This page lists what the Illinois Uniform Commercial Code asks of a small business, with the amounts and time limits in force in 2026. The overview gives the big picture, and the checklist and FAQs turn it into steps.
What the law requires
| Requirement | In plain words | Section |
|---|---|---|
| Signed record | A goods sale of $500 or more is enforceable only if a record signed by the party being held to it shows a sale was made, with listed exceptions. | 2-201 |
| Warranties | Merchant sellers carry an implied warranty of merchantability. A disclaimer generally must mention that word and, in a writing, be conspicuous; "as is" wording can also work. | 2-314, 2-316 |
| Debtor name | A registered organization, such as an LLC or corporation, uses the name on its public organic record. A trade name alone fails. | 9-503 |
| Authority and repossession | A filing needs the debtor's signed authorization, which a signed security agreement can supply. Repossession may not breach the peace, and a sale must be commercially reasonable. | 9-509, 9-609 to 9-611 |
Key numbers and dates
| Item | Amount or date | Year in force | Source label |
|---|---|---|---|
| Signed record threshold | $500 or more; a merchant's confirming record stands unless objected to within 10 days | 2026 | UCC 2-201 |
| Suit on a sale of goods | 4 years after the breach; may be shortened by agreement to not less than 1 year | 2026 | UCC 2-725 |
| Dishonored draft; Article 4 claims | 3 years; a dishonored draft is also capped at 10 years from its date | 2026 | UCC 3-118, 4-111 |
| Written contract or note | 10 years, except as 2-725 provides | 2026 | 735 ILCS 5/13-206 |
| Forged signature or alteration | Report within 1 year or the claim against the bank is barred; for repeat items by one wrongdoer, a reasonable review period of up to 30 days | 2026 | UCC 4-406(d), (f) |
| Financing statement life | 5 years; continuation only in the last 6 months | 2026 | UCC 9-515 |
| Termination after payoff | Consumer goods: 1 month after payoff, or 20 days after a signed demand if earlier. Other collateral: 20 days after a demand | 2026 | UCC 9-513 |
| Filing fees | UCC-1 $20; information request $10. Amendment (UCC-3) fees are not stated here; check the Secretary of State's current fee schedule | 2026 | UCC 9-525 |
Source: 810 ILCS 5/2-725, 3-118, 4-406; 735 ILCS 5/13-206
Recent and pending changes
Public Act 103-1036 (Senate Bill 3696), approved August 9, 2024, took effect January 1, 2025. Its synopsis says it adopts Uniform Law Commission changes, adds an article on controllable electronic records and amends other provisions.
Penalties and enforcement
No regulator enforces these rules. People bring civil claims in court.
| Tier | What can follow | Section |
|---|---|---|
| Unauthorized filing, or no termination after a proper demand | $500 per instance, recoverable by the debtor, plus actual loss | 9-625(b), (e) |
| Not following the secured-lending rules | A court may order or restrain collection or sale | 9-625(a) |
| Lapsed financing statement | The lender's claim becomes unperfected, losing the filing's protection unless perfected another way, and is treated as never perfected against a purchaser for value | 9-515(c) |
| Late defect notice or bank report | The buyer loses any remedy; the customer is barred from raising the forgery against the bank | 2-607(3)(a), 4-406 |
Official sources
- Illinois General Assembly: Section 13-206, ten-year limit (735 ILCS 5/13-206)
- Illinois General Assembly: Section 9-525, fees
- Illinois General Assembly: Section 4-406, customer reporting duty
- Illinois Secretary of State: UCC forms and fees
- Illinois General Assembly: Senate Bill 3696 status
This page is a plain-language summary. The official source controls if there is any difference.