APPEAL from the Circuit Court of Cook County; the Hon. BEN
GORENSTEIN, Judge, presiding.
MR. JUSTICE ADESKO DELIVERED THE OPINION OF THE COURT:
Ronald and Jean Mrofka, husband and wife, were beneficial owners of their Lincolnwood property, title to which was in the American National Bank and Trust Company of Chicago (hereinafter called "Ambatco"), land trust No. 24256.
On March 6, 1970, the First Commercial Bank (hereinafter referred to as "First") loaned Mrofka $75,000 to buy one-half of the stock of Northwest Auto Co., Inc. (hereinafter known as "Northwest"). "First" made three loans totaling $100,000 to "Northwest". One of these loans was guaranteed by Jean Mrofka and all three by Ronald Mrofka. Defaults occurred on all the loans. In addition to the guarantees by the Mrofkas, an assignment of "Northwest's" 1970 accounts receivable or dealer holdback from General Motors Corporation in the sum of $67,117.92 was given as additional collateral for said loans.
Subsequent to the defaults "First" served notice that it would sell the collateral at public auction on April 16, 1972. "First's" agent conducted the auction. The following properties were sold to "First" itself except one:
(1) The Campbell residence in Morton Grove, Illinois.
(2) The parking lot at 4745 N. Pulaski, Chicago, Illinois.
(3) The residence at 6741 N. Sauganash, Lincolnwood, Illinois.
(4) The seven acres on Green Bay Road in Lake County, Illinois.
Subsequent to the sale of the Lincolnwood property, "First" caused a deed to be issued to its nominee and from the nominee to itself as trustee. "First" neglected to obtain the Owner's Duplicate Certificate of Title for the Lincolnwood property. When the Registrar of Titles refused to accept the deeds, suit was brought by "First" seeking a judicial finding that it had title to the real estate and an order to the Registrar of Titles to register the deeds without the production of the Owner's Duplicate Certificate of Title which Mrofkas refused to surrender.
On March 30, 1970, a decree was entered granting "First's" request and directing the Registrar of Titles, without surrender of the Owner's Duplicate Certificate of Title, to cancel same, to register the deeds tendered by "First" and issue a Certificate of Title. The respondents, Ronald and Jean Mrofka appealed.
Respondents claim that the failure of "First" to file a financing statement for the $67,117.92 account receivable pursuant to the Uniform Commercial Code released Mrofkas from their guarantee; made the auction commercially unreasonable; that the decision of the trial court should be reversed and remanded; and that a new judicial sale ordered.
Section 9-302 of the Uniform Commercial Code (Ill. Rev. Stat. 1973, ch. 26, par. 9-302) provides:
"(1) A financing statement must be filed to perfect all security interests except the following:
(e) An assignment of accounts or contract rights which does not alone or in conjunction with other assignments to the same assignee transfer a significant part of the outstanding ...