Full Text of SB2476 93rd General Assembly
SB2476 93RD GENERAL ASSEMBLY
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93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 SB2476
Introduced 2/3/2004, by 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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SB2476 |
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LRB093 16191 RXD 41824 b |
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| AN ACT concerning the commercial code.
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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 | 5 |
| 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 | 9 |
| in subsections
(c) and (d), this Article applies to:
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| (1) a transaction, regardless of its form, that creates | 11 |
| a security
interest in
personal property or fixtures by | 12 |
| contract;
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| (2) an agricultural lien;
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| (3) a sale of accounts, chattel paper, payment | 15 |
| intangibles, or promissory
notes;
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| (4) a consignment;
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| (5) a security interest arising under Section 2-401, | 18 |
| 2-505, 2-711(3), or
2A-508(5), as provided in Section | 19 |
| 9-110; and
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| (6) a security interest arising under Section 4-210 or | 21 |
| 5-118.
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| (b) Security interest in secured obligation. The | 23 |
| application of this
Article to a security interest in a secured | 24 |
| obligation is not affected by the fact that
the obligation is | 25 |
| itself secured by a transaction or interest to which this | 26 |
| Article does
not apply.
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| (c) Extent to which Article does not apply. This Article | 28 |
| does not apply
to the extent that:
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| (1) a statute, regulation, or treaty of the United | 30 |
| States preempts this
Article;
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| (2) another statute of this State expressly governs the | 32 |
| creation,
perfection, priority, or enforcement of a |
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LRB093 16191 RXD 41824 b |
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| security interest created by this State or a
governmental | 2 |
| unit of this State;
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| (3) a statute of another State, a foreign country, or a | 4 |
| governmental unit
of another State or a foreign country, | 5 |
| other than a statute generally
applicable to
security | 6 |
| interests, expressly governs creation, perfection, | 7 |
| priority, or
enforcement
of a security interest created by | 8 |
| the State, country, or governmental unit;
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| (4) the rights of a transferee beneficiary or nominated | 10 |
| person under a
letter of credit are independent and | 11 |
| superior under Section 5-114;
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| (5) this Article is in conflict with Section 205-410 of | 13 |
| the Department of
Agriculture
Law of the Civil | 14 |
| Administrative Code of Illinois or the Grain Code; or
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| (6) this Article is in conflict with Section 18-107 of | 16 |
| the Public
Utilities Act.
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| (d) Inapplicability of Article. This Article does not apply | 18 |
| to:
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| (1) a landlord's lien;
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| (2) a lien, other than an agricultural lien, given by | 21 |
| statute or other
rule of
law for services or materials, but | 22 |
| 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 | 24 |
| other compensation of
an employee;
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| (4) a sale of accounts, chattel paper, payment | 26 |
| intangibles, or promissory
notes as part of a sale of the | 27 |
| business out of which they arose;
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| (5) an assignment of accounts, chattel paper, payment | 29 |
| intangibles, or
promissory notes which is for the purpose | 30 |
| of collection only;
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| (6) an assignment of a right to payment under a | 32 |
| contract to an assignee
that is also obligated to perform | 33 |
| under the contract;
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| (7) an assignment of a single account, payment | 35 |
| intangible, or
promissory note to an assignee in full or | 36 |
| partial satisfaction of a preexisting
indebtedness;
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| (8) a transfer of an interest in or an assignment of a | 2 |
| claim under a
policy of insurance, other than an assignment | 3 |
| by or to a health-care provider of a
health-care-insurance | 4 |
| 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 | 6 |
| proceeds and
priorities in proceeds;
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| (9) an assignment of a right represented by a judgment, | 8 |
| other than a
judgment taken on a right to payment that was | 9 |
| 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 | 12 |
| effectiveness of rights
of recoupment or set-off | 13 |
| against deposit accounts; and
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| (B) Section 9-404 applies with respect to defenses | 15 |
| or claims of an
account debtor;
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| (11) the creation or transfer of an interest in or lien | 17 |
| on real property,
including a lease or rents thereunder, | 18 |
| except to the extent that provision is made
for:
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| (A) liens on real property in Sections 9-203 and | 20 |
| 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, | 23 |
| 9-512, 9-516, and
9-519; and
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| (D) security agreements covering personal and real | 25 |
| property in
Section 9-604;
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| (12) an assignment of a claim arising in tort, other | 27 |
| than a commercial
tort claim, but Sections 9-315 and 9-322 | 28 |
| apply with respect to proceeds and
priorities in proceeds;
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| (13) a transfer by a government or governmental | 30 |
| subdivision or agency except when the government or | 31 |
| governmental subdivision or agency is the account debtor ;
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| (14) a claim or a right to receive compensation for | 33 |
| injuries or sickness
as described in Section 104(a)(1) or | 34 |
| (2) of Title 26 of the United States Code,
as amended from | 35 |
| time to time; or
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| (15) a claim or right to receive benefits under a |
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| special needs trust as
described in Section 1396p(d)(4) of | 2 |
| Title 42 of the United States Code, as
amended from time to | 3 |
| time.
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| (Source: P.A. 91-893, eff. 7-1-01; 92-819, eff. 8-21-02.)
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| Section 99. Effective date. This Act takes effect upon | 6 |
| becoming law.
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