Illinois Compiled Statutes
810 ILCS 5/9-322 (2026)
Priorities among conflicting security interests in and agricultural liens on same collateral
✓ current as of May 2026
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(810 ILCS 5/9-322)
Sec. 9-322.
Priorities among conflicting security interests in and
agricultural liens on same collateral.
(a) General priority rules. Except as otherwise provided in this
Section, priority among conflicting security interests and agricultural liens
in the
same collateral is determined according to the following rules:
(1) Conflicting perfected security interests and | agricultural liens rank according to priority in time of filing or perfection. Priority dates from the earlier of the time a filing covering the collateral is first made or the security interest or agricultural lien is first perfected, if there is no period thereafter when there is neither filing nor perfection. |
(2) A perfected security interest or agricultural | lien has priority over a conflicting unperfected security interest or agricultural lien. |
(3) The first security interest or agricultural lien | to attach or become effective has priority if conflicting security interests and agricultural liens are unperfected. |
(b) Time of perfection: proceeds and supporting obligations.
For the purposes of subsection (a)(1):
(1) the time of filing or perfection as to a security | interest in collateral is also the time of filing or perfection as to a security interest in proceeds; and |
(2) the time of filing or perfection as to a security | interest in collateral supported by a supporting obligation is also the time of filing or perfection as to a security interest in the supporting obligation. |
(c) Special priority rules: proceeds and supporting obligations.
Except as otherwise provided in subsection (f), a security interest in
collateral
which qualifies for priority over a conflicting security interest under Section
9-327,
9-328, 9-329, 9-329.1, 9-330, or 9-331 also has priority over a conflicting
security interest
in:
(1) any supporting obligation for the collateral; and
(2) proceeds of the collateral if:
(A) the security interest in proceeds is | perfected; |
(B) the proceeds are cash proceeds or of the same | type as the collateral; and |
(C) in the case of proceeds that are proceeds of | proceeds, all intervening proceeds are cash proceeds, proceeds of the same type as the collateral, or an account relating to the collateral. |
(d) First-to-file priority rule for certain collateral. Subject to
subsection (e) and except as otherwise provided in subsection (f), if a
security
interest in chattel paper, deposit accounts, negotiable documents, instruments,
investment property, letter-of-credit rights,
or beneficial interests in Illinois land trusts
is perfected by a method other than
filing, conflicting perfected security interests in proceeds of the collateral
rank
according to priority in time of filing.
(e) Applicability of subsection (d). Subsection (d) applies only if
the proceeds of the collateral are not cash proceeds, chattel paper, negotiable
documents, instruments, investment property,
beneficial interests in Illinois land trusts,
or letter-of-credit rights.
(f) Limitations on subsections (a) through (e). Subsections (a)
through (e) are subject to:
(1) subsection (g) and the other provisions of this | Part; |
(2) Section 4-210 with respect to a security interest | of a collecting bank; |
(3) Section 5-118 with respect to a security interest | of an issuer or nominated person; and |
(4) Section 9-110 with respect to a security interest | arising under Article 2 or 2A. |
(g) Priority under agricultural lien statute. A perfected
agricultural lien on collateral has priority over a conflicting security
interest in or
agricultural lien on the same collateral if the statute creating the
agricultural lien so
provides.
(Source: P.A. 91-893, eff. 7-1-01; 92-234, eff. 1-1-02.)
Notes of Decisions
Cited in 4
cases, 2018–2018 · leading case: Illinois Dep't of Revenue v. Hanmi Bank, 895 F.3d 465 (7th Cir. 2018).
Illinois Dep't of Revenue v. Hanmi Bank, 895 F.3d 465 (7th Cir. 2018). “"Nothing in this Section shall be construed to give the Department a preference over the rights of any bona fide purchaser, holder of a security interest, mechanics lienholder, mortgagee, or judgment lien creditor arising prior to the filing of a regular notice of lien.”
Illinois Dep't of Revenu v. First Cmty. Fin. Bank (7th Cir. 2018). “See 810 ILCS 5/9-322(a)(1) (security interests rank according to priority in time or perfection).”
Illinois Dep't of Revenue v. Hanmi Bank (7th Cir. 2018). “See 810 ILCS 5/9-322(a)(1) (security interests rank according to priority in time or perfection).”
Illinois Dep't of Revenu v. First Cmty. Fin. Bank (7th Cir. 2018). “See 810 ILCS 5/9-322(a)(1) (security interests rank according to priority in time or perfection).”
— 810 ILCS 5/9-322(a)(1) — 4 cases
Illinois Dep't of Revenue v. Hanmi Bank, 895 F.3d 465 (7th Cir. 2018). “"Nothing in this Section shall be construed to give the Department a preference over the rights of any bona fide purchaser, holder of a security interest, mechanics lienholder, mortgagee, or judgment lien creditor arising prior to the filing of a regular notice of lien.”
Illinois Dep't of Revenu v. First Cmty. Fin. Bank (7th Cir. 2018). “See 810 ILCS 5/9-322(a)(1) (security interests rank according to priority in time or perfection).”
Illinois Dep't of Revenue v. Hanmi Bank (7th Cir. 2018). “See 810 ILCS 5/9-322(a)(1) (security interests rank according to priority in time or perfection).”
Illinois Dep't of Revenu v. First Cmty. Fin. Bank (7th Cir. 2018). “See 810 ILCS 5/9-322(a)(1) (security interests rank according to priority in time or perfection).”
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