![if gte IE 9]><![endif]><![if gte IE 9]><![endif]><![if gte IE 9]><![endif]>
Thank You For Submiting Feedback!
Under Ill. Rev. Stat. ch. 26, § 9-301(4), a perfected security interest has priority over a judgment lien to the extent that the interest secures advances made within 45 days after the lien attaches.
Plaintiff judgment creditor brought supplemental proceedings against defendant lender, seeking to enforce its judgment by writ of execution against assets held on behalf of defendant judgment debtor, which had been given a revolving line of credit. Citing a security agreement and note for the line of credit, which had been executed a year before plaintiff's judgment, defendant lender claimed a security interest in the assets that took priority over plaintiff's judgment lien. After being served with the writ of execution, defendant lender continued to advance money to defendant judgment debtor. Accordingly, plaintiff petitioned the district court for an order requiring defendant lender to turnover the assets at issue. The petition was granted by summary judgment and defendant lender appealed.
Did the district court correctly grant summary judgment in favor of the plaintiff?
In vacating the judgment and remanding, the appellate court ruled that the district court had failed to properly determine the parties' priorities under the applicable version of the Uniform Commercial Code, Ill. Rev. Stat. ch. 26, § 9-301(4), which gave a perfected security interest priority over judgment liens for 45 days.