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Illinois Compiled Statutes

625 ILCS 5/3-202 (2026)

Perfection of security interest

✓ current as of May 2026
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(625 ILCS 5/3-202) (from Ch. 95 1/2, par. 3-202)
    Sec. 3-202. Perfection of security interest.
    (a) Unless excepted by Section 3-201, a security interest in a vehicle of a type for which a certificate of title is required is not valid against subsequent transferees or lienholders of the vehicle unless perfected as provided in this Act. A purchase money security interest in a manufactured home is perfected against the rights of judicial lien creditors and execution creditors on and after the date such purchase money security interest attaches.
    (b) A security interest is perfected by the delivery to the Secretary of State of the existing certificate of title, if any, an application for a certificate of title containing the name and address of the lienholder and the required fee. The security interest is perfected as of the time of its creation if the delivery to the Secretary of State is completed within 30 days after the creation of the security interest or receipt by the new lienholder of the existing certificate of title from a prior lienholder or licensed dealer, otherwise as of the time of the delivery.
    (c) If a vehicle is subject to a security interest when brought into this State, the validity of the security interest is determined by the law of the jurisdiction where the vehicle was when the security interest attached, subject to the following:
        1. If the parties understood at the time the security
    
interest attached that the vehicle would be kept in this State and it was brought into this State within 30 days thereafter for purposes other than transportation through this State, the validity of the security interest in this State is determined by the law of this State.
        2. If the security interest was perfected under the
    
law of the jurisdiction where the vehicle was when the security interest attached, the following rules apply:
            (A) If the name of the lienholder is shown on an
        
existing certificate of title issued by that jurisdiction, his security interest continues perfected in this State.
            (B) If the name of the lienholder is not shown on
        
an existing certificate of title issued by that jurisdiction, a security interest may be perfected by the lienholder delivering to the Secretary of State the prescribed notice and by payment of the required fee. Such security interest is perfected as of the time of delivery of the prescribed notice and payment of the required fee.
        3. If the security interest was not perfected under
    
the law of the jurisdiction where the vehicle was when the security interest attached, it may be perfected in this State; in that case perfection dates from the time of perfection in this State.
        4. A security interest may be perfected under
    
paragraph 3 of this subsection either as provided in subsection (b) or by the lienholder delivering to the Secretary of State a notice of security interest in the form the Secretary of State prescribes and the required fee.
    (d) Except as otherwise provided in Sections 3-116.1, 3-116.2, 3-207, and the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act, after a certificate of title has been issued for a manufactured home and as long as the manufactured home is subject to any security interest perfected pursuant to this Section, the Secretary of State shall not file an affidavit of affixation, nor cancel the Manufacturer's Statement of Origin, nor revoke the certificate of title, nor issue a certificate of title under Section 3-106, and, in any event, the validity and priority of any security interest perfected pursuant to this Section shall continue, notwithstanding the provision of any other law.
(Source: P.A. 98-749, eff. 7-16-14.)

    
Notes of Decisions
Cited in 11 cases, 1995–2018 · leading case: McRoberts v. Transouth Fin. (In Re Bell), 194 B.R. 192 (Bankr. S.D. Ill. 1996).
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McRoberts v. Transouth Fin. (In Re Bell), 194 B.R. 192 (Bankr. S.D. Ill. 1996). · cites it 2× “” 625 ILCS 5/3-202(a). The Uniform Commercial Code further provides, regarding the priority of competing interests in a vehicle, that “an unperfected security interest is subordinate to the rights of .”
McRoberts v. WFS Fin., Inc. (In Re Church), 206 B.R. 180 (Bankr. S.D. Ill. 1997). · cites it 4× “” 625 ILCS 5/3-202(a). The Uniform Commercial Code further provides, regarding the priority of competing interests in a vehicle, that “an unperfected security interest is subordinate to the rights of .”
In Re Lortz, 344 B.R. 579 (Bankr. C.D. Ill. 2006). · cites it 2× “4 625 ILCS 5/3-202(a). Using the original certificate of title as the exclusive method of giving such notice allows transactions concerning motor vehicles to be conducted easily and with certainty.”
Ambre v. Joe Madden Ford, 881 F. Supp. 1182 (N.D. Ill. 1995). “Bank One perfected its lien in accordance with the requirements of the Illinois Vehicle Code, see 625 ILCS 5/3-202, and is named as the “First Lienholder” on the Certificate of Title of Vehicle issued to Am-bre by the Illinois Secretary of State’s Office.”
Malek v. Gold Coast Exotic Imports, LLC, 2018 IL App (1st) 171459 (Ill. App. Ct. 2018). “¶ 18 As a threshold matter, however, Nancy incorrectly asserts that Gold Coast, in order to perfect its security interest, was required to record its lien on the BMW's certificate of title and file it with the Secretary of State pursuant to article II of Chapter 3 of the…”
Barber v. Reynolds Motor Leasing Co. ( in Re My Type, Inc.), 407 B.R. 329 (Bankr. C.D. Ill. 2009). “625 ILCS 5/3-202(a) and (b). Illinois uses the “delivery” standard for perfecting security interests in vehicles whereby perfection is obtained by “mere delivery of the appropriate papers and fees to the proper officer .”
Malek v. Gold Coast Exotic Imports, LLC, 2018 IL App (1st) 171459 (Ill. App. Ct. 2018). “¶ 18 As a threshold matter, however, Nancy incorrectly asserts that Gold Coast, in order to perfect its security interest, was required to record its lien on the BMW’s certificate of title and file it with the Secretary of State pursuant to article II of Chapter 3 of the…”
Reinbold v. Wells Fargo Bank, N.A. (In re Alvarado), 517 B.R. 880 (Bankr. C.D. Ill. 2014). · cites it 3× “1 *884 Section 3-202 of the Illinois Vehicle Code, 625 ILCS 5/3-202, which governs the perfection of security interests in motor vehicles provides, in pertinent part: (b) A security interest is perfected by the delivery to the Secretary of State of the existing certificate of…”
BMW Fin. Servs., N.A., LLC v. Felice, 2017 IL App (2d) 160397 (Ill. App. Ct. 2017). “The perfection of security interests in motor vehicles is governed, in part, by section 3-202(b) of the Illinois Vehicle Code (625 ILCS 5/3-202(b) (West 2014)), which provides, “[a] security interest is perfected by the delivery to the Secretary of State of the existing…”
BMW Fin. Servs., N.A., LLC v. Felice, 2017 IL App (2d) 160397 (Ill. App. Ct. 2017). “r vehicles is governed, in part, by section 3-202(b) of the Illinois Vehicle Code -3­ 2017 IL App (2d) 160397 (Vehicle Code) (625 ILCS 5/3-202(b) (West 2014)), which provides, “[a] security interest is perfected by the delivery to the Secretary of State of the existing…”
Am. Stand. Ins. Co. v. Gnojewski (Ill. App. Ct. 2001). “tate and Falcetti argued that the automobile insurance policy issued by Gallant to Gnojewski did not lapse prior to the August 1, 1995, automobile accident, because of Gallant’s failure to provide notice of cancellation to Laclede Credit Union (Laclede), which perfected its lien…”
— 625 ILCS 5/3-202(a) — 4 cases
McRoberts v. Transouth Fin. (In Re Bell), 194 B.R. 192 (Bankr. S.D. Ill. 1996). “” 625 ILCS 5/3-202(a). The Uniform Commercial Code further provides, regarding the priority of competing interests in a vehicle, that “an unperfected security interest is subordinate to the rights of .”
In Re Lortz, 344 B.R. 579 (Bankr. C.D. Ill. 2006). “4 625 ILCS 5/3-202(a). Using the original certificate of title as the exclusive method of giving such notice allows transactions concerning motor vehicles to be conducted easily and with certainty.”
McRoberts v. WFS Fin., Inc. (In Re Church), 206 B.R. 180 (Bankr. S.D. Ill. 1997). “” 625 ILCS 5/3-202(a). The Uniform Commercial Code further provides, regarding the priority of competing interests in a vehicle, that “an unperfected security interest is subordinate to the rights of .”
Barber v. Reynolds Motor Leasing Co. ( in Re My Type, Inc.), 407 B.R. 329 (Bankr. C.D. Ill. 2009). “625 ILCS 5/3-202(a) and (b). Illinois uses the “delivery” standard for perfecting security interests in vehicles whereby perfection is obtained by “mere delivery of the appropriate papers and fees to the proper officer .”
— 625 ILCS 5/3-202(b) — 5 cases
McRoberts v. Transouth Fin. (In Re Bell), 194 B.R. 192 (Bankr. S.D. Ill. 1996). “” 625 ILCS 5/3-202(a). The Uniform Commercial Code further provides, regarding the priority of competing interests in a vehicle, that “an unperfected security interest is subordinate to the rights of .”
In Re Lortz, 344 B.R. 579 (Bankr. C.D. Ill. 2006). “4 625 ILCS 5/3-202(a). Using the original certificate of title as the exclusive method of giving such notice allows transactions concerning motor vehicles to be conducted easily and with certainty.”
McRoberts v. WFS Fin., Inc. (In Re Church), 206 B.R. 180 (Bankr. S.D. Ill. 1997). “” 625 ILCS 5/3-202(a). The Uniform Commercial Code further provides, regarding the priority of competing interests in a vehicle, that “an unperfected security interest is subordinate to the rights of .”
BMW Fin. Servs., N.A., LLC v. Felice, 2017 IL App (2d) 160397 (Ill. App. Ct. 2017). “The perfection of security interests in motor vehicles is governed, in part, by section 3-202(b) of the Illinois Vehicle Code (625 ILCS 5/3-202(b) (West 2014)), which provides, “[a] security interest is perfected by the delivery to the Secretary of State of the existing…”
BMW Fin. Servs., N.A., LLC v. Felice, 2017 IL App (2d) 160397 (Ill. App. Ct. 2017). “r vehicles is governed, in part, by section 3-202(b) of the Illinois Vehicle Code -3­ 2017 IL App (2d) 160397 (Vehicle Code) (625 ILCS 5/3-202(b) (West 2014)), which provides, “[a] security interest is perfected by the delivery to the Secretary of State of the existing…”
— 625 ILCS 5/3-202(c)(2)(A) — 1 case
Reinbold v. Wells Fargo Bank, N.A. (In re Alvarado), 517 B.R. 880 (Bankr. C.D. Ill. 2014). “1 *884 Section 3-202 of the Illinois Vehicle Code, 625 ILCS 5/3-202, which governs the perfection of security interests in motor vehicles provides, in pertinent part: (b) A security interest is perfected by the delivery to the Secretary of State of the existing certificate of…”
— 625 ILCS 5/3-202(c)(3) — 1 case
McRoberts v. WFS Fin., Inc. (In Re Church), 206 B.R. 180 (Bankr. S.D. Ill. 1997). “” 625 ILCS 5/3-202(a). The Uniform Commercial Code further provides, regarding the priority of competing interests in a vehicle, that “an unperfected security interest is subordinate to the rights of .”
— 625 ILCS 5/3-202(c)(l) — 1 case
McRoberts v. WFS Fin., Inc. (In Re Church), 206 B.R. 180 (Bankr. S.D. Ill. 1997). “” 625 ILCS 5/3-202(a). The Uniform Commercial Code further provides, regarding the priority of competing interests in a vehicle, that “an unperfected security interest is subordinate to the rights of .”
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