Statutes > Illinois Statutes > CHAPTER 810 COMMERCIAL CODE > 810 ILCS 5/ Uniform Commercial Code. > SubPart 1 - Filing Office Contents And Effectiveness Of Financing Statement

SubPart 1 - Filing Office Contents And Effectiveness Of Financing Statement


      (810 ILCS 5/Art. 9 Pt. 5 Sub. 1 heading)
SUBPART 1. FILING OFFICE; CONTENTS AND
EFFECTIVENESS OF FINANCING STATEMENT

    (810 ILCS 5/9‑501) (from Ch. 26, par. 9‑501)
    Sec. 9‑501. Filing office.
    (a) Filing offices. Except as otherwise provided in subsection (b), if the local law of this State governs perfection of a security interest or agricultural lien, the office in which to file a financing statement to perfect the security interest or agricultural lien is:
        (1) the office designated for the filing or
     recording of a record of a mortgage on the related real property, if:
            (A) the collateral is as‑extracted collateral or
         timber to be cut; or
            (B) the financing statement is filed as a
         fixture filing and the collateral is goods that are or are to become fixtures; or
        (2) the office of the Secretary of State in all
     other cases, including a case in which the collateral is goods that are or are to become fixtures and the financing statement is not filed as a fixture filing.
    (b) Filing office for transmitting utilities. The office in which to file a financing statement to perfect a security interest in collateral, including fixtures, of a transmitting utility is the office of the Secretary of State. The financing statement also constitutes a fixture filing as to the collateral indicated in the financing statement which is or is to become fixtures.
(Source: P.A. 91‑357, eff. 7‑29‑99; 91‑893, eff. 7‑1‑01.)

    (810 ILCS 5/9‑502) (from Ch. 26, par. 9‑502)
    Sec. 9‑502. Contents of financing statement; record of mortgage as financing statement; time of filing financing statement.
    (a) Sufficiency of financing statement. Subject to subsection (b), a financing statement is sufficient only if it:
        (1) provides the name of the debtor;
        (2) provides the name of the secured party or a
     representative of the secured party; and
        (3) indicates the collateral covered by the
     financing statement.
    (b) Real‑property‑related financing statements. Except as otherwise provided in Section 9‑501(b), to be sufficient, a financing statement that covers as‑extracted collateral or timber to be cut, or which is filed as a fixture filing and covers goods that are or are to become fixtures, must satisfy subsection (a) and also:
        (1) indicate that it covers this type of collateral;
        (2) indicate that it is to be filed in the real
     property records;
        (3) provide a description of the real property to
     which the collateral is related sufficient to give constructive notice of a mortgage under the law of this State if the description were contained in a record of the mortgage of the real property; and
        (4) if the debtor does not have an interest of
     record in the real property, provide the name of a record owner.
    (c) Record of mortgage as financing statement. A record of a mortgage is effective, from the date of recording, as a financing statement filed as a fixture filing or as a financing statement covering as‑extracted collateral or timber to be cut only if:
        (1) the record indicates the goods or accounts that
     it covers;
        (2) the goods are or are to become fixtures related
     to the real property described in the record or the collateral is related to the real property described in the record and is as‑extracted collateral or timber to be cut;
        (3) the record satisfies the requirements for a
     financing statement in this Section other than an indication that it is to be filed in the real property records; and
        (4) the record is recorded.
    (d) Filing before security agreement or attachment. A financing statement may be filed before a security agreement is made or a security interest otherwise attaches.
(Source: P.A. 91‑893, eff. 7‑1‑01.)

    (810 ILCS 5/9‑503) (from Ch. 26, par. 9‑503)
    Sec. 9‑503. Name of debtor and secured party.
    (a) Sufficiency of debtor's name. A financing statement sufficiently provides the name of the debtor:
        (1) if the debtor is a registered organization, only
     if the financing statement provides the name of the debtor indicated on the public record of the debtor's jurisdiction of organization which shows the debtor to have been organized;
        (2) if the debtor is a decedent's estate, only if
     the financing statement provides the name of the decedent and indicates that the debtor is an estate;
        (3) if the debtor is a trust or a trustee acting
     with respect to property held in trust, only if the financing statement:
            (A) provides the name specified for the trust in
         its organic documents or, if no name is specified, provides the name of the settlor and additional information sufficient to distinguish the debtor from other trusts having one or more of the same settlors; and
            (B) indicates, in the debtor's name or
         otherwise, that the debtor is a trust or is a trustee acting with respect to property held in trust; and
        (4) in other cases:
            (A) if the debtor has a name, only if it
         provides the individual or organizational name of the debtor; and
            (B) if the debtor does not have a name, only if
         it provides the names of the partners, members, associates, or other persons comprising the debtor.
    (b) Additional debtor‑related information. A financing statement that provides the name of the debtor in accordance with subsection (a) is not rendered ineffective by the absence of:
        (1) a trade name or other name of the debtor; or
        (2) unless required under subsection (a)(4)(B),
     names of partners, members, associates, or other persons comprising the debtor.
    (c) Debtor's trade name insufficient. A financing statement that provides only the debtor's trade name does not sufficiently provide the name of the debtor.
    (d) Representative capacity. Failure to indicate the representative capacity of a secured party or representative of a secured party does not affect the sufficiency of a financing statement.
    (e) Multiple debtors and secured parties. A financing statement may provide the name of more than one debtor and the name of more than one secured party.
(Source: P.A. 91‑893, eff. 7‑1‑01.)

    (810 ILCS 5/9‑504) (from Ch. 26, par. 9‑504)
    Sec. 9‑504. Indication of collateral. A financing statement sufficiently indicates the collateral that it covers if the financing statement provides:
        (1) a description of the collateral pursuant to
     Section 9‑108; or
        (2) an indication that the financing statement
     covers all assets or all personal property.
(Source: P.A. 91‑893, eff. 7‑1‑01.)

    (810 ILCS 5/9‑505) (from Ch. 26, par. 9‑505)
    Sec. 9‑505. Filing and compliance with other statutes and treaties for consignments, leases, other bailments, and other transactions.
    (a) Use of terms other than "debtor" and "secured party." A consignor, lessor, or other bailor of goods, a licensor, or a buyer of a payment intangible or promissory note may file a financing statement, or may comply with a statute or treaty described in Section 9‑311(a), using the terms "consignor", "consignee", "lessor", "lessee", "bailor", "bailee", "licensor", "licensee", "owner", "registered owner", "buyer", "seller", or words of similar import, instead of the terms "secured party" and "debtor".
    (b) Effect of financing statement under subsection (a). This part applies to the filing of a financing statement under subsection (a) and, as appropriate, to compliance that is equivalent to filing a financing statement under Section 9‑311(b), but the filing or compliance is not of itself a factor in determining whether the collateral secures an obligation. If it is determined for another reason that the collateral secures an obligation, a security interest held by the consignor, lessor, bailor, licensor, owner, or buyer which attaches to the collateral is perfected by the filing or compliance.
(Source: P.A. 91‑893, eff. 7‑1‑01.)

    (810 ILCS 5/9‑506) (from Ch. 26, par. 9‑506)
    Sec. 9‑506. Effect of errors or omissions.
    (a) Minor errors and omissions. A financing statement substantially satisfying the requirements of this Part is effective, even if it has minor errors or omissions, unless the errors or omissions make the financing statement seriously misleading.
    (b) Financing statement seriously misleading. Except as otherwise provided in subsection (c), a financing statement that fails sufficiently to provide the name of the debtor in accordance with Section 9‑503(a) is seriously misleading.
    (c) Financing statement not seriously misleading. If a search of the records of the filing office under the debtor's correct name, using the filing office's standard search logic, if any, would disclose a financing statement that fails sufficiently to provide the name of the debtor in accordance with Section 9‑503(a), the name provided does not make the financing statement seriously misleading.
    (d) "Debtor's correct name." For purposes of Section 9‑508(b), the "debtor's correct name" in subsection (c) means the correct name of the new debtor.
(Source: P.A. 91‑893, eff. 7‑1‑01.)

    (810 ILCS 5/9‑507) (from Ch. 26, par. 9‑507)
    Sec. 9‑507. Effect of certain events on effectiveness of financing statement.
    (a) Disposition. A filed financing statement remains effective with respect to collateral that is sold, exchanged, leased, licensed, or otherwise disposed of and in which a security interest or agricultural lien continues, even if the secured 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 is not rendered ineffective if, after the financing statement is filed, the information provided in the financing statement becomes seriously misleading under Section 9‑506.
    (c) Change in debtor's name. If a debtor so changes its name that a filed 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 change; 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 change, unless an amendment to the financing statement which renders the financing statement not seriously misleading is filed within four months after the change.
(Source: P.A. 90‑214, eff. 7‑25‑97; 91‑893, eff. 7‑1‑01.)

    (810 ILCS 5/9‑508)
    Sec. 9‑508. Effectiveness of financing statement if new debtor becomes bound by security agreement.
    (a) Financing statement naming original debtor. Except as otherwise provided in this Section, a filed financing statement naming an original debtor is effective to perfect a security interest in collateral in which a new debtor has or acquires rights to the extent that the financing statement would have been effective had the original debtor acquired rights in the collateral.
    (b) Financing statement becoming seriously misleading. If the difference between the name of the original debtor and that of the new debtor causes a filed financing statement that is effective under subsection (a) to be seriously misleading under Section 9‑506:
        (1) the financing statement is effective to perfect
     a security interest in collateral acquired by the new debtor before, and within four months after, the new debtor becomes bound under Section 9‑203(d); and
        (2) the financing statement is not effective to
     perfect a security interest in collateral acquired by the new debtor more than four months after the new debtor becomes bound under Section 9‑203(d) unless an initial financing statement providing the name of the new debtor is filed before the expiration of that time.
    (c) When Section not applicable. This Section does not apply to collateral as to which a filed financing statement remains effective against the new debtor under Section 9‑507(a).
(Source: P.A. 91‑893, eff. 7‑1‑01.)

    (810 ILCS 5/9‑509)
    Sec. 9‑509. Persons entitled to file a record.
    (a) Person entitled to file record. A person may file an initial financing statement, amendment that adds collateral covered by a financing statement, or amendment that adds a debtor to a financing statement only if:
        (1) the debtor authorizes the filing in an
     authenticated record or pursuant to subsection (b) or (c); or
        (2) the person holds an agricultural lien that has
     become effective at the time of filing and the financing statement covers only collateral in which the person holds an agricultural lien.
    (b) Security agreement as authorization. By authenticating or becoming bound as debtor by a security agreement, a debtor or new debtor authorizes the filing of an initial financing statement, and an amendment, covering:
        (1) the collateral described in the security
     agreement; and
        (2) property that becomes collateral under Section
     9‑315(a)(2), whether or not the security agreement expressly covers proceeds.
    (c) Acquisition of collateral as authorization. By acquiring collateral in which a security interest or agricultural lien continues under Section 9‑315(a)(1), a debtor authorizes the filing of an initial financing statement, and an amendment, covering the collateral and property that becomes collateral under Section 9‑315(a)(2).
    (d) Person entitled to file certain amendments. A person may file an amendment other than an amendment that adds collateral covered by a financing statement or an amendment that adds a debtor to a financing statement only if:
        (1) the secured party of record authorizes the
     filing; or
        (2) the amendment is a termination statement for a
     financing statement as to which the secured party of record has failed to file or send a termination statement as required by Section 9‑513(a) or (c), the debtor authorizes the filing, and the termination statement indicates that the debtor authorized it to be filed.
    (e) Multiple secured parties of record. If there is more than one secured party of record for a financing statement, each secured party of record may authorize the filing of an amendment under subsection (d).
(Source: P.A. 91‑893, eff. 7‑1‑01.)

    (810 ILCS 5/9‑510)
    Sec. 9‑510. Effectiveness of filed record.
    (a) Filed record effective if authorized. A filed record is effective only to the extent that it was filed by a person that may file it under Section 9‑509.
    (b) Authorization by one secured party of record. A record authorized by one secured party of record does not affect the financing statement with respect to another secured party of record.
    (c) Continuation statement not timely filed. A continuation statement that is not filed within the six‑month period prescribed by Section 9‑515(d) is ineffective.
(Source: P.A. 91‑893, eff. 7‑1‑01.)

    (810 ILCS 5/9‑511)
    Sec. 9‑511. Secured party of record.
    (a) Secured party of record. A secured party of record with respect to a financing statement is a person whose name is provided as the name of the secured party or a representative of the secured party in an initial financing statement that has been filed. If an initial financing statement is filed under Section 9‑514(a), the assignee named in the initial financing statement is the secured party of record with respect to the financing statement.
    (b) Amendment naming secured party of record. If an amendment of a financing statement which provides the name of a person as a secured party or a representative of a secured party is filed, the person named in the amendment is a secured party of record. If an amendment is filed under Section 9‑514(b), the assignee named in the amendment is a secured party of record.
    (c) Amendment deleting secured party of record. A person remains a secured party of record until the filing of an amendment of the financing statement which deletes the person.
(Source: P.A. 91‑893, eff. 7‑1‑01.)

    (810 ILCS 5/9‑512)
    Sec. 9‑512. Amendment of financing statement.
    (a) Amendment of information in financing statement. Subject to Section 9‑509, a person may add or delete collateral covered by, continue or terminate the effectiveness of, or, subject to subsection (e), otherwise amend the information provided in, a financing statement by filing an amendment that:
        (1) identifies, by its file number, the initial
     financing statement to which the amendment relates; and
        (2) if the amendment relates to an initial financing
     statement filed or recorded in a filing office described in Section 9‑501(a)(1), provides the date and time that the initial financing statement was filed and the information specified in Section 9‑502(b).
    (b) Period of effectiveness not affected. Except as otherwise provided in Section 9‑515, the filing of an amendment does not extend the period of effectiveness of the financing statement.
    (c) Effectiveness of amendment adding collateral. A financing statement that is amended by an amendment that adds collateral is effective as to the added collateral only from the date of the filing of the amendment.
    (d) Effectiveness of amendment adding debtor. A financing statement that is amended by an amendment that adds a debtor is effective as to the added debtor only from the date of the filing of the amendment.
    (e) Certain amendments ineffective. An amendment is ineffective to the extent it:
        (1) purports to delete all debtors and fails to
     provide the name of a debtor to be covered by the financing statement; or
        (2) purports to delete all secured parties of record
     and fails to provide the name of a new secured party of record.
(Source: P.A. 91‑893, eff. 7‑1‑01.)

    (810 ILCS 5/9‑513)
    Sec. 9‑513. Termination statement.
    (a) Consumer goods. A secured party shall cause the secured party of record for a financing statement to file a termination statement for the financing statement if the financing statement covers consumer goods and:
        (1) there is no obligation secured by the collateral
     covered by the financing statement and no commitment to make an advance, incur an obligation, or otherwise give value; or
        (2) the debtor did not authorize the filing of the
     initial financing statement.
    (b) Time for compliance with subsection (a). To comply with subsection (a), a secured party shall cause the secured party of record to file the termination statement:
        (1) within one month after there is no obligation
     secured by the collateral covered by the financing statement and no commitment to make an advance, incur an obligation, or otherwise give value; or
        (2) if earlier, within 20 days after the secured
     party receives an authenticated demand from a debtor.
    (c) Other collateral. In cases not governed by subsection (a), within 20 days after a secured party receives an authenticated demand from a debtor, the secured party shall cause the secured party of record for a financing statement to send to the debtor a termination statement for the financing statement or file the termination statement in the filing office if:
        (1) except in the case of a financing statement
     covering accounts or chattel paper that has been sold or goods that are the subject of a consignment, there is no obligation secured by the collateral covered by the financing statement and no commitment to make an advance, incur an obligation, or otherwise give value;