(810 ILCS 5/4A-210)
(from Ch. 26, par. 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, electronically, or in writing.
A notice of rejection need not use any particular words and is sufficient
if it indicates that the receiving bank is rejecting the order or will not
execute or pay the order. Rejection is effective when the notice is given
if transmission is by a means that is reasonable in the circumstances. If
notice of rejection is given by a means that is not reasonable, rejection
is effective when the notice is received. If an agreement of the sender and
receiving bank establishes the means to be used to reject a payment order,
(i) any means complying with the agreement is reasonable and (ii) any means
not complying is not reasonable unless no significant delay in receipt of
the notice resulted from the use of the noncomplying means.
(b) This subsection applies if a receiving bank other than the
beneficiary's bank fails to execute a payment order despite the existence
on the execution date of a withdrawable credit balance in an authorized
account of the sender sufficient to cover the order. If the sender does not
receive notice of rejection of the order on the execution date and the
authorized account of the sender does not bear interest, the bank is
obliged to pay interest to the sender on the amount of the order for the
number of days elapsing after the execution date to the earlier of the day
the order is canceled pursuant to Section 4A-211(d) or the day the sender
receives notice or learns that the order was not executed, counting the
final day of the period as an elapsed day. If the withdrawable credit
balance during that period falls below the amount of the order, the amount
of interest is reduced accordingly.
(c) If a receiving bank suspends payments, all unaccepted payment orders
issued to it are deemed rejected at the time the bank suspends payments.
(d) Acceptance of a payment order precludes a later rejection of the
order. Rejection of a payment order precludes a later acceptance of the order.
(Source: P.A. 86-1291.)