(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