(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.
Freer v. Beetler (In Re Beetler), 368 B.R. 720 (Bankr. C.D. Ill. 2007). “UCC Article 9 applies to a consignment, 810 ILCS 5/9-109(a)(4), and the consignee is deemed to have the consignor’s rights and title to the goods, at least for the purposes of determining the rights of creditors of and purchasers from the consignee, 810 ILCS 5/9-319.”
In Re Doctors Hosp. of Hyde Park, Inc., 272 B.R. 677 (Bankr. N.D. Ill. 2002). “See 810 ILCS 5/9-102 & -104 (West 1993). Had the legislature intended to except the State’s right of setoff from the priority rules established under Article 9 of the Commercial Code, it could have expressly done so.”
Malek v. Gold Coast Exotic Imports, LLC, 2018 IL App (1st) 171459 (Ill. App. Ct. 2018). “Nancy, on the other hand, asserts that Gold Coast's security interest was not perfected because Gold Coast never recorded *1018 its lien as it was never filed with the Illinois Secretary of State.”
State Bank of Cherry v. CGB Enter., 964 N.E.2d 604 (Ill. App. Ct. 2012). “]" 810 ILCS 5/9-109 (West 2006). Second, this court has recognized: "The supremacy clause of the United States Constitution provides that `* * * the Laws of the United States * * * shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby, any…”
Malek v. Gold Coast Exotic Imports, LLC, 2018 IL App (1st) 171459 (Ill. App. Ct. 2018). “¶ 17 To address the issue of whether Gold Coast perfected its interest by possession, we must first determine whether a valid security interest was created from the agreement between Michel and Gold Coast.”
McGrath v. Addy & McGrath Fireworks, Inc., 2022 IL App (3d) 210013 (Ill. App. Ct. 2022). “¶ 21 Article 9 of the UCC (810 ILCS 5/9-109(a)(1) (West 2020)) “applies to any transaction, regardless of its form, that intends to create a security interest in personal property.”
Pliura v. Brady (Bankr. C.D. Ill. 2020). “]” 810 ILCS 5/9-109(d)(11). Rather, recording a mortgage drafted in substantial compliance with the statute is the proper method to obtain and perfect a lien on real property under Illinois law.”
Quigg v. Saleem, 2024 IL App (4th) 230703-U (Ill. App. Ct. 2024). “Saleem argues that the court incorrectly ruled that (1) section 9-620 was inapplicable to this case, not because Saleem waived that provision but because he agreed to an alternate remedy, and (2) Quigg’s August 1, 2022, election to accept the pledged stock in full satisfaction…”
Lpb Mhc LLC (Bankr. S.D. Ill. 2025). “810 ILCS 5/9-109(d)(3). None of these provisions were discussed by Farmers State Bank or the Zanotti parties in their briefs; they all apparently just assumed that the bank had a lien on all assets of Mr.”
— 810 ILCS 5/9-109(a)(1) — 4 cases
Malek v. Gold Coast Exotic Imports, LLC, 2018 IL App (1st) 171459 (Ill. App. Ct. 2018). “Nancy, on the other hand, asserts that Gold Coast's security interest was not perfected because Gold Coast never recorded *1018 its lien as it was never filed with the Illinois Secretary of State.”
Malek v. Gold Coast Exotic Imports, LLC, 2018 IL App (1st) 171459 (Ill. App. Ct. 2018). “¶ 17 To address the issue of whether Gold Coast perfected its interest by possession, we must first determine whether a valid security interest was created from the agreement between Michel and Gold Coast.”
McGrath v. Addy & McGrath Fireworks, Inc., 2022 IL App (3d) 210013 (Ill. App. Ct. 2022). “¶ 21 Article 9 of the UCC (810 ILCS 5/9-109(a)(1) (West 2020)) “applies to any transaction, regardless of its form, that intends to create a security interest in personal property.”
Quigg v. Saleem, 2024 IL App (4th) 230703-U (Ill. App. Ct. 2024). “Saleem argues that the court incorrectly ruled that (1) section 9-620 was inapplicable to this case, not because Saleem waived that provision but because he agreed to an alternate remedy, and (2) Quigg’s August 1, 2022, election to accept the pledged stock in full satisfaction…”
— 810 ILCS 5/9-109(a)(4) — 1 case
Freer v. Beetler (In Re Beetler), 368 B.R. 720 (Bankr. C.D. Ill. 2007). “UCC Article 9 applies to a consignment, 810 ILCS 5/9-109(a)(4), and the consignee is deemed to have the consignor’s rights and title to the goods, at least for the purposes of determining the rights of creditors of and purchasers from the consignee, 810 ILCS 5/9-319.”
— 810 ILCS 5/9-109(d)(11) — 1 case
Pliura v. Brady (Bankr. C.D. Ill. 2020). “]” 810 ILCS 5/9-109(d)(11). Rather, recording a mortgage drafted in substantial compliance with the statute is the proper method to obtain and perfect a lien on real property under Illinois law.”
— 810 ILCS 5/9-109(d)(3) — 1 case
Lpb Mhc LLC (Bankr. S.D. Ill. 2025). “810 ILCS 5/9-109(d)(3). None of these provisions were discussed by Farmers State Bank or the Zanotti parties in their briefs; they all apparently just assumed that the bank had a lien on all assets of Mr.”
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