Bill Amendment: IL HB5303 | 2023-2024 | 103rd General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: UCC-CONTROL ELECTRONIC RECORDS

Status: 2024-04-19 - Rule 19(a) / Re-referred to Rules Committee [HB5303 Detail]

Download: Illinois-2023-HB5303-House_Amendment_001.html

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Rep. Daniel Didech

Filed: 3/26/2024

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AMENDMENT TO HOUSE BILL 5303
AMENDMENT NO. ______. Amend House Bill 5303 by deleting
line 4 on page 1 through line 15 on page 4; and
on page 4, line 21, after "3-105,", by inserting "3-312,"; and
on page 4, line 23, after "9-105,", by inserting "9-201,"; and
on page 17, line 18, by replacing "that" with "which"; and
on page 23, line 19, by replacing "that" with "which"; and
on page 24, line 7, by replacing "that" with "which"; and
on page 39, immediately below line 23, by inserting the
following:
"(810 ILCS 5/3-312) (from Ch. 26, par. 3-312)

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Sec. 3-312. Lost, destroyed, or stolen cashier's check,
teller's check, or certified check.
(a) In this Section:
(1) "Check" means a cashier's check, teller's check,
or certified check.
(2) "Claimant" means a person who claims the right to
receive the amount of a cashier's check, teller's check,
or certified check that was lost, destroyed, or stolen.
(3) "Declaration of loss" means a written statement,
made under penalty of perjury, to the effect that (i) the
declarer lost possession of a check, (ii) the declarer is
the drawer or payee of the check, in the case of a
certified check, or the remitter or payee of the check, in
the case of a cashier's check or teller's check, (iii) the
loss of possession was not the result of a transfer by the
declarer or of a lawful seizure, and (iv) the declarer
cannot reasonably obtain possession of the check because
the check was destroyed, its whereabouts cannot be
determined, or it is in the wrongful possession of an
unknown person or a person that cannot be found or is not
amenable to service of process.
(4) "Obligated bank" means the issuer of a cashier's
check or teller's check or the acceptor of a certified
check.
(b) A claimant may assert a claim to the amount of a check
by a communication to the obligated bank describing the check

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with reasonable certainty and requesting payment of the amount
of the check, if (i) the claimant is the drawer or payee of a
certified check or the remitter or payee of a cashier's check
or teller's check, (ii) the communication contains or is
accompanied by a declaration of loss of the claimant with
respect to the check, (iii) the communication is received at a
time and in a manner affording the bank a reasonable time to
act on it before the check is paid, and (iv) the claimant
provides reasonable identification if requested by the
obligated bank. Delivery of a declaration of loss is a
warranty of the truth of the statements made in the
declaration. If a claim is asserted in compliance with this
subsection, the following rules apply:
(1) The claim becomes enforceable at the later of (i)
the time the claim is asserted, or (ii) the 90th day
following the date of the check, in the case of a cashier's
check or teller's check, or the 90th day following the
date of the acceptance, in the case of a certified check.
(2) Until the claim becomes enforceable, it has no
legal effect and the obligated bank may pay the check or,
in the case of a teller's check, may permit the drawee to
pay the check. Payment to a person entitled to enforce the
check discharges all liability of the obligated bank with
respect to the check.
(3) If the claim becomes enforceable before the check
is presented for payment, the obligated bank is not

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obliged to pay the check.
(4) When the claim becomes enforceable, the obligated
bank becomes obliged to pay the amount of the check to the
claimant if payment of the check has not been made to a
person entitled to enforce the check. Subject to Section
4-302(a)(1), payment to the claimant discharges all
liability of the obligated bank with respect to the check.
(c) If the obligated bank pays the amount of a check to a
claimant under subsection (b)(4) and the check is presented
for payment by a person having rights of a holder in due
course, the claimant is obliged to (i) refund the payment to
the obligated bank if the check is paid, or (ii) pay the amount
of the check to the person having rights of a holder in due
course if the check is dishonored.
(d) If a claimant has the right to assert a claim under
subsection (b) and is also a person entitled to enforce a
cashier's check, teller's check, or certified check that is
lost, destroyed, or stolen, the claimant may assert rights
with respect to the check either under this Section or Section
3-309.
(Source: P.A. 87-582; 87-895; 87-1135.)"; and
on page 113, immediately below line 16, by inserting the
following:
"(810 ILCS 5/9-201) (from Ch. 26, par. 9-201)

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Sec. 9-201. General effectiveness of security agreement.
(a) General effectiveness. Except as otherwise provided in
the Uniform Commercial Code, a security agreement is effective
according to its terms between the parties, against purchasers
of the collateral, and against creditors.
(b) Applicable consumer laws and other law. A transaction
subject to this Article is subject to any applicable rule of
law, statute, or regulation which establishes a different rule
for consumers, including, without limitation:
(1) the Retail Installment Sales Act;
(2) the Motor Vehicle Retail Installment Sales Act;
(3) Article II of Chapter 3 of the Illinois Vehicle
Code;
(4) Article IIIB of the Boat Registration and Safety
Act;
(5) the Pawnbroker Regulation Act;
(6) the Motor Vehicle Leasing Act;
(7) the Consumer Installment Loan Act; and
(8) the Consumer Deposit Security Act of 1987; .
(9) the Predatory Loan Prevention Act;
(10) the Consumer Fraud and Deceptive Business
Practices Act;
(11) any other statute or regulation that regulates
the rates, charges, agreements, and practices for loans,
credit sales, or other extensions of credit; and
(12) any consumer protection statute or regulation.

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(c) Other applicable law controls. In case of conflict
between this Article and a rule of law, statute, or regulation
described in subsection (b), the rule of law, statute, or
regulation controls. Failure to comply with a rule of law,
statute, or regulation described in subsection (b) has only
the effect such rule of law, statute, or regulation specifies.
(d) Further deference to other applicable law. This
Article does not:
(1) validate any rate, charge, agreement, or practice
that violates a rule of law, statute, or regulation
described in subsection (b); or
(2) extend the application of the rule of law,
statute, or regulation to a transaction not otherwise
subject to it.
(Source: P.A. 91-893, eff. 7-1-01.)"; and
on page 122, line 21, by replacing "document of title" with
"document"; and
on page 137, line 13, by replacing "that" with "which"; and
on page 143, by replacing lines 22 through 25 as follows:
"documents, electronic money, investment property,
letter-of-credit rights investment property, deposit accounts,
electronic chattel paper, letter-of-credit rights, electronic
documents, or beneficial interests in Illinois land trusts

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may"; and
on page 144, by replacing lines 7 through 10 as follows:
"documents, electronic money, letter-of-credit rights deposit
accounts, electronic chattel paper, letter-of-credit rights,
electronic documents, or beneficial interests in Illinois land
trusts is perfected by control under Section"; and
on page 164, line 2, by deleting "tangible"; and
on page 187, by replacing line 12 with the following:
"(a) "Notification date." In this Section, "notification";
and
on page 194, immediately below line 25, by inserting the
following:
"(Name and address of secured party)
(Date)"; and
on page 196, line 21, by replacing "(a)(3)" with "(a)(4)"; and
on page 196, line 24, by replacing "(a)(3)" with "(a)(4)"; and
on page 208, by replacing line 2 with the following:
"(a) "Transfer statement." In this Section, "transfer";
and

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on page 222, by replacing lines 10 through 15 with the
following:
"(b) Applicable consumer law and other laws. A transaction
subject to this Article is subject to any applicable rule of
law, statute, or regulation which establishes a different rule
for consumers including, without limitation, the Consumer
Installment Loan Act, the Predatory Loan Prevention Act, the
Consumer Fraud and Deceptive Business Practices Act, any other
statute or regulation that regulates the rates, charges,
agreements, and practices for loans, credit sales, or other
extensions of credit, and any consumer protection statute or
regulation."; and