(810 ILCS 5/4A-402)
(from Ch. 26, par. 4A-402)
Obligation of sender to pay receiving bank.
(a) This Section is subject to Sections 4A-205 and 4A-207.
(b) With respect to a payment order issued to the beneficiary's bank,
acceptance of the order by the bank obliges the sender to pay the bank the
amount of the order, but payment is not due until the payment date of
(c) This subsection is subject to subsection (e) and to Section 4A-303.
With respect to a payment order issued to a receiving bank other than the
beneficiary's bank, acceptance of the order by the receiving bank obliges
the sender to pay the bank the amount of the sender's order. Payment by the
sender is not due until the execution date of the sender's order. The
obligation of that sender to pay its payment order is excused if the funds
transfer is not completed by acceptance by the beneficiary's bank of a
payment order instructing payment to the beneficiary of that sender's
(d) If the sender of a payment order pays the order and was not obliged
to pay all or part of the amount paid, the bank receiving payment is
obliged to refund payment to the extent the sender was not obliged to pay.
Except as provided in Sections 4A-204 and 4A-304, interest is payable on
the refundable amount from the date of payment.
(e) If a funds transfer is not completed as stated in subsection (c) and
an intermediary bank is obliged to refund payment as stated in subsection
(d) but is unable to do so because not permitted by applicable law or
because the bank suspends payments, a sender in the funds transfer that
executed a payment order in compliance with an instruction, as stated in
Section 4A-302(a)(1), to route the funds transfer through that intermediary
bank is entitled to receive or retain payment from the sender of the
payment order that it accepted. The first sender in the funds transfer that
issued an instruction requiring routing through that intermediary bank is
subrogated to the right of the bank that paid the intermediary bank to
refund as stated in subsection (d).
(f) The right of the sender of a payment order to be excused from the
obligation to pay the order as stated in subsection (c) or to receive
refund under subsection (d) may not be varied by agreement.
(Source: P.A. 86-1291.)