Illinois Compiled Statutes
810 ILCS 5/9-306 (2026)
Law governing perfection and priority of security interests in letter-of-credit rights
✓ current as of May 2026
Find cases:
SyfertCases citing this section
IL-ILGAilga.gov
JustiaChapter on Justia
CornellLII Search
CasesGoogle Scholar
(810 ILCS 5/9-306)
(from Ch. 26, par. 9-306)
Sec. 9-306.
Law governing perfection and priority of security interests
in letter-of-credit rights.
(a) Governing law: issuer's or nominated person's jurisdiction.
Subject to subsection (c), the local law of the issuer's jurisdiction or a
nominated
person's jurisdiction governs perfection, the effect of perfection or
nonperfection,
and the priority of a security interest in a letter-of-credit right if the
issuer's
jurisdiction or nominated person's jurisdiction is a State.
(b) Issuer's or nominated person's jurisdiction. For purposes of
this Part, an issuer's jurisdiction or nominated person's jurisdiction is the
jurisdiction whose law governs the liability of the issuer or nominated person
with
respect to the letter-of-credit right as provided in Section 5-116.
(c) When Section not applicable. This Section does not apply to a
security interest that is perfected only under Section 9-308(d).
(Source: P.A. 91-893, eff. 7-1-01.)
Notes of Decisions
Cited in 6
cases, 1994–2003 · leading case: Ford Motor Credit Co. v. Feher (In Re Feher), 202 B.R. 966 (Bankr. S.D. Ill. 1996).
Ford Motor Credit Co. v. Feher (In Re Feher), 202 B.R. 966 (Bankr. S.D. Ill. 1996). “Yet, even if the Court assumes for the sake of argument that Ford has a security interest in the insurance proceeds under Illinois law, the result is the same. The insurance proceeds, stemming from the destruction of the car after confirmation, vested in the debtors upon…”
Martino v. First Nat'l Bank in Harvey (In Re Garofalo's Finer Foods, Inc.), 164 B.R. 955 (Bankr. N.D. Ill. 1994). “810 ILCS 5/9-306(4)(d) provides in significant part: (4) In the event of insolvency proceedings instituted by or against a debtor, a secured party with a perfected security interest in proceeds has a perfected security interest only in the following proceeds: (d) in all cash and…”
Farmers & Merchants Bank of Carlinville v. DeKalb Swine Breeders, Inc. (In Re Jack-Rich, Inc.), 204 B.R. 709 (Bankr. C.D. Ill. 1997). “Clearly, then, under 810 ILCS 5/9-306(2) and Centerre, F & M’s security interest in the DeKalb meat extends to the proceeds received by Blue Jay upon its sale.”
Westpfahl v. Clark (In re Westpfahl), 171 B.R. 330 (C.D. Ill. 1994). “Citing § 9-306(2) of the Uniform Commercial Code, (810 ILCS 5/9-306(2), PLOT-NER argues that when the crops were sold he continues to have a security interest in the proceeds.”
Metro. Life Ins. Co. v. Am. Nat'l Bank & Trust Co. (Ill. App. Ct. 1997). “) 810 ILCS 5/9-306(2) (West 1994). Met Life's June 28, 1985, consent letter stated in relevant part: "Reference is hereby made to that certain Purchase and Sale Agreement dated as of May 3, 1985 by and among Ablah, Magnum (seller) and USW (purchaser) and the certain Amendment…”
Watkins v. GMAC Fin. Servs. (Ill. App. Ct. 2003). “" 810 ILCS 5/9-306(1), (3) (West 2000). GMAC obtained its interest in the car and the insurance proceeds through the financing agreement signed on August 31, 1999.”
— 810 ILCS 5/9-306(1) — 1 case
Watkins v. GMAC Fin. Servs. (Ill. App. Ct. 2003). “" 810 ILCS 5/9-306(1), (3) (West 2000). GMAC obtained its interest in the car and the insurance proceeds through the financing agreement signed on August 31, 1999.”
— 810 ILCS 5/9-306(2) — 3 cases
Westpfahl v. Clark (In re Westpfahl), 171 B.R. 330 (C.D. Ill. 1994). “Citing § 9-306(2) of the Uniform Commercial Code, (810 ILCS 5/9-306(2), PLOT-NER argues that when the crops were sold he continues to have a security interest in the proceeds.”
Metro. Life Ins. Co. v. Am. Nat'l Bank & Trust Co. (Ill. App. Ct. 1997). “) 810 ILCS 5/9-306(2) (West 1994). Met Life's June 28, 1985, consent letter stated in relevant part: "Reference is hereby made to that certain Purchase and Sale Agreement dated as of May 3, 1985 by and among Ablah, Magnum (seller) and USW (purchaser) and the certain Amendment…”
Farmers & Merchants Bank of Carlinville v. DeKalb Swine Breeders, Inc. (In Re Jack-Rich, Inc.), 204 B.R. 709 (Bankr. C.D. Ill. 1997). “Clearly, then, under 810 ILCS 5/9-306(2) and Centerre, F & M’s security interest in the DeKalb meat extends to the proceeds received by Blue Jay upon its sale.”
— 810 ILCS 5/9-306(4)(b) — 1 case
Farmers & Merchants Bank of Carlinville v. DeKalb Swine Breeders, Inc. (In Re Jack-Rich, Inc.), 204 B.R. 709 (Bankr. C.D. Ill. 1997). “Clearly, then, under 810 ILCS 5/9-306(2) and Centerre, F & M’s security interest in the DeKalb meat extends to the proceeds received by Blue Jay upon its sale.”
— 810 ILCS 5/9-306(4)(d) — 1 case
Martino v. First Nat'l Bank in Harvey (In Re Garofalo's Finer Foods, Inc.), 164 B.R. 955 (Bankr. N.D. Ill. 1994). “810 ILCS 5/9-306(4)(d) provides in significant part: (4) In the event of insolvency proceedings instituted by or against a debtor, a secured party with a perfected security interest in proceeds has a perfected security interest only in the following proceeds: (d) in all cash and…”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.
|