(810 ILCS 5/4A-506)
(from Ch. 26, par. 4A-506)
Rate of interest.
(a) If, under this Article, a receiving
bank is obliged to pay interest with respect to a payment order issued to
the bank, the amount payable may be determined (i) by agreement of the
sender and receiving bank, or (ii) by a funds transfer system rule if the
payment order is transmitted through a funds transfer system.
(b) If the amount of interest is not determined by an agreement or rule
as stated in subsection (a), the amount is calculated by multiplying the
applicable Federal Funds rate by the amount on which interest is payable,
and then multiplying the product by the number of days for which interest
is payable. The applicable Federal Funds rate is the average of the Federal
Funds rates published by the Federal Reserve Bank of New York for each of
the days for which interest is payable divided by 360. The Federal Funds
rate for any day on which a published rate is not available is the same as
the published rate for the next preceding day for which there is a
published rate. If a receiving bank that accepted a payment order is
required to refund payment to the sender of the order because the funds
transfer was not completed, but the failure to complete was not due to any
fault by the bank, the interest payable is reduced by a percentage equal to
the reserve requirement on deposits of the receiving bank.
(Source: P.A. 86-1291.)