ILCS » Chapter 740 · Act 160
Illinois Compiled Statutes

740 ILCS 160/7 (2026)

For the purposes of this Act:     (a) a transfer is made:     (1) with respect to an asset that is real property other than a fixture, but including the interest of a seller or purchaser under a contract for the sale of the asset, when the transfer is so far perfected that a good-faith purchaser of the asset from the debtor against whom applicable law permits the transfer to be perfected cannot acquire an interest in the asset that is superior to the interest of the transferee; and     (2) with respect to an asset that is not real property or that is a fixture, when the transfer is so far perfected that a creditor on a simple contract cannot acquire a judicial lien otherwise than under this Act that is superior to the interest of the transferee;     (b) if applicable law permits the transfer to be perfected as provided in subsection (a) and the transfer is not so perfected before the commencement of an action for relief under this Act, the transfer is deemed made immediately before the commencement of the action;     (c) if applicable law does not permit the transfer to be perfected as provided in subsection (a), the transfer is made when it becomes effective between the debtor and the transferee;     (d) a transfer is not made until the debtor has acquired rights in the asset transferred;     (e) an obligation is incurred:     (1) if oral, when it becomes effective between the parties; or     (2) if evidenced by a writing, when the writing executed by the obligor is delivered to or for the benefit of the obligee

✓ current as of May 2026
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(740 ILCS 160/7) (from Ch. 59, par. 107)
    Sec. 7. For the purposes of this Act:
    (a) a transfer is made:
    (1) with respect to an asset that is real property other than a fixture, but including the interest of a seller or purchaser under a contract for the sale of the asset, when the transfer is so far perfected that a good-faith purchaser of the asset from the debtor against whom applicable law permits the transfer to be perfected cannot acquire an interest in the asset that is superior to the interest of the transferee; and
    (2) with respect to an asset that is not real property or that is a fixture, when the transfer is so far perfected that a creditor on a simple contract cannot acquire a judicial lien otherwise than under this Act that is superior to the interest of the transferee;
    (b) if applicable law permits the transfer to be perfected as provided in subsection (a) and the transfer is not so perfected before the commencement of an action for relief under this Act, the transfer is deemed made immediately before the commencement of the action;
    (c) if applicable law does not permit the transfer to be perfected as provided in subsection (a), the transfer is made when it becomes effective between the debtor and the transferee;
    (d) a transfer is not made until the debtor has acquired rights in the asset transferred;
    (e) an obligation is incurred:
    (1) if oral, when it becomes effective between the parties; or
    (2) if evidenced by a writing, when the writing executed by the obligor is delivered to or for the benefit of the obligee.
(Source: P.A. 86-814.)

    
Notes of Decisions
Cited in 6 cases (3 in the last 5 years), 2000–2024 · leading case: McGinley Partners, LLC v. Royalty Props., LLC, 2021 IL App (1st) 200390 (Ill. App. Ct. 2021).
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McGinley Partners, LLC v. Royalty Props., LLC, 2021 IL App (1st) 200390 (Ill. App. Ct. 2021). “” 740 ILCS 160/7(a)(2) (West 2018). However, with respect to patents and trademarks, an assignment is void as against any subsequent purchaser or mortgagee until it is recorded.”
Levy v. Markal Sales Corp., 724 N.E.2d 1008 (Ill. App. Ct. 2000). “3 Section 7 of the Act (740 ILCS 160/7 (West 1996)) specifies when a transfer is made and thus necessarily requires consideration when determining the timeliness of a claim.”
McGinley Partners, LLC v. Royalty Props., LLC, 2021 IL App (1st) 200390 (Ill. App. Ct. 2021). “” 740 ILCS 160/7(a)(2) (West 2018). However, with respect to patents and trademarks, an assignment is void as against any subsequent purchaser or mortgagee until it is recorded.”
Pentagon Fed. Credit Union v. Poorian, 2024 IL App (1st) 221803 (Ill. App. Ct. 2024). “” 740 ILCS 160/7(a)(1) (West 2020). A good faith purchaser, also known as bona fide purchaser, “ ‘of an interest in property takes that interest free and clear from all claims except those of which he has notice.”
Johnstone v. Wabick, 207 F. Supp. 2d 824 (N.D. Ill. 2002). “The statute requires that the debtor have an interest in the property transferred, see 740 ILCS 160/7(d), but the undisputed evidence (they say) is that Mr.”
Levy v. Markal Sales Corp. (Ill. App. Ct. 2000). “3: Section 7 of the Act (740 ILCS 160/7 (West 1996)) specifies when a transfer is made, and thus necessarily requires consideration when determining the timeliness of a claim.”
— 740 ILCS 160/7(a)(1) — 1 case
Pentagon Fed. Credit Union v. Poorian, 2024 IL App (1st) 221803 (Ill. App. Ct. 2024). “” 740 ILCS 160/7(a)(1) (West 2020). A good faith purchaser, also known as bona fide purchaser, “ ‘of an interest in property takes that interest free and clear from all claims except those of which he has notice.”
— 740 ILCS 160/7(a)(2) — 2 cases
McGinley Partners, LLC v. Royalty Props., LLC, 2021 IL App (1st) 200390 (Ill. App. Ct. 2021). “” 740 ILCS 160/7(a)(2) (West 2018). However, with respect to patents and trademarks, an assignment is void as against any subsequent purchaser or mortgagee until it is recorded.”
McGinley Partners, LLC v. Royalty Props., LLC, 2021 IL App (1st) 200390 (Ill. App. Ct. 2021). “” 740 ILCS 160/7(a)(2) (West 2018). However, with respect to patents and trademarks, an assignment is void as against any subsequent purchaser or mortgagee until it is recorded.”
— 740 ILCS 160/7(d) — 1 case
Johnstone v. Wabick, 207 F. Supp. 2d 824 (N.D. Ill. 2002). “The statute requires that the debtor have an interest in the property transferred, see 740 ILCS 160/7(d), but the undisputed evidence (they say) is that Mr.”
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