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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 9-516 as follows:
 



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    (810 ILCS 5/9-516)



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    Sec. 9-516. What constitutes filing; effectiveness of 
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filing. 

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    (a) What constitutes filing.  Except as otherwise provided 
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in
subsection (b), communication of a record to a filing office 
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and tender of the
filing
fee or acceptance of the record by the 
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filing office constitutes filing.

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    (b) Refusal to accept record; filing does not occur.  Filing 
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does
not occur with respect to a record that a filing office 
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refuses to accept
because:


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        (1) the record is not communicated by a method or 
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    medium
of communication authorized by the filing office;


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        (2) an amount equal to or greater than the applicable 
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    filing
fee is not tendered;


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        (3) the filing office is unable to index the record 
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    because:


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            (A) in the case of an initial financing statement, 
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        the
record does not provide a name for the debtor;


 


 






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            (B) in the case of an amendment or correction

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        statement, the record:


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                (i) does not identify the initial financing

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            statement as required by Section 9-512 or 9-518, as 
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            applicable; or


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                (ii) identifies an initial financing statement

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            whose effectiveness has lapsed under Section 
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            9-515;


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            (C) in the case of an initial financing statement 
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        that
provides the name of a debtor identified as an 
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        individual or an amendment that
provides a name of a 
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        debtor identified as an individual which was not 
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        previously
provided in the financing statement to 
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        which the record relates, the record does not
identify 
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        the debtor's last name; or


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            (D) in the case of a record filed or recorded in 
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        the
filing office described in Section 9-501(a)(1), 
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        the record does not provide a
sufficient description of 
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        the real property to which it relates; or


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            (E) in the case of a record submitted to the filing 
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        office described in Section 9-501(b), the debtor does 
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        not meet the definition of a transmitting utility as 
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        described in Section 9-102(a)(80);
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        (3.5) in the case of an initial financing statement or 
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    an amendment, if the filing office believes in good faith 
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    that a document submitted for filing is being filed for the 
 


 






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    purpose of defrauding any person or harassing any person in 
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    the performance of duties as a public servant;


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        (4) in the case of an initial financing statement or an

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    amendment that adds a secured party of record, the record 
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    does not provide a
name
and mailing address for the secured 
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    party of record;


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        (5) in the case of an initial financing statement or an

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    amendment that provides a name of a debtor which was not 
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    previously provided in
the financing statement to which the 
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    amendment relates, the record does not:


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            (A) provide a mailing address for the debtor;


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            (B) indicate whether the debtor is an individual or 
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        an
organization; or


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            (C) if the financing statement indicates that the

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        debtor is an organization, provide:


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                (i) a type of organization for the debtor;


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                (ii) a jurisdiction of organization for the

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            debtor; or


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                (iii) an organizational identification number

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            for the debtor or indicate that the debtor has 
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            none;


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        (6) in the case of an assignment reflected in an 
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    initial
financing statement under Section 9-514(a) or an 
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    amendment filed under Section
9-514(b), the record does not 
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    provide a name and mailing address for the assignee;
or


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        (7) in the case of a continuation statement, the record 
 


 






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    is not
filed within the six-month period prescribed by 
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    Section 9-515(d).

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    (c) Rules applicable to subsection (b).  For purposes of 
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subsection
(b):


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        (1) a record does not provide information if the filing 
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    office
is unable to read or decipher the information; and


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        (2) a record that does not indicate that it is an 
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    amendment or
identify an initial financing statement to 
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    which it relates, as required by
Section
9-512, 9-514, or 
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    9-518, is an initial financing statement.

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    (d) Refusal to accept record; record effective as filed 
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record.  A
record that is communicated to the filing office with 
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tender of the filing fee,
but
which the filing office refuses 
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to accept for a reason other than one set forth
in
subsection 
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(b), is effective as a filed record except as against a 
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purchaser of
the
collateral which gives value in reasonable 
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reliance upon the absence of the
record
from the files.

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    (e) The Secretary of State may refuse to accept a record 
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for filing under subdivision (b)(3)(E) or (b)(3.5) only if the 
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refusal is approved by the Department of Business Services of 
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the Secretary of State and the General Counsel to the Secretary 
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of State.

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(Source: P.A. 91-893, eff. 7-1-01.)