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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 SB0135
Introduced 2/1/2005, by Sen. Debbie DeFrancesco Halvorson SYNOPSIS AS INTRODUCED: |
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810 ILCS 5/9-109 |
from Ch. 26, par. 9-109 |
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Amends the Uniform Commercial Code. Provides that the Code applies to a transfer by a government or governmental subdivision or agency when the government or governmental subdivision or agency is the account debtor. Effective immediately.
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A BILL FOR
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SB0135 |
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LRB094 06213 RXD 36283 b |
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| AN ACT concerning business.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Uniform Commercial Code is amended by |
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| changing Section 9-109 as follows:
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| (810 ILCS 5/9-109) (from Ch. 26, par. 9-109)
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| Sec. 9-109. Scope.
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| (a) General scope of Article. Except as otherwise provided |
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| in subsections
(c) and (d), this Article applies to:
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| (1) a transaction, regardless of its form, that creates |
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| a security
interest in
personal property or fixtures by |
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| contract;
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| (2) an agricultural lien;
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| (3) a sale of accounts, chattel paper, payment |
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| intangibles, or promissory
notes;
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| (4) a consignment;
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| (5) a security interest arising under Section 2-401, |
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| 2-505, 2-711(3), or
2A-508(5), as provided in Section |
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| 9-110; and
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| (6) a security interest arising under Section 4-210 or |
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| 5-118.
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| (b) Security interest in secured obligation. The |
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| application of this
Article to a security interest in a secured |
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| obligation is not affected by the fact that
the obligation is |
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| itself secured by a transaction or interest to which this |
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| Article does
not apply.
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| (c) Extent to which Article does not apply. This Article |
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| does not apply
to the extent that:
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| (1) a statute, regulation, or treaty of the United |
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| States preempts this
Article;
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| (2) another statute of this State expressly governs the |
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| creation,
perfection, priority, or enforcement of a |
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SB0135 |
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LRB094 06213 RXD 36283 b |
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| security interest created by this State or a
governmental |
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| unit of this State;
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| (3) a statute of another State, a foreign country, or a |
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| governmental unit
of another State or a foreign country, |
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| other than a statute generally
applicable to
security |
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| interests, expressly governs creation, perfection, |
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| priority, or
enforcement
of a security interest created by |
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| the State, country, or governmental unit;
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| (4) the rights of a transferee beneficiary or nominated |
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| person under a
letter of credit are independent and |
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| superior under Section 5-114;
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| (5) this Article is in conflict with Section 205-410 of |
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| the Department of
Agriculture
Law of the Civil |
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| Administrative Code of Illinois or the Grain Code; or
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| (6) this Article is in conflict with Section 18-107 of |
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| the Public
Utilities Act.
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| (d) Inapplicability of Article. This Article does not apply |
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| to:
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| (1) a landlord's lien;
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| (2) a lien, other than an agricultural lien, given by |
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| statute or other
rule of
law for services or materials, but |
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| Section 9-333 applies with respect to
priority of
the lien;
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| (3) an assignment of a claim for wages, salary, or |
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| other compensation of
an employee;
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| (4) a sale of accounts, chattel paper, payment |
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| intangibles, or promissory
notes as part of a sale of the |
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| business out of which they arose;
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| (5) an assignment of accounts, chattel paper, payment |
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| intangibles, or
promissory notes which is for the purpose |
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| of collection only;
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| (6) an assignment of a right to payment under a |
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| contract to an assignee
that is also obligated to perform |
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| under the contract;
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| (7) an assignment of a single account, payment |
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| intangible, or
promissory note to an assignee in full or |
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| partial satisfaction of a preexisting
indebtedness;
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SB0135 |
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LRB094 06213 RXD 36283 b |
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| (8) a transfer of an interest in or an assignment of a |
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| claim under a
policy of insurance, other than an assignment |
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| by or to a health-care provider of a
health-care-insurance |
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| receivable and any subsequent assignment of the right to
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| payment, but Sections 9-315 and 9-322 apply with respect to |
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| proceeds and
priorities in proceeds;
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| (9) an assignment of a right represented by a judgment, |
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| other than a
judgment taken on a right to payment that was |
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| collateral;
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| (10) a right of recoupment or set-off, but:
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| (A) Section 9-340 applies with respect to the |
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| effectiveness of rights
of recoupment or set-off |
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| against deposit accounts; and
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| (B) Section 9-404 applies with respect to defenses |
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| or claims of an
account debtor;
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| (11) the creation or transfer of an interest in or lien |
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| on real property,
including a lease or rents thereunder, |
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| except to the extent that provision is made
for:
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| (A) liens on real property in Sections 9-203 and |
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| 9-308;
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| (B) fixtures in Section 9-334;
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| (C) fixture filings in Sections 9-501, 9-502, |
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| 9-512, 9-516, and
9-519; and
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| (D) security agreements covering personal and real |
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| property in
Section 9-604;
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| (12) an assignment of a claim arising in tort, other |
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| than a commercial
tort claim, but Sections 9-315 and 9-322 |
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| apply with respect to proceeds and
priorities in proceeds;
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| (13) a transfer by a government or governmental |
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| subdivision or agency except when the government or |
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| governmental subdivision or agency is the account debtor ;
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| (14) a claim or a right to receive compensation for |
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| injuries or sickness
as described in Section 104(a)(1) or |
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| (2) of Title 26 of the United States Code,
as amended from |
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| time to time; or
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| (15) a claim or right to receive benefits under a |