Illinois Appellate Court
Civil Court
Secured Interests
Bank sued law firm for conversion, alleging conversion of collateral in which bank had a security interest. Law firm's client (advertising business) and bank executed a security agreement, in connection with loan to business, which allowed bank a secured interest in various collateral upon default. At time third-party checks to business were deposited in law firm's IOLTA account, bank's security interest had attached, due to cessation of business' operations, and per terms of loan, bank's security interest had attached and it was entitled to the checks. As law firm cannot establish as a matter of law that it was a holder in due course, it was subject to bank's security interest. (McDADE and WRIGHT, concurring.)