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Public Act 92-0819
SB1721 Enrolled LRB9211690SMdv
AN ACT concerning liens.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Code of Civil Procedure is amended by
changing Section 9-316 as follows:
(735 ILCS 5/9-316) (from Ch. 110, par. 9-316)
Sec. 9-316. Lien upon crops. Every landlord shall have a
lien upon the crops grown or growing upon the demised
premises for the rent thereof, whether the same is payable
wholly or in part in money or specific articles of property
or products of the premises, or labor, and also for the
faithful performance of the terms of the lease. Such lien
shall continue for the period of 6 months after the
expiration of the term for which the premises are demised,
and may be enforced by distraint as provided in Part 3 of
Article IX of this Act.
A good faith purchaser shall, however, take such crops
free of any landlord's lien unless, within 6 months prior to
the purchase, the landlord provides written notice of his
lien to the purchaser by registered or certified mail. Such
notice shall contain the names and addresses of the landlord
and tenant, and clearly identify the leased property.
A landlord may require that, prior to his tenant's
selling any crops grown on the demised premises, the tenant
disclose the name of the person to whom the tenant intends to
sell those crops. Where such a requirement has been imposed,
the tenant shall not sell the crops to any person other than
a person who has been disclosed to the landlord as a
potential buyer of the crops.
A lien arising under this Section and duly perfected
under Article 9 of the Uniform Commercial Code shall have
priority over any other agricultural lien as defined in, and
over any security interest arising under, provisions of
Article 9 of the Uniform Commercial Code.
(Source: P.A. 91-893, eff. 7-1-01.)
Section 10. The Uniform Commercial Code is amended by
changing Sections 9-102 and 9-109 as follows:
(810 ILCS 5/9-102) (from Ch. 26, par. 9-102)
Sec. 9-102. Definitions and index of definitions.
(a) Article 9 definitions. In this Article:
(1) "Accession" means goods that are physically
united with other goods in such a manner that the
identity of the original goods is not lost.
(2) "Account", except as used in "account for",
means a right to payment of a monetary obligation,
whether or not earned by performance, (i) for property
that has been or is to be sold, leased, licensed,
assigned, or otherwise disposed of, (ii) for services
rendered or to be rendered, (iii) for a policy of
insurance issued or to be issued, (iv) for a secondary
obligation incurred or to be incurred, (v) for energy
provided or to be provided, (vi) for the use or hire of a
vessel under a charter or other contract, (vii) arising
out of the use of a credit or charge card or information
contained on or for use with the card, or (viii) as
winnings in a lottery or other game of chance operated or
sponsored by a State, governmental unit of a State, or
person licensed or authorized to operate the game by a
State or governmental unit of a State. The term includes
health-care-insurance receivables. The term does not
include (i) rights to payment evidenced by chattel paper
or an instrument, (ii) commercial tort claims, (iii)
deposit accounts, (iv) investment property, (v)
letter-of-credit rights or letters of credit, or (vi)
rights to payment for money or funds advanced or sold,
other than rights arising out of the use of a credit or
charge card or information contained on or for use with
the card.
(3) "Account debtor" means a person obligated on an
account, chattel paper, or general intangible. The term
does not include persons obligated to pay a negotiable
instrument, even if the instrument constitutes part of
chattel paper.
(4) "Accounting", except as used in "accounting
for", means a record:
(A) authenticated by a secured party;
(B) indicating the aggregate unpaid secured
obligations as of a date not more than 35 days
earlier or 35 days later than the date of the
record; and
(C) identifying the components of the
obligations in reasonable detail.
(5) "Agricultural lien" means an interest, other
than a security interest, in farm products:
(A) which secures payment or performance of an
obligation for: (i) goods or services furnished in
connection with a debtor's farming operation; or
(ii) rent on real property leased by a debtor in
connection with its farming operation;
(B) which is created by statute in favor of a
person that: (i) in the ordinary course of its
business furnished goods or services to a debtor in
connection with a debtor's farming operation; or
(ii) leased real property to a debtor in connection
with the debtor's farming operation; and
(C) whose effectiveness does not depend on the
person's possession of the personal property.
(6) "As-extracted collateral" means:
(A) oil, gas, or other minerals that are
subject to a security interest that:
(i) is created by a debtor having an
interest in the minerals before extraction; and
(ii) attaches to the minerals as
extracted; or
(B) accounts arising out of the sale at the
wellhead or minehead of oil, gas, or other minerals
in which the debtor had an interest before
extraction.
(7) "Authenticate" means:
(A) to sign; or
(B) to execute or otherwise adopt a symbol, or
encrypt or similarly process a record in whole or in
part, with the present intent of the authenticating
person to identify the person and adopt or accept a
record.
(8) "Bank" means an organization that is engaged in
the business of banking. The term includes savings
banks, savings and loan associations, credit unions, and
trust companies.
(9) "Cash proceeds" means proceeds that are money,
checks, deposit accounts, or the like.
(10) "Certificate of title" means a certificate of
title with respect to which a statute provides for the
security interest in question to be indicated on the
certificate as a condition or result of the security
interest's obtaining priority over the rights of a lien
creditor with respect to the collateral.
(11) "Chattel paper" means a record or records that
evidence both a monetary obligation and a security
interest in specific goods, a security interest in
specific goods and software used in the goods, a security
interest in specific goods and license of software used
in the goods, a lease of specific goods, or a lease of
specified goods and a license of software used in the
goods. In this paragraph, "monetary obligation" means a
monetary obligation secured by the goods or owed under a
lease of the goods and includes a monetary obligation
with respect to software used in the goods. The term
does not include (i) charters or other contracts
involving the use or hire of a vessel or (ii) records
that evidence a right to payment arising out of the use
of a credit or charge card or information contained on or
for use with the card. If a transaction is evidenced by
records that include an instrument or series of
instruments, the group of records taken together
constitutes chattel paper.
(12) "Collateral" means the property subject to a
security interest or agricultural lien. The term
includes:
(A) proceeds to which a security interest
attaches;
(B) accounts, chattel paper, payment
intangibles, and promissory notes that have been
sold; and
(C) goods that are the subject of a
consignment.
(13) "Commercial tort claim" means a claim arising
in tort with respect to which:
(A) the claimant is an organization; or
(B) the claimant is an individual and the
claim:
(i) arose in the course of the claimant's
business or profession; and
(ii) does not include damages arising out
of personal injury to or the death of an
individual.
(14) "Commodity account" means an account
maintained by a commodity intermediary in which a
commodity contract is carried for a commodity customer.
(15) "Commodity contract" means a commodity futures
contract, an option on a commodity futures contract, a
commodity option, or another contract if the contract or
option is:
(A) traded on or subject to the rules of a
board of trade that has been designated as a
contract market for such a contract pursuant to
federal commodities laws; or
(B) traded on a foreign commodity board of
trade, exchange, or market, and is carried on the
books of a commodity intermediary for a commodity
customer.
(16) "Commodity customer" means a person for which
a commodity intermediary carries a commodity contract on
its books.
(17) "Commodity intermediary" means a person that:
(A) is registered as a futures commission
merchant under federal commodities law; or
(B) in the ordinary course of its business
provides clearance or settlement services for a
board of trade that has been designated as a
contract market pursuant to federal commodities law.
(18) "Communicate" means:
(A) to send a written or other tangible
record;
(B) to transmit a record by any means agreed
upon by the persons sending and receiving the
record; or
(C) in the case of transmission of a record to
or by a filing office, to transmit a record by any
means prescribed by filing-office rule.
(19) "Consignee" means a merchant to which goods
are delivered in a consignment.
(20) "Consignment" means a transaction, regardless
of its form, in which a person delivers goods to a
merchant for the purpose of sale and:
(A) the merchant:
(i) deals in goods of that kind under a
name other than the name of the person making
delivery;
(ii) is not an auctioneer; and
(iii) is not generally known by its
creditors to be substantially engaged in
selling the goods of others;
(B) with respect to each delivery, the
aggregate value of the goods is $1,000 or more at
the time of delivery;
(C) the goods are not consumer goods
immediately before delivery; and
(D) the transaction does not create a security
interest that secures an obligation.
(21) "Consignor" means a person that delivers goods
to a consignee in a consignment.
(22) "Consumer debtor" means a debtor in a consumer
transaction.
(23) "Consumer goods" means goods that are used or
bought for use primarily for personal, family, or
household purposes.
(24) "Consumer-goods transaction" means a consumer
transaction in which:
(A) an individual incurs an obligation
primarily for personal, family, or household
purposes; and
(B) a security interest in consumer goods
secures the obligation.
(25) "Consumer obligor" means an obligor who is an
individual and who incurred the obligation as part of a
transaction entered into primarily for personal, family,
or household purposes.
(26) "Consumer transaction" means a transaction in
which (i) an individual incurs an obligation primarily
for personal, family, or household purposes, (ii) a
security interest secures the obligation, and (iii) the
collateral is held or acquired primarily for personal,
family, or household purposes. The term includes
consumer-goods transactions.
(27) "Continuation statement" means an amendment of
a financing statement which:
(A) identifies, by its file number, the
initial financing statement to which it relates; and
(B) indicates that it is a continuation
statement for, or that it is filed to continue the
effectiveness of, the identified financing
statement.
(28) "Debtor" means:
(A) a person having an interest, other than a
security interest or other lien, in the collateral,
whether or not the person is an obligor;
(B) a seller of accounts, chattel paper,
payment intangibles, or promissory notes; or
(C) a consignee.
(29) "Deposit account" means a demand, time,
savings, passbook, nonnegotiable certificates of deposit,
uncertificated certificates of deposit, nontransferrable
certificates of deposit, or similar account maintained
with a bank. The term does not include investment
property or accounts evidenced by an instrument.
(30) "Document" means a document of title or a
receipt of the type described in Section 7-201(2).
(31) "Electronic chattel paper" means chattel paper
evidenced by a record or records consisting of
information stored in an electronic medium.
(32) "Encumbrance" means a right, other than an
ownership interest, in real property. The term includes
mortgages and other liens on real property.
(33) "Equipment" means goods other than inventory,
farm products, or consumer goods.
(34) "Farm products" means goods, other than
standing timber, with respect to which the debtor is
engaged in a farming operation and which are:
(A) crops grown, growing, or to be grown,
including:
(i) crops produced on trees, vines, and
bushes; and
(ii) aquatic goods produced in
aquacultural operations;
(B) livestock, born or unborn, including
aquatic goods produced in aquacultural operations;
(C) supplies used or produced in a farming
operation; or
(D) products of crops or livestock in their
unmanufactured states.
(35) "Farming operation" means raising,
cultivating, propagating, fattening, grazing, or any
other farming, livestock, or aquacultural operation.
(36) "File number" means the number assigned to an
initial financing statement pursuant to Section 9-519(a).
(37) "Filing office" means an office designated in
Section 9-501 as the place to file a financing statement.
(38) "Filing-office rule" means a rule adopted
pursuant to Section 9-526.
(39) "Financing statement" means a record or
records composed of an initial financing statement and
any filed record relating to the initial financing
statement.
(40) "Fixture filing" means the filing of a
financing statement covering goods that are or are to
become fixtures and satisfying Section 9-502(a) and (b).
The term includes the filing of a financing statement
covering goods of a transmitting utility which are or are
to become fixtures.
(41) "Fixtures" means goods that have become so
related to particular real property that an interest in
them arises under real property law.
(42) "General intangible" means any personal
property, including things in action, other than
accounts, chattel paper, commercial tort claims, deposit
accounts, documents, goods, instruments, investment
property, letter-of-credit rights, letters of credit,
money, and oil, gas, or other minerals before extraction.
The term includes payment intangibles and software.
(43) "Good faith" means honesty in fact and the
observance of reasonable commercial standards of fair
dealing.
(44) "Goods" means all things that are movable when
a security interest attaches. The term includes (i)
fixtures, (ii) standing timber that is to be cut and
removed under a conveyance or contract for sale, (iii)
the unborn young of animals, (iv) crops grown, growing,
or to be grown, even if the crops are produced on trees,
vines, or bushes, and (v) manufactured homes. The term
also includes a computer program embedded in goods and
any supporting information provided in connection with a
transaction relating to the program if (i) the program is
associated with the goods in such a manner that it
customarily is considered part of the goods, or (ii) by
becoming the owner of the goods, a person acquires a
right to use the program in connection with the goods.
The term does not include a computer program embedded in
goods that consist solely of the medium in which the
program is embedded. The term also does not include
accounts, chattel paper, commercial tort claims, deposit
accounts, documents, general intangibles, instruments,
investment property, letter-of-credit rights, letters of
credit, money, or oil, gas, or other minerals before
extraction.
(45) "Governmental unit" means a subdivision,
agency, department, county, parish, municipality, or
other unit of the government of the United States, a
State, or a foreign country. The term includes an
organization having a separate corporate existence if the
organization is eligible to issue debt on which interest
is exempt from income taxation under the laws of the
United States.
(46) "Health-care-insurance receivable" means an
interest in or claim under a policy of insurance which is
a right to payment of a monetary obligation for
health-care goods or services provided.
(47) "Instrument" means a negotiable instrument or
any other writing that evidences a right to the payment
of a monetary obligation, is not itself a security
agreement or lease, and is of a type that in ordinary
course of business is transferred by delivery with any
necessary indorsement or assignment. The term does not
include (i) investment property, (ii) letters of credit,
(iii) nonnegotiable certificates of deposit, (iv)
uncertificated certificates of deposit, (v)
nontransferrable certificates of deposit, or (vi)
writings that evidence a right to payment arising out of
the use of a credit or charge card or information
contained on or for use with the card.
(48) "Inventory" means goods, other than farm
products, which:
(A) are leased by a person as lessor;
(B) are held by a person for sale or lease or
to be furnished under a contract of service;
(C) are furnished by a person under a contract
of service; or
(D) consist of raw materials, work in process,
or materials used or consumed in a business.
(49) "Investment property" means a security,
whether certificated or uncertificated, security
entitlement, securities account, commodity contract, or
commodity account.
(50) "Jurisdiction of organization", with respect
to a registered organization, means the jurisdiction
under whose law the organization is organized.
(51) "Letter-of-credit right" means a right to
payment or performance under a letter of credit, whether
or not the beneficiary has demanded or is at the time
entitled to demand payment or performance. The term does
not include the right of a beneficiary to demand payment
or performance under a letter of credit.
(52) "Lien creditor" means:
(A) a creditor that has acquired a lien on the
property involved by attachment, levy, or the like;
(B) an assignee for benefit of creditors from
the time of assignment;
(C) a trustee in bankruptcy from the date of
the filing of the petition; or
(D) a receiver in equity from the time of
appointment.
(53) "Manufactured home" means a structure,
transportable in one or more sections, which, in the
traveling mode, is eight body feet or more in width or 40
body feet or more in length, or, when erected on site, is
320 or more square feet, and which is built on a
permanent chassis and designed to be used as a dwelling
with or without a permanent foundation when connected to
the required utilities, and includes the plumbing,
heating, air-conditioning, and electrical systems
contained therein. The term includes any structure that
meets all of the requirements of this paragraph except
the size requirements and with respect to which the
manufacturer voluntarily files a certification required
by the United States Secretary of Housing and Urban
Development and complies with the standards established
under Title 42 of the United States Code.
(54) "Manufactured-home transaction" means a
secured transaction:
(A) that creates a purchase-money security
interest in a manufactured home, other than a
manufactured home held as inventory; or
(B) in which a manufactured home, other than a
manufactured home held as inventory, is the primary
collateral.
(55) "Mortgage" means a consensual interest in real
property, including fixtures, which secures payment or
performance of an obligation.
(56) "New debtor" means a person that becomes bound
as debtor under Section 9-203(d) by a security agreement
previously entered into by another person.
(57) "New value" means (i) money, (ii) money's
worth in property, services, or new credit, or (iii)
release by a transferee of an interest in property
previously transferred to the transferee. The term does
not include an obligation substituted for another
obligation.
(58) "Noncash proceeds" means proceeds other than
cash proceeds.
(59) "Obligor" means a person that, with respect to
an obligation secured by a security interest in or an
agricultural lien on the collateral, (i) owes payment or
other performance of the obligation, (ii) has provided
property other than the collateral to secure payment or
other performance of the obligation, or (iii) is
otherwise accountable in whole or in part for payment or
other performance of the obligation. The term does not
include issuers or nominated persons under a letter of
credit.
(60) "Original debtor", except as used in Section
9-310(c), means a person that, as debtor, entered into a
security agreement to which a new debtor has become bound
under Section 9-203(d).
(61) "Payment intangible" means a general
intangible under which the account debtor's principal
obligation is a monetary obligation.
(62) "Person related to", with respect to an
individual, means:
(A) the spouse of the individual;
(B) a brother, brother-in-law, sister, or
sister-in-law of the individual;
(C) an ancestor or lineal descendant of the
individual or the individual's spouse; or
(D) any other relative, by blood or marriage,
of the individual or the individual's spouse who
shares the same home with the individual.
(63) "Person related to", with respect to an
organization, means:
(A) a person directly or indirectly
controlling, controlled by, or under common control
with the organization;
(B) an officer or director of, or a person
performing similar functions with respect to, the
organization;
(C) an officer or director of, or a person
performing similar functions with respect to, a
person described in subparagraph (A);
(D) the spouse of an individual described in
subparagraph (A), (B), or (C); or
(E) an individual who is related by blood or
marriage to an individual described in subparagraph
(A), (B), (C), or (D) and shares the same home with
the individual.
(64) "Proceeds", except as used in Section
9-609(b), means the following property:
(A) whatever is acquired upon the sale, lease,
license, exchange, or other disposition of
collateral;
(B) whatever is collected on, or distributed
on account of, collateral;
(C) rights arising out of collateral;
(D) to the extent of the value of collateral,
claims arising out of the loss, nonconformity, or
interference with the use of, defects or
infringement of rights in, or damage to, the
collateral; or
(E) to the extent of the value of collateral
and to the extent payable to the debtor or the
secured party, insurance payable by reason of the
loss or nonconformity of, defects or infringement of
rights in, or damage to, the collateral.
(65) "Promissory note" means an instrument that
evidences a promise to pay a monetary obligation, does
not evidence an order to pay, and does not contain an
acknowledgment by a bank that the bank has received for
deposit a sum of money or funds.
(66) "Proposal" means a record authenticated by a
secured party which includes the terms on which the
secured party is willing to accept collateral in full or
partial satisfaction of the obligation it secures
pursuant to Sections 9-620, 9-621, and 9-622.
(67) "Public-finance transaction" means a secured
transaction in connection with which:
(A) debt securities are issued;
(B) all or a portion of the securities issued
have an initial stated maturity of at least 20
years; and
(C) the debtor, obligor, secured party,
account debtor or other person obligated on
collateral, assignor or assignee of a secured
obligation, or assignor or assignee of a security
interest is a State or a governmental unit of a
State.
(68) "Pursuant to commitment", with respect to an
advance made or other value given by a secured party,
means pursuant to the secured party's obligation, whether
or not a subsequent event of default or other event not
within the secured party's control has relieved or may
relieve the secured party from its obligation.
(69) "Record", except as used in "for record", "of
record", "record or legal title", and "record owner",
means information that is inscribed on a tangible medium
or which is stored in an electronic or other medium and
is retrievable in perceivable form.
(70) "Registered organization" means an
organization organized solely under the law of a single
State or the United States and as to which the State or
the United States must maintain a public record showing
the organization to have been organized.
(71) "Secondary obligor" means an obligor to the
extent that:
(A) the obligor's obligation is secondary; or
(B) the obligor has a right of recourse with
respect to an obligation secured by collateral
against the debtor, another obligor, or property of
either.
(72) "Secured party" means:
(A) a person in whose favor a security
interest is created or provided for under a security
agreement, whether or not any obligation to be
secured is outstanding;
(B) a person that holds an agricultural lien;
(C) a consignor;
(D) a person to which accounts, chattel paper,
payment intangibles, or promissory notes have been
sold;
(E) a trustee, indenture trustee, agent,
collateral agent, or other representative in whose
favor a security interest or agricultural lien is
created or provided for; or
(F) a person that holds a security interest
arising under Section 2-401, 2-505, 2-711(3),
2A-508(5), 4-210, or 5-118.
(73) "Security agreement" means an agreement that
creates or provides for a security interest.
(74) "Send", in connection with a record or
notification, means:
(A) to deposit in the mail, deliver for
transmission, or transmit by any other usual means
of communication, with postage or cost of
transmission provided for, addressed to any address
reasonable under the circumstances; or
(B) to cause the record or notification to be
received within the time that it would have been
received if properly sent under subparagraph (A).
(75) "Software" means a computer program and any
supporting information provided in connection with a
transaction relating to the program. The term does not
include a computer program that is included in the
definition of goods.
(76) "State" means a State of the United States,
the District of Columbia, Puerto Rico, the United States
Virgin Islands, or any territory or insular possession
subject to the jurisdiction of the United States.
(77) "Supporting obligation" means a
letter-of-credit right or secondary obligation that
supports the payment or performance of an account,
chattel paper, a document, a general intangible, an
instrument, or investment property.
(78) "Tangible chattel paper" means chattel paper
evidenced by a record or records consisting of
information that is inscribed on a tangible medium.
(79) "Termination statement" means an amendment of
a financing statement which:
(A) identifies, by its file number, the
initial financing statement to which it relates; and
(B) indicates either that it is a termination
statement or that the identified financing statement
is no longer effective.
(80) "Transmitting utility" means a person
primarily engaged in the business of:
(A) operating a railroad, subway, street
railway, or trolley bus;
(B) transmitting communications electrically,
electromagnetically, or by light;
(C) transmitting goods by pipeline or sewer;
or
(D) transmitting or producing and transmitting
electricity, steam, gas, or water.
(b) Definitions in other Articles. The following
definitions in other Articles apply to this Article:
"Applicant". Section 5-102.
"Beneficiary". Section 5-102.
"Broker". Section 8-102.
"Certificated security". Section 8-102.
"Check". Section 3-104.
"Clearing corporation". Section 8-102.
"Contract for sale". Section 2-106.
"Customer". Section 4-104.
"Entitlement holder". Section 8-102.
"Financial asset". Section 8-102.
"Holder in due course". Section 3-302.
"Issuer" (with respect to a letter of credit or
letter-of-credit right). Section 5-102.
"Issuer" (with respect to a security). Section 8-201.
"Lease". Section 2A-103.
"Lease agreement". Section 2A-103.
"Lease contract". Section 2A-103.
"Leasehold interest". Section 2A-103.
"Lessee". Section 2A-103.
"Lessee in ordinary course of business". Section 2A-103.
"Lessor". Section 2A-103.
"Lessor's residual interest". Section 2A-103.
"Letter of credit". Section 5-102.
"Merchant". Section 2-104.
"Negotiable instrument". Section 3-104.
"Nominated person". Section 5-102.
"Note". Section 3-104.
"Proceeds of a letter of credit". Section 5-114.
"Prove". Section 3-103.
"Sale". Section 2-106.
"Securities account". Section 8-501.
"Securities intermediary". Section 8-102.
"Security". Section 8-102.
"Security certificate". Section 8-102.
"Security entitlement". Section 8-102.
"Uncertificated security". Section 8-102.
(c) Article 1 definitions and principles. Article 1
contains general definitions and principles of construction
and interpretation applicable throughout this Article.
(Source: P.A. 91-893, eff. 7-1-01.)
(810 ILCS 5/9-109) (from Ch. 26, par. 9-109)
Sec. 9-109. Scope.
(a) General scope of Article. Except as otherwise
provided in subsections (c) and (d), this Article applies to:
(1) a transaction, regardless of its form, that
creates a security interest in personal property or
fixtures by contract;
(2) an agricultural lien;
(3) a sale of accounts, chattel paper, payment
intangibles, or promissory notes;
(4) a consignment;
(5) a security interest arising under Section
2-401, 2-505, 2-711(3), or 2A-508(5), as provided in
Section 9-110; and
(6) a security interest arising under Section 4-210
or 5-118.
(b) Security interest in secured obligation. The
application of this Article to a security interest in a
secured obligation is not affected by the fact that the
obligation is itself secured by a transaction or interest to
which this Article does not apply.
(c) Extent to which Article does not apply. This
Article does not apply to the extent that:
(1) a statute, regulation, or treaty of the United
States preempts this Article;
(2) another statute of this State expressly governs
the creation, perfection, priority, or enforcement of a
security interest created by this State or a governmental
unit of this State;
(3) a statute of another State, a foreign country,
or a governmental unit of another State or a foreign
country, other than a statute generally applicable to
security interests, expressly governs creation,
perfection, priority, or enforcement of a security
interest created by the State, country, or governmental
unit;
(4) the rights of a transferee beneficiary or
nominated person under a letter of credit are independent
and superior under Section 5-114;
(5) this Article is in conflict with Section
205-410 of the Department of Agriculture Law of the Civil
Administrative Code of Illinois or the Grain Code; or
(6) this Article is in conflict with Section 18-107
of the Public Utilities Act.
(d) Inapplicability of Article. This Article does not
apply to:
(1) a landlord's lien, other than an agricultural
lien;
(2) a lien, other than an agricultural lien, given
by statute or other rule of law for services or
materials, but Section 9-333 applies with respect to
priority of the lien;
(3) an assignment of a claim for wages, salary, or
other compensation of an employee;
(4) a sale of accounts, chattel paper, payment
intangibles, or promissory notes as part of a sale of the
business out of which they arose;
(5) an assignment of accounts, chattel paper,
payment intangibles, or promissory notes which is for the
purpose of collection only;
(6) an assignment of a right to payment under a
contract to an assignee that is also obligated to perform
under the contract;
(7) an assignment of a single account, payment
intangible, or promissory note to an assignee in full or
partial satisfaction of a preexisting indebtedness;
(8) a transfer of an interest in or an assignment
of a claim under a policy of insurance, other than an
assignment by or to a health-care provider of a
health-care-insurance receivable and any subsequent
assignment of the right to payment, but Sections 9-315
and 9-322 apply with respect to proceeds and priorities
in proceeds;
(9) an assignment of a right represented by a
judgment, other than a judgment taken on a right to
payment that was collateral;
(10) a right of recoupment or set-off, but:
(A) Section 9-340 applies with respect to the
effectiveness of rights of recoupment or set-off
against deposit accounts; and
(B) Section 9-404 applies with respect to
defenses or claims of an account debtor;
(11) the creation or transfer of an interest in or
lien on real property, including a lease or rents
thereunder, except to the extent that provision is made
for:
(A) liens on real property in Sections 9-203
and 9-308;
(B) fixtures in Section 9-334;
(C) fixture filings in Sections 9-501, 9-502,
9-512, 9-516, and 9-519; and
(D) security agreements covering personal and
real property in Section 9-604;
(12) an assignment of a claim arising in tort,
other than a commercial tort claim, but Sections 9-315
and 9-322 apply with respect to proceeds and priorities
in proceeds;
(13) a transfer by a government or governmental
subdivision or agency;
(14) a claim or a right to receive compensation for
injuries or sickness as described in Section 104(a)(1) or
(2) of Title 26 of the United States Code, as amended
from time to time; or
(15) a claim or right to receive benefits under a
special needs trust as described in Section 1396p(d)(4)
of Title 42 of the United States Code, as amended from
time to time.
(Source: P.A. 91-893, eff. 7-1-01.)
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly May 30, 2002.
Approved August 21, 2002.
Effective August 21, 2002.
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