Chapter 810, COMMERCIAL CODE

(810 ILCS 5/3-311) (from Ch. 26, par. 3-311) Sec. 3-311. Accord and satisfaction by use of instrument. (a) If a person against whom a claim is asserted proves that (i) that person in good faith tendered an instrument to the claimant as full satisfaction of the claim, (ii) the amo…

(810 ILCS 5/3-312) (from Ch. 26, par. 3-312) Sec. 3-312. Lost, destroyed, or stolen cashier's check, teller's check, or certified check. (a) In this Section: (1) "Check" means a cashier's check, teller's check, or certified check. (2) "Claimant" means a person who claims the righ…

(810 ILCS 5/3-401) (from Ch. 26, par. 3-401) Sec. 3-401. Signature necessary for liability on instrument. A person is not liable on an instrument unless (i) the person signed the instrument, or (ii) the person is represented by an agent or representative who signed the instrument…

(810 ILCS 5/3-402) (from Ch. 26, par. 3-402) Sec. 3-402. Signature by representative. (a) If a person acting, or purporting to act, as a representative signs an instrument by signing either the name of the represented person or the name of the signer, the represented person is bo…

(810 ILCS 5/3-403) (from Ch. 26, par. 3-403) Sec. 3-403. Unauthorized signature. (a) Unless otherwise provided in this Article or Article 4, an unauthorized signature is ineffective except as the signature of the unauthorized signer in favor of a person who in good faith pays the…

(810 ILCS 5/3-404) (from Ch. 26, par. 3-404) Sec. 3-404. Impostors; fictitious payees. (a) If an impostor, by use of the mails or otherwise, induces the issuer of an instrument to issue the instrument to the impostor, or to a person acting in concert with the impostor, by imperso…

(810 ILCS 5/3-405) (from Ch. 26, par. 3-405) Sec. 3-405. Employer responsibility for fraudulent indorsement by employee. (a) In this Section: (1) "Employee" includes an independent contractor and employee of an independent contractor retained by the employer. (2) "Fraudulent indo…

(810 ILCS 5/3-406) (from Ch. 26, par. 3-406) Sec. 3-406. Negligence contributing to forged signature or alteration of instrument. (a) A person whose failure to exercise ordinary care substantially contributes to an alteration of an instrument or to the making of a forged signatur…

(810 ILCS 5/3-407) (from Ch. 26, par. 3-407) Sec. 3-407. Alteration. (a) "Alteration" means (i) an unauthorized change in an instrument that purports to modify in any respect the obligation of a party, or (ii) an unauthorized addition of words or numbers or other change to an inc…

(810 ILCS 5/3-408) (from Ch. 26, par. 3-408) Sec. 3-408. Drawee not liable on unaccepted draft. A check or other draft does not of itself operate as an assignment of funds in the hands of the drawee available for its payment, and the drawee is not liable on the instrument until t…

(810 ILCS 5/3-409) (from Ch. 26, par. 3-409) Sec. 3-409. Acceptance of draft; certified check. (a) "Acceptance" means the drawee's signed agreement to pay a draft as presented. It must be written on the draft and may consist of the drawee's signature alone. Acceptance may be made…

(810 ILCS 5/3-410) (from Ch. 26, par. 3-410) Sec. 3-410. Acceptance varying draft. (a) If the terms of a drawee's acceptance vary from the terms of the draft as presented, the holder may refuse the acceptance and treat the draft as dishonored. In that case, the drawee may cancel …

(810 ILCS 5/3-411) (from Ch. 26, par. 3-411) Sec. 3-411. Refusal to pay cashier's checks, teller's checks, and certified checks. (a) In this Section, "obligated bank" means the acceptor of a certified check or the issuer of a cashier's check or teller's check bought from the issu…

(810 ILCS 5/3-412) (from Ch. 26, par. 3-412) Sec. 3-412. Obligation of issuer of note or cashier's check. The issuer of a note or cashier's check or other draft drawn on the drawer is obliged to pay the instrument (i) according to its terms at the time it was issued or, if not is…

(810 ILCS 5/3-413) (from Ch. 26, par. 3-413) Sec. 3-413. Obligation of acceptor. (a) The acceptor of a draft is obliged to pay the draft (i) according to its terms at the time it was accepted, even though the acceptance states that the draft is payable "as originally drawn" or eq…

(810 ILCS 5/3-414) (from Ch. 26, par. 3-414) Sec. 3-414. Obligation of drawer. (a) This Section does not apply to cashier's checks or other drafts drawn on the drawer. (b) If an unaccepted draft is dishonored, the drawer is obliged to pay the draft (i) according to its terms at t…

(810 ILCS 5/3-415) (from Ch. 26, par. 3-415) Sec. 3-415. Obligation of indorser. (a) Subject to subsections (b), (c), and (d) and to Section 3-419(d), if an instrument is dishonored, an indorser is obliged to pay the amount due on the instrument (i) according to the terms of the …

(810 ILCS 5/3-416) (from Ch. 26, par. 3-416) Sec. 3-416. Transfer warranties. (a) A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by indorsement, to any subsequent transferee that: (1) the warrantor is a person entitled to…

(810 ILCS 5/3-417) (from Ch. 26, par. 3-417) Sec. 3-417. Presentment warranties. (a) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (i) the person obtaining payment or acceptance, at the time of presentment, a…

(810 ILCS 5/3-418) (from Ch. 26, par. 3-418) Sec. 3-418. Payment or acceptance by mistake. (a) Except as provided in subsection (c), if the drawee of a draft pays or accepts the draft and the drawee acted on the mistaken belief that (i) payment of the draft had not been stopped u…

(810 ILCS 5/3-419) (from Ch. 26, par. 3-419) Sec. 3-419. Instruments signed for accommodation. (a) If an instrument is issued for value given for the benefit of a party to the instrument ("accommodated party") and another party to the instrument ("accommodation party") signs the …

(810 ILCS 5/3-420) (from Ch. 26, par. 3-420) Sec. 3-420. Conversion of instrument. (a) The law applicable to conversion of personal property applies to instruments. An instrument is also converted if it is taken by transfer, other than a negotiation, from a person not entitled to…

(810 ILCS 5/3-501) (from Ch. 26, par. 3-501) Sec. 3-501. Presentment. (a) "Presentment" means a demand made by or on behalf of a person entitled to enforce an instrument (i) to pay the instrument made to the drawee or a party obliged to pay the instrument or, in the case of a not…

(810 ILCS 5/3-502) (from Ch. 26, par. 3-502) Sec. 3-502. Dishonor. (a) Dishonor of a note is governed by the following rules: (1) If the note is payable on demand, the note is dishonored if presentment is duly made to the maker and the note is not paid on the day of presentment. …

(810 ILCS 5/3-503) (from Ch. 26, par. 3-503) Sec. 3-503. Notice of dishonor. (a) The obligation of an indorser stated in Section 3-415(a) and the obligation of a drawer stated in Section 3-414(d) may not be enforced unless (i) the indorser or drawer is given notice of dishonor of…

(810 ILCS 5/3-504) (from Ch. 26, par. 3-504) Sec. 3-504. Excused presentment and notice of dishonor. (a) Presentment for payment or acceptance of an instrument is excused if (i) the person entitled to present the instrument cannot with reasonable diligence make presentment, (ii) …

(810 ILCS 5/3-505) (from Ch. 26, par. 3-505) Sec. 3-505. Evidence of dishonor. (a) The following are admissible as evidence and create a presumption of dishonor and of any notice of dishonor stated: (1) a document regular in form as provided in subsection (b) which purports to be…

(810 ILCS 5/3-505A) (from Ch. 26, par. 3-505A) Sec. 3-505A. Provision of credit card number as a condition of check cashing or acceptance prohibited. (1) No person may record the number of a credit card given as identification or given as proof of creditworthiness when payment fo…

(810 ILCS 5/3-601) (from Ch. 26, par. 3-601) Sec. 3-601. Discharge and effect of discharge. (a) The obligation of a party to pay the instrument is discharged as stated in this Article or by an act or agreement with the party which would discharge an obligation to pay money under …

(810 ILCS 5/3-602) (from Ch. 26, par. 3-602) Sec. 3-602. Payment. (a) Subject to subsection (b), an instrument is paid to the extent payment is made (i) by or on behalf of a party obliged to pay the instrument, and (ii) to a person entitled to enforce the instrument. To the exten…

(810 ILCS 5/3-603) (from Ch. 26, par. 3-603) Sec. 3-603. Tender of payment. (a) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is governed by principles of law applicable to tender of payment…

(810 ILCS 5/3-604) (from Ch. 26, par. 3-604) Sec. 3-604. Discharge by cancellation or renunciation. (a) A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument (i) by an intentional voluntary act, su…

(810 ILCS 5/3-605) (from Ch. 26, par. 3-605) Sec. 3-605. Discharge of indorsers and accommodation parties. (a) In this Section, the term "indorser" includes a drawer having the obligation described in Section 3-414(d). (b) Discharge, under Section 3-604, of the obligation of a pa…

(810 ILCS 5/3-806) (from Ch. 26, par. 3-806) Sec. 3-806. Any person who issues a check or other draft that is not honored upon presentment because the drawer does not have an account with the drawee, or because the drawer does not have sufficient funds in his account, or because …

(810 ILCS 5/4-101) (from Ch. 26, par. 4-101) Sec. 4-101. Short title. This Article may be cited as Uniform Commercial Code--Bank Deposits and Collections. (Source: P.A. 87-1135.)

(810 ILCS 5/4-102) (from Ch. 26, par. 4-102) Sec. 4-102. Applicability. (a) To the extent that items within this Article are also within Articles 3 and 8, they are subject to those Articles. If there is conflict, this Article governs Article 3, but Article 8 governs this Article.…

(810 ILCS 5/4-103) (from Ch. 26, par. 4-103) Sec. 4-103. Variation by agreement; measure of damages; action constituting ordinary care. (a) The effect of the provisions of this Article may be varied by agreement, but the parties to the agreement cannot disclaim a bank's responsib…

(810 ILCS 5/4-104) (from Ch. 26, par. 4-104) Sec. 4-104. Definitions and index of definitions. (a) In this Article, unless the context otherwise requires: (1) "Account" means any deposit or credit account with a bank, including a demand, time, savings, passbook, share draft, or l…

(810 ILCS 5/4-105) (from Ch. 26, par. 4-105) Sec. 4-105. "Bank"; "Depositary Bank"; "Payor Bank"; "Intermediary Bank"; "Collecting Bank"; "Presenting Bank". In this Article: (1) "Bank" means any person engaged in the business of banking, including a savings bank, savings and loan…

(810 ILCS 5/4-106) (from Ch. 26, par. 4-106) Sec. 4-106. Payable through or payable at bank; collecting bank. (a) If an item states that it is "payable through" a bank identified in the item, (i) the item designates the bank as a collecting bank and does not by itself authorize t…

(810 ILCS 5/4-107) (from Ch. 26, par. 4-107) Sec. 4-107. Separate office of bank. A branch or separate office of a bank is a separate bank for the purpose of computing the time within which and determining the place at or to which action may be taken or notice or orders must be g…

(810 ILCS 5/4-108) (from Ch. 26, par. 4-108) Sec. 4-108. Time of receipt of items. (a) For the purpose of allowing time to process items, prove balances, and make the necessary entries on its books to determine its position for the day, a bank may fix an afternoon hour of 2:00 P.…

(810 ILCS 5/4-109) (from Ch. 26, par. 4-109) Sec. 4-109. Delays. (a) Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specific item drawn on a payor other than a bank, and with or without the approval of any person involved, may waive, …

(810 ILCS 5/4-110) (from Ch. 26, par. 4-110) Sec. 4-110. Electronic presentment. (a) "Agreement for electronic presentment" means an agreement, clearing-house rule, or Federal Reserve regulation or operating circular, providing that presentment of an item may be made by transmiss…

(810 ILCS 5/4-111) (from Ch. 26, par. 4-111) Sec. 4-111. Statute of limitations. An action to enforce an obligation, duty or right arising under this Article must be commenced within 3 years after the cause of action accrues. (Source: P.A. 87-582.)

(810 ILCS 5/4-201) (from Ch. 26, par. 4-201) Sec. 4-201. Status of collecting bank as agent and provisional status of credits; applicability of Article; item indorsed "pay any bank". (a) Unless a contrary intent clearly appears and before the time that a settlement given by a col…

(810 ILCS 5/4-202) (from Ch. 26, par. 4-202) Sec. 4-202. Responsibility for collection or return; when action timely. (a) A collecting bank must exercise ordinary care in: (1) presenting an item or sending it for presentment; (2) sending notice of dishonor or nonpayment or return…

(810 ILCS 5/4-203) (from Ch. 26, par. 4-203) Sec. 4-203. Effect of instructions. Subject to Article 3 concerning conversion of instruments (Section 3-420) and restrictive indorsements (Section 3-206), only a collecting bank's transferor can give instructions which affect the bank…

(810 ILCS 5/4-204) (from Ch. 26, par. 4-204) Sec. 4-204. Methods of sending and presenting; sending directly to payor bank. (a) A collecting bank shall send items by a reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number of…

(810 ILCS 5/4-205) (from Ch. 26, par. 4-205) Sec. 4-205. Depositary bank holder of unindorsed item. If a customer delivers an item to a depositary bank for collection: (1) the depositary bank becomes a holder of the item at the time it receives the item for collection if the cust…