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92_SB1721 LRB9211690SMdv 1 AN ACT concerning liens. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Code of Civil Procedure is amended by 5 changing Section 9-316 as follows: 6 (735 ILCS 5/9-316) (from Ch. 110, par. 9-316) 7 Sec. 9-316. Lien upon crops. Every landlord shall have a 8 lien upon the crops grown or growing upon the demised 9 premises for the rent thereof, whether the same is payable 10 wholly or in part in money or specific articles of property 11 or products of the premises, or labor, and also for the 12 faithful performance of the terms of the lease. Such lien 13 shall continue for the period of 6 months after the 14 expiration of the term for which the premises are demised, 15 and may be enforced by distraint as provided in Part 3 of 16 Article IX of this Act. 17 A good faith purchaser shall, however, take such crops 18 free of any landlord's lien unless, within 6 months prior to 19 the purchase, the landlord provides written notice of his 20 lien to the purchaser by registered or certified mail. Such 21 notice shall contain the names and addresses of the landlord 22 and tenant, and clearly identify the leased property. 23 A landlord may require that, prior to his tenant's 24 selling any crops grown on the demised premises, the tenant 25 disclose the name of the person to whom the tenant intends to 26 sell those crops. Where such a requirement has been imposed, 27 the tenant shall not sell the crops to any person other than 28 a person who has been disclosed to the landlord as a 29 potential buyer of the crops. 30 A lien arising under this Section
and duly perfected31 under Article 9 of the Uniform Commercial Codeshall have -2- LRB9211690SMdv 1 priority over any otheragricultural lien as defined in, and 2 over any security interest arising under, provisions of 3 Article 9 of the Uniform Commercial Code. 4 (Source: P.A. 91-893, eff. 7-1-01.) 5 Section 10. The Uniform Commercial Code is amended by 6 changing Sections 9-102 and 9-109 as follows: 7 (810 ILCS 5/9-102) (from Ch. 26, par. 9-102) 8 Sec. 9-102. Definitions and index of definitions. 9 (a) Article 9 definitions. In this Article: 10 (1) "Accession" means goods that are physically 11 united with other goods in such a manner that the 12 identity of the original goods is not lost. 13 (2) "Account", except as used in "account for", 14 means a right to payment of a monetary obligation, 15 whether or not earned by performance, (i) for property 16 that has been or is to be sold, leased, licensed, 17 assigned, or otherwise disposed of, (ii) for services 18 rendered or to be rendered, (iii) for a policy of 19 insurance issued or to be issued, (iv) for a secondary 20 obligation incurred or to be incurred, (v) for energy 21 provided or to be provided, (vi) for the use or hire of a 22 vessel under a charter or other contract, (vii) arising 23 out of the use of a credit or charge card or information 24 contained on or for use with the card, or (viii) as 25 winnings in a lottery or other game of chance operated or 26 sponsored by a State, governmental unit of a State, or 27 person licensed or authorized to operate the game by a 28 State or governmental unit of a State. The term includes 29 health-care-insurance receivables. The term does not 30 include (i) rights to payment evidenced by chattel paper 31 or an instrument, (ii) commercial tort claims, (iii) 32 deposit accounts, (iv) investment property, (v) -3- LRB9211690SMdv 1 letter-of-credit rights or letters of credit, or (vi) 2 rights to payment for money or funds advanced or sold, 3 other than rights arising out of the use of a credit or 4 charge card or information contained on or for use with 5 the card. 6 (3) "Account debtor" means a person obligated on an 7 account, chattel paper, or general intangible. The term 8 does not include persons obligated to pay a negotiable 9 instrument, even if the instrument constitutes part of 10 chattel paper. 11 (4) "Accounting", except as used in "accounting 12 for", means a record: 13 (A) authenticated by a secured party; 14 (B) indicating the aggregate unpaid secured 15 obligations as of a date not more than 35 days 16 earlier or 35 days later than the date of the 17 record; and 18 (C) identifying the components of the 19 obligations in reasonable detail. 20 (5) "Agricultural lien" means an interest, other 21 than a security interest, in farm products: 22 (A) which secures payment or performance of an 23 obligation for : (i)goods or services furnished in 24 connection with a debtor's farming operation ; or25 (ii) rent on real property leased by a debtor in26 connection with its farming operation; 27 (B) which is created by statute in favor of a 28 person that : (i)in the ordinary course of its 29 business furnished goods or services to a debtor in 30 connection with a debtor's farming operation ; or31 (ii) leased real property to a debtor in connection32 with the debtor's farming operation; and 33 (C) whose effectiveness does not depend on the 34 person's possession of the personal property. -4- LRB9211690SMdv 1 (6) "As-extracted collateral" means: 2 (A) oil, gas, or other minerals that are 3 subject to a security interest that: 4 (i) is created by a debtor having an 5 interest in the minerals before extraction; and 6 (ii) attaches to the minerals as 7 extracted; or 8 (B) accounts arising out of the sale at the 9 wellhead or minehead of oil, gas, or other minerals 10 in which the debtor had an interest before 11 extraction. 12 (7) "Authenticate" means: 13 (A) to sign; or 14 (B) to execute or otherwise adopt a symbol, or 15 encrypt or similarly process a record in whole or in 16 part, with the present intent of the authenticating 17 person to identify the person and adopt or accept a 18 record. 19 (8) "Bank" means an organization that is engaged in 20 the business of banking. The term includes savings 21 banks, savings and loan associations, credit unions, and 22 trust companies. 23 (9) "Cash proceeds" means proceeds that are money, 24 checks, deposit accounts, or the like. 25 (10) "Certificate of title" means a certificate of 26 title with respect to which a statute provides for the 27 security interest in question to be indicated on the 28 certificate as a condition or result of the security 29 interest's obtaining priority over the rights of a lien 30 creditor with respect to the collateral. 31 (11) "Chattel paper" means a record or records that 32 evidence both a monetary obligation and a security 33 interest in specific goods, a security interest in 34 specific goods and software used in the goods, a security -5- LRB9211690SMdv 1 interest in specific goods and license of software used 2 in the goods, a lease of specific goods, or a lease of 3 specified goods and a license of software used in the 4 goods. In this paragraph, "monetary obligation" means a 5 monetary obligation secured by the goods or owed under a 6 lease of the goods and includes a monetary obligation 7 with respect to software used in the goods. The term 8 does not include (i) charters or other contracts 9 involving the use or hire of a vessel or (ii) records 10 that evidence a right to payment arising out of the use 11 of a credit or charge card or information contained on or 12 for use with the card. If a transaction is evidenced by 13 records that include an instrument or series of 14 instruments, the group of records taken together 15 constitutes chattel paper. 16 (12) "Collateral" means the property subject to a 17 security interest or agricultural lien. The term 18 includes: 19 (A) proceeds to which a security interest 20 attaches; 21 (B) accounts, chattel paper, payment 22 intangibles, and promissory notes that have been 23 sold; and 24 (C) goods that are the subject of a 25 consignment. 26 (13) "Commercial tort claim" means a claim arising 27 in tort with respect to which: 28 (A) the claimant is an organization; or 29 (B) the claimant is an individual and the 30 claim: 31 (i) arose in the course of the claimant's 32 business or profession; and 33 (ii) does not include damages arising out 34 of personal injury to or the death of an -6- LRB9211690SMdv 1 individual. 2 (14) "Commodity account" means an account 3 maintained by a commodity intermediary in which a 4 commodity contract is carried for a commodity customer. 5 (15) "Commodity contract" means a commodity futures 6 contract, an option on a commodity futures contract, a 7 commodity option, or another contract if the contract or 8 option is: 9 (A) traded on or subject to the rules of a 10 board of trade that has been designated as a 11 contract market for such a contract pursuant to 12 federal commodities laws; or 13 (B) traded on a foreign commodity board of 14 trade, exchange, or market, and is carried on the 15 books of a commodity intermediary for a commodity 16 customer. 17 (16) "Commodity customer" means a person for which 18 a commodity intermediary carries a commodity contract on 19 its books. 20 (17) "Commodity intermediary" means a person that: 21 (A) is registered as a futures commission 22 merchant under federal commodities law; or 23 (B) in the ordinary course of its business 24 provides clearance or settlement services for a 25 board of trade that has been designated as a 26 contract market pursuant to federal commodities law. 27 (18) "Communicate" means: 28 (A) to send a written or other tangible 29 record; 30 (B) to transmit a record by any means agreed 31 upon by the persons sending and receiving the 32 record; or 33 (C) in the case of transmission of a record to 34 or by a filing office, to transmit a record by any -7- LRB9211690SMdv 1 means prescribed by filing-office rule. 2 (19) "Consignee" means a merchant to which goods 3 are delivered in a consignment. 4 (20) "Consignment" means a transaction, regardless 5 of its form, in which a person delivers goods to a 6 merchant for the purpose of sale and: 7 (A) the merchant: 8 (i) deals in goods of that kind under a 9 name other than the name of the person making 10 delivery; 11 (ii) is not an auctioneer; and 12 (iii) is not generally known by its 13 creditors to be substantially engaged in 14 selling the goods of others; 15 (B) with respect to each delivery, the 16 aggregate value of the goods is $1,000 or more at 17 the time of delivery; 18 (C) the goods are not consumer goods 19 immediately before delivery; and 20 (D) the transaction does not create a security 21 interest that secures an obligation. 22 (21) "Consignor" means a person that delivers goods 23 to a consignee in a consignment. 24 (22) "Consumer debtor" means a debtor in a consumer 25 transaction. 26 (23) "Consumer goods" means goods that are used or 27 bought for use primarily for personal, family, or 28 household purposes. 29 (24) "Consumer-goods transaction" means a consumer 30 transaction in which: 31 (A) an individual incurs an obligation 32 primarily for personal, family, or household 33 purposes; and 34 (B) a security interest in consumer goods -8- LRB9211690SMdv 1 secures the obligation. 2 (25) "Consumer obligor" means an obligor who is an 3 individual and who incurred the obligation as part of a 4 transaction entered into primarily for personal, family, 5 or household purposes. 6 (26) "Consumer transaction" means a transaction in 7 which (i) an individual incurs an obligation primarily 8 for personal, family, or household purposes, (ii) a 9 security interest secures the obligation, and (iii) the 10 collateral is held or acquired primarily for personal, 11 family, or household purposes. The term includes 12 consumer-goods transactions. 13 (27) "Continuation statement" means an amendment of 14 a financing statement which: 15 (A) identifies, by its file number, the 16 initial financing statement to which it relates; and 17 (B) indicates that it is a continuation 18 statement for, or that it is filed to continue the 19 effectiveness of, the identified financing 20 statement. 21 (28) "Debtor" means: 22 (A) a person having an interest, other than a 23 security interest or other lien, in the collateral, 24 whether or not the person is an obligor; 25 (B) a seller of accounts, chattel paper, 26 payment intangibles, or promissory notes; or 27 (C) a consignee. 28 (29) "Deposit account" means a demand, time, 29 savings, passbook, nonnegotiable certificates of deposit, 30 uncertificated certificates of deposit, nontransferrable 31 certificates of deposit, or similar account maintained 32 with a bank. The term does not include investment 33 property or accounts evidenced by an instrument. 34 (30) "Document" means a document of title or a -9- LRB9211690SMdv 1 receipt of the type described in Section 7-201(2). 2 (31) "Electronic chattel paper" means chattel paper 3 evidenced by a record or records consisting of 4 information stored in an electronic medium. 5 (32) "Encumbrance" means a right, other than an 6 ownership interest, in real property. The term includes 7 mortgages and other liens on real property. 8 (33) "Equipment" means goods other than inventory, 9 farm products, or consumer goods. 10 (34) "Farm products" means goods, other than 11 standing timber, with respect to which the debtor is 12 engaged in a farming operation and which are: 13 (A) crops grown, growing, or to be grown, 14 including: 15 (i) crops produced on trees, vines, and 16 bushes; and 17 (ii) aquatic goods produced in 18 aquacultural operations; 19 (B) livestock, born or unborn, including 20 aquatic goods produced in aquacultural operations; 21 (C) supplies used or produced in a farming 22 operation; or 23 (D) products of crops or livestock in their 24 unmanufactured states. 25 (35) "Farming operation" means raising, 26 cultivating, propagating, fattening, grazing, or any 27 other farming, livestock, or aquacultural operation. 28 (36) "File number" means the number assigned to an 29 initial financing statement pursuant to Section 9-519(a). 30 (37) "Filing office" means an office designated in 31 Section 9-501 as the place to file a financing statement. 32 (38) "Filing-office rule" means a rule adopted 33 pursuant to Section 9-526. 34 (39) "Financing statement" means a record or -10- LRB9211690SMdv 1 records composed of an initial financing statement and 2 any filed record relating to the initial financing 3 statement. 4 (40) "Fixture filing" means the filing of a 5 financing statement covering goods that are or are to 6 become fixtures and satisfying Section 9-502(a) and (b). 7 The term includes the filing of a financing statement 8 covering goods of a transmitting utility which are or are 9 to become fixtures. 10 (41) "Fixtures" means goods that have become so 11 related to particular real property that an interest in 12 them arises under real property law. 13 (42) "General intangible" means any personal 14 property, including things in action, other than 15 accounts, chattel paper, commercial tort claims, deposit 16 accounts, documents, goods, instruments, investment 17 property, letter-of-credit rights, letters of credit, 18 money, and oil, gas, or other minerals before extraction. 19 The term includes payment intangibles and software. 20 (43) "Good faith" means honesty in fact and the 21 observance of reasonable commercial standards of fair 22 dealing. 23 (44) "Goods" means all things that are movable when 24 a security interest attaches. The term includes (i) 25 fixtures, (ii) standing timber that is to be cut and 26 removed under a conveyance or contract for sale, (iii) 27 the unborn young of animals, (iv) crops grown, growing, 28 or to be grown, even if the crops are produced on trees, 29 vines, or bushes, and (v) manufactured homes. The term 30 also includes a computer program embedded in goods and 31 any supporting information provided in connection with a 32 transaction relating to the program if (i) the program is 33 associated with the goods in such a manner that it 34 customarily is considered part of the goods, or (ii) by -11- LRB9211690SMdv 1 becoming the owner of the goods, a person acquires a 2 right to use the program in connection with the goods. 3 The term does not include a computer program embedded in 4 goods that consist solely of the medium in which the 5 program is embedded. The term also does not include 6 accounts, chattel paper, commercial tort claims, deposit 7 accounts, documents, general intangibles, instruments, 8 investment property, letter-of-credit rights, letters of 9 credit, money, or oil, gas, or other minerals before 10 extraction. 11 (45) "Governmental unit" means a subdivision, 12 agency, department, county, parish, municipality, or 13 other unit of the government of the United States, a 14 State, or a foreign country. The term includes an 15 organization having a separate corporate existence if the 16 organization is eligible to issue debt on which interest 17 is exempt from income taxation under the laws of the 18 United States. 19 (46) "Health-care-insurance receivable" means an 20 interest in or claim under a policy of insurance which is 21 a right to payment of a monetary obligation for 22 health-care goods or services provided. 23 (47) "Instrument" means a negotiable instrument or 24 any other writing that evidences a right to the payment 25 of a monetary obligation, is not itself a security 26 agreement or lease, and is of a type that in ordinary 27 course of business is transferred by delivery with any 28 necessary indorsement or assignment. The term does not 29 include (i) investment property, (ii) letters of credit, 30 (iii) nonnegotiable certificates of deposit, (iv) 31 uncertificated certificates of deposit, (v) 32 nontransferrable certificates of deposit, or (vi) 33 writings that evidence a right to payment arising out of 34 the use of a credit or charge card or information -12- LRB9211690SMdv 1 contained on or for use with the card. 2 (48) "Inventory" means goods, other than farm 3 products, which: 4 (A) are leased by a person as lessor; 5 (B) are held by a person for sale or lease or 6 to be furnished under a contract of service; 7 (C) are furnished by a person under a contract 8 of service; or 9 (D) consist of raw materials, work in process, 10 or materials used or consumed in a business. 11 (49) "Investment property" means a security, 12 whether certificated or uncertificated, security 13 entitlement, securities account, commodity contract, or 14 commodity account. 15 (50) "Jurisdiction of organization", with respect 16 to a registered organization, means the jurisdiction 17 under whose law the organization is organized. 18 (51) "Letter-of-credit right" means a right to 19 payment or performance under a letter of credit, whether 20 or not the beneficiary has demanded or is at the time 21 entitled to demand payment or performance. The term does 22 not include the right of a beneficiary to demand payment 23 or performance under a letter of credit. 24 (52) "Lien creditor" means: 25 (A) a creditor that has acquired a lien on the 26 property involved by attachment, levy, or the like; 27 (B) an assignee for benefit of creditors from 28 the time of assignment; 29 (C) a trustee in bankruptcy from the date of 30 the filing of the petition; or 31 (D) a receiver in equity from the time of 32 appointment. 33 (53) "Manufactured home" means a structure, 34 transportable in one or more sections, which, in the -13- LRB9211690SMdv 1 traveling mode, is eight body feet or more in width or 40 2 body feet or more in length, or, when erected on site, is 3 320 or more square feet, and which is built on a 4 permanent chassis and designed to be used as a dwelling 5 with or without a permanent foundation when connected to 6 the required utilities, and includes the plumbing, 7 heating, air-conditioning, and electrical systems 8 contained therein. The term includes any structure that 9 meets all of the requirements of this paragraph except 10 the size requirements and with respect to which the 11 manufacturer voluntarily files a certification required 12 by the United States Secretary of Housing and Urban 13 Development and complies with the standards established 14 under Title 42 of the United States Code. 15 (54) "Manufactured-home transaction" means a 16 secured transaction: 17 (A) that creates a purchase-money security 18 interest in a manufactured home, other than a 19 manufactured home held as inventory; or 20 (B) in which a manufactured home, other than a 21 manufactured home held as inventory, is the primary 22 collateral. 23 (55) "Mortgage" means a consensual interest in real 24 property, including fixtures, which secures payment or 25 performance of an obligation. 26 (56) "New debtor" means a person that becomes bound 27 as debtor under Section 9-203(d) by a security agreement 28 previously entered into by another person. 29 (57) "New value" means (i) money, (ii) money's 30 worth in property, services, or new credit, or (iii) 31 release by a transferee of an interest in property 32 previously transferred to the transferee. The term does 33 not include an obligation substituted for another 34 obligation. -14- LRB9211690SMdv 1 (58) "Noncash proceeds" means proceeds other than 2 cash proceeds. 3 (59) "Obligor" means a person that, with respect to 4 an obligation secured by a security interest in or an 5 agricultural lien on the collateral, (i) owes payment or 6 other performance of the obligation, (ii) has provided 7 property other than the collateral to secure payment or 8 other performance of the obligation, or (iii) is 9 otherwise accountable in whole or in part for payment or 10 other performance of the obligation. The term does not 11 include issuers or nominated persons under a letter of 12 credit. 13 (60) "Original debtor", except as used in Section 14 9-310(c), means a person that, as debtor, entered into a 15 security agreement to which a new debtor has become bound 16 under Section 9-203(d). 17 (61) "Payment intangible" means a general 18 intangible under which the account debtor's principal 19 obligation is a monetary obligation. 20 (62) "Person related to", with respect to an 21 individual, means: 22 (A) the spouse of the individual; 23 (B) a brother, brother-in-law, sister, or 24 sister-in-law of the individual; 25 (C) an ancestor or lineal descendant of the 26 individual or the individual's spouse; or 27 (D) any other relative, by blood or marriage, 28 of the individual or the individual's spouse who 29 shares the same home with the individual. 30 (63) "Person related to", with respect to an 31 organization, means: 32 (A) a person directly or indirectly 33 controlling, controlled by, or under common control 34 with the organization; -15- LRB9211690SMdv 1 (B) an officer or director of, or a person 2 performing similar functions with respect to, the 3 organization; 4 (C) an officer or director of, or a person 5 performing similar functions with respect to, a 6 person described in subparagraph (A); 7 (D) the spouse of an individual described in 8 subparagraph (A), (B), or (C); or 9 (E) an individual who is related by blood or 10 marriage to an individual described in subparagraph 11 (A), (B), (C), or (D) and shares the same home with 12 the individual. 13 (64) "Proceeds", except as used in Section 14 9-609(b), means the following property: 15 (A) whatever is acquired upon the sale, lease, 16 license, exchange, or other disposition of 17 collateral; 18 (B) whatever is collected on, or distributed 19 on account of, collateral; 20 (C) rights arising out of collateral; 21 (D) to the extent of the value of collateral, 22 claims arising out of the loss, nonconformity, or 23 interference with the use of, defects or 24 infringement of rights in, or damage to, the 25 collateral; or 26 (E) to the extent of the value of collateral 27 and to the extent payable to the debtor or the 28 secured party, insurance payable by reason of the 29 loss or nonconformity of, defects or infringement of 30 rights in, or damage to, the collateral. 31 (65) "Promissory note" means an instrument that 32 evidences a promise to pay a monetary obligation, does 33 not evidence an order to pay, and does not contain an 34 acknowledgment by a bank that the bank has received for -16- LRB9211690SMdv 1 deposit a sum of money or funds. 2 (66) "Proposal" means a record authenticated by a 3 secured party which includes the terms on which the 4 secured party is willing to accept collateral in full or 5 partial satisfaction of the obligation it secures 6 pursuant to Sections 9-620, 9-621, and 9-622. 7 (67) "Public-finance transaction" means a secured 8 transaction in connection with which: 9 (A) debt securities are issued; 10 (B) all or a portion of the securities issued 11 have an initial stated maturity of at least 20 12 years; and 13 (C) the debtor, obligor, secured party, 14 account debtor or other person obligated on 15 collateral, assignor or assignee of a secured 16 obligation, or assignor or assignee of a security 17 interest is a State or a governmental unit of a 18 State. 19 (68) "Pursuant to commitment", with respect to an 20 advance made or other value given by a secured party, 21 means pursuant to the secured party's obligation, whether 22 or not a subsequent event of default or other event not 23 within the secured party's control has relieved or may 24 relieve the secured party from its obligation. 25 (69) "Record", except as used in "for record", "of 26 record", "record or legal title", and "record owner", 27 means information that is inscribed on a tangible medium 28 or which is stored in an electronic or other medium and 29 is retrievable in perceivable form. 30 (70) "Registered organization" means an 31 organization organized solely under the law of a single 32 State or the United States and as to which the State or 33 the United States must maintain a public record showing 34 the organization to have been organized. -17- LRB9211690SMdv 1 (71) "Secondary obligor" means an obligor to the 2 extent that: 3 (A) the obligor's obligation is secondary; or 4 (B) the obligor has a right of recourse with 5 respect to an obligation secured by collateral 6 against the debtor, another obligor, or property of 7 either. 8 (72) "Secured party" means: 9 (A) a person in whose favor a security 10 interest is created or provided for under a security 11 agreement, whether or not any obligation to be 12 secured is outstanding; 13 (B) a person that holds an agricultural lien; 14 (C) a consignor; 15 (D) a person to which accounts, chattel paper, 16 payment intangibles, or promissory notes have been 17 sold; 18 (E) a trustee, indenture trustee, agent, 19 collateral agent, or other representative in whose 20 favor a security interest or agricultural lien is 21 created or provided for; or 22 (F) a person that holds a security interest 23 arising under Section 2-401, 2-505, 2-711(3), 24 2A-508(5), 4-210, or 5-118. 25 (73) "Security agreement" means an agreement that 26 creates or provides for a security interest. 27 (74) "Send", in connection with a record or 28 notification, means: 29 (A) to deposit in the mail, deliver for 30 transmission, or transmit by any other usual means 31 of communication, with postage or cost of 32 transmission provided for, addressed to any address 33 reasonable under the circumstances; or 34 (B) to cause the record or notification to be -18- LRB9211690SMdv 1 received within the time that it would have been 2 received if properly sent under subparagraph (A). 3 (75) "Software" means a computer program and any 4 supporting information provided in connection with a 5 transaction relating to the program. The term does not 6 include a computer program that is included in the 7 definition of goods. 8 (76) "State" means a State of the United States, 9 the District of Columbia, Puerto Rico, the United States 10 Virgin Islands, or any territory or insular possession 11 subject to the jurisdiction of the United States. 12 (77) "Supporting obligation" means a 13 letter-of-credit right or secondary obligation that 14 supports the payment or performance of an account, 15 chattel paper, a document, a general intangible, an 16 instrument, or investment property. 17 (78) "Tangible chattel paper" means chattel paper 18 evidenced by a record or records consisting of 19 information that is inscribed on a tangible medium. 20 (79) "Termination statement" means an amendment of 21 a financing statement which: 22 (A) identifies, by its file number, the 23 initial financing statement to which it relates; and 24 (B) indicates either that it is a termination 25 statement or that the identified financing statement 26 is no longer effective. 27 (80) "Transmitting utility" means a person 28 primarily engaged in the business of: 29 (A) operating a railroad, subway, street 30 railway, or trolley bus; 31 (B) transmitting communications electrically, 32 electromagnetically, or by light; 33 (C) transmitting goods by pipeline or sewer; 34 or -19- LRB9211690SMdv 1 (D) transmitting or producing and transmitting 2 electricity, steam, gas, or water. 3 (b) Definitions in other Articles. The following 4 definitions in other Articles apply to this Article: 5 "Applicant". Section 5-102. 6 "Beneficiary". Section 5-102. 7 "Broker". Section 8-102. 8 "Certificated security". Section 8-102. 9 "Check". Section 3-104. 10 "Clearing corporation". Section 8-102. 11 "Contract for sale". Section 2-106. 12 "Customer". Section 4-104. 13 "Entitlement holder". Section 8-102. 14 "Financial asset". Section 8-102. 15 "Holder in due course". Section 3-302. 16 "Issuer" (with respect to a letter of credit or 17 letter-of-credit right). Section 5-102. 18 "Issuer" (with respect to a security). Section 8-201. 19 "Lease". Section 2A-103. 20 "Lease agreement". Section 2A-103. 21 "Lease contract". Section 2A-103. 22 "Leasehold interest". Section 2A-103. 23 "Lessee". Section 2A-103. 24 "Lessee in ordinary course of business". Section 2A-103. 25 "Lessor". Section 2A-103. 26 "Lessor's residual interest". Section 2A-103. 27 "Letter of credit". Section 5-102. 28 "Merchant". Section 2-104. 29 "Negotiable instrument". Section 3-104. 30 "Nominated person". Section 5-102. 31 "Note". Section 3-104. 32 "Proceeds of a letter of credit". Section 5-114. 33 "Prove". Section 3-103. 34 "Sale". Section 2-106. -20- LRB9211690SMdv 1 "Securities account". Section 8-501. 2 "Securities intermediary". Section 8-102. 3 "Security". Section 8-102. 4 "Security certificate". Section 8-102. 5 "Security entitlement". Section 8-102. 6 "Uncertificated security". Section 8-102. 7 (c) Article 1 definitions and principles. Article 1 8 contains general definitions and principles of construction 9 and interpretation applicable throughout this Article. 10 (Source: P.A. 91-893, eff. 7-1-01.) 11 (810 ILCS 5/9-109) (from Ch. 26, par. 9-109) 12 Sec. 9-109. Scope. 13 (a) General scope of Article. Except as otherwise 14 provided in subsections (c) and (d), this Article applies to: 15 (1) a transaction, regardless of its form, that 16 creates a security interest in personal property or 17 fixtures by contract; 18 (2) an agricultural lien; 19 (3) a sale of accounts, chattel paper, payment 20 intangibles, or promissory notes; 21 (4) a consignment; 22 (5) a security interest arising under Section 23 2-401, 2-505, 2-711(3), or 2A-508(5), as provided in 24 Section 9-110; and 25 (6) a security interest arising under Section 4-210 26 or 5-118. 27 (b) Security interest in secured obligation. The 28 application of this Article to a security interest in a 29 secured obligation is not affected by the fact that the 30 obligation is itself secured by a transaction or interest to 31 which this Article does not apply. 32 (c) Extent to which Article does not apply. This 33 Article does not apply to the extent that: -21- LRB9211690SMdv 1 (1) a statute, regulation, or treaty of the United 2 States preempts this Article; 3 (2) another statute of this State expressly governs 4 the creation, perfection, priority, or enforcement of a 5 security interest created by this State or a governmental 6 unit of this State; 7 (3) a statute of another State, a foreign country, 8 or a governmental unit of another State or a foreign 9 country, other than a statute generally applicable to 10 security interests, expressly governs creation, 11 perfection, priority, or enforcement of a security 12 interest created by the State, country, or governmental 13 unit; 14 (4) the rights of a transferee beneficiary or 15 nominated person under a letter of credit are independent 16 and superior under Section 5-114; 17 (5) this Article is in conflict with Section 18 205-410 of the Department of Agriculture Law of the Civil 19 Administrative Code of Illinois or the Grain Code; or 20 (6) this Article is in conflict with Section 18-107 21 of the Public Utilities Act. 22 (d) Inapplicability of Article. This Article does not 23 apply to: 24 (1) a landlord's lien , other than an agricultural25 lien; 26 (2) a lien, other than an agricultural lien, given 27 by statute or other rule of law for services or 28 materials, but Section 9-333 applies with respect to 29 priority of the lien; 30 (3) an assignment of a claim for wages, salary, or 31 other compensation of an employee; 32 (4) a sale of accounts, chattel paper, payment 33 intangibles, or promissory notes as part of a sale of the 34 business out of which they arose; -22- LRB9211690SMdv 1 (5) an assignment of accounts, chattel paper, 2 payment intangibles, or promissory notes which is for the 3 purpose of collection only; 4 (6) an assignment of a right to payment under a 5 contract to an assignee that is also obligated to perform 6 under the contract; 7 (7) an assignment of a single account, payment 8 intangible, or promissory note to an assignee in full or 9 partial satisfaction of a preexisting indebtedness; 10 (8) a transfer of an interest in or an assignment 11 of a claim under a policy of insurance, other than an 12 assignment by or to a health-care provider of a 13 health-care-insurance receivable and any subsequent 14 assignment of the right to payment, but Sections 9-315 15 and 9-322 apply with respect to proceeds and priorities 16 in proceeds; 17 (9) an assignment of a right represented by a 18 judgment, other than a judgment taken on a right to 19 payment that was collateral; 20 (10) a right of recoupment or set-off, but: 21 (A) Section 9-340 applies with respect to the 22 effectiveness of rights of recoupment or set-off 23 against deposit accounts; and 24 (B) Section 9-404 applies with respect to 25 defenses or claims of an account debtor; 26 (11) the creation or transfer of an interest in or 27 lien on real property, including a lease or rents 28 thereunder, except to the extent that provision is made 29 for: 30 (A) liens on real property in Sections 9-203 31 and 9-308; 32 (B) fixtures in Section 9-334; 33 (C) fixture filings in Sections 9-501, 9-502, 34 9-512, 9-516, and 9-519; and -23- LRB9211690SMdv 1 (D) security agreements covering personal and 2 real property in Section 9-604; 3 (12) an assignment of a claim arising in tort, 4 other than a commercial tort claim, but Sections 9-315 5 and 9-322 apply with respect to proceeds and priorities 6 in proceeds; 7 (13) a transfer by a government or governmental 8 subdivision or agency; 9 (14) a claim or a right to receive compensation for 10 injuries or sickness as described in Section 104(a)(1) or 11 (2) of Title 26 of the United States Code, as amended 12 from time to time; or 13 (15) a claim or right to receive benefits under a 14 special needs trust as described in Section 1396p(d)(4) 15 of Title 42 of the United States Code, as amended from 16 time to time. 17 (Source: P.A. 91-893, eff. 7-1-01.) 18 Section 99. Effective date. This Act takes effect upon 19 becoming law.
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