Illinois Compiled Statutes 810 ILCS 5 Uniform Commercial Code. Section 9-109

    (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;

        (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; 92-819, eff. 8-21-02.)

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Last modified: February 18, 2015