(810 ILCS 5/3-503)
(from Ch. 26, par. 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 not be
enforced unless (i) the indorser or drawer is given notice of dishonor of
the instrument complying with this Section or (ii) notice of dishonor is
excused under Section 3-504(b).
(b) Notice of dishonor may be given by any person; may be given by any
commercially reasonable means, including an oral, written, or electronic
communication; and is sufficient if it reasonably identifies the instrument
and indicates that the instrument has been dishonored or has not been paid or
accepted. Return of an instrument given to a bank for collection is a
sufficient notice of dishonor.
(c) Subject to Section 3-504(c), with respect to an instrument taken
for collection by a collecting bank, notice of dishonor must be given (i)
by the bank before midnight of the next banking day following the banking
day on which the bank receives notice of dishonor of the instrument, or
(ii) by any other person within 30 days following the day on which the
person receives notice of dishonor. With respect to any other instrument,
notice of dishonor must be given within 30 days following the day on which
(Source: P.A. 87-582; 87-1135.)