Illinois Compiled Statutes
740 ILCS 160/2 (2026)
As used in this Act: (a) "Affiliate" means: (1) a person who directly or indirectly owns, controls, or holds with power to vote, 20% or more of the outstanding voting securities of the debtor, other than a person who holds the securities, (A) as a fiduciary or agent without sole discretionary power to vote the securities; or (B) solely to secure a debt, if the person has not exercised the power to vote; (2) a corporation with 20% or more outstanding voting securities which are directly or indirectly owned, controlled, or held with power to vote, by the debtor or a person who directly or indirectly owns, controls, or holds with power to vote, 20% or more of the outstanding voting securities of the debtor, other than a person who holds the securities, (A) as a fiduciary or agent without sole power to vote the securities; or (B) solely to secure a debt, if the person has not in fact exercised the power to vote; (3) a person whose business is operated by the debtor under a lease or other agreement, or a person substantially all of whose assets are controlled by the debtor; or (4) a person who operates the debtor's business under a lease or other agreement or controls substantially all of the debtor's assets
✓ current as of May 2026
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(740 ILCS 160/2)
(from Ch. 59, par. 102)
Sec. 2.
As used in this Act:
(a) "Affiliate" means:
(1) a person who directly or indirectly owns, | controls, or holds with power to vote, 20% or more of the outstanding voting securities of the debtor, other than a person who holds the securities, |
(A) as a fiduciary or agent without sole | discretionary power to vote the securities; or |
(B) solely to secure a debt, if the person has | not exercised the power to vote; |
(2) a corporation with 20% or more outstanding voting | securities which are directly or indirectly owned, controlled, or held with power to vote, by the debtor or a person who directly or indirectly owns, controls, or holds with power to vote, 20% or more of the outstanding voting securities of the debtor, other than a person who holds the securities, |
(A) as a fiduciary or agent without sole power to | vote the securities; or |
(B) solely to secure a debt, if the person has | not in fact exercised the power to vote; |
(3) a person whose business is operated by the | debtor under a lease or other agreement, or a person substantially all of whose assets are controlled by the debtor; or |
(4) a person who operates the debtor's business under | a lease or other agreement or controls substantially all of the debtor's assets. |
(b) "Asset" means property of a debtor, but the term does not include:
(1) property to the extent it is encumbered by a | valid lien; |
(2) property to the extent it is generally exempt | under laws of this State; or |
(3) an interest in property held in tenancy by the | entireties to the extent it is not subject to process by a creditor holding a claim against only one tenant. |
(c) "Claim" means a right to payment, whether or not the right is reduced
to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured,
disputed, undisputed, legal, equitable, secured, or unsecured.
(d) "Creditor" means a person
who has a claim, including a claim for past-due child support.
(e) "Debt" means liability on a claim.
(f) "Debtor" means a person who is liable on a claim.
(g) "Insider" includes:
(1) if the debtor is an individual,
(A) a relative of the debtor or of a general | partner of the debtor; |
(B) a partnership in which the debtor is a | general partner; |
(C) a general partner in a partnership described | in clause (B); or |
(D) a corporation of which the debtor is a | director, officer, or person in control; |
(2) if the debtor is a corporation,
(A) a director of the debtor;
(B) an officer of the debtor;
(C) a person in control of the debtor;
(D) a partnership in which the debtor is a | general partner; |
(E) a general partner in a partnership described | in clause (D); or |
(F) a relative of a general partner, director, | officer, or person in control of the debtor; |
(3) if the debtor is a partnership,
(A) a general partner in the debtor;
(B) a relative of a general partner in, a general | partner of, or a person in control of the debtor; |
(C) another partnership in which the debtor is a | general partner; |
(D) a general partner in a partnership described | in clause (C); or |
(E) a person in control of the debtor;
(4) an affiliate, or an insider of an affiliate as if | the affiliate were the debtor; and |
(5) a managing agent of the debtor.
(h) "Lien" means a charge against or an interest in property to secure
payment of a debt or performance of an obligation, and includes a security
interest created by agreement, a judicial lien obtained by legal or equitable
process or proceedings, a common-law lien, or a statutory lien.
(i) "Person" means an individual, partnership, corporation, association,
organization, government or governmental subdivision or agency, business
trust, estate, trust, or any other legal or commercial entity.
(j) "Property" means anything that may be the subject of ownership.
(k) "Relative" means an individual related by consanguinity within the
third degree as determined by the common law, a spouse, or an individual
related to a spouse within the third degree as so determined, and includes
an individual in an adoptive relationship within the third degree.
(l) "Transfer" means every mode, direct or indirect, absolute or
conditional,
voluntary or involuntary, of disposing of or parting with an asset or an
interest in an asset, and includes payment of money, release, lease, and
creation of a lien or other encumbrance.
(m) "Valid lien" means a lien that is effective against the holder of
a judicial lien subsequently obtained by legal or equitable process or
proceedings.
(Source: P.A. 90-18, eff. 7-1-97.)
Notes of Decisions
Cited in 60
cases (9 in the last 5 years), 1993–2024 · leading case: Apollo Real Est. Inv. Fund, IV, L.P. v. Gelber, 935 N.E.2d 963 (Ill. App. Ct. 2010).
Apollo Real Est. Inv. Fund, IV, L.P. v. Gelber, 935 N.E.2d 963 (Ill. App. Ct. 2010). “” 740 ILCS 160/2(d), (f) (West 2000). A claim is “a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.”
Gierum v. Glick (In re Glick), 568 B.R. 634 (Bankr. N.D. Ill. 2017). “Under the IUFTA, the state fraudulent transfer law applicable here, a fraudulent transfer must involve a “transfer,” 740 ILCS 160/5(a) (2014), and the transfer must be of an “asset or an interest in an asset,” 740 ILCS 160/2(Z) (2014), meaning “property of a debtor” or an…”
Aps Sports Collectibles, Inc. v. Sports Time, Inc., 299 F.3d 624 (7th Cir. 2002). “Although AW Sports is the most logical party to be designated as a debtor, see 740 ILCS 160/8, it is not a defendant in this lawsuit because of the automatic stay imposed under the Bankruptcy Code. In addition, since none of the individual defendants in this case was a party to…”
Kermit J. Bressner v. Shirlee Ambroziak, Dennis Ambroziak, Amzo Zip Mailing Servs., Inc., an Illinois Corp., 379 F.3d 478 (7th Cir. 2004). “” 740 ILCS 160/2(2). The UFTA defines an asset as “property of a debt- or.”
Grochocinski v. Zeigler (In Re Zeigler), 320 B.R. 362 (Bankr. N.D. Ill. 2005). “740 ILCS 160/2(g)(1)(A). A relative has been defined in part as “an individual related by consanguinity within the third degree as determined by the common law.”
Bank of Am. v. WS Mgmt., Inc., 2015 IL App (1st) 132551 (Ill. App. Ct. 2015). “740 ILCS 160/2(b) (West 2006). "Transfer" is defined as "every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with an asset or an interest in an asset, and includes payment of money, release, lease, and creation of a lien…”
1550 MP Road LLC v. Teamsters Local Union No. 700, 2017 IL App (1st) 153300 (Ill. App. Ct. 2017). “¶ 54 Under section 5(a) of the Fraudulent Transfer Act: "A transfer made or obligation incurred by a debtor is fraudulent as to a creditor, whether the creditor's claim arose before or after the transfer was made or the obligation was incurred, if the debtor made the transfer or…”
A.P. Props., Inc. v. Goshinsky, 714 N.E.2d 519 (Ill. 1999). “” 740 ILCS 160/2(c), (d), (f) (West Supp. 1997).”
APS Sports Collectibles, Inc. v. Sports Time, Inc., 299 F.3d 624 (7th Cir. 2002). “Although AW Sports is the most logical party to be designated as a debtor, see 740 ILCS 160/8, it is not a defendant in this lawsuit because of the automatic stay imposed under the Bankruptcy Code. In addition, since none of the individual defendants in this case was a party to…”
Wachovia Sec., LLC v. Banco Panamericano, Inc., 674 F.3d 743 (7th Cir. 2012). “Banco argues that badge (4) does not apply because Loop’s assets were not transferred; as just noted, appellants argue that Loop remained the owner of the assets before and after the transaction.”
McGinley Partners, LLC v. Royalty Props., LLC, 2021 IL App (1st) 200390 (Ill. App. Ct. 2021). “” 740 ILCS 160/2(g)(1)(D) (West 2018). 31 Nos.”
In Re Marriage of Del Giudice, 678 N.E.2d 47 (Ill. App. Ct. 1997). “" 740 ILCS 160/2( l ) (West 1994). We find that the Del Giudices' retitling of their property satisfies this definition.”
— 740 ILCS 160/2(1) — 5 cases
Paloian v. LaSalle Bank Nat'l Ass'n (In re Doctors Hosp. of Hyde Park, Inc.), 507 B.R. 558 (Bankr. N.D. Ill. 2013).
In Re Marriage of Del Giudice, 678 N.E.2d 47 (Ill. App. Ct. 1997). “" 740 ILCS 160/2( l ) (West 1994). We find that the Del Giudices' retitling of their property satisfies this definition.”
Gregg v. SR Investors, Ltd., 966 F. Supp. 746 (N.D. Ill. 1997).
Damian v. Pepperdine Univ. (N.D. Ill. 2022).
Johnstone v. Wabick, 207 F. Supp. 2d 824 (N.D. Ill. 2002).
— 740 ILCS 160/2(2) — 1 case
Kermit J. Bressner v. Shirlee Ambroziak, Dennis Ambroziak, Amzo Zip Mailing Servs., Inc., an Illinois Corp., 379 F.3d 478 (7th Cir. 2004). “” 740 ILCS 160/2(2). The UFTA defines an asset as “property of a debt- or.”
— 740 ILCS 160/2(Z) — 2 cases
Gierum v. Glick (In re Glick), 568 B.R. 634 (Bankr. N.D. Ill. 2017). “Under the IUFTA, the state fraudulent transfer law applicable here, a fraudulent transfer must involve a “transfer,” 740 ILCS 160/5(a) (2014), and the transfer must be of an “asset or an interest in an asset,” 740 ILCS 160/2(Z) (2014), meaning “property of a debtor” or an…”
Doctors Hosp. of Hyde Park, Inc. v. Desnick (In Re Doctors Hosp. of Hyde Park, Inc.), 360 B.R. 787 (Bankr. N.D. Ill. 2007).
— 740 ILCS 160/2(b) — 11 cases
Gierum v. Glick (In re Glick), 568 B.R. 634 (Bankr. N.D. Ill. 2017). “Under the IUFTA, the state fraudulent transfer law applicable here, a fraudulent transfer must involve a “transfer,” 740 ILCS 160/5(a) (2014), and the transfer must be of an “asset or an interest in an asset,” 740 ILCS 160/2(Z) (2014), meaning “property of a debtor” or an…”
Workforce Solutions v. Urban Servs. of Am., Inc., 2012 IL App (1st) 111410 (Ill. App. Ct. 2012).
Kermit J. Bressner v. Shirlee Ambroziak, Dennis Ambroziak, Amzo Zip Mailing Servs., Inc., an Illinois Corp., 379 F.3d 478 (7th Cir. 2004). “” 740 ILCS 160/2(2). The UFTA defines an asset as “property of a debt- or.”
Bank of Am. v. WS Mgmt., Inc., 2015 IL App (1st) 132551 (Ill. App. Ct. 2015). “740 ILCS 160/2(b) (West 2006). "Transfer" is defined as "every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with an asset or an interest in an asset, and includes payment of money, release, lease, and creation of a lien…”
1550 MP Road LLC v. Teamsters Local Union No. 700, 2017 IL App (1st) 153300 (Ill. App. Ct. 2017). “¶ 54 Under section 5(a) of the Fraudulent Transfer Act: "A transfer made or obligation incurred by a debtor is fraudulent as to a creditor, whether the creditor's claim arose before or after the transfer was made or the obligation was incurred, if the debtor made the transfer or…”
— 740 ILCS 160/2(b)(1) — 7 cases
1550 MP Road LLC v. Teamsters Local Union No. 700, 2017 IL App (1st) 153300 (Ill. App. Ct. 2017). “¶ 54 Under section 5(a) of the Fraudulent Transfer Act: "A transfer made or obligation incurred by a debtor is fraudulent as to a creditor, whether the creditor's claim arose before or after the transfer was made or the obligation was incurred, if the debtor made the transfer or…”
Pluciennik v. Vandenberg, 2018 IL App (3d) 160726 (Ill. App. Ct. 2018).
Villaverde v. IP Acquisition VIII, LLC, 2015 IL App (1st) 143187 (Ill. App. Ct. 2015).
1550 MP Road LLC v. Teamsters Local Union No. 700, 2017 IL App (1st) 153300 (Ill. App. Ct. 2018).
Villaverde v. IP Acquisition VIII, LLC, 2015 IL App (1st) 143187 (Ill. App. Ct. 2015).
— 740 ILCS 160/2(b)(2) — 2 cases
Barber v. Dunbar (In Re Dunbar), 313 B.R. 430 (Bankr. C.D. Ill. 2004).
Voiland v. Kimmell (In re Kimmell), 480 B.R. 876 (Bankr. N.D. Ill. 2012).
— 740 ILCS 160/2(b)(l) — 1 case
Off. Comm. of Unsecured Creditors v. Fountainhead Grp., Inc. (In re Bridgeview Aerosol, LLC), 538 B.R. 477 (Bankr. N.D. Ill. 2015).
— 740 ILCS 160/2(c) — 15 cases
Apollo Real Est. Inv. Fund, IV, L.P. v. Gelber, 935 N.E.2d 963 (Ill. App. Ct. 2010). “” 740 ILCS 160/2(d), (f) (West 2000). A claim is “a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.”
A.P. Props., Inc. v. Goshinsky, 714 N.E.2d 519 (Ill. 1999). “” 740 ILCS 160/2(c), (d), (f) (West Supp. 1997).”
Nw. Mem'l Hosp. v. Sharif, 2014 IL App (1st) 133008 (Ill. App. Ct. 2015).
Nw. Mem'l Hosp. v. Sharif, 2014 IL App (1st) 133008 (Ill. App. Ct. 2014).
Levy v. Markal Sales Corp., 724 N.E.2d 1008 (Ill. App. Ct. 2000).
— 740 ILCS 160/2(d) — 6 cases
Apollo Real Est. Inv. Fund, IV, L.P. v. Gelber, 935 N.E.2d 963 (Ill. App. Ct. 2010). “” 740 ILCS 160/2(d), (f) (West 2000). A claim is “a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.”
Harris Bank, N.A. v. Werner (In Re Werner), 386 B.R. 684 (Bankr. N.D. Ill. 2008).
In Re Est. of Cappetta, 733 N.E.2d 426 (Ill. App. Ct. 2000).
A.P. Props., Inc. v. Goshinsky, 699 N.E.2d 158 (Ill. App. Ct. 1998).
Apollo Real Est. Inv. Fund v. Gelber (Ill. App. Ct. 2010).
— 740 ILCS 160/2(f) — 6 cases
Aps Sports Collectibles, Inc. v. Sports Time, Inc., 299 F.3d 624 (7th Cir. 2002). “Although AW Sports is the most logical party to be designated as a debtor, see 740 ILCS 160/8, it is not a defendant in this lawsuit because of the automatic stay imposed under the Bankruptcy Code. In addition, since none of the individual defendants in this case was a party to…”
APS Sports Collectibles, Inc. v. Sports Time, Inc., 299 F.3d 624 (7th Cir. 2002). “Although AW Sports is the most logical party to be designated as a debtor, see 740 ILCS 160/8, it is not a defendant in this lawsuit because of the automatic stay imposed under the Bankruptcy Code. In addition, since none of the individual defendants in this case was a party to…”
1550 MP Road LLC v. Teamsters Local Union No. 700, 2017 IL App (1st) 153300 (Ill. App. Ct. 2017). “¶ 54 Under section 5(a) of the Fraudulent Transfer Act: "A transfer made or obligation incurred by a debtor is fraudulent as to a creditor, whether the creditor's claim arose before or after the transfer was made or the obligation was incurred, if the debtor made the transfer or…”
Caterpillar Inc. v. Jerryco Footwear, Inc., 880 F. Supp. 578 (C.D. Ill. 1994).
1550 MP Road LLC v. Teamsters Local Union No. 700, 2017 IL App (1st) 153300 (Ill. App. Ct. 2018).
— 740 ILCS 160/2(g) — 3 cases
Grochocinski v. Schlossberg, 402 B.R. 825 (N.D. Ill. 2009).
Damian v. Courtright (N.D. Ill. 2021).
Damian v. Pepperdine Univ. (N.D. Ill. 2022).
— 740 ILCS 160/2(g)(1)(A) — 1 case
Grochocinski v. Zeigler (In Re Zeigler), 320 B.R. 362 (Bankr. N.D. Ill. 2005). “740 ILCS 160/2(g)(1)(A). A relative has been defined in part as “an individual related by consanguinity within the third degree as determined by the common law.”
— 740 ILCS 160/2(g)(1)(D) — 2 cases
McGinley Partners, LLC v. Royalty Props., LLC, 2021 IL App (1st) 200390 (Ill. App. Ct. 2021). “” 740 ILCS 160/2(g)(1)(D) (West 2018). 31 Nos.”
McGinley Partners, LLC v. Royalty Props., LLC, 2021 IL App (1st) 200390 (Ill. App. Ct. 2021).
— 740 ILCS 160/2(g)(2) — 9 cases
Aps Sports Collectibles, Inc. v. Sports Time, Inc., 299 F.3d 624 (7th Cir. 2002). “Although AW Sports is the most logical party to be designated as a debtor, see 740 ILCS 160/8, it is not a defendant in this lawsuit because of the automatic stay imposed under the Bankruptcy Code. In addition, since none of the individual defendants in this case was a party to…”
APS Sports Collectibles, Inc. v. Sports Time, Inc., 299 F.3d 624 (7th Cir. 2002). “Although AW Sports is the most logical party to be designated as a debtor, see 740 ILCS 160/8, it is not a defendant in this lawsuit because of the automatic stay imposed under the Bankruptcy Code. In addition, since none of the individual defendants in this case was a party to…”
Apollo Real Est. Inv. Fund, IV, L.P. v. Gelber, 935 N.E.2d 963 (Ill. App. Ct. 2010). “” 740 ILCS 160/2(d), (f) (West 2000). A claim is “a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.”
CLC Creditors' Grantor Trust v. Howard Sav. Bank (In Re Com. Loan Corp.), 396 B.R. 730 (Bankr. N.D. Ill. 2008).
Villaverde v. IP Acquisition VIII, LLC, 2015 IL App (1st) 143187 (Ill. App. Ct. 2015).
— 740 ILCS 160/2(g)(2)(C) — 2 cases
Bank of Am. v. WS Mgmt., Inc., 2015 IL App (1st) 132551 (Ill. App. Ct. 2015). “740 ILCS 160/2(b) (West 2006). "Transfer" is defined as "every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with an asset or an interest in an asset, and includes payment of money, release, lease, and creation of a lien…”
Bank of Am. v. WS Mgmt., Inc., 2015 IL App (1st) 132551 (Ill. App. Ct. 2015).
— 740 ILCS 160/2(g)(4) — 4 cases
Apollo Real Est. Inv. Fund, IV, L.P. v. Gelber, 935 N.E.2d 963 (Ill. App. Ct. 2010). “” 740 ILCS 160/2(d), (f) (West 2000). A claim is “a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.”
A.G. Cullen Constr., Inc. v. Burnham Partners, LLC, 2015 IL App (1st) 122538 (Ill. App. Ct. 2015).
A.G. Cullen Constr., Inc. v. Burnham Partners, LLC, 2015 IL App (1st) 122538 (Ill. App. Ct. 2015).
Apollo Real Est. Inv. Fund v. Gelber (Ill. App. Ct. 2010).
— 740 ILCS 160/2(g)(l)(A) — 1 case
Wildcat Enter., LLC v. Weber, 322 F.R.D. 306 (N.D. Ill. 2017).
— 740 ILCS 160/2(h) — 2 cases
Manago v. The Cnty. of Cook, 2016 IL App (1st) 121365 (Ill. App. Ct. 2016).
Zurich Am. Ins. Co. v. MB Fin. Bank N.A., 2020 IL App (1st) 190767-U (Ill. App. Ct. 2020).
— 740 ILCS 160/2(i) — 2 cases
Wachovia Sec., LLC v. Banco Panamericano, Inc., 674 F.3d 743 (7th Cir. 2012). “Banco argues that badge (4) does not apply because Loop’s assets were not transferred; as just noted, appellants argue that Loop remained the owner of the assets before and after the transaction.”
Off. Comm. of Unsecured Creditors v. Fountainhead Grp., Inc. (In re Bridgeview Aerosol, LLC), 538 B.R. 477 (Bankr. N.D. Ill. 2015).
— 740 ILCS 160/2(j) — 4 cases
Kermit J. Bressner v. Shirlee Ambroziak, Dennis Ambroziak, Amzo Zip Mailing Servs., Inc., an Illinois Corp., 379 F.3d 478 (7th Cir. 2004). “” 740 ILCS 160/2(2). The UFTA defines an asset as “property of a debt- or.”
1550 MP Road LLC v. Teamsters Local Union No. 700, 2017 IL App (1st) 153300 (Ill. App. Ct. 2017). “¶ 54 Under section 5(a) of the Fraudulent Transfer Act: "A transfer made or obligation incurred by a debtor is fraudulent as to a creditor, whether the creditor's claim arose before or after the transfer was made or the obligation was incurred, if the debtor made the transfer or…”
1550 MP Road LLC v. Teamsters Local Union No. 700, 2017 IL App (1st) 153300 (Ill. App. Ct. 2017).
Bressner, Kermit J. v. Ambroziak, Shrilee (7th Cir. 2004).
— 740 ILCS 160/2(k) — 1 case
Grochocinski v. Zeigler (In Re Zeigler), 320 B.R. 362 (Bankr. N.D. Ill. 2005). “740 ILCS 160/2(g)(1)(A). A relative has been defined in part as “an individual related by consanguinity within the third degree as determined by the common law.”
— 740 ILCS 160/2(l) — 10 cases
Bank of Am. v. WS Mgmt., Inc., 2015 IL App (1st) 132551 (Ill. App. Ct. 2015). “740 ILCS 160/2(b) (West 2006). "Transfer" is defined as "every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with an asset or an interest in an asset, and includes payment of money, release, lease, and creation of a lien…”
McGinley Partners, LLC v. Royalty Props., LLC, 2021 IL App (1st) 200390 (Ill. App. Ct. 2021). “” 740 ILCS 160/2(g)(1)(D) (West 2018). 31 Nos.”
Bank of Am. v. WS Mgmt., Inc., 2015 IL App (1st) 132551 (Ill. App. Ct. 2015).
McGinley Partners, LLC v. Royalty Props., LLC, 2021 IL App (1st) 200390 (Ill. App. Ct. 2021).
U.S. Bank Nat'l Ass'n v. Londrigan, Potter & Randle, P.C. (C.D. Ill. 2021).
— 740 ILCS 160/2(m) — 4 cases
Pluciennik v. Vandenberg, 2018 IL App (3d) 160726 (Ill. App. Ct. 2018).
Pluciennik v. Vandenberg, 2018 IL App (3d) 160726 (Ill. App. Ct. 2019).
Zurich Am. Ins. Co. v. MB Fin. Bank N.A., 2020 IL App (1st) 190767-U (Ill. App. Ct. 2020).
White v. Funeral Fin. Sys., Ltd, 2022 IL App (1st) 201385-U (Ill. App. Ct. 2022).
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