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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 SB2835
Introduced 1/20/2006, by Sen. Kirk W. Dillard SYNOPSIS AS INTRODUCED: |
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810 ILCS 5/9-103 |
from Ch. 26, par. 9-103 |
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Amends the Uniform Commercial Code. With respect to purchase money security interests, makes the exceptions and limitations for non-consumer goods transactions apply to consumer goods also. Effective immediately.
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A BILL FOR
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SB2835 |
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LRB094 17964 LCT 53267 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 9-103 as follows:
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| (810 ILCS 5/9-103) (from Ch. 26, par. 9-103)
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| Sec. 9-103. Purchase-money security interest; application |
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| of payments;
burden of establishing.
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| (a) Definitions. In this Section:
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| (1) "purchase-money collateral" means goods or |
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| software that secures a
purchase-money obligation incurred |
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| with respect to that collateral; and
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| (2) "purchase-money obligation" means an obligation of |
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| an obligor
incurred as all or part of the price of the |
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| collateral or for value given to
enable the
debtor to |
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| acquire rights in or the use of the collateral if the value |
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| is in
fact so used.
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| (b) Purchase-money security interest in goods. A security |
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| interest in
goods is a purchase-money security interest:
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| (1) to the extent that the goods are purchase-money |
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| collateral with
respect to that security interest;
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| (2) if the security interest is in inventory that is or |
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| was purchase-money
collateral, also to the extent that the |
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| security interest secures a
purchase-money
obligation |
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| incurred with respect to other inventory in which the |
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| secured party
holds
or held a purchase-money security |
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| interest; and
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| (3) also to the extent that the security interest |
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| secures a purchase-money
obligation incurred with respect |
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| to software in which the secured party holds
or
held a |
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| purchase-money security interest.
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| (c) Purchase-money security interest in software. A |