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Illinois Compiled Statutes

810 ILCS 5/9-320 (2026)

Buyer of goods and farm products

✓ current as of May 2026
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(810 ILCS 5/9-320)
    Sec. 9-320. Buyer of goods and farm products.
    (a) Buyer in ordinary course of business. Except as otherwise provided in subsections (e) and (f), a buyer in the ordinary course of business takes free of a security interest created by the buyer's seller, even if the security interest is perfected and the buyer knows of its existence.
    (b) Buyer of consumer goods. Except as otherwise provided in subsection (e), a buyer of goods from a person who used or bought the goods for use primarily for personal, family, or household purposes takes free of a security interest, even if perfected, if the buyer buys:
        (1) without knowledge of the security interest;
        (2) for value;
        (3) primarily for the buyer's personal, family, or
    
household purposes; and
        (4) before the filing of a financing statement
    
covering the goods.
    (c) Effectiveness of filing for subsection (b). To the extent that it affects the priority of a security interest over a buyer of goods under subsection (b), the period of effectiveness of a filing made in the jurisdiction in which the seller is located is governed by Section 9-316(a) and (b).
    (d) Buyer in ordinary course of business at wellhead or minehead. A buyer in ordinary course of business buying oil, gas, or other minerals at the wellhead or minehead or after extraction takes free of an interest arising out of an encumbrance.
    (e) Possessory security interest not affected. Subsections (a) and (b) do not affect a security interest in goods in the possession of the secured party under Section 9-313.
    (f) Buyer of farm products.
        (1) A buyer of farm products takes subject to a
    
security interest created by the seller if:
            (A) within one year before the sale of the farm
        
products, the buyer has received from the secured party or the seller written notice of the security interest organized according to farm products that:
                (i) is an original or reproduced copy thereof;
                (ii) contains: (a) the name and address of
            
the secured party; (b) the name and address of the person indebted to the secured party; (c) the social security number of the debtor or, in the case of a debtor doing business other than as an individual, the Internal Revenue Service taxpayer identification number of such debtor; (d) a description of the farm products subject to the security interest created by the debtor, including the amount of such products where applicable, crop year, county, and a reasonable description of the property;
                (iii) must be amended in writing, within 3
            
months, similarly signed and transmitted, to reflect material changes;
                (iv) will lapse on either the expiration
            
period of the statement or the transmission of a notice signed by the secured party that the statement has lapsed, whichever occurs first; and
                (v) sets forth any payment obligations
            
imposed on the buyer by the secured party as conditions for waiver or release of the security interest; and
            (B) the buyer has failed to perform the payment
        
obligations.
        (2) For the purposes of this subsection (f), a buyer
    
of farm products has received notice from the secured party or seller when written notice of the security interest is sent to the buyer by registered or certified mail.
(Source: P.A. 91-893, eff. 7-1-01.)

    
Notes of Decisions
Cited in 6 cases (1 in the last 5 years), 2011–2022 · leading case: Cornerstone Bank v. Consol. Grain, 956 N.E.2d 944 (Ill. App. Ct. 2011).
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Cornerstone Bank v. Consol. Grain, 956 N.E.2d 944 (Ill. App. Ct. 2011). · cites it 4× “¶ 15 At a July 2010 hearing on the parties' respective motions for summary judgment, the trial court considered, in part, (1) Consolidated's arguments that section *948 1631 of the Act preempts the UCC with regard to protections for purchasers of farm products and (2) the Bank's…”
State Bank of Cherry v. CGB Enter., 964 N.E.2d 604 (Ill. App. Ct. 2012). · cites it 2× “" The notices also state that any check issued to the debtor must be (1) made payable both to the debtor (in this case Rogowski) and to the secured party (in this case plaintiff); (2) delivered to or received by the secured party; and (3) paid.”
State Bank of Cherry v. CGB Enter., 2012 IL App (3d) 100495 (Ill. App. Ct. 2012). “” 810 ILCS 5/9-320(f)(1)(A)(ii)(d) (West 2006); 7 U.”
McGrath v. Addy & McGrath Fireworks, Inc., 2022 IL App (3d) 210013 (Ill. App. Ct. 2022). · cites it 3× “¶ 34 A “[b]uyer in the ordinary course of business” is “a person that buys goods in good faith, without knowledge that the sale violates the rights of another person in the goods, and in the ordinary course from a person, other than a pawnbroker, in the business of selling goods…”
BMW Fin. Servs., N.A., LLC v. Felice, 2017 IL App (2d) 160397 (Ill. App. Ct. 2017). “26, ¶ 9-307(1) (codified at 810 ILCS 5/9-320(a) (West 2014))), which provided that “ ‘[a] buyer in ordinary course of business *** takes free of a security interest created by his seller even though the security interest is perfected and even though the buyer knows of its…”
BMW Fin. Servs., N.A., LLC v. Felice, 2017 IL App (2d) 160397 (Ill. App. Ct. 2017). “26, ¶ 9-307(1) (codified at 810 ILCS 5/9-320(a) (West 2014))), which provided that “ ‘[a] buyer in ordinary course of business *** takes free of a security interest created by his seller even though the security interest is perfected and even though the buyer knows of its…”
— 810 ILCS 5/9-320(a) — 4 cases
Cornerstone Bank v. Consol. Grain, 956 N.E.2d 944 (Ill. App. Ct. 2011). “¶ 15 At a July 2010 hearing on the parties' respective motions for summary judgment, the trial court considered, in part, (1) Consolidated's arguments that section *948 1631 of the Act preempts the UCC with regard to protections for purchasers of farm products and (2) the Bank's…”
McGrath v. Addy & McGrath Fireworks, Inc., 2022 IL App (3d) 210013 (Ill. App. Ct. 2022). “¶ 34 A “[b]uyer in the ordinary course of business” is “a person that buys goods in good faith, without knowledge that the sale violates the rights of another person in the goods, and in the ordinary course from a person, other than a pawnbroker, in the business of selling goods…”
BMW Fin. Servs., N.A., LLC v. Felice, 2017 IL App (2d) 160397 (Ill. App. Ct. 2017). “26, ¶ 9-307(1) (codified at 810 ILCS 5/9-320(a) (West 2014))), which provided that “ ‘[a] buyer in ordinary course of business *** takes free of a security interest created by his seller even though the security interest is perfected and even though the buyer knows of its…”
BMW Fin. Servs., N.A., LLC v. Felice, 2017 IL App (2d) 160397 (Ill. App. Ct. 2017). “26, ¶ 9-307(1) (codified at 810 ILCS 5/9-320(a) (West 2014))), which provided that “ ‘[a] buyer in ordinary course of business *** takes free of a security interest created by his seller even though the security interest is perfected and even though the buyer knows of its…”
— 810 ILCS 5/9-320(f) — 2 cases
State Bank of Cherry v. CGB Enter., 964 N.E.2d 604 (Ill. App. Ct. 2012). “" The notices also state that any check issued to the debtor must be (1) made payable both to the debtor (in this case Rogowski) and to the secured party (in this case plaintiff); (2) delivered to or received by the secured party; and (3) paid.”
Cornerstone Bank v. Consol. Grain, 956 N.E.2d 944 (Ill. App. Ct. 2011). “¶ 15 At a July 2010 hearing on the parties' respective motions for summary judgment, the trial court considered, in part, (1) Consolidated's arguments that section *948 1631 of the Act preempts the UCC with regard to protections for purchasers of farm products and (2) the Bank's…”
— 810 ILCS 5/9-320(f)(1)(A)(ii) — 2 cases
State Bank of Cherry v. CGB Enter., 2012 IL App (3d) 100495 (Ill. App. Ct. 2012). “” 810 ILCS 5/9-320(f)(1)(A)(ii)(d) (West 2006); 7 U.”
State Bank of Cherry v. CGB Enter., 964 N.E.2d 604 (Ill. App. Ct. 2012). “" The notices also state that any check issued to the debtor must be (1) made payable both to the debtor (in this case Rogowski) and to the secured party (in this case plaintiff); (2) delivered to or received by the secured party; and (3) paid.”
— 810 ILCS 5/9-320(f)(2) — 1 case
Cornerstone Bank v. Consol. Grain, 956 N.E.2d 944 (Ill. App. Ct. 2011). “¶ 15 At a July 2010 hearing on the parties' respective motions for summary judgment, the trial court considered, in part, (1) Consolidated's arguments that section *948 1631 of the Act preempts the UCC with regard to protections for purchasers of farm products and (2) the Bank's…”
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