(810 ILCS 5/Art. 9 Pt. 3 Sub. 1 heading)
SUBPART 1.
LAW GOVERNING PERFECTION AND PRIORITY
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(810 ILCS 5/9-301) (from Ch. 26, par. 9-301)
Sec. 9-301. Law governing perfection and priority of security interests. Except as otherwise provided in Sections 9-303 through 9-306.1,
the following
rules
determine the law governing perfection, the effect of perfection or
nonperfection,
and the priority of a security interest in collateral:
(1) Except as otherwise provided in this Section,
| | while a debtor is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral.
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(2) While collateral is located in a jurisdiction,
| | the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a possessory security interest in that collateral.
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(3) Except as otherwise provided in paragraph (4),
| | while tangible negotiable documents, goods, instruments, money, or tangible chattel paper is located in a jurisdiction, the local law of that jurisdiction governs:
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(A) perfection of a security interest in the
| | goods by filing a fixture filing;
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(B) perfection of a security interest in timber
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(C) the effect of perfection or nonperfection and
| | the priority of a nonpossessory security interest in the collateral.
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(4) The local law of the jurisdiction in which the
| | wellhead or minehead is located governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in as-extracted collateral.
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(Source: P.A. 95-895, eff. 1-1-09.)
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(810 ILCS 5/9-302) (from Ch. 26, par. 9-302)
Sec. 9-302.
Law governing perfection and priority of agricultural liens.
While farm products are located in a jurisdiction, the local law of that
jurisdiction
governs perfection, the effect of perfection or nonperfection, and the priority
of an
agricultural lien on the farm products.
(Source: P.A. 90-665, eff. 7-30-98; 91-893, eff. 7-1-01.)
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(810 ILCS 5/9-303) (from Ch. 26, par. 9-303)
Sec. 9-303.
Law governing perfection and priority of security interests in
goods covered by a certificate of title.
(a) Applicability of Section. This Section applies to goods covered by a
certificate of title, even if there is no other relationship between the
jurisdiction
under whose certificate of title the goods are covered and the goods or the
debtor.
(b) When goods covered by certificate of title. Goods become covered by
a certificate of title when a valid application for the certificate of title
and the
applicable fee are delivered to the appropriate authority. Goods cease to be
covered
by a certificate of title at the earlier of the time the certificate of title
ceases to be
effective under the law of the issuing jurisdiction or the time the goods
become
covered subsequently by a certificate of title issued by another jurisdiction.
(c) Applicable law. The local law of the jurisdiction under whose
certificate of title the goods are covered governs perfection, the effect of
perfection
or nonperfection, and the priority of a security interest in goods covered by a
certificate of title from the time the goods become covered by the certificate
of title
until the goods cease to be covered by the certificate of title.
(Source: P.A. 91-893, eff. 7-1-01.)
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(810 ILCS 5/9-304) (from Ch. 26, par. 9-304)
Sec. 9-304.
Law governing perfection and priority of security interests
in deposit accounts.
(a) Law of bank's jurisdiction governs. The local law of a bank's
jurisdiction governs perfection, the effect of perfection or nonperfection, and
the
priority of a security interest in a deposit account maintained with that bank.
(b) Bank's jurisdiction. The following rules determine a bank's
jurisdiction for purposes of this Part:
(1) If an agreement between the bank and the debtor
| | governing the deposit account expressly provides that a particular jurisdiction is the bank's jurisdiction for purposes of this Part, this Article, or the Uniform Commercial Code, that jurisdiction is the bank's jurisdiction.
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(2) If paragraph (1) does not apply and an agreement
| | between the bank and its customer governing the deposit account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the bank's jurisdiction.
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(3) If neither paragraph (1) nor paragraph (2)
| | applies and an agreement between the bank and its customer governing the deposit account expressly provides that the deposit account is maintained at an office in a particular jurisdiction, that jurisdiction is the bank's jurisdiction.
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(4) If none of the preceding paragraphs applies, the
| | bank's jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the customer's account is located.
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(5) If none of the preceding paragraphs applies, the
| | bank's jurisdiction is the jurisdiction in which the chief executive office of the bank is located.
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(Source: P.A. 91-893, eff. 7-1-01.)
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(810 ILCS 5/9-305) (from Ch. 26, par. 9-305)
Sec. 9-305.
Law governing perfection and priority of security interests
in investment property.
(a) Governing law: general rules. Except as otherwise provided
in subsection (c), the following rules apply:
(1) While a security certificate is located in a
| | jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in the certificated security represented thereby.
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(2) The local law of the issuer's jurisdiction as
| | specified in Section 8-110(d) governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in an uncertificated security.
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(3) The local law of the securities intermediary's
| | jurisdiction as specified in Section 8-110(e) governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a security entitlement or securities account.
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(4) The local law of the commodity intermediary's
| | jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a commodity contract or commodity account.
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(b) Commodity intermediary's jurisdiction. The following rules
determine a commodity intermediary's jurisdiction for purposes of this Part:
(1) If an agreement between the commodity
| | intermediary and commodity customer governing the commodity account expressly provides that a particular jurisdiction is the commodity intermediary's jurisdiction for purposes of this Part, this Article, or the Uniform Commercial Code, that jurisdiction is the commodity intermediary's jurisdiction.
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(2) If paragraph (1) does not apply and an agreement
| | between the commodity intermediary and commodity customer governing the commodity account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the commodity intermediary's jurisdiction.
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(3) If neither paragraph (1) nor paragraph (2)
| | applies and an agreement between the commodity intermediary and commodity customer governing the commodity account expressly provides that the commodity account is maintained at an office in a particular jurisdiction, that jurisdiction is the commodity intermediary's jurisdiction.
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(4) If none of the preceding paragraphs applies, the
| | commodity intermediary's jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the commodity customer's account is located.
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(5) If none of the preceding paragraphs applies, the
| | commodity intermediary's jurisdiction is the jurisdiction in which the chief executive office of the commodity intermediary is located.
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(c) When perfection governed by law of jurisdiction where
debtor located. The local law of the jurisdiction in which the debtor is located
governs:
(1) perfection of a security interest in investment
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(2) automatic perfection of a security interest in
| | investment property created by a broker or securities intermediary; and
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(3) automatic perfection of a security interest in a
| | commodity contract or commodity account created by a commodity intermediary.
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(Source: P.A. 91-893, eff. 7-1-01.)
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(810 ILCS 5/9-306) (from Ch. 26, par. 9-306)
Sec. 9-306.
Law governing perfection and priority of security interests
in letter-of-credit rights.
(a) Governing law: issuer's or nominated person's jurisdiction.
Subject to subsection (c), the local law of the issuer's jurisdiction or a
nominated
person's jurisdiction governs perfection, the effect of perfection or
nonperfection,
and the priority of a security interest in a letter-of-credit right if the
issuer's
jurisdiction or nominated person's jurisdiction is a State.
(b) Issuer's or nominated person's jurisdiction. For purposes of
this Part, an issuer's jurisdiction or nominated person's jurisdiction is the
jurisdiction whose law governs the liability of the issuer or nominated person
with
respect to the letter-of-credit right as provided in Section 5-116.
(c) When Section not applicable. This Section does not apply to a
security interest that is perfected only under Section 9-308(d).
(Source: P.A. 91-893, eff. 7-1-01.)
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(810 ILCS 5/9-306.01) (from Ch. 26, par. 9-306.01)
Sec. 9-306.01.
(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
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(810 ILCS 5/9-306.02) (from Ch. 26, par. 9-306.02)
Sec. 9-306.02.
(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
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(810 ILCS 5/9-306.1)
Sec. 9-306.1.
Law Governing Perfection and Priority of Collateral
Assignments
of
Beneficial Interests in Illinois Land Trusts. The local law of the State of
Illinois governs perfection, the effect of perfection or nonperfection, and the
priority of a collateral assignment of, or other security interest in, a
beneficial interest in an Illinois
land
trust. This Section implements the important interest of this State in matters
associated with the administration of Illinois land trusts created for the
principal purpose of owning an interest in Illinois land and the regulation of
restrictions on the transfer of beneficial interests in, and of the power of
appointments under, such trusts.
(Source: P.A. 92-234, eff. 1-1-02.)
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(810 ILCS 5/9-307) (from Ch. 26, par. 9-307)
Sec. 9-307. Location of debtor.
(a) "Place of business." In this Section, "place of business" means
a place where a debtor conducts its affairs.
(b) Debtor's location: general rules. Except as otherwise
provided in this Section, the following rules determine a debtor's location:
(1) A debtor who is an individual is located at the
| | individual's principal residence.
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(2) A debtor that is an organization and has only one
| | place of business is located at its place of business.
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(3) A debtor that is an organization and has more
| | than one place of business is located at its chief executive office.
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(c) Limitation of applicability of subsection (b). Subsection (b)
applies only if a debtor's residence, place of business, or chief executive
office, as applicable, is located in a jurisdiction whose law generally
requires information concerning the existence of a nonpossessory security
interest to be made generally available in a filing, recording, or registration
system as a condition or result of the security interest's obtaining priority
over the rights of a lien creditor with respect to the collateral. If
subsection (b) does not apply, the debtor is located in the District of
Columbia.
(d) Continuation of location: cessation of existence, etc. A person that
ceases to exist, have a residence, or have a place of business continues
to be located in the jurisdiction specified by subsections (b) and (c).
(e) Location of registered organization organized under State
law. A registered organization that is organized under the law of a State is
located in that State.
(f) Location of registered organization organized under federal law; bank
branches and agencies. Except as otherwise provided in subsection (i), a
registered organization that is organized under the law of the United States
and a branch or agency of a bank that is not organized under the law of the
United States or a State are located:
(1) in the State that the law of the United States
| | designates, if the law designates a State of location;
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(2) in the State that the registered organization,
| | branch, or agency designates, if the law of the United States authorizes the registered organization, branch, or agency to designate its State of location, including by designating its main office, home office, or other comparable office; or
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(3) in the District of Columbia, if neither paragraph
| | (1) nor paragraph (2) applies.
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(g) Continuation of location: change in status of registered organization.
A registered organization continues to be located in the jurisdiction specified
by subsection (e) or (f) notwithstanding:
(1) the suspension, revocation, forfeiture, or lapse
| | of the registered organization's status as such in its jurisdiction of organization; or
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(2) the dissolution, winding up, or cancellation of
| | the existence of the registered organization.
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(h) Location of United States. The United States is located in the
District of Columbia.
(i) Location of foreign bank branch or agency if licensed in only one
State. A branch or agency of a bank that is not organized under the law
of the United States or a State is located in the State in which the branch
or agency is licensed, if all branches and agencies of the bank are licensed
in only one State.
(j) Location of foreign air carrier. A foreign air carrier under the
Federal Aviation Act of 1958, as amended, is located at the designated office
of the agent upon which service of process may be made on behalf of the
carrier.
(k) Section applies only to this Part. This Section applies only for
purposes of this Part.
(Source: P.A. 97-1034, eff. 7-1-13.)
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(810 ILCS 5/9-307.1) (from Ch. 26, par. 9-307.1)
Sec. 9-307.1.
(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
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(810 ILCS 5/9-307.2) (from Ch. 26, par. 9-307.2)
Sec. 9-307.2.
(Blank).
(Source: P.A. 91-893, eff. 7-1-01.)
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