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Illinois Compiled Statutes

810 ILCS 5/9-337 (2026)

Priority of security interests in goods covered by certificate of title

✓ current as of May 2026
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(810 ILCS 5/9-337)
    Sec. 9-337. Priority of security interests in goods covered by certificate of title. If, while a security interest in goods is perfected by any method under the law of another jurisdiction, this State issues a certificate of title that does not show that the goods are subject to the security interest or contain a statement that they may be subject to security interests not shown on the certificate:
        (1) a buyer of the goods, other than a person in the
    
business of selling goods of that kind, takes free of the security interest if the buyer gives value and receives delivery of the goods after issuance of the certificate and without knowledge of the security interest; and
        (2) the security interest is subordinate to a
    
conflicting security interest in the goods that attaches, and is perfected under Section 9-311(b), after issuance of the certificate and without the conflicting secured party's knowledge of the security interest.
(Source: P.A. 91-893, eff. 7-1-01.)

    
Notes of Decisions
Cited in 2 cases, 2017–2017 · leading case: BMW Fin. Servs., N.A., LLC v. Felice, 2017 IL App (2d) 160397 (Ill. App. Ct. 2017).
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BMW Fin. Servs., N.A., LLC v. Felice, 2017 IL App (2d) 160397 (Ill. App. Ct. 2017). “Uniform Commercial Code ¶ 12 Auto Showcase also relies on section 9-337 of the UCC (810 ILCS 5/9-337 (West 2014)) in support of its contention that it holds title free and clear of BMW Financial’s security interest.”
BMW Fin. Servs., N.A., LLC v. Felice, 2017 IL App (2d) 160397 (Ill. App. Ct. 2017). “Section 9-337 provides, in pertinent part: “If, while a security interest in goods is perfected by any method under the law of another jurisdiction, this State issues a certificate of title that does not show that the goods are subject to the security interest or contain a…”
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