Illinois Code § 810 ILCS 5/9-407

Restrictions on creation or enforcement of security interest
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in leasehold interest or in lessor's residual interest.

 
(a) Term restricting assignment generally ineffective. Except as
otherwise provided in subsection (b), a term in a lease agreement is
ineffective to
the extent that it:

 
 
(1) prohibits, restricts, or requires the consent of 
 
a party to the lease to the assignment or transfer or the creation, attachment, perfection, or enforcement of a security interest in an interest of a party under the lease contract or in the lessor's residual interest in the goods; or

 
 
(2) provides that the assignment or transfer or the 
 
creation, attachment, perfection, or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the lease.

 
(b) Effectiveness of certain terms. Except as otherwise provided
in Section 2A-303(7), a term described in subsection (a)(2) is effective to the
extent
that there is:

 
 
(1) a transfer by the lessee of the lessee's right of 
 
possession or use of the goods in violation of the term; or

 
 
(2) a delegation of a material performance of either 
 
party to the lease contract in violation of the term.

 
(c) Security interest not material impairment. The creation,
attachment, perfection, or enforcement of a security interest in the lessor's
interest
under the lease contract or the lessor's residual interest in the goods is not
a transfer
that materially impairs the lessee's prospect of obtaining return performance
or
materially changes the duty of or materially increases the burden or risk
imposed
on the lessee within the purview of Section 2A-303(4) unless, and then only to
the
extent that, enforcement actually results in a delegation of material
performance of
the lessor.

a party to the lease to the assignment or transfer or the creation, attachment, perfection, or enforcement of a security interest in an interest of a party under the lease contract or in the lessor's residual interest in the goods; or
creation, attachment, perfection, or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the lease.
possession or use of the goods in violation of the term; or
party to the lease contract in violation of the term.

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