Chapter 810 — COMMERCIAL CODE

(810 ILCS 5/5-105) (from Ch. 26, par. 5-105) Sec. 5-105. Consideration. Consideration is not required to issue, amend, transfer, or cancel a letter of credit, advice, or confirmation. (Source: P.A. 89-534, eff. 1-1-97.)

(810 ILCS 5/5-106) (from Ch. 26, par. 5-106) Sec. 5-106. Issuance, amendment, cancellation, and duration. (a) A letter of credit is issued and becomes enforceable according to its terms against the issuer when the issuer sends or otherwise transmits it to the person requested to …

(810 ILCS 5/5-107) (from Ch. 26, par. 5-107) Sec. 5-107. Confirmer, nominated person, and adviser. (a) A confirmer is directly obligated on a letter of credit and has the rights and obligations of an issuer to the extent of its confirmation. The confirmer also has rights against …

(810 ILCS 5/5-108) (from Ch. 26, par. 5-108) Sec. 5-108. Issuer's rights and obligations. (a) Except as otherwise provided in Section 5-109, an issuer shall honor a presentation that, as determined by the standard practice referred to in subsection (e), appears on its face strict…

(810 ILCS 5/5-109) (from Ch. 26, par. 5-109) Sec. 5-109. Fraud and forgery. (a) If a presentation is made that appears on its face strictly to comply with the terms and conditions of the letter of credit, but a required document is forged or materially fraudulent, or honor of the…

(810 ILCS 5/5-110) (from Ch. 26, par. 5-110) Sec. 5-110. Warranties. (a) If its presentation is honored, the beneficiary warrants: (1) to the issuer, any other person to whom presentation is made, and the applicant that there is no fraud or forgery of the kind described in Sectio…

(810 ILCS 5/5-111) (from Ch. 26, par. 5-111) Sec. 5-111. Remedies. (a) If an issuer wrongfully dishonors or repudiates its obligation to pay money under a letter of credit before presentation, the beneficiary, successor, or nominated person presenting on its own behalf may recove…

(810 ILCS 5/5-112) (from Ch. 26, par. 5-112) Sec. 5-112. Transfer of letter of credit. (a) Except as otherwise provided in Section 5-113, unless a letter of credit provides that it is transferable, the right of a beneficiary to draw or otherwise demand performance under a letter …

(810 ILCS 5/5-113) (from Ch. 26, par. 5-113) Sec. 5-113. Transfer by operation of law. (a) A successor of a beneficiary may consent to amendments, sign and present documents, and receive payment or other items of value in the name of the beneficiary without disclosing its status …

(810 ILCS 5/5-114) (from Ch. 26, par. 5-114) Sec. 5-114. Assignment of proceeds. (a) In this Section, "proceeds of a letter of credit" means the cash, check, accepted draft, or other item of value paid or delivered upon honor or giving of value by the issuer or any nominated pers…

(810 ILCS 5/5-115) (from Ch. 26, par. 5-115) Sec. 5-115. Statute of limitations. An action to enforce a right or obligation arising under this Article must be commenced within one year after the expiration date of the relevant letter of credit or one year after the cause of actio…

(810 ILCS 5/5-116) (from Ch. 26, par. 5-116) Sec. 5-116. Choice of law and forum. (a) The liability of an issuer, nominated person, or adviser for action or omission is governed by the law of the jurisdiction chosen by an agreement in the form of a record signed by the affected p…

(810 ILCS 5/5-117) (from Ch. 26, par. 5-117) Sec. 5-117. Subrogation of issuer, applicant, and nominated person. (a) An issuer that honors a beneficiary's presentation is subrogated to the rights of the beneficiary to the same extent as if the issuer were a secondary obligor of t…

(810 ILCS 5/5-118) Sec. 5-118. Security interest of issuer or nominated person. (a) An issuer or nominated person has a security interest in a document presented under a letter of credit to the extent that the issuer or nominated person honors or gives value for the presentation.…

(810 ILCS 5/7-101) (from Ch. 26, par. 7-101) Sec. 7-101. Short title. This Article may be cited as Uniform Commercial Code-Documents of Title. (Source: P.A. 95-895, eff. 1-1-09.)

(810 ILCS 5/7-102) (from Ch. 26, par. 7-102) Sec. 7-102. Definitions and index of definitions. (a) In this Article, unless the context otherwise requires: (1) "Bailee" means a person that by a warehouse receipt, bill of lading, or other document of title acknowledges possession o…

(810 ILCS 5/7-103) (from Ch. 26, par. 7-103) Sec. 7-103. Relation of Article to treaty or statute. (a) This Article is subject to any treaty or statute of the United States or regulatory statute of this State to the extent the treaty, statute, or regulatory statute is applicable.…

(810 ILCS 5/7-104) (from Ch. 26, par. 7-104) Sec. 7-104. Negotiable and nonnegotiable document of title. (a) Except as otherwise provided in subsection (c), a document of title is negotiable if by its terms the goods are to be delivered to bearer or to the order of a named person…

(810 ILCS 5/7-105) (from Ch. 26, par. 7-105) Sec. 7-105. Reissuance in alternative medium. (a) Upon request of a person entitled under an electronic document of title, the issuer of the electronic document may issue a tangible document of title as a substitute for the electronic …

(810 ILCS 5/7-106) Sec. 7-106. Control of electronic document of title. (a) A person has control of an electronic document of title if a system employed for evidencing the transfer of interests in the electronic document reliably establishes that person as the person to which the…

(810 ILCS 5/7-201) (from Ch. 26, par. 7-201) Sec. 7-201. Person that may issue a warehouse receipt; storage under bond. (a) A warehouse receipt may be issued by any warehouse. (b) If goods, including distilled spirits and agricultural commodities, are stored under a statute requi…

(810 ILCS 5/7-202) (from Ch. 26, par. 7-202) Sec. 7-202. Form of warehouse receipt; effect of omission. (a) A warehouse receipt need not be in any particular form. (b) Unless a warehouse receipt provides for each of the following, the warehouse is liable for damages caused to a p…

(810 ILCS 5/7-203) (from Ch. 26, par. 7-203) Sec. 7-203. Liability for non-receipt or misdescription. A party to or purchaser for value in good faith of a document of title, other than a bill of lading, that relies upon the description of the goods in the document may recover fro…

(810 ILCS 5/7-204) (from Ch. 26, par. 7-204) Sec. 7-204. Duty of care; contractual limitation of warehouse's liability. (a) A warehouse is liable for damages for loss of or injury to the goods caused by its failure to exercise care with regard to the goods that a reasonably caref…

(810 ILCS 5/7-205) (from Ch. 26, par. 7-205) Sec. 7-205. Title under warehouse receipt defeated in certain cases. A buyer in ordinary course of business of fungible goods sold and delivered by a warehouse that is also in the business of buying and selling such goods takes the goo…

(810 ILCS 5/7-206) (from Ch. 26, par. 7-206) Sec. 7-206. Termination of storage at warehouse's option. (a) A warehouse, by giving notice to the person on whose account the goods are held and any other person known to claim an interest in the goods, may require payment of any char…

(810 ILCS 5/7-207) (from Ch. 26, par. 7-207) Sec. 7-207. Goods must be kept separate; fungible goods. (a) Unless the warehouse receipt provides otherwise, a warehouse shall keep separate the goods covered by each receipt so as to permit at all times identification and delivery of…

(810 ILCS 5/7-208) (from Ch. 26, par. 7-208) Sec. 7-208. Altered warehouse receipts. If a blank in a negotiable tangible warehouse receipt has been filled in without authority, a good-faith purchaser for value and without notice of the lack of authority may treat the insertion as…

(810 ILCS 5/7-209) (from Ch. 26, par. 7-209) Sec. 7-209. Lien of warehouse. (a) A warehouse has a lien against the bailor on the goods covered by a warehouse receipt or storage agreement or on the proceeds thereof in its possession for charges for storage or transportation, inclu…

(810 ILCS 5/7-210) (from Ch. 26, par. 7-210) Sec. 7-210. Enforcement of warehouse's lien. (a) Except as otherwise provided in subsection (b), a warehouse's lien may be enforced by public or private sale of the goods, in bulk or in packages, at any time or place and on any terms t…

(810 ILCS 5/7-301) (from Ch. 26, par. 7-301) Sec. 7-301. Liability for nonreceipt or misdescription; "said to contain"; "shipper's weight, load, and count"; improper handling. (a) A consignee of a nonnegotiable bill of lading which has given value in good faith, or a holder to wh…

(810 ILCS 5/7-302) (from Ch. 26, par. 7-302) Sec. 7-302. Through bills of lading and similar documents of title. (a) The issuer of a through bill of lading, or other document of title embodying an undertaking to be performed in part by a person acting as its agent or by a perform…

(810 ILCS 5/7-303) (from Ch. 26, par. 7-303) Sec. 7-303. Diversion; reconsignment; change of instructions. (a) Unless the bill of lading otherwise provides, a carrier may deliver the goods to a person or destination other than that stated in the bill or may otherwise dispose of t…

(810 ILCS 5/7-304) (from Ch. 26, par. 7-304) Sec. 7-304. Tangible bills of lading in a set. (a) Except as customary in international transportation, a tangible bill of lading may not be issued in a set of parts. The issuer is liable for damages caused by violation of this subsect…

(810 ILCS 5/7-305) (from Ch. 26, par. 7-305) Sec. 7-305. Destination bills. (a) Instead of issuing a bill of lading to the consignor at the place of shipment, a carrier, at the request of the consignor, may procure the bill to be issued at destination or at any other place design…

(810 ILCS 5/7-306) (from Ch. 26, par. 7-306) Sec. 7-306. Altered bills of lading. An unauthorized alteration or filling in of a blank in a bill of lading leaves the bill enforceable according to its original tenor. (Source: Laws 1961, p. 2101.)

(810 ILCS 5/7-307) (from Ch. 26, par. 7-307) Sec. 7-307. Lien of carrier. (a) A carrier has a lien on the goods covered by a bill of lading or on the proceeds thereof in its possession for charges after the date of the carrier's receipt of the goods for storage or transportation,…

(810 ILCS 5/7-308) (from Ch. 26, par. 7-308) Sec. 7-308. Enforcement of carrier's lien. (a) A carrier's lien on goods may be enforced by public or private sale of the goods, in bulk or in packages, at any time or place and on any terms that are commercially reasonable, after noti…

(810 ILCS 5/7-309) (from Ch. 26, par. 7-309) Sec. 7-309. Duty of care; contractual limitation of carrier's liability. (a) A carrier that issues a bill of lading, whether negotiable or nonnegotiable, shall exercise the degree of care in relation to the goods which a reasonably car…

(810 ILCS 5/7-401) (from Ch. 26, par. 7-401) Sec. 7-401. Irregularities in issue of receipt or bill or conduct of issuer. The obligations imposed by this Article on an issuer apply to a document of title even if: (1) the document does not comply with the requirements of this Arti…

(810 ILCS 5/7-402) (from Ch. 26, par. 7-402) Sec. 7-402. Duplicate document of title; overissue. A duplicate or any other document of title purporting to cover goods already represented by an outstanding document of the same issuer does not confer any right in the goods, except a…

(810 ILCS 5/7-403) (from Ch. 26, par. 7-403) Sec. 7-403. Obligation of bailee to deliver; excuse. (a) A bailee shall deliver the goods to a person entitled under a document of title if the person complies with subsections (b) and (c), unless and to the extent that the bailee esta…

(810 ILCS 5/7-404) (from Ch. 26, par. 7-404) Sec. 7-404. No liability for good-faith delivery pursuant to document of title. A bailee that in good faith has received goods and delivered or otherwise disposed of the goods according to the terms of a document of title or pursuant t…

(810 ILCS 5/7-501) (from Ch. 26, par. 7-501) Sec. 7-501. Form of negotiation and requirements of due negotiation. (a) The following rules apply to a negotiable tangible document of title: (1) If the document's original terms run to the order of a named person, the document is neg…

(810 ILCS 5/7-502) (from Ch. 26, par. 7-502) Sec. 7-502. Rights acquired by due negotiation. (a) Subject to Sections 7-205 and 7-503, a holder to which a negotiable document of title has been duly negotiated acquires thereby: (1) title to the document; (2) title to the goods; (3)…

(810 ILCS 5/7-503) (from Ch. 26, par. 7-503) Sec. 7-503. Document of title to goods defeated in certain cases. (a) A document of title confers no right in goods against a person that before issuance of the document had a legal interest or a perfected security interest in the good…

(810 ILCS 5/7-504) (from Ch. 26, par. 7-504) Sec. 7-504. Rights acquired in absence of due negotiation; effect of diversion; stoppage of delivery. (a) A transferee of a document of title, whether negotiable or nonnegotiable, to which the document has been delivered but not duly n…

(810 ILCS 5/7-505) (from Ch. 26, par. 7-505) Sec. 7-505. Indorser not a guarantor for other parties. The indorsement of a tangible document of title issued by a bailee does not make the indorser liable for any default by the bailee or previous indorsers. (Source: P.A. 95-895, eff…

(810 ILCS 5/7-506) (from Ch. 26, par. 7-506) Sec. 7-506. Delivery without indorsement: right to compel indorsement. The transferee of a negotiable tangible document of title has a specifically enforceable right to have its transferor supply any necessary indorsement, but the tran…

(810 ILCS 5/7-507) (from Ch. 26, par. 7-507) Sec. 7-507. Warranties on negotiation or delivery of document of title. If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under Section 7-508, unless otherwise agreed, the transfero…