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Illinois Compiled Statutes

810 ILCS 5/9-402 (2026)

Secured party not obligated on contract of debtor or in tort

✓ current as of May 2026
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(810 ILCS 5/9-402) (from Ch. 26, par. 9-402)
    Sec. 9-402. Secured party not obligated on contract of debtor or in tort. The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor's acts or omissions.
(Source: P.A. 91-357, eff. 7-29-99; 91-893, eff. 7-1-01.)

    
Notes of Decisions
Cited in 4 cases, 1993–1997 · leading case: Paramount Int'l, Inc. v. First Midwest Bank, N.A. (In Re Paramount Int'l, Inc.), 154 B.R. 712 (Bankr. N.D. Ill. 1993).
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Paramount Int'l, Inc. v. First Midwest Bank, N.A. (In Re Paramount Int'l, Inc.), 154 B.R. 712 (Bankr. N.D. Ill. 1993). · cites it 4× “The Debtor contends that the Creditor’s filed financing statement became seriously misleading within the meaning of 810 ILCS 5/9-402(7) after a subsequent change in the Debtor’s corporate name.”
ITT Com. Fin. Corp. v. Unlimited Auto., Inc., 166 B.R. 637 (N.D. Ill. 1994). · cites it 3× “” 810 ILCS 5/9-402(1). The following provision relates to the use of trade names or changes in the name of the debtor: A financing statement sufficiently shows the name of the debtor if it gives the individual, partnership or corporate name of the debtor, whether or not it adds…”
First Nat'l Bank v. Effingham-Clay Serv. Co., 633 N.E.2d 67 (Ill. App. Ct. 1994). “” 810 ILCS 5/9-402(1) (West 1992). Effingham-Clay Service argues that a property description is necessary so the land can be located by a researcher.”
Metro. Life Ins. Co. v. Am. Nat'l Bank & Trust Co. (Ill. App. Ct. 1997). “" 810 ILCS 5/9-402(7) (West 1994). Here, notwithstanding Met Life's knowledge of and consent to the 1985 sale and transfer of the hotel F&E, Met Life did not require either USW or the Grantor Trust to execute a new security agreement or UCC-1 financing statement relating to the…”
— 810 ILCS 5/9-402(1) — 2 cases
First Nat'l Bank v. Effingham-Clay Serv. Co., 633 N.E.2d 67 (Ill. App. Ct. 1994). “” 810 ILCS 5/9-402(1) (West 1992). Effingham-Clay Service argues that a property description is necessary so the land can be located by a researcher.”
ITT Com. Fin. Corp. v. Unlimited Auto., Inc., 166 B.R. 637 (N.D. Ill. 1994). “” 810 ILCS 5/9-402(1). The following provision relates to the use of trade names or changes in the name of the debtor: A financing statement sufficiently shows the name of the debtor if it gives the individual, partnership or corporate name of the debtor, whether or not it adds…”
— 810 ILCS 5/9-402(7) — 3 cases
Paramount Int'l, Inc. v. First Midwest Bank, N.A. (In Re Paramount Int'l, Inc.), 154 B.R. 712 (Bankr. N.D. Ill. 1993). “The Debtor contends that the Creditor’s filed financing statement became seriously misleading within the meaning of 810 ILCS 5/9-402(7) after a subsequent change in the Debtor’s corporate name.”
ITT Com. Fin. Corp. v. Unlimited Auto., Inc., 166 B.R. 637 (N.D. Ill. 1994). “” 810 ILCS 5/9-402(1). The following provision relates to the use of trade names or changes in the name of the debtor: A financing statement sufficiently shows the name of the debtor if it gives the individual, partnership or corporate name of the debtor, whether or not it adds…”
Metro. Life Ins. Co. v. Am. Nat'l Bank & Trust Co. (Ill. App. Ct. 1997). “" 810 ILCS 5/9-402(7) (West 1994). Here, notwithstanding Met Life's knowledge of and consent to the 1985 sale and transfer of the hotel F&E, Met Life did not require either USW or the Grantor Trust to execute a new security agreement or UCC-1 financing statement relating to the…”
— 810 ILCS 5/9-402(8) — 1 case
ITT Com. Fin. Corp. v. Unlimited Auto., Inc., 166 B.R. 637 (N.D. Ill. 1994). “” 810 ILCS 5/9-402(1). The following provision relates to the use of trade names or changes in the name of the debtor: A financing statement sufficiently shows the name of the debtor if it gives the individual, partnership or corporate name of the debtor, whether or not it adds…”
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