Chapter 810 — COMMERCIAL CODE

(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…

(810 ILCS 5/4-206) (from Ch. 26, par. 4-206) Sec. 4-206. Transfer between banks. Any agreed method that identifies the transferor bank is sufficient for the item's further transfer to another bank. (Source: P.A. 87-582.)

(810 ILCS 5/4-207) (from Ch. 26, par. 4-207) Sec. 4-207. Transfer warranties. (a) A customer or collecting bank that transfers an item and receives a settlement or other consideration warrants to the transferee and to any subsequent collecting bank that: (1) the warrantor is a pe…

(810 ILCS 5/4-208) (from Ch. 26, par. 4-208) Sec. 4-208. 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 5/4-209) (from Ch. 26, par. 4-209) Sec. 4-209. Encoding and retention warranties. (a) A person that encodes information on or with respect to an item after issue warrants to any subsequent collecting bank and to the payor bank or other payor that the information is corr…

(810 ILCS 5/4-210) (from Ch. 26, par. 4-210) Sec. 4-210. Security interest of collecting bank in items, accompanying documents and proceeds. (a) A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either: (1) in case of an item d…

(810 ILCS 5/4-211) (from Ch. 26, par. 4-211) Sec. 4-211. When bank gives value for purposes of holder in due course. For purposes of determining its status as a holder in due course, a bank has given value to the extent it has a security interest in an item, if the bank otherwise…

(810 ILCS 5/4-212) (from Ch. 26, par. 4-212) Sec. 4-212. Presentment by notice of item not payable by, through, or at bank; liability of drawer or indorser. (a) Unless otherwise instructed, a collecting bank may present an item not payable by, through, or at a bank by sending to …

(810 ILCS 5/4-213) (from Ch. 26, par. 4-213) Sec. 4-213. Medium and time of settlement by bank. (a) With respect to settlement by a bank, the medium and time of settlement may be prescribed by Federal Reserve regulations or circulars, clearing-house rules, and the like, or agreem…

(810 ILCS 5/4-214) (from Ch. 26, par. 4-214) Sec. 4-214. Right of charge-back or refund; liability of collecting bank; return of item. (a) If a collecting bank has made provisional settlement with its customer for an item and fails by reason of dishonor, suspension of payments by…

(810 ILCS 5/4-215) (from Ch. 26, par. 4-215) Sec. 4-215. Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal. (a) An item is finally paid by a payor bank when the bank has first done any of th…

(810 ILCS 5/4-216) (from Ch. 26, par. 4-216) Sec. 4-216. Insolvency and preference. (a) If an item is in or comes into the possession of a payor or collecting bank that suspends payment and the item has not been finally paid, the item must be returned by the receiver, trustee, or…

(810 ILCS 5/4-301) (from Ch. 26, par. 4-301) Sec. 4-301. Deferred posting; Recovery of payment by return of items; time of dishonor; return of items by payor bank. (a) If a payor bank settles for a demand item other than a documentary draft presented otherwise than for immediate …

(810 ILCS 5/4-302) (from Ch. 26, par. 4-302) Sec. 4-302. Payor bank's responsibility for late return of item. (a) If an item is presented to and received by a payor bank, the bank is accountable for the amount of: (1) a demand item, other than a documentary draft, whether properl…

(810 ILCS 5/4-303) (from Ch. 26, par. 4-303) Sec. 4-303. When items subject to notice, stop-payment order, legal process, or setoff; order in which items may be charged or certified. (a) Any knowledge, notice, or stop-payment order received by, legal process served upon, or setof…

(810 ILCS 5/4-401) (from Ch. 26, par. 4-401) Sec. 4-401. When bank may charge customer's account. (a) A bank may charge against the account of a customer an item that is properly payable from that account even though the charge creates an overdraft. An item is properly payable if…

(810 ILCS 5/4-402) (from Ch. 26, par. 4-402) Sec. 4-402. Bank's liability to customer for wrongful dishonor; time of determining insufficiency of account. (a) Except as otherwise provided in this Article, a payor bank wrongfully dishonors an item if it dishonors an item that is p…

(810 ILCS 5/4-403) (from Ch. 26, par. 4-403) Sec. 4-403. Customer's right to stop payment; burden of proof of loss. (a) A customer or any person authorized to draw on the account if there is more than one person may stop payment of any item drawn on the customer's account or clos…