Illinois Compiled Statutes 810 Commercial Code: Article 4 - Bank Deposits And Collections

Part 1. General Provisions and Definitions

• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 4-101
  Short title. This Article may be cited as Uniform Commercial Code--Bank Deposits and Collections. (Source: P.A. 87-1135.)
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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,...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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,...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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,...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...
• Illinois Uniform Commercial Code. - 810 ILCS 5, Section 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...

Part 2. Collection of Items: Depositary and Collecting Banks

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

Part 3. Collection of Items: Payor Banks

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

Part 4. Relationship Between Payor Bank and Its Customer

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

Part 5. Collection of Documentary Drafts

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

Last modified: February 18, 2015