Chapter 810, COMMERCIAL CODE

(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…

(810 ILCS 5/4-404) (from Ch. 26, par. 4-404) Sec. 4-404. Bank not obligated to pay check more than six months old. A bank is under no obligation to a customer having a checking account to pay a check, other than a certified check, which is presented more than 6 months after its d…

(810 ILCS 5/4-405) (from Ch. 26, par. 4-405) Sec. 4-405. Death or incompetence of customer. (a) A payor or collecting bank's authority to accept, pay, or collect an item or to account for proceeds of its collection, if otherwise effective, is not rendered ineffective by incompete…

(810 ILCS 5/4-406) (from Ch. 26, par. 4-406) Sec. 4-406. Customer's duty to discover and report unauthorized signature or alteration. (a) A bank that sends or makes available to a customer a statement of account showing payment of items for the account shall either return or make…

(810 ILCS 5/4-407) (from Ch. 26, par. 4-407) Sec. 4-407. Payor bank's right to subrogation on improper payment. If a payor bank has paid an item over the order of the drawer or maker to stop payment, or after an account has been closed, or otherwise under circumstances giving a b…

(810 ILCS 5/4-501) (from Ch. 26, par. 4-501) Sec. 4-501. Handling of documentary drafts; duty to send for presentment and to notify customer of dishonor. A bank that takes a documentary draft for collection shall present or send the draft and accompanying documents for presentmen…

(810 ILCS 5/4-502) (from Ch. 26, par. 4-502) Sec. 4-502. Presentment of "on arrival" drafts. If a draft or the relevant instructions require presentment "on arrival", "when goods arrive" or the like, the collecting bank need not present until in its judgment a reasonable time for…

(810 ILCS 5/4-503) (from Ch. 26, par. 4-503) Sec. 4-503. Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case of need. Unless otherwise instructed and except as provided in Article 5, a bank presenting a documentary draft: (1)…

(810 ILCS 5/4-504) (from Ch. 26, par. 4-504) Sec. 4-504. Privilege of Presenting Bank to Deal With Goods; Security Interest for Expenses. (a) A presenting bank that, following the dishonor of a documentary draft, has seasonably requested instructions but does not receive them wit…

(810 ILCS 5/4A-101) (from Ch. 26, par. 4A-101) Sec. 4A-101. Short title. This Article may be cited as Uniform Commercial Code-Funds Transfers. (Source: P.A. 86-1291.)

(810 ILCS 5/4A-102) (from Ch. 26, par. 4A-102) Sec. 4A-102. Subject matter. Except as otherwise provided in Section 4A-108, this Article applies to funds transfers defined in Section 4A-104. (Source: P.A. 86-1291.)

(810 ILCS 5/4A-103) (from Ch. 26, par. 4A-103) Sec. 4A-103. Payment order; definitions. (a) In this Article: (1) "Payment order" means an instruction of a sender to a receiving bank, transmitted orally or in a record, to pay, or to cause another bank to pay, a fixed or determinab…

(810 ILCS 5/4A-104) (from Ch. 26, par. 4A-104) Sec. 4A-104. Funds transfer; definitions. In this Article: (a) "Funds transfer" means the series of transactions, beginning with the originator's payment order, made for the purpose of making payment to the beneficiary of the order. …

(810 ILCS 5/4A-105) (from Ch. 26, par. 4A-105) Sec. 4A-105. Other definitions. (a) In this Article: (1) "Authorized account" means a deposit account of a customer in a bank designated by the customer as a source of payment of payment orders issued by the customer to the bank. If …

(810 ILCS 5/4A-106) (from Ch. 26, par. 4A-106) Sec. 4A-106. Time payment order is received. (a) The time of receipt of a payment order or communication cancelling or amending a payment order is determined by the rules applicable to receipt of a notice stated in Section 1-202. A r…

(810 ILCS 5/4A-107) (from Ch. 26, par. 4A-107) Sec. 4A-107. Federal Reserve regulations and operating circulars. Regulations of the Board of Governors of the Federal Reserve System and operating circulars of the Federal Reserve Banks supersede any inconsistent provision of this A…

(810 ILCS 5/4A-108) (from Ch. 26, par. 4A-108) Sec. 4A-108. Exclusion of consumer transactions governed by federal law. (a) Except as provided in subsection (b), this Article does not apply to a funds transfer any part of which is governed by the Electronic Fund Transfer Act of 1…

(810 ILCS 5/4A-201) (from Ch. 26, par. 4A-201) Sec. 4A-201. Security procedure. "Security procedure" means a procedure established by agreement of a customer and a receiving bank for the purpose of (i) verifying that a payment order or communication amending or cancelling a payme…

(810 ILCS 5/4A-202) (from Ch. 26, par. 4A-202) Sec. 4A-202. Authorized and verified payment orders. (a) A payment order received by the receiving bank is the authorized order of the person identified as sender if that person authorized the order or is otherwise bound by it under …

(810 ILCS 5/4A-203) (from Ch. 26, par. 4A-203) Sec. 4A-203. Unenforceability of certain verified payment orders. (a) If an accepted payment order is not, under Section 4A-202(a), an authorized order of a customer identified as sender, but is effective as an order of the customer …

(810 ILCS 5/4A-204) (from Ch. 26, par. 4A-204) Sec. 4A-204. Refund of payment and duty of customer to report with respect to an unauthorized payment order. (a) If a receiving bank accepts a payment order issued in the name of its customer as sender which is (i) not authorized and…

(810 ILCS 5/4A-205) (from Ch. 26, par. 4A-205) Sec. 4A-205. Erroneous payment orders. (a) If an accepted payment order was transmitted pursuant to a security procedure for the detection of error and the payment order (i) erroneously instructed payment to a beneficiary not intende…

(810 ILCS 5/4A-206) (from Ch. 26, par. 4A-206) Sec. 4A-206. Transmission of payment order through funds transfer or other communication system. (a) If a payment order addressed to a receiving bank is transmitted to a funds transfer system or other third-party communication system…

(810 ILCS 5/4A-207) (from Ch. 26, par. 4A-207) Sec. 4A-207. Misdescription of beneficiary. (a) Subject to subsection (b), if, in a payment order received by the beneficiary's bank, the name, bank account number, or other identification of the beneficiary refers to a nonexistent o…

(810 ILCS 5/4A-208) (from Ch. 26, par. 4A-208) Sec. 4A-208. Misdescription of intermediary bank or beneficiary's bank. (a) This subsection applies to a payment order identifying an intermediary bank or the beneficiary's bank only by an identifying number. (1) The receiving bank m…

(810 ILCS 5/4A-209) (from Ch. 26, par. 4A-209) Sec. 4A-209. Acceptance of payment order. (a) Subject to subsection (d), a receiving bank other than the beneficiary's bank accepts a payment order when it executes the order. (b) Subject to subsections (c) and (d), a beneficiary's b…

(810 ILCS 5/4A-210) (from Ch. 26, par. 4A-210) Sec. 4A-210. Rejection of payment order. (a) A payment order is rejected by the receiving bank by a notice of rejection transmitted to the sender orally or in a record. A notice of rejection need not use any particular words and is s…

(810 ILCS 5/4A-211) (from Ch. 26, par. 4A-211) Sec. 4A-211. Cancellation and amendment of payment order. (a) A communication of the sender of a payment order cancelling or amending the order may be transmitted to the receiving bank orally or in a record. If a security procedure i…

(810 ILCS 5/4A-212) (from Ch. 26, par. 4A-212) Sec. 4A-212. Liability and duty of receiving bank regarding unaccepted payment order. If a receiving bank fails to accept a payment order that it is obliged by express agreement to accept, the bank is liable for breach of the agreeme…

(810 ILCS 5/4A-301) (from Ch. 26, par. 4A-301) Sec. 4A-301. Execution and execution date. (a) A payment order is "executed" by the receiving bank when it issues a payment order intended to carry out the payment order received by the bank. A payment order received by the beneficia…

(810 ILCS 5/4A-302) (from Ch. 26, par. 4A-302) Sec. 4A-302. Obligations of receiving bank in execution of payment order. (a) Except as provided in subsections (b) through (d), if the receiving bank accepts a payment order pursuant to Section 4A-209(a), the bank has the following …

(810 ILCS 5/4A-303) (from Ch. 26, par. 4A-303) Sec. 4A-303. Erroneous execution of payment order. (a) A receiving bank that (i) executes the payment order of the sender by issuing a payment order in an amount greater than the amount of the sender's order, or (ii) issues a payment…

(810 ILCS 5/4A-304) (from Ch. 26, par. 4A-304) Sec. 4A-304. Duty of sender to report erroneously executed payment order. If the sender of a payment order that is erroneously executed as stated in Section 4A-303 receives notification from the receiving bank that the order was exec…

(810 ILCS 5/4A-305) (from Ch. 26, par. 4A-305) Sec. 4A-305. Liability for late or improper execution or failure to execute payment order. (a) If a funds transfer is completed but execution of a payment order by the receiving bank in breach of Section 4A-302 results in delay in pa…