(a) Unless the context otherwise requires, words or phrases defined in this Section, or in the additional definitions contained in other Articles of the Uniform Commercial Code that apply to particular Articles or parts thereof, have the meanings stated.
     (b) Subject to definitions contained in other Articles of the Uniform Commercial Code that apply to particular Articles or parts thereof:
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Terms Used In Illinois Compiled Statutes 810 ILCS 5/1-201

  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Counterclaim: A claim that a defendant makes against a plaintiff.
  • Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
  • Executor: A male person named in a will to carry out the decedent
  • Forgery: The fraudulent signing or alteration of another's name to an instrument such as a deed, mortgage, or check. The intent of the forgery is to deceive or defraud. Source: OCC
  • Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
  • Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
  • individual: shall include every infant member of the species homo sapiens who is born alive at any stage of development. See Illinois Compiled Statutes 5 ILCS 70/1.36
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • State: when applied to different parts of the United States, may be construed to include the District of Columbia and the several territories, and the words "United States" may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14
  • Trustee: A person or institution holding and administering property in trust.
  • Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
  • United States: may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14

         (1) “Action”, in the sense of a judicial proceeding,
    
includes recoupment, counterclaim, set-off, suit in equity, and any other proceeding in which rights are determined.
        (2) “Aggrieved party” means a party entitled to
    
pursue a remedy.
        (3) “Agreement”, as distinguished from “contract”,
    
means the bargain of the parties in fact, as found in their language or inferred from other circumstances, including course of performance, course of dealing, or usage of trade as provided in Section 1-303.
        (4) “Bank” means a person engaged in the business of
    
banking and includes a savings bank, savings and loan association, credit union, and trust company.
        (5) “Bearer” means a person in possession of a
    
negotiable instrument, document of title, or certificated security that is payable to bearer or indorsed in blank.
        (6) “Bill of lading” means a document evidencing the
    
receipt of goods for shipment issued by a person engaged in the business of transporting or forwarding goods.
        (7) “Branch” includes a separately incorporated
    
foreign branch of a bank.
        (8) “Burden of establishing” a fact means the burden
    
of persuading the trier of fact that the existence of the fact is more probable than its nonexistence.
        (9) “Buyer in ordinary course of business” means a
    
person that buys goods in good faith, without knowledge that the sale violates the rights of another person in the goods, and in the ordinary course from a person, other than a pawnbroker, in the business of selling goods of that kind. A person buys goods in the ordinary course if the sale to the person comports with the usual or customary practices in the kind of business in which the seller is engaged or with the seller’s own usual or customary practices. A person that sells oil, gas, or other minerals at the wellhead or minehead is a person in the business of selling goods of that kind. A buyer in ordinary course of business may buy for cash, by exchange of other property, or on secured or unsecured credit, and may acquire goods or documents of title under a preexisting contract for sale. Only a buyer that takes possession of the goods or has a right to recover the goods from the seller under Article 2 may be a buyer in ordinary course of business. “Buyer in ordinary course of business” does not include a person that acquires goods in a transfer in bulk or as security for or in total or partial satisfaction of a money debt.
        (10) “Conspicuous”, with reference to a term, means
    
so written, displayed, or presented that a reasonable person against which it is to operate ought to have noticed it. Whether a term is “conspicuous” or not is a decision for the court. Conspicuous terms include the following:
            (A) a heading in capitals equal to or greater in
        
size than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same or lesser size; and
            (B) language in the body of a record or display
        
in larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size, or set off from surrounding text of the same size by symbols or other marks that call attention to the language.
        (11) “Consumer” means an individual who enters into
    
a transaction primarily for personal, family, or household purposes.
        (12) “Contract”, as distinguished from “agreement”,
    
means the total legal obligation that results from the parties’ agreement as determined by the Uniform Commercial Code as supplemented by any other applicable laws.
        (13) “Creditor” includes a general creditor, a
    
secured creditor, a lien creditor, and any representative of creditors, including an assignee for the benefit of creditors, a trustee in bankruptcy, a receiver in equity, and an executor or administrator of an insolvent debtor’s or assignor’s estate.
        (14) “Defendant” includes a person in the position
    
of defendant in a counterclaim, cross-claim, or third-party claim.
        (15) “Delivery”, with respect to an instrument,
    
document of title, or chattel paper, means voluntary transfer of possession.
        (16) “Document of title” includes bill of lading,
    
dock warrant, dock receipt, warehouse receipt or order for the delivery of goods, and also any other document which in the regular course of business or financing is treated as adequately evidencing that the person in possession of it is entitled to receive, hold, and dispose of the document and the goods it covers. To be a document of title, a document must purport to be issued by or addressed to a bailee and purport to cover goods in the bailee’s possession which are either identified or are fungible portions of an identified mass.
        (17) “Fault” means a default, breach, or wrongful
    
act or omission.
        (18) “Fungible goods” means:
             (A) goods of which any unit, by nature or usage
        
of trade, is the equivalent of any other like unit; or
            (B) goods that by agreement are treated as
        
equivalent.
        (19) “Genuine” means free of forgery or
    
counterfeiting.
        (20) “Good faith” means honesty in fact in the
    
conduct or transaction concerned.
        (21) “Holder” means:
             (A) the person in possession of a negotiable
        
instrument that is payable either to bearer or to an identified person that is the person in possession; or
            (B) the person in possession of a document of
        
title if the goods are deliverable either to bearer or to the order of the person in possession.
        (22) “Insolvency proceeding” includes an assignment
    
for the benefit of creditors or other proceeding intended to liquidate or rehabilitate the estate of the person involved.
        (23) “Insolvent” means:
             (A) having generally ceased to pay debts in the
        
ordinary course of business other than as a result of bona fide dispute;
            (B) being unable to pay debts as they become due;
        
or
            (C) being insolvent within the meaning of federal
        
bankruptcy law.
        (24) “Money” means a medium of exchange currently
    
authorized or adopted by a domestic or foreign government. The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more countries.
        (25) “Organization” means a person other than an
    
individual.
        (26) “Party”, as distinguished from “third party”,
    
means a person that has engaged in a transaction or made an agreement subject to the Uniform Commercial Code.
        (27) “Person” means an individual, corporation,
    
business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency, or instrumentality, public corporation, or any other legal or commercial entity.
        (28) “Present value” means the amount as of a date
    
certain of one or more sums payable in the future, discounted to the date certain by use of either an interest rate specified by the parties if that rate is not manifestly unreasonable at the time the transaction is entered into or, if an interest rate is not so specified, a commercially reasonable rate that takes into account the facts and circumstances at the time the transaction is entered into.
        (29) “Purchase” means taking by sale, lease,
    
discount, negotiation, mortgage, pledge, lien, security interest, issue or reissue, gift, or any other voluntary transaction creating an interest in property.
        (30) “Purchaser” means a person that takes by
    
purchase.
        (31) “Record” means information that is inscribed on
    
a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
        (32) “Remedy” means any remedial right to which an
    
aggrieved party is entitled with or without resort to a tribunal.
        (33) “Representative” means a person empowered to
    
act for another, including an agent, an officer of a corporation or association, and a trustee, executor, or administrator of an estate.
        (34) “Right” includes remedy.
         (35) “Security interest” means an interest in
    
personal property or fixtures which secures payment or performance of an obligation. “Security interest” includes any interest of a consignor and a buyer of accounts, chattel paper, a payment intangible, or a promissory note in a transaction that is subject to Article 9. “Security interest” does not include the special property interest of a buyer of goods on identification of those goods to a contract for sale under Section 2-401, but a buyer may also acquire a “security interest” by complying with Article 9. Except as otherwise provided in Section 2-505, the right of a seller or lessor of goods under Article 2 or 2A to retain or acquire possession of the goods is not a “security interest”, but a seller or lessor may also acquire a “security interest” by complying with Article 9. The retention or reservation of title by a seller of goods notwithstanding shipment or delivery to the buyer under Section 2-401 is limited in effect to a reservation of a “security interest”. Whether a transaction in the form of a lease creates a “security interest” is determined pursuant to Section 1-203.
        (36) “Send” in connection with a writing, record, or
    
notice means:
            (A) to deposit in the mail or deliver for
        
transmission by any other usual means of communication with postage or cost of transmission provided for and properly addressed and, in the case of an instrument, to an address specified thereon or otherwise agreed, or if there be none to any address reasonable under the circumstances; or
            (B) in any other way to cause to be received any
        
record or notice within the time it would have arrived if properly sent.
        (37) “Signed” includes using any symbol executed or
    
adopted with present intention to adopt or accept a writing.
        (38) “State” means a State of the United States, the
    
District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.
        (39) “Surety” includes a guarantor or other
    
secondary obligor.
        (40) “Term” means a portion of an agreement that
    
relates to a particular matter.
        (41) “Unauthorized signature” means a signature made
    
without actual, implied, or apparent authority. The term includes a forgery.
        (42) “Warehouse receipt” means a receipt issued by a
    
person engaged in the business of storing goods for hire.
        (43) “Writing” includes printing, typewriting, or
    
any other intentional reduction to tangible form. “Written” has a corresponding meaning.
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