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SubPart 2 - Applicability Of Article

      (810 ILCS 5/Art. 9 Pt. 1 Sub. 2 heading)SUBPART 2. APPLICABILITY OF ARTICLE

(810 ILCS 5/9‑109) (from Ch. 26, par. 9‑109)     Sec. 9‑109. Scope.     (a) General scope of Article. Except as otherwise provided in subsections (c) and (d), this Article applies to:         (1) a transaction, regardless of its form, that

creates a security interest in personal property or fixtures by contract;

(2) an agricultural lien;         (3) a sale of accounts, chattel paper, payment

intangibles, or promissory notes;

(4) a consignment;         (5) a security interest arising under Section 2‑401,

2‑505, 2‑711(3), or 2A‑508(5), as provided in Section 9‑110; and

(6) a security interest arising under Section 4‑210

or 5‑118.

(b) Security interest in secured obligation. The application of this Article to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which this Article does not apply.     (c) Extent to which Article does not apply. This Article does not apply to the extent that:         (1) a statute, regulation, or treaty of the United

States preempts this Article;

(2) another statute of this State expressly governs

the creation, perfection, priority, or enforcement of a security interest created by this State or a governmental unit of this State;

(3) a statute of another State, a foreign country,

or a governmental unit of another State or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority, or enforcement of a security interest created by the State, country, or governmental unit;

(4) the rights of a transferee beneficiary or

nominated person under a letter of credit are independent and superior under Section 5‑114;

(5) this Article is in conflict with Section 205‑410

of the Department of Agriculture Law of the Civil Administrative Code of Illinois or the Grain Code; or

(6) this Article is in conflict with Section 18‑107

of the Public Utilities Act.

(d) Inapplicability of Article. This Article does not apply to:         (1) a landlord's lien;         (2) a lien, other than an agricultural lien, given

by statute or other rule of law for services or materials, but Section 9‑333 applies with respect to priority of the lien;

(3) an assignment of a claim for wages, salary, or

other compensation of an employee;

(4) a sale of accounts, chattel paper, payment

intangibles, or promissory notes as part of a sale of the business out of which they arose;

(5) an assignment of accounts, chattel paper,

payment intangibles, or promissory notes which is for the purpose of collection only;

(6) an assignment of a right to payment under a

contract to an assignee that is also obligated to perform under the contract;

(7) an assignment of a single account, payment

intangible, or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness;

(8) a transfer of an interest in or an assignment

of a claim under a policy of insurance, other than an assignment by or to a health‑care provider of a health‑care‑insurance receivable and any subsequent assignment of the right to payment, but Sections 9‑315 and 9‑322 apply with respect to proceeds and priorities in proceeds;

(9) an assignment of a right represented by a

judgment, other than a judgment taken on a right to payment that was collateral;

(10) a right of recoupment or set‑off, but:             (A) Section 9‑340 applies with respect to the

effectiveness of rights of recoupment or set‑off against deposit accounts; and

(B) Section 9‑404 applies with respect to

defenses or claims of an account debtor;

(11) the creation or transfer of an interest in or

lien on real property, including a lease or rents thereunder, except to the extent that provision is made for:

(A) liens on real property in Sections 9‑203 and

9‑308;

(B) fixtures in Section 9‑334;             (C) fixture filings in Sections 9‑501, 9‑502,

9‑512, 9‑516, and 9‑519; and

(D) security agreements covering personal and

real property in Section 9‑604;

(12) an assignment of a claim arising in tort, other

than a commercial tort claim, but Sections 9‑315 and 9‑322 apply with respect to proceeds and priorities in proceeds;

(13) a transfer by a government or governmental

subdivision or agency;

(14) a claim or a right to receive compensation for

injuries or sickness as described in Section 104(a)(1) or (2) of Title 26 of the United States Code, as amended from time to time; or

(15) a claim or right to receive benefits under a

special needs trust as described in Section 1396p(d)(4) of Title 42 of the United States Code, as amended from time to time.

(Source: P.A. 91‑893, eff. 7‑1‑01; 92‑819, eff. 8‑21‑02.)

(810 ILCS 5/9‑110) (from Ch. 26, par. 9‑110)     Sec. 9‑110. Security interests arising under Article 2 or 2A. A security interest arising under Section 2‑401, 2‑505, 2‑711(3), or 2A‑508(5) is subject to this Article. However, until the debtor obtains possession of the goods:         (1) the security interest is enforceable, even if

Section 9‑203(b)(3) has not been satisfied;

(2) filing is not required to perfect the security

interest;

(3) the rights of the secured party after default by

the debtor are governed by Article 2 or 2A; and

(4) the security interest has priority over a

conflicting security interest created by the debtor.

(Source: P.A. 91‑893, eff. 7‑1‑01.)

(810 ILCS 5/9‑112) (from Ch. 26, par. 9‑112)     Sec. 9‑112. (Blank). (Source: P.A. 91‑893, eff. 7‑1‑01.)

(810 ILCS 5/9‑113) (from Ch. 26, par. 9‑113)     Sec. 9‑113. (Blank). (Source: P.A. 91‑893, eff. 7‑1‑01.)

(810 ILCS 5/9‑114) (from Ch. 26, par. 9‑114)     Sec. 9‑114. (Blank). (Source: P.A. 91‑893, eff. 7‑1‑01.)

(810 ILCS 5/9‑115) (from Ch. 26, par. 9‑115)     Sec. 9‑115. (Blank). (Source: P.A. 91‑893, eff. 7‑1‑01.)

(810 ILCS 5/9‑116)     Sec. 9‑116. (Blank). (Source: P.A. 91‑893, eff. 7‑1‑01.)

(810 ILCS 5/9‑150)     Sec. 9‑150. (Blank). (Source: P.A. 91‑893, eff. 7‑1‑01.)