
27    with the financial institution or a repurchase agreement with
28    the  financial  institution  pursuant   to   the   Government
29    Securities Act of 1986, as amended.
30        (2)  If  the  secured  party  files  with  respect  to  a
31    purchase  money  security  interest  before or within 20 days
32    after the debtor receives possession of  the  collateral,  he
33    takes  priority over the rights of a transferee in bulk or of
34    a lien creditor which arise between  the  time  the  security
 
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 1    interest attaches and the time of filing.
 2        (3)  A  "lien creditor" means a creditor who has acquired
 3    a lien on the property involved by attachment,  levy  or  the
 4    like  and  includes an assignee for benefit of creditors from
 5    the time of assignment, and a trustee in bankruptcy from  the
 6    date  of  the  filing of the petition or a receiver in equity
 7    from the time of appointment.
 8        (4)  A  person  who  becomes  a  lien  creditor  while  a
 9    security interest is perfected takes subject to the  security
10    interest  only  to  the  extent that it secures advances made
11    before  he  becomes  a  lien  creditor  or  within  45   days
12    thereafter  or made without knowledge of the lien or pursuant
13    to a commitment entered into without knowledge of the lien.
14    (Source: P.A. 89-364, eff. 1-1-96; 90-696, eff. 8-7-98.)

15        (Text of Section after amendment by P.A. 91-893)
16        Sec. 9-301. Law  governing  perfection  and  priority  of
17    security  interests. Except as otherwise provided in Sections
18    9-303 through 9-306.1 9-306, the  following  rules  determine
19    the  law  governing  perfection,  the effect of perfection or
20    nonperfection, and the priority of  a  security  interest  in
21    collateral:
22             (1)  Except  as  otherwise provided in this Section,
23        while a debtor is located in a  jurisdiction,  the  local
24        law  of  that jurisdiction governs perfection, the effect
25        of perfection or nonperfection, and  the  priority  of  a
26        security interest in collateral.
27             (2)  While  collateral is located in a jurisdiction,
28        the local law of that  jurisdiction  governs  perfection,
29        the  effect  of  perfection  or  nonperfection,  and  the
30        priority  of  a  possessory  security  interest  in  that
31        collateral.
32             (3)  Except  as otherwise provided in paragraph (4),
33        while negotiable documents, goods, instruments, money, or
34        tangible chattel paper is located in a jurisdiction,  the
 
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 1        local law of that jurisdiction governs:
 2                  (A)  perfection  of  a security interest in the
 3             goods by filing a fixture filing;
 4                  (B)  perfection  of  a  security  interest   in
 5             timber to be cut; and
 6                  (C)  the  effect of perfection or nonperfection
 7             and  the  priority  of  a   nonpossessory   security
 8             interest in the collateral.
 9             (4)  The  local law of the jurisdiction in which the
10        wellhead or minehead is located governs  perfection,  the
11        effect  of  perfection or nonperfection, and the priority
12        of a security interest in as-extracted collateral.
13    (Source: P.A. 90-696, eff. 8-7-98; 91-893, eff. 7-1-01.)

14        (810 ILCS 5/9-306.1 new)
15        Sec. 9-306.1.  Law Governing Perfection and  Priority  of
16    Collateral  Assignments  of  Beneficial Interests in Illinois
17    Land Trusts. The local law of the State of  Illinois  governs
18    perfection,  the  effect  of perfection or nonperfection, and
19    the priority of a collateral assignment of, or other security
20    interest in, a beneficial interest in an Illinois land trust.
21    This Section implements the important interest of this  State
22    in  matters  associated  with  the administration of Illinois
23    land trusts created for the principal purpose  of  owning  an
24    interest  in Illinois land and the regulation of restrictions
25    on the transfer of beneficial interests in, and of the  power
26    of appointments under, such trusts.

27        (810 ILCS 5/9-310) (from Ch. 26, par. 9-310)
28        (Text of Section before amendment by P.A. 91-893)
29        Sec.   9-310.   Priority  of  certain  liens  arising  by
30    operation of law.
31        When a person in the  ordinary  course  of  his  business
32    furnishes services or materials with respect to goods subject
 
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 1    to  a  security interest, a lien upon goods in the possession
 2    of such person given by statute  or  rule  of  law  for  such
 3    materials   or  services  takes  priority  over  a  perfected
 4    security interest  unless  the  lien  is  statutory  and  the
 5    statute expressly provides otherwise.
 6    (Source: Laws 1961, p. 2101.)

 7        (Text of Section after amendment by P.A. 91-893)
 8        Sec.  9-310.  When  filing  required  to perfect security
 9    interest  or  agricultural  lien;  security   interests   and
10    agricultural liens to which filing provisions do not apply.
11        (a)  General  rule:   perfection  by  filing.   Except as
12    otherwise provided in subsection (b) and Section 9-312(b),  a
13    financing  statement  must  be  filed to perfect all security
14    interests and agricultural  liens.
15        (b)  Exceptions:  filing not necessary.  The filing of  a
16    financing  statement  is  not necessary to perfect a security
17    interest:
18             (1)  that is perfected under Section 9-308(d),  (e),
19        (f), or (g);
20             (2)  that  is  perfected under Section 9-309 when it
21        attaches;
22             (3)  in property subject to a  statute,  regulation,
23        or treaty described in Section 9-311(a);
24             (4)  in  goods  in  possession  of a bailee which is
25        perfected under Section 9-312(d)(1) or (2);
26             (5)  in certificated securities,  documents,  goods,
27        or  instruments  which  is  perfected  without  filing or
28        possession under Section 9-312(e), (f), or (g);
29             (6)  in collateral in the secured party's possession
30        under Section 9-313;
31             (7)  in a certificated security which  is  perfected
32        by  delivery  of  the security certificate to the secured
33        party under Section 9-313;
34             (8)  in deposit accounts, electronic chattel  paper,
 
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 1        investment   property,  or  letter-of-credit  rights,  or
 2        beneficial interests in Illinois  land  trusts  which  is
 3        perfected by control under Section 9-314;
 4             (9)  in  proceeds  which  is perfected under Section
 5        9-315; or
 6             (10)  that is perfected under Section 9-316.
 7        (c)  Assignment of perfected  security  interest.   If  a
 8    secured  party  assigns  a  perfected  security  interest  or
 9    agricultural  lien,  a  filing  under  this  Article  is  not
10    required  to  continue  the  perfected status of the security
11    interest  against  creditors  of  and  transferees  from  the
12    original debtor.
13    (Source: P.A. 91-893, eff. 7-1-01.)

14        (810 ILCS 5/9-312) (from Ch. 26, par. 9-312)
15        (Text of Section before amendment by P.A. 91-893)
16        Sec.  9-312.  Priorities   Among   Conflicting   Security
17    Interests in the Same Collateral.
18        (1)  The  rules  of  priority stated in other Sections of
19    this Part and in the following  Sections  shall  govern  when
20    applicable:  Section  4-210  with  respect  to  the  security
21    interests  of  collecting  banks  in  items  being collected,
22    accompanying  documents  and  proceeds;  Section   9-103   on
23    security  interests  related  to other jurisdictions; Section
24    9-114 on consignments; Section 9-115 on security interests in
25    investment property.
26        (2)  A perfected security interest in crops for new value
27    given to enable the debtor to produce the  crops  during  the
28    production season and given not more than three months before
29    the crops become growing crops by planting or otherwise takes
30    priority  over  an earlier perfected security interest to the
31    extent that such earlier  interest  secures  obligations  due
32    more than six months before the crops become growing crops by
33    planting  or  otherwise,  even  though  the person giving new
 
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 1    value had knowledge of the earlier security interest.
 2        (3)  A perfected  purchase  money  security  interest  in
 3    inventory  has  priority over a conflicting security interest
 4    in the same inventory and also has priority  in  identifiable
 5    cash  proceeds  received  on  or  before  the delivery of the
 6    inventory to a buyer if
 7             (a)  the  purchase  money   security   interest   is
 8        perfected  at  the time the debtor receives possession of
 9        the inventory; and
10             (b)  the  purchase   money   secured   party   gives
11        notification  in writing to the holder of the conflicting
12        security interest if the holder  had  filed  a  financing
13        statement covering the same types of inventory (i) before
14        the date of the filing made by the purchase money secured
15        party,  or (ii) before the beginning of the 21 day period
16        where the purchase money security interest is temporarily
17        perfected without filing or possession (subsection (5) of
18        Section 9-304); and
19             (c)  the holder of the conflicting security interest
20        receives the  notification  within  5  years  before  the
21        debtor receives possession of the inventory; and
22             (d)  the  notification states that the person giving
23        the notice has or expects to  acquire  a  purchase  money
24        security  interest in inventory of the debtor, describing
25        such inventory by item or type.
26        (4)  A purchase money  security  interest  in  collateral
27    other than inventory has priority over a conflicting security
28    interest  in  the  same  collateral  or  its  proceeds if the
29    purchase money security interest is perfected at the time the
30    debtor receives possession of the  collateral  or  within  20
31    days thereafter.
32        (5)  In  all  cases not governed by other rules stated in
33    this Section (including  cases  of  purchase  money  security
34    interests which do not qualify for the special priorities set
 
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 1    forth  in  subsections (3) and (4) of this Section), priority
 2    between conflicting security interests in the same collateral
 3    shall be determined according to the following rules:
 4             (a)  Conflicting security interests  rank  according
 5        to  priority  in  time  of filing or perfection. Priority
 6        dates from the time a filing is first made  covering  the
 7        collateral  or  the  time  the security interest is first
 8        perfected, whichever is earlier, provided that  there  is
 9        no  period  thereafter  when  there is neither filing nor
10        perfection.
11             (b)  So long as conflicting security  interests  are
12        unperfected, the first to attach has priority.
13        (6)  For  the purposes of subsection (5) a date of filing
14    or perfection as to collateral is also a date  of  filing  or
15    perfection as to proceeds.
16        (7)  If   future  advances  are  made  while  a  security
17    interest is perfected by filing, the taking of possession  or
18    under  Section  9-115  or  9-116  on investment property, the
19    security interest has the same priority for the  purposes  of
20    subsection (5) with respect to the future advances as it does
21    with  respect  to  the first advance. If a commitment is made
22    before or while the security interest is  so  perfected,  the
23    security  interest  has  the  same  priority  with respect to
24    advances made pursuant thereto. In other  cases  a  perfected
25    security  interest  has priority from the date the advance is
26    made.
27    (Source: P.A. 89-364, eff. 1-1-96.)

28        (Text of Section after amendment by P.A. 91-893)
29        Sec. 9-312.  Perfection of security interests in  chattel
30    paper,   deposit   accounts,   documents,  goods  covered  by
31    documents, instruments, investment property, letter-of-credit
32    rights, and money; perfection by permissive filing; temporary
33    perfection without filing or transfer of possession.
34        (a)  Perfection by filing permitted.  A security interest
 
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 1    in  chattel   paper,   negotiable   documents,   instruments,
 2    beneficial  interests  in Illinois land trusts, or investment
 3    property may be perfected by filing.
 4        (b)  Control or possession of certain collateral.  Except
 5    as  otherwise  provided  in  Section  9-315(c)  and  (d)  for
 6    proceeds:
 7             (1)  a security interest in a deposit account may be
 8        perfected only by control under Section 9-314;
 9             (2)  and except as  otherwise  provided  in  Section
10        9-308(d), a security interest in a letter-of-credit right
11        may be perfected only by control under Section 9-314; and
12             (3)  a  security  interest in money may be perfected
13        only by  the  secured  party's  taking  possession  under
14        Section 9-313.
15        (c)  Goods  covered  by negotiable document.  While goods
16    are  in  the  possession  of  a  bailee  that  has  issued  a
17    negotiable document covering the goods:
18             (1)  a  security  interest  in  the  goods  may   be
19        perfected  by  perfecting  a  security  interest  in  the
20        document; and
21             (2)  a  security  interest perfected in the document
22        has priority over  any  security  interest  that  becomes
23        perfected  in  the  goods  by  another method during that
24        time.
25        (d)  Goods  covered  by  nonnegotiable  document.   While
26    goods are in the possession of a bailee  that  has  issued  a
27    nonnegotiable   document   covering  the  goods,  a  security
28    interest in the goods may be perfected by:
29             (1)  issuance of a  document  in  the  name  of  the
30        secured party;
31             (2)  the  bailee's  receipt  of  notification of the
32        secured party's interest; or
33             (3)  filing as to the goods.
34        (e)  Temporary  perfection:   new  value.    A   security
 
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 1    interest in certificated securities, negotiable documents, or
 2    instruments  is  perfected  without  filing  or the taking of
 3    possession for a period of 20 days from the time it  attaches
 4    to  the  extent  that  it arises for new value given under an
 5    authenticated security agreement.
 6        (f)  Temporary  perfection:   goods  or  documents   made
 7    available  to  debtor.   A  perfected  security interest in a
 8    negotiable document or goods in possession of a bailee, other
 9    than one that has issued a negotiable document for the goods,
10    remains perfected for 20 days without filing if  the  secured
11    party  makes  available  to the debtor the goods or documents
12    representing the goods for the purpose of:
13             (1)  ultimate sale or exchange; or
14             (2)  loading,    unloading,    storing,    shipping,
15        transshipping, manufacturing,  processing,  or  otherwise
16        dealing  with  them in a manner preliminary to their sale
17        or exchange.
18        (g)  Temporary   perfection:    delivery   of    security
19    certificate  or  instrument  to debtor.  A perfected security
20    interest in a certificated  security  or  instrument  remains
21    perfected  for  20  days  without filing if the secured party
22    delivers the security certificate or instrument to the debtor
23    for the purpose of:
24             (1)  ultimate sale or exchange; or
25             (2)  presentation, collection, enforcement, renewal,
26        or registration of transfer.
27        (h)  Expiration  of  temporary  perfection.   After   the
28    20-day  period  specified  in  subsection  (e),  (f),  or (g)
29    expires,  perfection  depends  upon  compliance   with   this
30    Article.
31    (Source: P.A. 91-893, eff. 7-1-01.)

32        (810 ILCS 5/9-314) (from Ch. 26, par. 9-314)
33        (Text of Section before amendment by P.A. 91-893)
 
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 1        Sec. 9-314. Accessions.
 2        (1)  A  security  interest in goods which attaches before
 3    they are  installed  in  or  affixed  to  other  goods  takes
 4    priority as to the goods installed or affixed (called in this
 5    section  "accessions")  over the claims of all persons to the
 6    whole except as stated  in  subsection  (3)  and  subject  to
 7    Section 9--315(1).
 8        (2)  A  security  interest  which attaches to goods after
 9    they become part of a whole  is  valid  against  all  persons
10    subsequently  acquiring  interests  in  the  whole  except as
11    stated in subsection (3) but is invalid  against  any  person
12    with  an  interest  in  the  whole  at  the time the security
13    interest attaches  to  the  goods  who  has  not  in  writing
14    consented  to the security interest or disclaimed an interest
15    in the goods as part of the whole.
16        (3)  The security interests described in subsections  (1)
17    and (2) do not take priority over
18             (a)  a   subsequent   purchaser  for  value  of  any
19    interest in the whole; or
20             (b)  a  creditor  with   a   lien   on   the   whole
21    subsequently obtained by judicial proceedings; or
22             (c)  a  creditor  with  a  prior  perfected security
23    interest in the whole to the extent that he makes  subsequent
24    advances  if   the  subsequent  purchase is made, the lien by
25    judicial proceedings obtained or the subsequent advance under
26    the prior perfected security interest is made  or  contracted
27    for  without knowledge of the security interest and before it
28    is perfected. A purchaser of the whole at a foreclosure  sale
29    other  than  the  holder  of  a  perfected  security interest
30    purchasing at  his  own  foreclosure  sale  is  a  subsequent
31    purchaser within this Section.
32        (4)  When  under subsections (1) or (2) and (3) a secured
33    party has an interest in accessions which has  priority  over
34    the claims of all persons who have interests in the whole, he
 
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 1    may on default subject to the provisions of Part 5 remove his
 2    collateral   from   the  whole  but  he  must  reimburse  any
 3    encumbrancer or owner of the whole who is not the debtor  and
 4    who  has  not  otherwise agreed for the cost of repair of any
 5    physical injury but not for any diminution in  value  of  the
 6    whole  caused  by  the absence of the goods removed or by any
 7    necessity  for  replacing  them.   A   person   entitled   to
 8    reimbursement  may  refuse  permission  to  remove  until the
 9    secured party gives adequate security for the performance  of
10    this obligation.
11    (Source: Laws 1961, p. 2101.)

12        (Text of Section after amendment by P.A. 91-893)
13        Sec. 9-314. Perfection by control.
14        (a)  Perfection  by  control.   A  security  interest  in
15    investment  property,  deposit  accounts,  electronic chattel
16    paper, letter-of-credit rights, or  beneficial  interests  in
17    Illinois   land   trusts  electronic  chattel  paper  may  be
18    perfected by control of the collateral under  Section  9-104,
19    9-105, 9-106, or 9-107, or 9-107.1.
20        (b)  Specified   collateral:    time   of  perfection  by
21    control; continuation of perfection.  A security interest  in
22    deposit    accounts,    electronic    chattel    paper,    or
23    letter-of-credit  rights, or beneficial interests in Illinois
24    land trusts is perfected  by  control  under  Section  9-104,
25    9-105,  or  9-107,  or 9-107.1 when the secured party obtains
26    control and remains  perfected  by  control  only  while  the
27    secured party retains control.
28        (c)  Investment property:  time of perfection by control;
29    continuation   of   perfection.    A   security  interest  in
30    investment property is perfected  by  control  under  Section
31    9-106  from  the  time  the secured party obtains control and
32    remains perfected by control until:
33             (1)  the secured party does not have control; and
34             (2)  one of the following occurs:
 
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 1                  (A)  if  the  collateral  is   a   certificated
 2             security,  the  debtor has or acquires possession of
 3             the security certificate;
 4                  (B)  if the  collateral  is  an  uncertificated
 5             security, the issuer has registered or registers the
 6             debtor as the registered owner; or
 7                  (C)  if    the   collateral   is   a   security
 8             entitlement,  the   debtor   is   or   becomes   the
 9             entitlement holder.
10    (Source: P.A. 91-893, eff. 7-1-01.)

11        (810 ILCS 5/9-322)
12        (This  Section  may contain text from a Public Act with a
13    delayed effective date)
14        Sec.  9-322.   Priorities  among   conflicting   security
15    interests in and agricultural liens on same collateral.
16        (a)  General   priority   rules.    Except  as  otherwise
17    provided in this Section, priority among conflicting security
18    interests and agricultural liens in the  same  collateral  is
19    determined according to the following rules:
20             (1)  Conflicting  perfected  security  interests and
21        agricultural liens rank according to priority in time  of
22        filing or perfection.  Priority dates from the earlier of
23        the  time  a filing covering the collateral is first made
24        or the security interest or agricultural  lien  is  first
25        perfected, if there is no period thereafter when there is
26        neither filing nor perfection.
27             (2)  A  perfected  security interest or agricultural
28        lien has priority over a conflicting unperfected security
29        interest or agricultural lien.
30             (3)  The first  security  interest  or  agricultural
31        lien  to  attach  or  become  effective  has  priority if
32        conflicting security interests and agricultural liens are
33        unperfected.
 
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 1        (b)  Time  of  perfection:    proceeds   and   supporting
 2    obligations. For the purposes of subsection (a)(1):
 3             (1)  the  time  of  filing  or  perfection  as  to a
 4        security interest in  collateral  is  also  the  time  of
 5        filing  or  perfection  as  to  a  security  interest  in
 6        proceeds; and
 7             (2)  the  time  of  filing  or  perfection  as  to a
 8        security interest in collateral supported by a supporting
 9        obligation is also the time of filing or perfection as to
10        a security interest in the supporting obligation.
11        (c)  Special priority  rules:   proceeds  and  supporting
12    obligations.  Except as otherwise provided in subsection (f),
13    a  security  interest  in  collateral  which  qualifies   for
14    priority  over  a conflicting security interest under Section
15    9-327, 9-328,  9-329,  9-329.1,  9-330,  or  9-331  also  has
16    priority over a conflicting security interest in:
17             (1)  any  supporting  obligation for the collateral;
18        and
19             (2)  proceeds of the collateral if:
20                  (A)  the  security  interest  in  proceeds   is
21             perfected;
22                  (B)  the  proceeds  are cash proceeds or of the
23             same type as the collateral; and
24                  (C)  in the case of proceeds that are  proceeds
25             of  proceeds,  all  intervening  proceeds  are  cash
26             proceeds,   proceeds   of   the  same  type  as  the
27             collateral,  or   an   account   relating   to   the
28             collateral.
29        (d)  First-to-file  priority rule for certain collateral.
30    Subject to subsection (e) and except as otherwise provided in
31    subsection (f), if a  security  interest  in  chattel  paper,
32    deposit    accounts,   negotiable   documents,   instruments,
33    investment   property,   or   letter-of-credit   rights,   or
34    beneficial interests in Illinois land trusts is perfected  by
 
SB978 Engrossed             -15-               LRB9205797WHcs
 1    a  method  other  than filing, conflicting perfected security
 2    interests in proceeds of the  collateral  rank  according  to
 3    priority in time of filing.
 4        (e)  Applicability  of  subsection  (d).   Subsection (d)
 5    applies only if the proceeds of the collateral are  not  cash
 6    proceeds,  chattel  paper, negotiable documents, instruments,
 7    investment property, beneficial interests  in  Illinois  land
 8    trusts, or letter-of-credit rights.
 9        (f)  Limitations   on   subsections   (a)   through  (e).
10    Subsections (a) through (e) are subject to:
11             (1)  subsection (g) and the other provisions of this
12        Part;
13             (2)  Section  4-210  with  respect  to  a   security
14        interest of a collecting bank;
15             (3)  Section   5-118  with  respect  to  a  security
16        interest of an issuer or nominated person; and
17             (4)  Section  9-110  with  respect  to  a   security
18        interest arising under Article 2 or 2A.
19        (g)  Priority   under   agricultural   lien  statute.   A
20    perfected agricultural lien on collateral has priority over a
21    conflicting security interest in or agricultural lien on  the
22    same collateral if the statute creating the agricultural lien
23    so provides.
24    (Source: P.A. 91-893, eff. 7-1-01.)

25        (810 ILCS 5/9-329.1 new)
26        Sec.   9-329.1.  Priority   of   Security   Interests  in
27    Beneficial  Interest in an Illinois Land Trust. The following
28    rules govern priority among conflicting security interests in
29    the same beneficial interest in an Illinois land trust:
30             (1)  A security interest held  by  a  secured  party
31        having  control  of the beneficial interest under Section
32        9-107.1 has priority to the extent of its control over  a
33        conflicting  security  interest  held  by a secured party
 
SB978 Engrossed             -16-               LRB9205797WHcs
 1        that does not have control.
 2             (2)  Security interests perfected by  control  under
 3        Section  9-314  rank  according  to  priority  in time of
 4        obtaining control.

 5        Section 95.  No acceleration or delay.   Where  this  Act
 6    makes changes in a statute that is represented in this Act by
 7    text  that  is not yet or no longer in effect (for example, a
 8    Section represented by multiple versions), the  use  of  that
 9    text  does  not  accelerate or delay the taking effect of (i)
10    the changes made by this Act or (ii) provisions derived  from
11    any other Public Act.

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