Chapter 810 — COMMERCIAL CODE

(810 ILCS 5/2A-304) (from Ch. 26, par. 2A-304) Sec. 2A-304. Subsequent lease of goods by lessor. (1) Subject to Section 2A-303, a subsequent lessee from a lessor of goods under an existing lease contract obtains, to the extent of the leasehold interest transferred, the leasehold …

(810 ILCS 5/2A-305) (from Ch. 26, par. 2A-305) Sec. 2A-305. Sale or sublease of goods by lessee. (1) Subject to the provisions of Section 2A-303, a buyer or sublessee from the lessee of goods under an existing lease contract obtains, to the extent of the interest transferred, the…

(810 ILCS 5/2A-306) (from Ch. 26, par. 2A-306) Sec. 2A-306. Priority of certain liens arising by operation of law. If a person in the ordinary course of his or her business furnishes services or materials with respect to goods subject to a lease contract, a lien upon those goods …

(810 ILCS 5/2A-307) (from Ch. 26, par. 2A-307) Sec. 2A-307. Priority of liens arising by attachment or levy on, security interests in, and other claims to goods. (1) Except as otherwise provided in Section 2A-306, a creditor of a lessee takes subject to the lease contract. (2) Ex…

(810 ILCS 5/2A-308) (from Ch. 26, par. 2A-308) Sec. 2A-308. Special rights of creditors. (1) A creditor of a lessor in possession of goods subject to a lease contract may treat the lease contract as void if as against the creditor retention of possession by the lessor is fraudule…

(810 ILCS 5/2A-309) (from Ch. 26, par. 2A-309) Sec. 2A-309. Lessor's and lessee's rights when goods become fixtures. (1) In this Section: (a) goods are "fixtures" when they become so related to particular real estate that an interest in them arises under real estate law; (b) a "f…

(810 ILCS 5/2A-310) (from Ch. 26, par. 2A-310) Sec. 2A-310. Lessor's and lessee's rights when goods become accessions. (1) Goods are "accessions" when they are installed in or affixed to other goods. (2) The interest of a lessor or a lessee under a lease contract entered into bef…

(810 ILCS 5/2A-311) (from Ch. 26, par. 2A-311) Sec. 2A-311. Priority subject to subordination. Nothing in this Article prevents subordination by agreement by any person entitled to priority. (Source: P.A. 87-493.)

(810 ILCS 5/2A-401) (from Ch. 26, par. 2A-401) Sec. 2A-401. Insecurity; adequate assurance of performance. (1) A lease contract imposes an obligation on each party that the other's expectation of receiving due performance will not be impaired. (2) If reasonable grounds for insecu…

(810 ILCS 5/2A-402) (from Ch. 26, par. 2A-402) Sec. 2A-402. Anticipatory repudiation. If either party repudiates a lease contract with respect to a performance not yet due under the lease contract, the loss of which performance will substantially impair the value of the lease con…

(810 ILCS 5/2A-403) (from Ch. 26, par. 2A-403) Sec. 2A-403. Retraction of anticipatory repudiation. (1) Until the repudiating party's next performance is due, the repudiating party can retract the repudiation unless, since the repudiation, the aggrieved party has cancelled the le…

(810 ILCS 5/2A-404) (from Ch. 26, par. 2A-404) Sec. 2A-404. Substituted performance. (1) If without fault of the lessee, the lessor and the supplier, the agreed berthing, loading, or unloading facilities fail or the agreed type of carrier becomes unavailable or the agreed manner …

(810 ILCS 5/2A-405) (from Ch. 26, par. 2A-405) Sec. 2A-405. Excused performance. Subject to Section 2A-404 on substituted performance, the following rules apply: (a) Delay in delivery or nondelivery in whole or in part by a lessor or a supplier who complies with paragraphs (b) an…

(810 ILCS 5/2A-406) (from Ch. 26, par. 2A-406) Sec. 2A-406. Procedure on excused performance. (1) If the lessee receives notification of a material or indefinite delay or an allocation justified under Section 2A-405, the lessee may by written notification to the lessor as to any …

(810 ILCS 5/2A-407) (from Ch. 26, par. 2A-407) Sec. 2A-407. Irrevocable promises; finance leases. (1) In the case of a finance lease that is not a consumer lease the lessee's promises under the lease contract become irrevocable and independent upon the lessee's acceptance of the …

(810 ILCS 5/2A-501) (from Ch. 26, par. 2A-501) Sec. 2A-501. Default; procedure. (1) Whether the lessor or the lessee is in default under a lease contract is determined by the lease agreement and this Article. (2) If the lessor or the lessee is in default under the lease contract,…

(810 ILCS 5/2A-502) (from Ch. 26, par. 2A-502) Sec. 2A-502. Notice after default. Except as otherwise provided in this Article or the lease agreement, the lessor or lessee in default under the lease contract is not entitled to notice of default or notice of enforcement from the o…

(810 ILCS 5/2A-503) (from Ch. 26, par. 2A-503) Sec. 2A-503. Modification or impairment of rights and remedies. (1) Except as otherwise provided in this Article, the lease agreement may include rights and remedies for default in addition to or in substitution for those provided in…

(810 ILCS 5/2A-504) (from Ch. 26, par. 2A-504) Sec. 2A-504. Liquidation of damages. (1) Damages payable by either party for default, or any other act or omission, including indemnity for loss or diminution of anticipated tax benefits or loss or damage to lessor's residual interes…

(810 ILCS 5/2A-505) (from Ch. 26, par. 2A-505) Sec. 2A-505. Cancellation and termination and effect of cancellation, termination, rescission, or fraud on rights and remedies. (1) On cancellation of the lease contract, all obligations that are still executory on both sides are dis…

(810 ILCS 5/2A-506) (from Ch. 26, par. 2A-506) Sec. 2A-506. Statute of limitations. (1) An action for default under a lease contract, including breach of warranty or indemnity, must be commenced within 4 years after the cause of action accrued. By the original lease contract the …

(810 ILCS 5/2A-507) (from Ch. 26, par. 2A-507) Sec. 2A-507. Proof of market rent; time and place. (1) Damages based on market rent (Section 2A-519 or 2A-528) are determined according to the rent for the use of the goods concerned for a lease term identical to the remaining lease …

(810 ILCS 5/2A-508) (from Ch. 26, par. 2A-508) Sec. 2A-508. Lessee's remedies. (1) If a lessor fails to deliver the goods in conformity to the lease contract (Section 2A-509) or repudiates the lease contract (Section 2A-402), or a lessee rightfully rejects the goods (Section 2A-5…

(810 ILCS 5/2A-509) (from Ch. 26, par. 2A-509) Sec. 2A-509. Lessee's rights on improper delivery; rightful rejection. (1) Subject to the provisions of Section 2A-510 on default in installment lease contracts, if the goods or the tender or delivery fail in any respect to conform t…

(810 ILCS 5/2A-510) (from Ch. 26, par. 2A-510) Sec. 2A-510. Installment lease contracts; rejection and default. (1) Under an installment lease contract, a lessee may reject any delivery that is nonconforming if the nonconformity substantially impairs the value of that delivery an…

(810 ILCS 5/2A-511) (from Ch. 26, par. 2A-511) Sec. 2A-511. Merchant lessee's duties as to rightfully rejected goods. (1) Subject to any security interest of a lessee (Section 2A-508(5)), if a lessor or a supplier has no agent or place of business at the market of rejection, a me…

(810 ILCS 5/2A-512) (from Ch. 26, par. 2A-512) Sec. 2A-512. Lessee's duties as to rightfully rejected goods. (1) Except as otherwise provided with respect to goods that threaten to decline in value speedily (Section 2A-511) and subject to any security interest of a lessee (Sectio…

(810 ILCS 5/2A-513) (from Ch. 26, par. 2A-513) Sec. 2A-513. Cure by lessor of improper tender or delivery; replacement. (1) If any tender or delivery by the lessor or the supplier is rejected because nonconforming and the time for performance has not yet expired, the lessor or th…

(810 ILCS 5/2A-514) (from Ch. 26, par. 2A-514) Sec. 2A-514. Waiver of lessee's objections. (1) In rejecting goods, a lessee's failure to state a particular defect that is ascertainable by reasonable inspection precludes the lessee from relying on the defect to justify rejection o…

(810 ILCS 5/2A-515) (from Ch. 26, par. 2A-515) Sec. 2A-515. Acceptance of goods. (1) Acceptance of goods occurs after the lessee has had a reasonable opportunity to inspect the goods and (a) the lessee signifies or acts with respect to the goods in a manner that signifies to the …

(810 ILCS 5/2A-516) (from Ch. 26, par. 2A-516) Sec. 2A-516. Effect of acceptance of goods; notice of default; burden of establishing default after acceptance; notice of claim or litigation to person answerable over. (1) A lessee must pay rent for any goods accepted in accordance …

(810 ILCS 5/2A-517) (from Ch. 26, par. 2A-517) Sec. 2A-517. Revocation of acceptance of goods. (1) A lessee may revoke acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to the lessee if the lessee has accepted it: (a) except in the case of…

(810 ILCS 5/2A-518) (from Ch. 26, par. 2A-518) Sec. 2A-518. Cover; substitute goods. (1) After a default by a lessor under the lease contract of the type described in Section 2A-508(1), or, if agreed, after other default by the lessor, the lessee may cover by making any purchase …

(810 ILCS 5/2A-519) (from Ch. 26, par. 2A-519) Sec. 2A-519. Lessee's damages for nondelivery, repudiation, default, and breach of warranty in regard to accepted goods. (1) Except as otherwise provided with respect to damages liquidated in the lease agreement (Section 2A-504) or o…

(810 ILCS 5/2A-520) (from Ch. 26, par. 2A-520) Sec. 2A-520. Lessee's incidental and consequential damages. (1) Incidental damages resulting from a lessor's default include expenses reasonably incurred in inspection, receipt, transportation, and care and custody of goods rightfull…

(810 ILCS 5/2A-521) (from Ch. 26, par. 2A-521) Sec. 2A-521. Lessee's right to specific performance or replevin. (1) Specific performance may be decreed if the goods are unique or in other proper circumstances. (2) A decree for specific performance may include any terms and condit…

(810 ILCS 5/2A-522) (from Ch. 26, par. 2A-522) Sec. 2A-522. Lessee's right to goods on lessor's insolvency. (1) Subject to subsection (2) and even though the goods have not been shipped, a lessee who has paid a part or all of the rent and security for goods identified to a lease …

(810 ILCS 5/2A-523) (from Ch. 26, par. 2A-523) Sec. 2A-523. Lessor's remedies. (1) If a lessee wrongfully rejects or revokes acceptance of goods or fails to make a payment when due or repudiates with respect to a part or the whole, then, with respect to any goods involved, and wi…

(810 ILCS 5/2A-524) (from Ch. 26, par. 2A-524) Sec. 2A-524. Lessor's right to identify goods to lease contract. (1) A lessor aggrieved under Section 2A-523(1) may: (a) identify to the lease contract conforming goods not already identified if at the time the lessor learned of the …

(810 ILCS 5/2A-525) (from Ch. 26, par. 2A-525) Sec. 2A-525. Lessor's right to possession of goods. (1) If a lessor discovers the lessee to be insolvent, the lessor may refuse to deliver the goods. (2) After a default by the lessee under the lease contract of the type described in…

(810 ILCS 5/2A-526) (from Ch. 26, par. 2A-526) Sec. 2A-526. Lessor's stoppage of delivery in transit or otherwise. (1) A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers the lessee to be insolvent and may stop delivery of ca…

(810 ILCS 5/2A-527) (from Ch. 26, par. 2A-527) Sec. 2A-527. Lessor's rights to dispose of goods. (1) After a default by a lessee under the lease contract of the type described in Section 2A-523(1) or 2A-523(3)(a) or after the lessor refuses to deliver or takes possession of goods…

(810 ILCS 5/2A-528) (from Ch. 26, par. 2A-528) Sec. 2A-528. Lessor's damages for nonacceptance, failure to pay, repudiation, or other default. (1) Except as otherwise provided with respect to damages liquidated in the lease agreement (Section 2A-504) or otherwise determined pursu…

(810 ILCS 5/2A-529) (from Ch. 26, par. 2A-529) Sec. 2A-529. Lessor's action for the rent. (1) After default by the lessee under the lease contract of the type described in Section 2A-523(1) or 2A-523(3)(a) or, if agreed, after other default by the lessee, if the lessor complies w…

(810 ILCS 5/2A-530) (from Ch. 26, par. 2A-530) Sec. 2A-530. Lessor's incidental damages. Incidental damages to an aggrieved lessor include any commercially reasonable charges, expenses, or commissions incurred in stopping delivery, in the transportation, care and custody of goods…

(810 ILCS 5/2A-531) (from Ch. 26, par. 2A-531) Sec. 2A-531. Standing to sue third parties for injury to goods. (1) If a third party so deals with goods that have been identified to a lease contract as to cause actionable injury to a party to the lease contract (a) the lessor has …

(810 ILCS 5/2A-532) (from Ch. 26, par. 2A-532) Sec. 2A-532. Lessor's rights to residual interest. In addition to any other recovery permitted by this Article or other law, the lessor may recover from the lessee an amount that will fully compensate the lessor for any loss of or da…

(810 ILCS 5/3-101) (from Ch. 26, par. 3-101) Sec. 3-101. Short title. This Article may be cited as Uniform Commercial Code-Negotiable Instruments. (Source: P.A. 87-582.)

(810 ILCS 5/3-102) (from Ch. 26, par. 3-102) Sec. 3-102. Subject matter. (a) This Article applies to negotiable instruments. It does not apply to money, to payment orders governed by Article 4A, or to securities governed by Article 8. (b) If there is conflict between this Article…

(810 ILCS 5/3-103) (from Ch. 26, par. 3-103) Sec. 3-103. Definitions. (a) In this Article: (1) "Acceptor" means a drawee that has accepted a draft. (2) "Drawee" means a person ordered in a draft to make payment. (3) "Drawer" means a person who signs or is identified in a draft as…