Illinois 94th Regular Session Status: Passed Senate

SB 1646 — UCC-DOCUMENTS OF TITLE

Last action — Session Sine Die

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 94th Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Amends the Uniform Commercial Code. Makes changes to Article 7, which deals with documents of title, in conformance with recommendations of the National Conference of Commissioners of Uniform State Laws. Makes conforming changes in other parts of the Uniform Commercial Code.

Bill Text

What changed in the latest version

126 added · 141 removed

Plain-language change summary

The recent amendments to SB 1646 primarily update Article 7 of the Uniform Commercial Code, which governs documents of title. This change aligns the state's regulations with recommendations from a national organization, aimed at modernizing and clarifying the laws around these important legal documents. These changes are significant as they help ensure that Illinois' laws remain consistent with national standards, making it easier for businesses and individuals to navigate legal transactions involving titles.

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*LRB09404038WGH34055b* SB1646 94TH GENERAL ASSEMBLY State of Illinois and 2006 SB1646 Introduced 2/24/2005, by Sen.
SB1646 Engrossed LRB094 04038 WGH 34055 b AN ACT concerning the Uniform Commercial Code.
Kirk W.
Dillard SYNOPSIS AS INTRODUCED:
See Index Amends the Uniform Commercial Code.
Makes changes to Article 7, which deals with documents of title, in conformance with recommendations of the National Conference of Commissioners of Uniform State Laws.
Makes conforming changes in other parts of the Uniform Commercial Code.
LRB094 04038 WGH 34055 b A BILL FOR SB1646 LRB094 04038 WGH 34055 b AN ACT concerning the Uniform Commercial Code.
This Article may be cited as Uniform Commercial Code-Documents of Title.
This Article may be cited as Uniform Commercial Code-Documents of Title This Article shall be known and may be cited as Uniform Commercial Code--Documents of Title.
This Article shall be known and may be cited as Uniform Commercial Code--Documents of Title.
2101.) SB1646 - 2 - LRB094 04038 WGH 34055 b (810 ILCS 5/7-102) (from Ch.
2101.) SB1646 Engrossed - 2 - LRB094 04038 WGH 34055 b (810 ILCS 5/7-102) (from Ch.
(9) "Person entitled under the document" means the holder, in the case of a negotiable document of title, or SB1646 - 3 - LRB094 04038 WGH 34055 b the person to which delivery of the goods is to be made by the terms of, or pursuant to instructions in a record under, a nonnegotiable document of title.
(9) "Person entitled under the document" means the holder, in the case of a negotiable document of title, or SB1646 Engrossed - 3 - LRB094 04038 WGH 34055 b the person to which delivery of the goods is to be made by the terms of, or pursuant to instructions in a record under, a nonnegotiable document of title.
SB1646 - 4 - LRB094 04038 WGH 34055 b (e) "Document" means document of title as defined in the general definitions in Article 1 (Section 1--201).
SB1646 Engrossed - 4 - LRB094 04038 WGH 34055 b (e) "Document" means document of title as defined in the general definitions in Article 1 (Section 1--201).
Relation of Article to treaty, statute, tariff, classification SB1646 - 5 - LRB094 04038 WGH 34055 b or regulation.
Relation of Article to treaty, statute, tariff, classification SB1646 Engrossed - 5 - LRB094 04038 WGH 34055 b or regulation.
A bill of lading that states that the goods are consigned to a named person is not made SB1646 - 6 - LRB094 04038 WGH 34055 b negotiable by a provision that the goods are to be delivered only against an order in a record signed by the same or another named person.
A bill of lading that states that the goods are consigned to a named person is not made SB1646 Engrossed - 6 - LRB094 04038 WGH 34055 b negotiable by a provision that the goods are to be delivered only against an order in a record signed by the same or another named person.
and SB1646 - 7 - LRB094 04038 WGH 34055 b (2) the person that procured issuance of the tangible document warrants to all subsequent persons entitled under the tangible document that the warrantor was a person entitled under the electronic document when the warrantor surrendered control of the electronic document to the issuer.
and SB1646 Engrossed - 7 - LRB094 04038 WGH 34055 b (2) the person that procured issuance of the tangible document warrants to all subsequent persons entitled under the tangible document that the warrantor was a person entitled under the electronic document when the warrantor surrendered control of the electronic document to the issuer.
(a) A person has control of an electronic document of title if a system employed for evidencing the transfer of interests SB1646 - 8 - LRB094 04038 WGH 34055 b in the electronic document reliably establishes that person as the person to which the electronic document was issued or transferred.
(a) A person has control of an electronic document of title if a system employed for evidencing the transfer of interests SB1646 Engrossed - 8 - LRB094 04038 WGH 34055 b in the electronic document reliably establishes that person as the person to which the electronic document was issued or transferred.
SB1646 - 9 - LRB094 04038 WGH 34055 b (a) A warehouse receipt may be issued by any warehouse.
SB1646 Engrossed - 9 - LRB094 04038 WGH 34055 b (a) A warehouse receipt may be issued by any warehouse.
(6) a description of the goods or the packages SB1646 - 10 - LRB094 04038 WGH 34055 b containing them;
(6) a description of the goods or the packages SB1646 Engrossed - 10 - LRB094 04038 WGH 34055 b containing them;
(f) a description of the goods or of the packages SB1646 - 11 - LRB094 04038 WGH 34055 b containing them;
(f) a description of the goods or of the packages SB1646 Engrossed - 11 - LRB094 04038 WGH 34055 b containing them;
or SB1646 - 12 - LRB094 04038 WGH 34055 b (2) the party or purchaser otherwise has notice of the nonreceipt or misdescription.
or SB1646 Engrossed - 12 - LRB094 04038 WGH 34055 b (2) the party or purchaser otherwise has notice of the nonreceipt or misdescription.
In this event, increased rates may be SB1646 - 13 - LRB094 04038 WGH 34055 b charged based on an increased valuation of the goods.
In this event, increased rates may be SB1646 Engrossed - 13 - LRB094 04038 WGH 34055 b charged based on an increased valuation of the goods.
A buyer in ordinary course of business of fungible goods sold and delivered by a warehouse that is also in the business of buying and selling such goods takes the SB1646 - 14 - LRB094 04038 WGH 34055 b goods free of any claim under a warehouse receipt even if the receipt is negotiable and has been duly negotiated.
A buyer in ordinary course of business of fungible goods sold and delivered by a warehouse that is also in the business of buying and selling such goods takes the SB1646 Engrossed - 14 - LRB094 04038 WGH 34055 b goods free of any claim under a warehouse receipt even if the receipt is negotiable and has been duly negotiated.
If the warehouse, after a SB1646 - 15 - LRB094 04038 WGH 34055 b reasonable effort, is unable to sell the goods, it may dispose of them in any lawful manner and does not incur liability by reason of that disposition.
If the warehouse, after a SB1646 Engrossed - 15 - LRB094 04038 WGH 34055 b reasonable effort, is unable to sell the goods, it may dispose of them in any lawful manner and does not incur liability by reason of that disposition.
If the warehouseman after a reasonable effort is unable to sell the goods he may dispose of them in any lawful manner and shall SB1646 - 16 - LRB094 04038 WGH 34055 b incur no liability by reason of such disposition.
If the warehouseman after a reasonable effort is unable to sell the goods he may dispose of them in any lawful manner and shall SB1646 Engrossed - 16 - LRB094 04038 WGH 34055 b incur no liability by reason of such disposition.
SB1646 - 17 - LRB094 04038 WGH 34055 b (Source:
SB1646 Engrossed - 17 - LRB094 04038 WGH 34055 b (Source:
If the person on whose account the goods are held is liable for similar charges or expenses in relation to other goods whenever deposited and it is stated in the warehouse receipt or storage agreement that a lien is claimed for charges and expenses in relation to other goods, the warehouse also has a lien against the goods covered by the warehouse receipt or storage agreement or on the proceeds thereof in its possession for those charges and expenses, whether or not the other goods have been delivered by the SB1646 - 18 - LRB094 04038 WGH 34055 b warehouse.
If the person on whose account the goods are held is liable for similar charges or expenses in relation to other goods whenever deposited and it is stated in the warehouse receipt or storage agreement that a lien is claimed for charges and expenses in relation to other goods, the warehouse also has a lien against the goods covered by the warehouse receipt or storage agreement or on the proceeds thereof in its possession for those charges and expenses, whether or not the other goods have been delivered by the SB1646 Engrossed - 18 - LRB094 04038 WGH 34055 b warehouse.
In this SB1646 - 19 - LRB094 04038 WGH 34055 b subsection, "household goods" means furniture, furnishings, or personal effects used by the depositor in a dwelling.
In this SB1646 Engrossed - 19 - LRB094 04038 WGH 34055 b subsection, "household goods" means furniture, furnishings, or personal effects used by the depositor in a dwelling.
(3) (a) A warehouseman’s lien for charges and expenses under subsection (1) or a security interest under subsection (2) is also effective against any person who so entrusted the bailor with possession of the goods that a pledge of them by him to a good faith purchaser for value would have been valid but is not effective against a person as to whom the document confers no right in the goods covered by it under Section SB1646 - 20 - LRB094 04038 WGH 34055 b 7--503.
(3) (a) A warehouseman’s lien for charges and expenses under subsection (1) or a security interest under subsection (2) is also effective against any person who so entrusted the bailor with possession of the goods that a pledge of them by him to a good faith purchaser for value would have been valid but is not effective against a person as to whom the document confers no right in the goods covered by it under Section SB1646 Engrossed - 20 - LRB094 04038 WGH 34055 b 7--503.
(b) A warehouse may enforce its lien on goods, other than SB1646 - 21 - LRB094 04038 WGH 34055 b goods stored by a merchant in the course of its business, only if the following requirements are satisfied:
(b) A warehouse may enforce its lien on goods, other than SB1646 Engrossed - 21 - LRB094 04038 WGH 34055 b goods stored by a merchant in the course of its business, only if the following requirements are satisfied:
SB1646 - 22 - LRB094 04038 WGH 34055 b (e) A purchaser in good faith of goods sold to enforce a warehouse’s lien takes the goods free of any rights of persons against which the lien was valid, despite the warehouse’s noncompliance with this Section.
SB1646 Engrossed - 22 - LRB094 04038 WGH 34055 b (e) A purchaser in good faith of goods sold to enforce a warehouse’s lien takes the goods free of any rights of persons against which the lien was valid, despite the warehouse’s noncompliance with this Section.
SB1646 - 23 - LRB094 04038 WGH 34055 b (2) A warehouseman’s lien on goods other than goods stored by a merchant in the course of his business may be enforced only as follows:
SB1646 Engrossed - 23 - LRB094 04038 WGH 34055 b (2) A warehouseman’s lien on goods other than goods stored by a merchant in the course of his business may be enforced only as follows:
In that event the goods must not be sold, but must be retained by the warehouseman subject to the terms of SB1646 - 24 - LRB094 04038 WGH 34055 b the receipt and this Article.
In that event the goods must not be sold, but must be retained by the warehouseman subject to the terms of SB1646 Engrossed - 24 - LRB094 04038 WGH 34055 b the receipt and this Article.
(a) A consignee of a nonnegotiable bill of lading which has given value in good faith, or a holder to which a negotiable bill has been duly negotiated, relying upon the description of SB1646 - 25 - LRB094 04038 WGH 34055 b the goods in the bill or upon the date shown in the bill, may recover from the issuer damages caused by the misdating of the bill or the nonreceipt or misdescription of the goods, except to the extent that the bill indicates that the issuer does not know whether any part or all of the goods in fact were received or conform to the description, such as in a case in which the description is in terms of marks or labels or kind, quantity, or condition or the receipt or description is qualified by "contents or condition of contents of packages unknown", "said to contain", "shipper’s weight, load, and count," or words of similar import, if that indication is true.
(a) A consignee of a nonnegotiable bill of lading which has given value in good faith, or a holder to which a negotiable bill has been duly negotiated, relying upon the description of SB1646 Engrossed - 25 - LRB094 04038 WGH 34055 b the goods in the bill or upon the date shown in the bill, may recover from the issuer damages caused by the misdating of the bill or the nonreceipt or misdescription of the goods, except to the extent that the bill indicates that the issuer does not know whether any part or all of the goods in fact were received or conform to the description, such as in a case in which the description is in terms of marks or labels or kind, quantity, or condition or the receipt or description is qualified by "contents or condition of contents of packages unknown", "said to contain", "shipper’s weight, load, and count", or words of similar import, if that indication is true.
and (2) words such as "shipper’s weight, load, and count," or words of similar import indicating that the description was made by the shipper are ineffective except as to goods concealed in packages.
and (2) words such as "shipper’s weight, load, and count", or words of similar import indicating that the description was made by the shipper are ineffective except as to goods concealed in packages.
(d) The issuer of a bill of lading, by including in the bill the words "shipper’s weight, load, and count," or words of similar import, may indicate that the goods were loaded by the shipper, and, if that statement is true, the issuer is not liable for damages caused by the improper loading.
(d) The issuer of a bill of lading, by including in the bill the words "shipper’s weight, load, and count", or words of similar import, may indicate that the goods were loaded by the shipper, and, if that statement is true, the issuer is not liable for damages caused by the improper loading.
(e) A shipper guarantees to an issuer the accuracy at the time of shipment of the description, marks, labels, number, kind, quantity, condition, and weight, as furnished by the shipper, and the shipper shall indemnify the issuer against SB1646 - 26 - LRB094 04038 WGH 34055 b damage caused by inaccuracies in those particulars.
(e) A shipper guarantees to an issuer the accuracy at the time of shipment of the description, marks, labels, number, kind, quantity, condition, and weight, as furnished by the shipper, and the shipper shall indemnify the issuer against SB1646 Engrossed - 26 - LRB094 04038 WGH 34055 b damage caused by inaccuracies in those particulars.
But their omission does SB1646 - 27 - LRB094 04038 WGH 34055 b not imply liability for such damages.
But their omission does SB1646 Engrossed - 27 - LRB094 04038 WGH 34055 b not imply liability for such damages.
(c) The issuer of a through bill of lading or other SB1646 - 28 - LRB094 04038 WGH 34055 b document of title described in subsection (a) is entitled to recover from the performing carrier, or other person in possession of the goods when the breach of the obligation under the bill or other document occurred:
(c) The issuer of a through bill of lading or other SB1646 Engrossed - 28 - LRB094 04038 WGH 34055 b document of title described in subsection (a) is entitled to recover from the performing carrier, or other person in possession of the goods when the breach of the obligation under the bill or other document occurred:
(3) The issuer of such through bill of lading or other document shall be entitled to recover from the connecting carrier or such other person in possession of the goods when the breach of the obligation under the document occurred, the amount it may be required to pay to anyone entitled to recover SB1646 - 29 - LRB094 04038 WGH 34055 b on the document therefor, as may be evidenced by any receipt, judgment, or transcript thereof, and the amount of any expense reasonably incurred by it in defending any action brought by anyone entitled to recover on the document therefor.
(3) The issuer of such through bill of lading or other document shall be entitled to recover from the connecting carrier or such other person in possession of the goods when the breach of the obligation under the document occurred, the amount it may be required to pay to anyone entitled to recover SB1646 Engrossed - 29 - LRB094 04038 WGH 34055 b on the document therefor, as may be evidenced by any receipt, judgment, or transcript thereof, and the amount of any expense reasonably incurred by it in defending any action brought by anyone entitled to recover on the document therefor.
or (c) the consignee on a non-negotiable bill in the SB1646 - 30 - LRB094 04038 WGH 34055 b absence of contrary instructions from the consignor, if the goods have arrived at the billed destination or if the consignee is in possession of the bill;
or (c) the consignee on a non-negotiable bill in the SB1646 Engrossed - 30 - LRB094 04038 WGH 34055 b absence of contrary instructions from the consignor, if the goods have arrived at the billed destination or if the consignee is in possession of the bill;
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SB1646 - 31 - LRB094 04038 WGH 34055 b (1) Except where customary in overseas transportation, a bill of lading must not be issued in a set of parts.
SB1646 Engrossed - 31 - LRB094 04038 WGH 34055 b (1) Except where customary in overseas transportation, a bill of lading must not be issued in a set of parts.
(1) Instead of issuing a bill of lading to the consignor at SB1646 - 32 - LRB094 04038 WGH 34055 b the place of shipment a carrier may at the request of the consignor procure the bill to be issued at destination or at any other place designated in the request.
(1) Instead of issuing a bill of lading to the consignor at SB1646 Engrossed - 32 - LRB094 04038 WGH 34055 b the place of shipment a carrier may at the request of the consignor procure the bill to be issued at destination or at any other place designated in the request.
(1) A carrier has a lien on the goods covered by a bill of lading for charges subsequent to the date of its receipt of the goods for storage or transportation (including demurrage and SB1646 - 33 - LRB094 04038 WGH 34055 b terminal charges) and for expenses necessary for preservation of the goods incident to their transportation or reasonably incurred in their sale pursuant to law.
(1) A carrier has a lien on the goods covered by a bill of lading for charges subsequent to the date of its receipt of the goods for storage or transportation (including demurrage and SB1646 Engrossed - 33 - LRB094 04038 WGH 34055 b terminal charges) and for expenses necessary for preservation of the goods incident to their transportation or reasonably incurred in their sale pursuant to law.
The carrier sells goods in a commercially reasonable manner if the carrier sells the goods in the usual manner in any recognized market therefor, sells at the price SB1646 - 34 - LRB094 04038 WGH 34055 b current in that market at the time of the sale, or otherwise sells in conformity with commercially reasonable practices among dealers in the type of goods sold.
The carrier sells goods in a commercially reasonable manner if the carrier sells the goods in the usual manner in any recognized market therefor, sells at the price SB1646 Engrossed - 34 - LRB094 04038 WGH 34055 b current in that market at the time of the sale, or otherwise sells in conformity with commercially reasonable practices among dealers in the type of goods sold.
The fact that a better price could have been SB1646 - 35 - LRB094 04038 WGH 34055 b obtained by a sale at a different time or in a different method from that selected by the carrier is not of itself sufficient to establish that the sale was not made in a commercially reasonable manner.
The fact that a better price could have been SB1646 Engrossed - 35 - LRB094 04038 WGH 34055 b obtained by a sale at a different time or in a different method from that selected by the carrier is not of itself sufficient to establish that the sale was not made in a commercially reasonable manner.
(8) The carrier is liable for damages caused by failure to comply with the requirements for sale under this Section and in SB1646 - 36 - LRB094 04038 WGH 34055 b case of willful violation is liable for conversion.
(8) The carrier is liable for damages caused by failure to comply with the requirements for sale under this Section and in SB1646 Engrossed - 36 - LRB094 04038 WGH 34055 b case of willful violation is liable for conversion.
(2) Damages may be limited by a provision that the carrier’s liability shall not exceed a value stated in the document if the carrier’s rates are dependent upon value and the consignor by the carrier’s tariff is afforded an opportunity to declare a higher value or a value as lawfully SB1646 - 37 - LRB094 04038 WGH 34055 b provided in the tariff, or where no tariff is filed he is otherwise advised of such opportunity;
(2) Damages may be limited by a provision that the carrier’s liability shall not exceed a value stated in the document if the carrier’s rates are dependent upon value and the consignor by the carrier’s tariff is afforded an opportunity to declare a higher value or a value as lawfully SB1646 Engrossed - 37 - LRB094 04038 WGH 34055 b provided in the tariff, or where no tariff is filed he is otherwise advised of such opportunity;
or (d) the person issuing the document does not come SB1646 - 38 - LRB094 04038 WGH 34055 b within the definition of warehouseman if it purports to be a warehouse receipt.
or (d) the person issuing the document does not come SB1646 Engrossed - 38 - LRB094 04038 WGH 34055 b within the definition of warehouseman if it purports to be a warehouse receipt.
(2) damage to or delay, loss, or destruction of the SB1646 - 39 - LRB094 04038 WGH 34055 b goods for which the bailee is not liable;
(2) damage to or delay, loss, or destruction of the SB1646 Engrossed - 39 - LRB094 04038 WGH 34055 b goods for which the bailee is not liable;
(c) previous sale or other disposition of the goods in SB1646 - 40 - LRB094 04038 WGH 34055 b lawful enforcement of a lien or on warehouseman’s lawful termination of storage;
(c) previous sale or other disposition of the goods in SB1646 Engrossed - 40 - LRB094 04038 WGH 34055 b lawful enforcement of a lien or on warehouseman’s lawful termination of storage;
(1) the person from which the bailee received the goods SB1646 - 41 - LRB094 04038 WGH 34055 b did not have authority to procure the document or to dispose of the goods;
(1) the person from which the bailee received the goods SB1646 Engrossed - 41 - LRB094 04038 WGH 34055 b did not have authority to procure the document or to dispose of the goods;
SB1646 - 42 - LRB094 04038 WGH 34055 b (4) Negotiation of the document after it has been indorsed to a named person requires indorsement by the named person and delivery.
SB1646 Engrossed - 42 - LRB094 04038 WGH 34055 b (4) Negotiation of the document after it has been indorsed to a named person requires indorsement by the named person and delivery.
(d) The naming in a negotiable bill of lading of a person to be notified of the arrival of the goods does not limit the negotiability of the bill or constitute notice to a purchaser SB1646 - 43 - LRB094 04038 WGH 34055 b of the bill of any interest of that person in the goods.
(d) The naming in a negotiable bill of lading of a person to be notified of the arrival of the goods does not limit the negotiability of the bill or constitute notice to a purchaser SB1646 Engrossed - 43 - LRB094 04038 WGH 34055 b of the bill of any interest of that person in the goods.
SB1646 - 44 - LRB094 04038 WGH 34055 b (3) all rights accruing under the law of agency or estoppel, including rights to goods delivered to the bailee after the document was issued;
SB1646 Engrossed - 44 - LRB094 04038 WGH 34055 b (3) all rights accruing under the law of agency or estoppel, including rights to goods delivered to the bailee after the document was issued;
and (d) the direct obligation of the issuer to hold or deliver the goods according to the terms of the document free of any defense or claim by him except those arising under the SB1646 - 45 - LRB094 04038 WGH 34055 b terms of the document or under this Article.
and (d) the direct obligation of the issuer to hold or deliver the goods according to the terms of the document free of any defense or claim by him except those arising under the SB1646 Engrossed - 45 - LRB094 04038 WGH 34055 b terms of the document or under this Article.
SB1646 - 46 - LRB094 04038 WGH 34055 b (b) Title to goods based upon an unaccepted delivery order is subject to the rights of any person to which a negotiable warehouse receipt or bill of lading covering the goods has been duly negotiated.
SB1646 Engrossed - 46 - LRB094 04038 WGH 34055 b (b) Title to goods based upon an unaccepted delivery order is subject to the rights of any person to which a negotiable warehouse receipt or bill of lading covering the goods has been duly negotiated.
SB1646 - 47 - LRB094 04038 WGH 34055 b (Source:
SB1646 Engrossed - 47 - LRB094 04038 WGH 34055 b (Source:
A bailee that honors the seller’s or lessor’s instructions is entitled SB1646 - 48 - LRB094 04038 WGH 34055 b to be indemnified by the seller or lessor against any resulting loss or expense.
A bailee that honors the seller’s or lessor’s instructions is entitled SB1646 Engrossed - 48 - LRB094 04038 WGH 34055 b to be indemnified by the seller or lessor against any resulting loss or expense.
The indorsement of a document of title issued by a bailee SB1646 - 49 - LRB094 04038 WGH 34055 b does not make the indorser liable for any default by the bailee or by previous indorsers.
The indorsement of a document of title issued by a bailee SB1646 Engrossed - 49 - LRB094 04038 WGH 34055 b does not make the indorser liable for any default by the bailee or by previous indorsers.
Where a person negotiates or transfers a document of title for value otherwise than as a mere intermediary under the next following section, then unless otherwise agreed he warrants to his immediate purchaser only in addition to any warranty made in selling the goods SB1646 - 50 - LRB094 04038 WGH 34055 b (a) that the document is genuine;
Where a person negotiates or transfers a document of title for value otherwise than as a mere intermediary under the next following section, then unless otherwise agreed he warrants to his immediate purchaser only in addition to any warranty made in selling the goods SB1646 Engrossed - 50 - LRB094 04038 WGH 34055 b (a) that the document is genuine;
The question whether a document is adequate to fulfill the obligations of a contract for sale or the conditions of a SB1646 - 51 - LRB094 04038 WGH 34055 b credit is governed by the Articles on Sales (Article 2) and on Letters of Credit (Article 5).
The question whether a document is adequate to fulfill the obligations of a contract for sale or the conditions of a SB1646 Engrossed - 51 - LRB094 04038 WGH 34055 b credit is governed by the Articles on Sales (Article 2) and on Letters of Credit (Article 5).
(1) If a document has been lost, stolen or destroyed, a court may order delivery of the goods or issuance of a substitute document and the bailee may without liability to any SB1646 - 52 - LRB094 04038 WGH 34055 b person comply with such order.
(1) If a document has been lost, stolen or destroyed, a court may order delivery of the goods or issuance of a substitute document and the bailee may without liability to any SB1646 Engrossed - 52 - LRB094 04038 WGH 34055 b person comply with such order.
Except where the document was originally issued upon delivery of the goods by a person who had no power to dispose SB1646 - 53 - LRB094 04038 WGH 34055 b of them, no lien attaches by virtue of any judicial process to goods in the possession of a bailee for which a negotiable document of title is outstanding unless the document be first surrendered to the bailee or its negotiation enjoined, and the bailee shall not be compelled to deliver the goods pursuant to process until the document is surrendered to him or impounded by the court.
Except where the document was originally issued upon delivery of the goods by a person who had no power to dispose SB1646 Engrossed - 53 - LRB094 04038 WGH 34055 b of them, no lien attaches by virtue of any judicial process to goods in the possession of a bailee for which a negotiable document of title is outstanding unless the document be first surrendered to the bailee or its negotiation enjoined, and the bailee shall not be compelled to deliver the goods pursuant to process until the document is surrendered to him or impounded by the court.
(810 ILCS 5/7-702 new) SB1646 - 54 - LRB094 04038 WGH 34055 b Sec.
(810 ILCS 5/7-702 new) SB1646 Engrossed - 54 - LRB094 04038 WGH 34055 b Sec.
The Uniform Commercial Code is amended by changing Section 1-201, 2-103, 2-104, 2-310, 2-323, 2-401, 2-503, 2-505, 2-506, 2-509, 2-605, 2-705, 2A-103, 2A-514, 2A-526, 4-104, 4-210, 8-103, 9-102, 9-203, 9-207, 9-208, 9-301, 9-310, 9-312, 9-313, 9-314, 9-317, 9-338, and 9-601 as follows:
The Uniform Commercial Code is amended by changing Sections 1-201, 2-103, 2-104, 2-310, 2-323, 2-401, 2-503, 2-505, 2-506, 2-509, 2-605, 2-705, 2A-103, 2A-514, 2A-526, 4-104, 4-210, 8-103, 9-102, 9-203, 9-207, 9-208, 9-301, 9-310, 9-312, 9-313, 9-314, 9-317, 9-338, and 9-601 as follows:
SB1646 - 55 - LRB094 04038 WGH 34055 b (810 ILCS 5/1-201) (from Ch.
SB1646 Engrossed - 55 - LRB094 04038 WGH 34055 b (810 ILCS 5/1-201) (from Ch.
(8) "Burden of establishing" a fact means the burden of SB1646 - 56 - LRB094 04038 WGH 34055 b persuading the triers of fact that the existence of the fact is more probable than its non-existence.
(8) "Burden of establishing" a fact means the burden of SB1646 Engrossed - 56 - LRB094 04038 WGH 34055 b persuading the triers of fact that the existence of the fact is more probable than its non-existence.
SB1646 - 57 - LRB094 04038 WGH 34055 b (10) "Conspicuous":
SB1646 Engrossed - 57 - LRB094 04038 WGH 34055 b (10) "Conspicuous":
An electronic document of title means a SB1646 - 58 - LRB094 04038 WGH 34055 b document of title evidenced by a record consisting of information stored in an electronic medium.
An electronic document of title means a SB1646 Engrossed - 58 - LRB094 04038 WGH 34055 b document of title evidenced by a record consisting of information stored in an electronic medium.
(21) To "honor" is to pay or accept and pay, or where a credit so engages to purchase or discount a draft complying SB1646 - 59 - LRB094 04038 WGH 34055 b with the terms of the credit.
(21) To "honor" is to pay or accept and pay, or where a credit so engages to purchase or discount a draft complying SB1646 Engrossed - 59 - LRB094 04038 WGH 34055 b with the terms of the credit.
SB1646 - 60 - LRB094 04038 WGH 34055 b (27) Notice, knowledge, or a notice or notification received by an organization is effective for a particular transaction from the time when it is brought to the attention of the individual conducting that transaction, and in any event, from the time when it would have been brought to the individual’s his attention if the organization had exercised due diligence.
SB1646 Engrossed - 60 - LRB094 04038 WGH 34055 b (27) Notice, knowledge, or a notice or notification received by an organization is effective for a particular transaction from the time when it is brought to the attention of the individual conducting that transaction, and in any event, from the time when it would have been brought to the individual’s his attention if the organization had exercised due diligence.
(34) "Remedy" means any remedial right to which an aggrieved party is entitled with or without resort to a SB1646 - 61 - LRB094 04038 WGH 34055 b tribunal.
(34) "Remedy" means any remedial right to which an aggrieved party is entitled with or without resort to a SB1646 Engrossed - 61 - LRB094 04038 WGH 34055 b tribunal.
(c) the lessee has an option to renew the lease for the remaining economic life of the goods for no additional SB1646 - 62 - LRB094 04038 WGH 34055 b consideration or nominal additional consideration upon compliance with the lease agreement;
(c) the lessee has an option to renew the lease for the remaining economic life of the goods for no additional SB1646 Engrossed - 62 - LRB094 04038 WGH 34055 b consideration or nominal additional consideration upon compliance with the lease agreement;
(x) Additional consideration is not nominal if (i) when the option to renew the lease is granted to the lessee the rent is stated to be the fair market rent for the use of the goods for the term of the renewal determined at the time the option is to be performed, or (ii) when the option to become the owner of the goods is granted to the lessee the price is stated to be the fair market value of the SB1646 - 63 - LRB094 04038 WGH 34055 b goods determined at the time the option is to be performed.
(x) Additional consideration is not nominal if (i) when the option to renew the lease is granted to the lessee the rent is stated to be the fair market rent for the use of the goods for the term of the renewal determined at the time the option is to be performed, or (ii) when the option to become the owner of the goods is granted to the lessee the price is stated to be the fair market value of the SB1646 Engrossed - 63 - LRB094 04038 WGH 34055 b goods determined at the time the option is to be performed.
The receipt of any writing or notice within the time at which it would have arrived if properly sent SB1646 - 64 - LRB094 04038 WGH 34055 b has the effect of a proper sending.
The receipt of any writing or notice within the time at which it would have arrived if properly sent SB1646 Engrossed - 64 - LRB094 04038 WGH 34055 b has the effect of a proper sending.
(1) In this Article unless the context otherwise requires SB1646 - 65 - LRB094 04038 WGH 34055 b (a) "Buyer" means a person who buys or contracts to buy goods.
(1) In this Article unless the context otherwise requires SB1646 Engrossed - 65 - LRB094 04038 WGH 34055 b (a) "Buyer" means a person who buys or contracts to buy goods.
SB1646 - 66 - LRB094 04038 WGH 34055 b "Termination".
SB1646 Engrossed - 66 - LRB094 04038 WGH 34055 b "Termination".
SB1646 - 67 - LRB094 04038 WGH 34055 b (3) "Between merchants" means in any transaction with respect to which both parties are chargeable with the knowledge or skill of merchants.
SB1646 Engrossed - 67 - LRB094 04038 WGH 34055 b (3) "Between merchants" means in any transaction with respect to which both parties are chargeable with the knowledge or skill of merchants.
"overseas." (1) Where the contract contemplates overseas shipment and SB1646 - 68 - LRB094 04038 WGH 34055 b contains a term C.I.F.
"overseas." (1) Where the contract contemplates overseas shipment and SB1646 Engrossed - 68 - LRB094 04038 WGH 34055 b contains a term C.I.F.
(1) Title to goods cannot pass under a contract for sale SB1646 - 69 - LRB094 04038 WGH 34055 b prior to their identification to the contract (Section 2--501), and unless otherwise explicitly agreed the buyer acquires by their identification a special property as limited by this Act.
(1) Title to goods cannot pass under a contract for sale SB1646 Engrossed - 69 - LRB094 04038 WGH 34055 b prior to their identification to the contract (Section 2--501), and unless otherwise explicitly agreed the buyer acquires by their identification a special property as limited by this Act.
(4) A rejection or other refusal by the buyer to receive or retain the goods, whether or not justified, or a justified revocation of acceptance revests title to the goods in the SB1646 - 70 - LRB094 04038 WGH 34055 b seller.
(4) A rejection or other refusal by the buyer to receive or retain the goods, whether or not justified, or a justified revocation of acceptance revests title to the goods in the SB1646 Engrossed - 70 - LRB094 04038 WGH 34055 b seller.
but risk of loss of the goods and of any failure by the bailee to honor the SB1646 - 71 - LRB094 04038 WGH 34055 b non-negotiable document of title or to obey the direction remains on the seller until the buyer has had a reasonable time to present the document or direction, and a refusal by the bailee to honor the document or to obey the direction defeats the tender.
but risk of loss of the goods and of any failure by the bailee to honor the SB1646 Engrossed - 71 - LRB094 04038 WGH 34055 b non-negotiable document of title or to obey the direction remains on the seller until the buyer has had a reasonable time to present the document or direction, and a refusal by the bailee to honor the document or to obey the direction defeats the tender.
(2) When shipment by the seller with reservation of a security interest is in violation of the contract for sale it constitutes an improper contract for transportation within the preceding section but impairs neither the rights given to the buyer by shipment and identification of the goods to the SB1646 - 72 - LRB094 04038 WGH 34055 b contract nor the seller’s powers as a holder of a negotiable document of title.
(2) When shipment by the seller with reservation of a security interest is in violation of the contract for sale it constitutes an improper contract for transportation within the preceding section but impairs neither the rights given to the buyer by shipment and identification of the goods to the SB1646 Engrossed - 72 - LRB094 04038 WGH 34055 b contract nor the seller’s powers as a holder of a negotiable document of title.
(2) Where the goods are held by a bailee to be delivered without being moved, the risk of loss passes to the buyer (a) on his receipt of possession or control of a SB1646 - 73 - LRB094 04038 WGH 34055 b negotiable document of title covering the goods;
(2) Where the goods are held by a bailee to be delivered without being moved, the risk of loss passes to the buyer (a) on his receipt of possession or control of a SB1646 Engrossed - 73 - LRB094 04038 WGH 34055 b negotiable document of title covering the goods;
2-705) SB1646 - 74 - LRB094 04038 WGH 34055 b Sec.
2-705) SB1646 Engrossed - 74 - LRB094 04038 WGH 34055 b Sec.
SB1646 - 75 - LRB094 04038 WGH 34055 b (1) In this Article unless the context otherwise requires:
SB1646 Engrossed - 75 - LRB094 04038 WGH 34055 b (1) In this Article unless the context otherwise requires:
(g) "Finance lease" means a lease with respect to SB1646 - 76 - LRB094 04038 WGH 34055 b which:
(g) "Finance lease" means a lease with respect to SB1646 Engrossed - 76 - LRB094 04038 WGH 34055 b which:
or (D) if the lease is not a consumer lease, the lessor, before the lessee signs the lease contract, informs the lessee in writing (a) of the identity of the person supplying the goods to the lessor, unless the lessee has selected that person and directed the lessor to acquire the goods or the right to possession and use of the goods from that person, (b) that the lessee is entitled under this Article to the promises and warranties, including those of any third party, provided to the lessor by SB1646 - 77 - LRB094 04038 WGH 34055 b the person supplying the goods in connection with or as part of the contract by which the lessor acquired the goods or the right to possession and use of the goods, and (c) that the lessee may communicate with the person supplying the goods to the lessor and receive an accurate and complete statement of those promises and warranties, including any disclaimers and limitations of them or of remedies.
or (D) if the lease is not a consumer lease, the lessor, before the lessee signs the lease contract, informs the lessee in writing (a) of the identity of the person supplying the goods to the lessor, unless the lessee has selected that person and directed the lessor to acquire the goods or the right to possession and use of the goods from that person, (b) that the lessee is entitled under this Article to the promises and warranties, including those of any third party, provided to the lessor by SB1646 Engrossed - 77 - LRB094 04038 WGH 34055 b the person supplying the goods in connection with or as part of the contract by which the lessor acquired the goods or the right to possession and use of the goods, and (c) that the lessee may communicate with the person supplying the goods to the lessor and receive an accurate and complete statement of those promises and warranties, including any disclaimers and limitations of them or of remedies.
(l) "Lease contract" means the total legal obligation that results from the lease agreement as affected by this SB1646 - 78 - LRB094 04038 WGH 34055 b Article and any other applicable rules of law.
(l) "Lease contract" means the total legal obligation that results from the lease agreement as affected by this SB1646 Engrossed - 78 - LRB094 04038 WGH 34055 b Article and any other applicable rules of law.
(t) "Merchant lessee" means a lessee that is a merchant SB1646 - 79 - LRB094 04038 WGH 34055 b with respect to goods of the kind subject to the lease.
(t) "Merchant lessee" means a lessee that is a merchant SB1646 Engrossed - 79 - LRB094 04038 WGH 34055 b with respect to goods of the kind subject to the lease.
SB1646 - 80 - LRB094 04038 WGH 34055 b "Chattel paper".
SB1646 Engrossed - 80 - LRB094 04038 WGH 34055 b "Chattel paper".
SB1646 - 81 - LRB094 04038 WGH 34055 b (Source:
SB1646 Engrossed - 81 - LRB094 04038 WGH 34055 b (Source:
SB1646 - 82 - LRB094 04038 WGH 34055 b (1) "Account" means any deposit or credit account with a bank, including a demand, time, savings, passbook, share draft, or like account, other than an account evidenced by a certificate of deposit;
SB1646 Engrossed - 82 - LRB094 04038 WGH 34055 b (1) "Account" means any deposit or credit account with a bank, including a demand, time, savings, passbook, share draft, or like account, other than an account evidenced by a certificate of deposit;
(10) "Midnight deadline" with respect to a bank is midnight on its next banking day following the banking day on which it receives the relevant item or notice or from SB1646 - 83 - LRB094 04038 WGH 34055 b which the time for taking action commences to run, whichever is later;
(10) "Midnight deadline" with respect to a bank is midnight on its next banking day following the banking day on which it receives the relevant item or notice or from SB1646 Engrossed - 83 - LRB094 04038 WGH 34055 b which the time for taking action commences to run, whichever is later;
SB1646 - 84 - LRB094 04038 WGH 34055 b "Person entitled to enforce" Section 3-301.
SB1646 Engrossed - 84 - LRB094 04038 WGH 34055 b "Person entitled to enforce" Section 3-301.
So long as the bank does not receive final settlement for the item or give up possession of the item or possession or control of the accompanying documents for purposes other than collection, the security SB1646 - 85 - LRB094 04038 WGH 34055 b interest continues to that extent and is subject to Article 9, but:
So long as the bank does not receive final settlement for the item or give up possession of the item or possession or control of the accompanying documents for purposes other than collection, the security SB1646 Engrossed - 85 - LRB094 04038 WGH 34055 b interest continues to that extent and is subject to Article 9, but:
However, a negotiable SB1646 - 86 - LRB094 04038 WGH 34055 b instrument governed by Article 3 is a financial asset if it is held in a securities account.
However, a negotiable SB1646 Engrossed - 86 - LRB094 04038 WGH 34055 b instrument governed by Article 3 is a financial asset if it is held in a securities account.
The term does not include (i) rights to payment evidenced by chattel paper or an instrument, (ii) commercial tort claims, (iii) deposit accounts, (iv) investment property, (v) SB1646 - 87 - LRB094 04038 WGH 34055 b letter-of-credit rights or letters of credit, or (vi) rights to payment for money or funds advanced or sold, other than rights arising out of the use of a credit or charge card or information contained on or for use with the card.
The term does not include (i) rights to payment evidenced by chattel paper or an instrument, (ii) commercial tort claims, (iii) deposit accounts, (iv) investment property, (v) SB1646 Engrossed - 87 - LRB094 04038 WGH 34055 b letter-of-credit rights or letters of credit, or (vi) rights to payment for money or funds advanced or sold, other than rights arising out of the use of a credit or charge card or information contained on or for use with the card.
or (B) accounts arising out of the sale at the SB1646 - 88 - LRB094 04038 WGH 34055 b wellhead or minehead of oil, gas, or other minerals in which the debtor had an interest before extraction.
or (B) accounts arising out of the sale at the SB1646 Engrossed - 88 - LRB094 04038 WGH 34055 b wellhead or minehead of oil, gas, or other minerals in which the debtor had an interest before extraction.
If a transaction is SB1646 - 89 - LRB094 04038 WGH 34055 b evidenced by records that include an instrument or series of instruments, the group of records taken together constitutes chattel paper.
If a transaction is SB1646 Engrossed - 89 - LRB094 04038 WGH 34055 b evidenced by records that include an instrument or series of instruments, the group of records taken together constitutes chattel paper.
SB1646 - 90 - LRB094 04038 WGH 34055 b (A) is registered as a futures commission merchant under federal commodities law;
SB1646 Engrossed - 90 - LRB094 04038 WGH 34055 b (A) is registered as a futures commission merchant under federal commodities law;
SB1646 - 91 - LRB094 04038 WGH 34055 b (23) "Consumer goods" means goods that are used or bought for use primarily for personal, family, or household purposes.
SB1646 Engrossed - 91 - LRB094 04038 WGH 34055 b (23) "Consumer goods" means goods that are used or bought for use primarily for personal, family, or household purposes.
(29) "Deposit account" means a demand, time, savings, passbook, nonnegotiable certificates of deposit, SB1646 - 92 - LRB094 04038 WGH 34055 b uncertificated certificates of deposit, nontransferrable certificates of deposit, or similar account maintained with a bank.
(29) "Deposit account" means a demand, time, savings, passbook, nonnegotiable certificates of deposit, SB1646 Engrossed - 92 - LRB094 04038 WGH 34055 b uncertificated certificates of deposit, nontransferrable certificates of deposit, or similar account maintained with a bank.
SB1646 - 93 - LRB094 04038 WGH 34055 b (38) "Filing-office rule" means a rule adopted pursuant to Section 9-526.
SB1646 Engrossed - 93 - LRB094 04038 WGH 34055 b (38) "Filing-office rule" means a rule adopted pursuant to Section 9-526.
The term also includes a computer program embedded in goods and any supporting information provided in connection with a transaction relating to the program if (i) the program is associated with the goods in such a manner that it customarily is considered part of the goods, or (ii) by becoming the owner of the goods, a person acquires a right SB1646 - 94 - LRB094 04038 WGH 34055 b to use the program in connection with the goods.
The term also includes a computer program embedded in goods and any supporting information provided in connection with a transaction relating to the program if (i) the program is associated with the goods in such a manner that it customarily is considered part of the goods, or (ii) by becoming the owner of the goods, a person acquires a right SB1646 Engrossed - 94 - LRB094 04038 WGH 34055 b to use the program in connection with the goods.
SB1646 - 95 - LRB094 04038 WGH 34055 b (C) are furnished by a person under a contract of service;
SB1646 Engrossed - 95 - LRB094 04038 WGH 34055 b (C) are furnished by a person under a contract of service;
The term includes any structure that meets all of SB1646 - 96 - LRB094 04038 WGH 34055 b the requirements of this paragraph except the size requirements and with respect to which the manufacturer voluntarily files a certification required by the United States Secretary of Housing and Urban Development and complies with the standards established under Title 42 of the United States Code.
The term includes any structure that meets all of SB1646 Engrossed - 96 - LRB094 04038 WGH 34055 b the requirements of this paragraph except the size requirements and with respect to which the manufacturer voluntarily files a certification required by the United States Secretary of Housing and Urban Development and complies with the standards established under Title 42 of the United States Code.
SB1646 - 97 - LRB094 04038 WGH 34055 b (60) "Original debtor", except as used in Section 9-310(c), means a person that, as debtor, entered into a security agreement to which a new debtor has become bound under Section 9-203(d).
SB1646 Engrossed - 97 - LRB094 04038 WGH 34055 b (60) "Original debtor", except as used in Section 9-310(c), means a person that, as debtor, entered into a security agreement to which a new debtor has become bound under Section 9-203(d).
SB1646 - 98 - LRB094 04038 WGH 34055 b (A) whatever is acquired upon the sale, lease, license, exchange, or other disposition of collateral;
SB1646 Engrossed - 98 - LRB094 04038 WGH 34055 b (A) whatever is acquired upon the sale, lease, license, exchange, or other disposition of collateral;
(68) "Pursuant to commitment", with respect to an advance made or other value given by a secured party, means SB1646 - 99 - LRB094 04038 WGH 34055 b pursuant to the secured party’s obligation, whether or not a subsequent event of default or other event not within the secured party’s control has relieved or may relieve the secured party from its obligation.
(68) "Pursuant to commitment", with respect to an advance made or other value given by a secured party, means SB1646 Engrossed - 99 - LRB094 04038 WGH 34055 b pursuant to the secured party’s obligation, whether or not a subsequent event of default or other event not within the secured party’s control has relieved or may relieve the secured party from its obligation.
or (F) a person that holds a security interest arising under Section 2-401, 2-505, 2-711(3), 2A-508(5), SB1646 - 100 - LRB094 04038 WGH 34055 b 4-210, or 5-118.
or (F) a person that holds a security interest arising under Section 2-401, 2-505, 2-711(3), 2A-508(5), SB1646 Engrossed - 100 - LRB094 04038 WGH 34055 b 4-210, or 5-118.
SB1646 - 101 - LRB094 04038 WGH 34055 b (80) "Transmitting utility" means a person primarily engaged in the business of:
SB1646 Engrossed - 101 - LRB094 04038 WGH 34055 b (80) "Transmitting utility" means a person primarily engaged in the business of:
SB1646 - 102 - LRB094 04038 WGH 34055 b "Letter of credit".
SB1646 Engrossed - 102 - LRB094 04038 WGH 34055 b "Letter of credit".
(A) the debtor has authenticated a security SB1646 - 103 - LRB094 04038 WGH 34055 b agreement that provides a description of the collateral and, if the security interest covers timber to be cut, a description of the land concerned;
(A) the debtor has authenticated a security SB1646 Engrossed - 103 - LRB094 04038 WGH 34055 b agreement that provides a description of the collateral and, if the security interest covers timber to be cut, a description of the land concerned;
If a new debtor becomes bound as debtor by a security agreement entered into by SB1646 - 104 - LRB094 04038 WGH 34055 b another person:
If a new debtor becomes bound as debtor by a security agreement entered into by SB1646 Engrossed - 104 - LRB094 04038 WGH 34055 b another person:
In the case of chattel paper or an instrument, reasonable care includes taking necessary steps to preserve rights against prior parties unless SB1646 - 105 - LRB094 04038 WGH 34055 b otherwise agreed.
In the case of chattel paper or an instrument, reasonable care includes taking necessary steps to preserve rights against prior parties unless SB1646 Engrossed - 105 - LRB094 04038 WGH 34055 b otherwise agreed.
SB1646 - 106 - LRB094 04038 WGH 34055 b (1) subsection (a) does not apply unless the secured party is entitled under an agreement:
SB1646 Engrossed - 106 - LRB094 04038 WGH 34055 b (1) subsection (a) does not apply unless the secured party is entitled under an agreement:
(A) communicate the authoritative copy of the electronic chattel paper to the debtor or its SB1646 - 107 - LRB094 04038 WGH 34055 b designated custodian;
(A) communicate the authoritative copy of the electronic chattel paper to the debtor or its SB1646 Engrossed - 107 - LRB094 04038 WGH 34055 b designated custodian;
(B) if the debtor designates a custodian that is the designated custodian with which the authoritative SB1646 - 108 - LRB094 04038 WGH 34055 b copy of the electronic document is maintained for the secured party, communicate to the custodian an authenticated record releasing the designated custodian from any further obligation to comply with instructions originated by the secured party and instructing the custodian to comply with instructions originated by the debtor;
(B) if the debtor designates a custodian that is the designated custodian with which the authoritative SB1646 Engrossed - 108 - LRB094 04038 WGH 34055 b copy of the electronic document is maintained for the secured party, communicate to the custodian an authenticated record releasing the designated custodian from any further obligation to comply with instructions originated by the secured party and instructing the custodian to comply with instructions originated by the debtor;
SB1646 - 109 - LRB094 04038 WGH 34055 b (B) perfection of a security interest in timber to be cut;
SB1646 Engrossed - 109 - LRB094 04038 WGH 34055 b (B) perfection of a security interest in timber to be cut;
(7) in a certificated security which is perfected by SB1646 - 110 - LRB094 04038 WGH 34055 b delivery of the security certificate to the secured party under Section 9-313;
(7) in a certificated security which is perfected by SB1646 Engrossed - 110 - LRB094 04038 WGH 34055 b delivery of the security certificate to the secured party under Section 9-313;
and (3) a security interest in money may be perfected only by the secured party’s taking possession under Section SB1646 - 111 - LRB094 04038 WGH 34055 b 9-313.
and (3) a security interest in money may be perfected only by the secured party’s taking possession under Section SB1646 Engrossed - 111 - LRB094 04038 WGH 34055 b 9-313.
SB1646 - 112 - LRB094 04038 WGH 34055 b (g) Temporary perfection:
SB1646 Engrossed - 112 - LRB094 04038 WGH 34055 b (g) Temporary perfection:
(1) the person in possession authenticates a record SB1646 - 113 - LRB094 04038 WGH 34055 b acknowledging that it holds possession of the collateral for the secured party’s benefit;
(1) the person in possession authenticates a record SB1646 Engrossed - 113 - LRB094 04038 WGH 34055 b acknowledging that it holds possession of the collateral for the secured party’s benefit;
A secured party having possession of collateral does not relinquish possession by delivering the collateral to a person other than the debtor or a lessee of the collateral from the debtor in the ordinary course of the debtor’s business if the SB1646 - 114 - LRB094 04038 WGH 34055 b person was instructed before the delivery or is instructed contemporaneously with the delivery:
A secured party having possession of collateral does not relinquish possession by delivering the collateral to a person other than the debtor or a lessee of the collateral from the debtor in the ordinary course of the debtor’s business if the SB1646 Engrossed - 114 - LRB094 04038 WGH 34055 b person was instructed before the delivery or is instructed contemporaneously with the delivery:
SB1646 - 115 - LRB094 04038 WGH 34055 b (1) the secured party does not have control;
SB1646 Engrossed - 115 - LRB094 04038 WGH 34055 b (1) the secured party does not have control;
SB1646 - 116 - LRB094 04038 WGH 34055 b (c) Lessees that receive delivery.
SB1646 Engrossed - 116 - LRB094 04038 WGH 34055 b (c) Lessees that receive delivery.
If a security interest or agricultural lien is perfected by a filed financing statement providing SB1646 - 117 - LRB094 04038 WGH 34055 b information described in Section 9-516(b)(5) which is incorrect at the time the financing statement is filed:
If a security interest or agricultural lien is perfected by a filed financing statement providing SB1646 Engrossed - 117 - LRB094 04038 WGH 34055 b information described in Section 9-516(b)(5) which is incorrect at the time the financing statement is filed:
SB1646 - 118 - LRB094 04038 WGH 34055 b (d) Rights of debtor and obligor.
SB1646 Engrossed - 118 - LRB094 04038 WGH 34055 b (d) Rights of debtor and obligor.
7-1-01.) SB1646 - 119 - LRB094 04038 WGH 34055 b INDEX Statutes amended in order of appearance 810 ILCS 5/Art.
7-1-01.) SB1646 Engrossed - 119 - LRB094 04038 WGH 34055 b INDEX Statutes amended in order of appearance 810 ILCS 5/Art.
4 heading SB1646 - 120 - LRB094 04038 WGH 34055 b 810 ILCS 5/7-401 from Ch.
4 heading SB1646 Engrossed - 120 - LRB094 04038 WGH 34055 b 810 ILCS 5/7-401 from Ch.
2-509 SB1646 - 121 - LRB094 04038 WGH 34055 b 810 ILCS 5/2-605 from Ch.
2-509 SB1646 Engrossed - 121 - LRB094 04038 WGH 34055 b 810 ILCS 5/2-605 from Ch.
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Action History

  1. Session Sine Die

  2. Referred to Rules Committee

  3. First Reading

  4. Chief House Sponsor Rep. John A. Fritchey

  5. Placed on Calendar Order of First Reading

  6. Arrived in House

  7. Third Reading - Passed; 059-000-000

  8. Placed on Calendar Order of 3rd Reading April 14, 2005

  9. Second Reading

  10. Placed on Calendar Order of 2nd Reading March 10, 2005

  11. Do Pass Judiciary; 010-000-000

  12. Assigned to Judiciary

  13. Referred to Rules

  14. First Reading

  15. Filed with Secretary by Sen. Kirk W. Dillard

Sponsors

  • Kirk W. Dillard · Cosponsor

Sponsorship breakdown

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0 sponsors · 1 co-sponsors · 182 not signed on

Sponsors (0)

None.

Co-sponsors (1)

  • Kirk W. Dillard

Not signed on (182)

182 members have not signed on to this bill.

Show all 182 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Third Reading

Passed 59 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 53000
Democrat 5000
Republican 1000
Total 59000
% of votes cast 100%0%0%0%
How each member voted (59)
Member Party Vote
Sandoval — Yea
Silverstein — Yea
Lauzen — Yea
Luechtefeld — Yea
Althoff — Yea
Martinez — Yea
Bomke — Yea
Burzynski — Yea
Crotty — Yea
Dillard — Yea
Halvorson — Yea
Link — Yea
Maloney — Yea
Meeks — Yea
Pankau — Yea
Peterson — Yea
Radogno — Yea
Raoul — Yea
Munoz — Yea
Schoenberg — Yea
Brady — Yea
Shadid — Yea
Sullivan, D. — Yea
Sieben — Yea
Sullivan, J. — Yea
Petka — Yea
Trotter — Yea
Viverito — Yea
Jacobs — Yea
Wilhelmi — Yea
Jones, J. — Yea
Cullerton — Yea
Watson — Yea
Jones, W. — Yea
Winkel — Yea
Wojcik — Yea
Demuzio — Yea
Clayborne — Yea
Cronin — Yea
Dahl — Yea
DeLeo — Yea
Forby — Yea
Garrett — Yea
Geo-Karis — Yea
Haine — Yea
Hendon — Yea
Rauschenberger — Yea
Righter — Yea
Risinger — Yea
Ronen — Yea
Roskam — Yea
Rutherford — Yea
del Valle — Yea
Don Harmon Democrat Yea
Emil Jones, III Democrat Yea
Kimberly A. Lightford Democrat Yea
Lakesia Collins Democrat Yea
Mattie Hunter Democrat Yea
Dave Syverson Republican Yea

Official roll call →

Subjects

finance transportation
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Frequently asked questions

What does SB 1646 do?
Amends the Uniform Commercial Code. Makes changes to Article 7, which deals with documents of title, in conformance with recommendations of the National Conference of Commissioners of Uniform State Laws. Makes conforming changes in other parts of the Uniform Commercial Code.
Who sponsors SB 1646?
SB 1646 is sponsored by Kirk W. Dillard.
What is the current status of SB 1646?
This bill died with 94th Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 1646?
Track SB 1646 free on One Click Politics — get push/email alerts when it moves.

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