Illinois Compiled Statutes 810 Commercial Code: Article 3 - Negotiable Instruments

Part 1. General Provisions and Definitions

• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-101
  Short title. This Article may be cited as Uniform Commercial Code-Negotiable Instruments. (Source: P.A. 87-582.)
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-102
  Subject matter. (a) This Article applies to negotiable instruments. It does not apply to money, to payment orders governed by Article 4A, or to...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-103
  Definitions. (a) In this Article: (1) "Acceptor" means a drawee that has accepted a draft. (2) "Drawee" means a person ordered in a draft to...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-104
  Negotiable instrument. (a) Except as provided in subsections (c) and (d), "negotiable instrument" means an unconditional promise or order to pay a fixed amount...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-105
  Issue of instrument. (a) "Issue" means the first delivery of an instrument by the maker or drawer, whether to a holder or nonholder, for...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-106
  Unconditional promise or order. (a) Except as provided in this Section, for the purposes of Section 3-104(a), a promise or order is unconditional unless...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-107
  Instrument payable in foreign money. Unless the instrument otherwise provides, an instrument that states the amount payable in foreign money may be paid in...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-108
  Payable on demand or at a definite time. (a) A promise or order is "payable on demand" if it (i) states that it is...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-109
  Payable to bearer or to order. (a) A promise or order is payable to bearer if it: (1) states that it is payable to...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-110
  Identification of person to whom instrument is payable. (a) The person to whom an instrument is initially payable is determined by the intent of...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-111
  Place of payment. Except as otherwise provided for items in Article 4, an instrument is payable at the place of payment stated in the...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-112
  Interest. (a) Unless otherwise provided in the instrument, (i) an instrument is not payable with interest, and (ii) interest on an interest-bearing instrument is...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-113
  Date of instrument. (a) An instrument may be antedated or postdated. The date stated determines the time of payment if the instrument is payable...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-114
  Contradictory terms of instrument. If an instrument contains contradictory terms, typewritten terms prevail over printed terms, handwritten terms prevail over both, and words prevail...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-115
  Incomplete instrument. (a) "Incomplete instrument" means a signed writing, whether or not issued by the signer, the contents of which show at the time...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-116
  Joint and several liability; contribution. (a) Except as otherwise provided in the instrument, 2 or more persons who have the same liability on an...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-117
  Other agreements affecting an instrument. Subject to applicable law regarding exclusion of proof of contemporaneous or previous agreements, the obligation of a party to...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-118
  Statute of limitations. (a) (Blank). (b) (Blank). (c) Except as provided in subsection (d), an action to enforce the obligation of a party to...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-119
  Notice of right to defend action. In an action for breach of an obligation for which a third person is answerable over pursuant to...

Part 2. Negotiation, Transfer and Indorsement

• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-201
  Negotiation. (a) "Negotiation" means a transfer of possession, whether voluntary or involuntary, of an instrument by a person other than the issuer to a...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-202
  Negotiation subject to rescission. (a) Negotiation is effective even if obtained (i) from an infant, a corporation exceeding its powers, or a person without...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-203
  Transfer of instrument; rights acquired by transfer. (a) An instrument is transferred when it is delivered by a person other than its issuer for...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-204
  Indorsement. (a) "Indorsement" means a signature, other than that of a signer as maker, drawer, or acceptor, that alone or accompanied by other words...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-205
  Special indorsement; blank indorsement; anomalous indorsement. (a) If an indorsement is made by the holder of an instrument, whether payable to an identified person...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-206
  Restrictive indorsement. (a) An indorsement limiting payment to a particular person or otherwise prohibiting further transfer or negotiation of the instrument is not effective...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-207
  Reacquisition. Reacquisition of an instrument occurs if it is transferred to a former holder, by negotiation or otherwise. A former holder who reacquires the...

Part 3. Enforcement of Instruments

• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-301
  Person entitled to enforce instrument. "Person entitled to enforce" an instrument means (i) the holder of the instrument, (ii) a nonholder in possession of...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-302
  Holder in due course. (a) Subject to subsection (c) and Section 3-106(d), "holder in due course" means the holder of an instrument if: (1)...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-303
  Value and consideration. (a) An instrument is issued or transferred for value if: (1) the instrument is issued or transferred for a promise of...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-304
  Overdue instrument. (a) An instrument payable on demand becomes overdue at the earliest of the following times: (1) on the day after the day...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-305
  Defenses and claims in recoupment. (a) Except as stated in subsection (b), the right to enforce the obligation of a party to pay an instrument...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-306
  Claims to an instrument. A person taking an instrument, other than a person having rights of a holder in due course, is subject to...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-307
  Notice of breach of fiduciary duty. (a) In this Section: (1) "Fiduciary" means an agent, trustee, partner, corporate officer or director, or other representative...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-308
  Proof of signatures and status as holder in due course. (a) In an action with respect to an instrument, the authenticity of, and authority...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-309
  Enforcement of lost, destroyed, or stolen instrument. (a) A person not in possession of an instrument is entitled to enforce the instrument if (i)...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-310
  Effect of instrument on obligation for which taken. (a) Unless otherwise agreed, if a certified check, cashier's check, or teller's check is taken for...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...

Part 4. Liability of Parties

• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 3-401
  Signature. (a) A person is not liable on an instrument unless (i) the person signed the instrument, or (ii) the person is represented by...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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,...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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")...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...

Part 5. Dishonor

• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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)...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...

Part 6. Discharge and Payment

• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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)...

Part 8. Miscellaneous

• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...

Last modified: February 18, 2015