August 17, 2012, has proven to be a historic day for secured lenders in Illinois!
First, on August 17, Illinois became the 29th state to adopt the 2010 amendments to UCC Revised Article 9!
On the same day, the US District Court for the Central District of Illinois reversed the oft-criticized decision in In Re Ben Miller, previously discussed on this blog. The US District Court’s decision is Case No. 12-CV-02052. The court held that neither Illinois law nor the UCC requires that the “legal name” be used on a financing statement. Because the Bankruptcy Court created an additional requirement of law where none exists, by mandating that lenders use the debtor’s “legal name” on the financing statement, and held that the name on the debtor’s birth certificate takes priority over his name on his other commonly-accepted documents in defining the debtor’s “legal name”, the court must reverse the USBC’s decision. The court also provides commentary regarding the use of the individual’s name as indicated on the Driver’s License, providing further support for the amendments to Article 9 that will become effective in Illinois on July 1, 2013.
Comments