Chapter 810 — COMMERCIAL CODE

(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…

(810 ILCS 5/4A-401) (from Ch. 26, par. 4A-401) Sec. 4A-401. Payment date. "Payment date" of a payment order means the day on which the amount of the order is payable to the beneficiary by the beneficiary's bank. The payment date may be determined by instruction of the sender but …

(810 ILCS 5/4A-402) (from Ch. 26, par. 4A-402) Sec. 4A-402. Obligation of sender to pay receiving bank. (a) This Section is subject to Sections 4A-205 and 4A-207. (b) With respect to a payment order issued to the beneficiary's bank, acceptance of the order by the bank obliges the…

(810 ILCS 5/4A-403) (from Ch. 26, par. 4A-403) Sec. 4A-403. Payment by sender to receiving bank. (a) Payment of the sender's obligation under Section 4A-402 to pay the receiving bank occurs as follows: (1) If the sender is a bank, payment occurs when the receiving bank receives f…

(810 ILCS 5/4A-404) (from Ch. 26, par. 4A-404) Sec. 4A-404. Obligation of beneficiary's bank to pay and give notice to beneficiary. (a) Subject to Sections 4A-211(e), 4A-405(d), and 4A-405(e), if a beneficiary's bank accepts a payment order, the bank is obliged to pay the amount …

(810 ILCS 5/4A-405) (from Ch. 26, par. 4A-405) Sec. 4A-405. Payment by beneficiary's bank to beneficiary. (a) If the beneficiary's bank credits an account of the beneficiary of a payment order, payment of the bank's obligation under Section 4A-404(a) occurs when and to the extent…

(810 ILCS 5/4A-406) (from Ch. 26, par. 4A-406) Sec. 4A-406. Payment by originator to beneficiary; discharge of underlying obligation. (a) Subject to Sections 4A-211(e), 4A-405(d), and 4A-405(e), the originator of a funds transfer pays the beneficiary of the originator's payment o…

(810 ILCS 5/4A-501) (from Ch. 26, par. 4A-501) Sec. 4A-501. Variation by agreement and effect of funds transfer system rule. (a) Except as otherwise provided in this Article, the rights and obligations of a party to a funds transfer may be varied by agreement of the affected part…

(810 ILCS 5/4A-502) (from Ch. 26, par. 4A-502) Sec. 4A-502. Creditor process served on receiving bank; setoff by beneficiary's bank. (a) As used in this Section, "creditor process" means levy, attachment, garnishment, notice of lien, sequestration, or similar process issued by or…

(810 ILCS 5/4A-503) (from Ch. 26, par. 4A-503) Sec. 4A-503. Injunction or restraining order with respect to funds transfer. For proper cause and in compliance with applicable law, a court may restrain (i) a person from issuing a payment order to initiate a funds transfer, (ii) an…

(810 ILCS 5/4A-504) (from Ch. 26, par. 4A-504) Sec. 4A-504. Order in which items and payment orders may be charged to account; order of withdrawals from account. (a) If a receiving bank has received more than one payment order of the sender or one or more payment orders and other…

(810 ILCS 5/4A-505) (from Ch. 26, par. 4A-505) Sec. 4A-505. Preclusion of objection to debit of customer's account. If a receiving bank has received payment from its customer with respect to a payment order issued in the name of the customer as sender and accepted by the bank, an…

(810 ILCS 5/4A-506) (from Ch. 26, par. 4A-506) Sec. 4A-506. Rate of interest. (a) If, under this Article, a receiving bank is obliged to pay interest with respect to a payment order issued to the bank, the amount payable may be determined (i) by agreement of the sender and receiv…

(810 ILCS 5/4A-507) (from Ch. 26, par. 4A-507) Sec. 4A-507. Choice of law. (a) The following rules apply unless the affected parties otherwise agree or subsection (c) applies: (1) The rights and obligations between the sender of a payment order and the receiving bank are governed…

(810 ILCS 5/5-101) (from Ch. 26, par. 5-101) Sec. 5-101. Short title. This Article may be cited as Uniform Commercial Code--Letters of Credit. (Source: P.A. 89-534, eff. 1-1-97.)

(810 ILCS 5/5-102) (from Ch. 26, par. 5-102) Sec. 5-102. Definitions. (a) In this Article: (1) "Adviser" means a person who, at the request of the issuer, a confirmer, or another adviser, notifies or requests another adviser to notify the beneficiary that a letter of credit has b…

(810 ILCS 5/5-103) (from Ch. 26, par. 5-103) Sec. 5-103. Scope. (a) This Article applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit. (b) The statement of a rule in this Article does not by itself require, imp…

(810 ILCS 5/5-104) (from Ch. 26, par. 5-104) Sec. 5-104. Formal requirements. A letter of credit, confirmation, advice, transfer, amendment, or cancellation may be issued in any form that is a signed record. (Source: P.A. 103-1036, eff. 1-1-25.)