Travelers Ins. Co. v. First Nat. Bank of Blue Island

In this case of first impression, Travelers Insurance Company (Travelers), the appellee, filed a mortgage foreclosure action in March 1989 on property commonly known as the Holiday Plaza Complex in Matteson, Illinois. In a first mortgage, security agreement and collateral assignment of rents dated in November 1985, debtors granted and assigned to Travelers a security interest in all “rents, issues, proceeds and profits *** from mortgaged premises.” Travelers recorded these documents and a UCC-2 financing statement with the recorder of deeds of Cook County in December 1985 and filed a UCC-1…