Public Act 90-0214 of the 90th General Assembly
Public Act 90-0214
HB1412 Enrolled LRB9004774SMdv
AN ACT to amend the Uniform Commercial Code by changing
Section 9-507.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Uniform Commercial Code is amended by
changing Section 9-507 as follows:
(810 ILCS 5/9-507) (from Ch. 26, par. 9-507)
Sec. 9-507. Secured party's liability for failure to
comply with this part.
(1) If it is established that the secured party is not
proceeding in accordance with the provisions of this Part
disposition may be ordered or restrained on appropriate terms
and conditions. If the disposition has occurred the debtor or
any person entitled to notification or whose security
interest has been made known to the secured party prior to
the disposition has a right to recover from the secured party
any loss caused by a failure to comply with the provisions of
this Part. If the collateral is consumer goods, the debtor in
an individual action has a right to recover in any event an
amount not less than the credit service charge plus 10% of
the principal amount of the debt or the time price
differential plus 10% of the cash price.
(2) The fact that a better price could have been
obtained by a sale at a different time or in a different
method from that selected by the secured party is not of
itself sufficient to establish that the sale was not made in
a commercially reasonable manner. If the secured party either
sells the collateral in the usual manner in any recognized
market therefor or if he sells at the price current in such
market at the time of his sale or if he has otherwise sold in
conformity with reasonable commercial practices among dealers
in the type of property sold he has sold in a commercially
reasonable manner. The principles stated in the two preceding
sentences with respect to sales also apply as may be
appropriate to other types of disposition. A disposition
which has been approved in any judicial proceeding or by any
bona fide creditors' committee or representative of creditors
shall conclusively be deemed to be commercially reasonable,
but this sentence does not indicate that any such approval
must be obtained in any case nor does it indicate that any
disposition not so approved is not commercially reasonable.
(Source: Laws 1961, p. 2101.)
Section 99. Effective date. This Act takes effect upon
becoming law.