Sec. 9-320.1. Liability of commission merchant or selling agent engaged in sale of livestock or other farm products to holder of security interest.

314 words·~1 min read·/il/chapter-810/act-5/9-320-1

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)A commission merchant or selling agent who sells a farm product for others shall be subject to a security interest created by the seller in such farm product if:

(1)within one year before the sale of the farm products, the buyer has received from

the secured party or the seller written notice of the security interest organized according to farm products that:

(A)is an original or reproduced copy thereof;

(B)contains:

(i)the name and address of the secured party;

(ii)the name and

address of the person indebted to the secured party;

(iii)the social security number of the debtor or, in case of a debtor doing business other than as an individual, the Internal Revenue Service taxpayer identification number of such debtor;

(iv)a description of the farm products subject to the security interest created by the debtor, including the amount of such products where applicable, crop year, county, and a reasonable description of the property;

(C)must be amended in writing, within 3 months, similarly signed and transmitted,

to reflect material changes;

(D)will lapse on either the expiration period of the statement or the transmission

of a notice signed by the secured party that the statement has lapsed, whichever occurs first; and

(E)sets forth any payment obligations imposed on the buyer by the secured party as

conditions for waiver or release of the security interest; and

(2)the commission merchant or selling agent has failed to perform the payment

obligations.

(b)For the purposes of this Section, a commission merchant or selling agent has received notice from the secured party or seller when written notice of the security interest is sent to the commission merchant or selling agent by registered or certified mail.