These Illinois UCC rules are the working half of our code overview.
What the law requires: Illinois UCC rules
| Topic (810 ILCS 5 section) | What the rule says |
|---|---|
| Goods sale of $500 or more (2-201) | Needs a record signed by the party held to it, with exceptions, such as specially made goods. |
| Warranties (2-314, 2-316) | Merchant sellers imply merchantability. A written disclaimer must name it and be conspicuous; "as is" wording also works. |
| UCC-1 (9-203, 9-509) | A security interest usually needs a signed agreement describing the collateral; signing it also authorizes the filing. |
| Default (9-609 to 9-611) | Repossession is by court process, or without it if no breach of the peace occurs. A sale must be commercially reasonable, after required notice. |
Key numbers and dates
| Item | Amount or period | Year; section |
|---|---|---|
| Goods-sale suit | 4 years; contract may cut it to 1 | 2026; 2-725 |
| Dishonored check (unaccepted draft) | 3 years after dishonor or 10 after its date, if sooner | 2026; 3-118(c) |
| Contract or note in writing | 10 years, with 2-725 exceptions | 2026; 735 ILCS 5/13-206 |
| Forgery report to bank | 1 year | 2026; 4-406(f) |
| Financing statement | 5 years; continue in the last 6 months only | 2026; 9-515 |
| Termination after payoff, other collateral | 20 days after signed demand | 2026; 9-513 |
| Wrongful filing or no termination | $500 per instance plus actual loss | 2026; 9-625(e) |
| Secretary of State fees | UCC-1 $20; information request $10 | October 2026 |
Source: 810 ILCS 5; 735 ILCS 5/13-206
Recent amendments and open items
- Public Act 103-1036 (effective January 1, 2025) added a controllable electronic records article.
- Mortgage-secured debt was added to 735 ILCS 5/13-206 by Public Act 104-842, in force from August 21, 2026; the 10-year contract period is unchanged.
The named checklist: the Stolp Island Secured-Loan Check
- Name. Match the debtor name to the public state record.
- Authority. Confirm a signed security agreement describes the collateral.
- Office. Confirm the correct filing office.
- Calendar. Diary the 5-year lapse and continuation window.
- Payoff. Request a termination after the last payment.
- Sales terms. Keep signed records for goods deals of $500 or more.
- Bank statements. Reconcile monthly (record retention).
Common mistakes
- Naming a trade name as debtor.
- A continuation filed outside the 6-month window.
- Filing without authorization, or ignoring a signed termination demand.
- A disclaimer that omits merchantability.
When to bring in an attorney
- Drafting a security agreement or ranking competing liens.
- A default, repossession or bankruptcy.
- A forged check the bank disputes, or the governing law of an overseas deal.
How we can help
Our Aurora CPA firm handles the U.S. tax, payroll and accounting side alongside your attorney, Canadian CPA or Indian CA. See bookkeeping and accounting and business tax returns.
Frequently asked questions
Does the Illinois UCC apply to owners in India or Canada?
How long does a UCC-1 last?
Five years (30 for a marked public-finance or manufactured-home filing). Continue it only in the last 6 months.
Must a goods contract be written?
A signed record is needed at $500 or more, with exceptions. Between merchants, a confirming record not objected to within 10 days counts against its recipient.
How long do I have to report a forged check?
One year after the statement or items are available (30 days to review for repeat items by one wrongdoer).
Official sources
- Illinois General Assembly: Uniform Commercial Code, 810 ILCS 5
- Illinois General Assembly: 735 ILCS 5/13-206, limitation of contract actions
- Illinois Secretary of State: UCC forms and fees
- Illinois General Assembly: Senate Bill 3696 (Public Act 103-1036) status
This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.