(810 ILCS 5/3-103) (from Ch. 26, par. 3-103)
Sec. 3-103. Definitions.
(a) In this Article:
(1) "Acceptor" means a drawee that has accepted a |
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(2) "Drawee" means a person ordered in a draft to
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(3) "Drawer" means a person who signs or is
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| identified in a draft as a person ordering payment.
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(4) "Good faith" means honesty in fact and the
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| observance of reasonable commercial standards of fair dealing.
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(5) "Maker" means a person who signs or is identified
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| in a note as a person undertaking to pay.
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(6) "Order" means a written instruction to pay money
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| signed by the person giving the instruction. The instruction may be addressed to any person, including the person giving the instruction, or to one or more persons jointly or in the alternative but not in succession. An authorization to pay is not an order unless the person authorized to pay is also instructed to pay.
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(7) "Ordinary care" in the case of a person engaged
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| in business means observance of reasonable commercial standards, prevailing in the area in which the person is located with respect to the business in which the person is engaged. In the case of a bank that takes an instrument for processing for collection or payment by automated means, reasonable commercial standards do not require the bank to examine the instrument if the failure to examine does not violate the bank's prescribed procedures and the bank's procedures do not vary unreasonably from general banking usage not disapproved by this Article or Article 4.
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(8) "Party" means a party to an instrument.
(9) "Promise" means a written undertaking to pay
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| money signed by the person undertaking to pay. An acknowledgment of an obligation by the obligor is not a promise unless the obligor also undertakes to pay the obligation.
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(10) "Prove" with respect to a fact means to meet the
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| burden of establishing the fact (Section 1-201(b)(8)).
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(11) "Remitter" means a person that purchases an
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| instrument from its issuer if the instrument is payable to an identified person other than the purchaser.
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(b) Other definitions applying to this Article and the Sections in which
they appear are:
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"Acceptance" |
Section 3-409 |
"Accommodated party" |
Section 3-419 |
"Accommodation party" |
Section 3-419 |
"Alteration" |
Section 3-407 |
"Anomalous indorsement" |
Section 3-205 |
"Blank indorsement" |
Section 3-205 |
"Cashier's check" |
Section 3-104 |
"Certificate of deposit" |
Section 3-104 |
"Certified check" |
Section 3-409 |
"Check" |
Section 3-104 |
"Consideration" |
Section 3-303 |
"Draft" |
Section 3-104 |
"Holder in due course" |
Section 3-302 |
"Incomplete instrument" |
Section 3-115 |
"Indorsement" |
Section 3-204 |
"Indorser" |
Section 3-204 |
"Instrument" |
Section 3-104 |
"Issue" |
Section 3-105 |
"Issuer" |
Section 3-105 |
"Negotiable instrument" |
Section 3-104 |
"Negotiation" |
Section 3-201 |
"Note" |
Section 3-104 |
"Payable at a definite time" |
Section 3-108 |
"Payable on demand" |
Section 3-108 |
"Payable to bearer" |
Section 3-109 |
"Payable to order" |
Section 3-109 |
"Payment" |
Section 3-602 |
"Person entitled to enforce" |
Section 3-301 |
"Presentment" |
Section 3-501 |
"Reacquisition" |
Section 3-207 |
"Special indorsement" |
Section 3-205 |
"Teller's check" |
Section 3-104 |
"Transfer of instrument" |
Section 3-203 |
"Traveler's check" |
Section 3-104 |
"Value" |
Section 3-303 |
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(c) The following definitions in other Articles apply to this Article:
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"Bank" | Section 4-105 | "Banking day" | Section 4-104 | "Clearing house" | Section 4-104 | "Collecting bank" | Section 4-105 | "Depositary bank" | Section 4-105 | "Documentary draft" | Section 4-104 | "Intermediary bank" | Section 4-105 | "Item" | Section 4-104 | "Payor bank" | Section 4-105 | "Suspends payments" | Section 4-104. |
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(d) In addition, Article 1 contains general definitions and principles
of construction and interpretation applicable throughout this Article.
(Source: P.A. 95-895, eff. 1-1-09 .)
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(810 ILCS 5/3-104) (from Ch. 26, par. 3-104)
Sec. 3-104.
Negotiable instrument.
(a) Except as provided in subsections (c) and (d), "negotiable
instrument" means an unconditional promise or order to pay
a fixed amount of money, with or without interest or other charges
described in the promise or order, if it:
(1) is payable to bearer or to order at the time it |
| is issued or first comes into possession of a holder;
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(2) is payable on demand or at a definite time; and
(3) does not state any other undertaking or
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| instruction by the person promising or ordering payment to do any act in addition to the payment of money, but the promise or order may contain (i) an undertaking or power to give, maintain, or protect collateral to secure payment, (ii) an authorization or power to the holder to confess judgment or realize on or dispose of collateral, or (iii) a waiver of the benefit of any law intended for the advantage or protection of any obligor.
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(b) "Instrument" means a negotiable instrument.
(c) An order that meets all of the requirements of subsection (a), except
paragraph (1), and otherwise falls within the definition of "check" in
subsection (f) is a negotiable instrument and a check.
(d) A promise or order other than a check is not an instrument if, at the
time it is issued or first comes into possession of a holder, it contains a
conspicuous statement, however expressed, to the effect that the promise or
order is not negotiable or is not an instrument governed by this Article.
(e) An instrument is a "note" if it is a promise and is a "draft" if it
is an order. If an instrument falls within the definition of both "note"
and "draft", a person entitled to enforce the instrument may treat it as
either.
(f) "Check" means (i) a draft, other than a documentary draft, payable
on demand and drawn on a bank or (ii) a cashier's check or teller's check.
An instrument may be a check even though it is described on its face by
another term, such as "money order".
(g) "Cashier's check" means a draft with respect to which the drawer and
drawee are the same bank or branches of the same bank.
(h) "Teller's check" means a draft drawn by a bank (i) on another bank,
or (ii) payable at or through a bank.
(i) "Traveler's check" means an instrument that (i) is payable on
demand, (ii) is drawn on or payable at or through a bank, (iii) is
designated by the term "traveler's check" or by a substantially similar
term, and (iv) requires, as a condition to payment, a countersignature by a
person whose specimen signature appears on the instrument.
(j) "Certificate of deposit" means an instrument containing an
acknowledgment by a bank that a sum of money has been received by the bank
and a promise by the bank to repay the sum of money. A certificate of
deposit is a note of the bank.
(Source: P.A. 87-582; 87-1135.)
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(810 ILCS 5/3-106) (from Ch. 26, par. 3-106)
Sec. 3-106.
Unconditional promise or order.
(a) Except as provided in this Section, for the purposes of Section
3-104(a), a promise or order is unconditional unless it states (i) an
express condition to payment, (ii) that the promise or order is subject
to or governed by another writing, or (iii) that rights or obligations with
respect to the promise or order are stated in another writing. A reference to
another writing does not of itself make the promise or order conditional.
(b) A promise or order is not made conditional (i) by a reference to
another writing for a statement of rights with respect to collateral,
prepayment, or acceleration, or (ii) because payment is limited to resort
to a particular fund or source.
(c) If a promise or order requires, as a condition to payment, a
countersignature by a person whose specimen signature appears on the
promise or order, the condition does not make the promise or order
conditional for the purposes of Section 3-104(a). If the person whose
specimen signature appears on an instrument fails to countersign the
instrument, the failure to countersign is a defense to the obligation of
the issuer, but the failure does not prevent a transferee of the instrument
from becoming a holder of the instrument.
(d) If a promise or order at the time it is issued or first comes into
possession of a holder contains a statement, required by applicable
statutory or administrative law, to the effect that the rights of a holder
or transferee are subject to claims or defenses that the issuer could assert
against the original payee, the promise or order is not thereby made
conditional for the purposes of Section 3-104(a); but if the promise or
order is an instrument, there cannot be a holder in due course of the
instrument.
(Source: P.A. 87-582; 87-1135.)
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(810 ILCS 5/3-110) (from Ch. 26, par. 3-110)
Sec. 3-110.
Identification of person to whom instrument is payable.
(a) The person to whom an instrument is initially payable is determined
by the intent of the person, whether or not authorized, signing as, or in
the name or behalf of, the issuer of the instrument. The instrument is
payable to the person intended by the signer even if that person is
identified in the instrument by a name or other identification that is not
that of the intended person. If more than one person signs in the name or
behalf of the issuer of an instrument and all the signers do not intend the
same person as payee, the instrument is payable to any person intended by
one or more of the signers.
(b) If the signature of the issuer of an instrument is made by automated
means, such as a checkwriting machine, the payee of the instrument is
determined by the intent of the person who supplied the name or
identification of the payee, whether or not authorized to do so.
(c) A person to whom an instrument is payable may be identified in any
way including by name, identifying number, office, or account number. For
the purpose of determining the holder of an instrument, the following rules
apply:
(1) If an instrument is payable to an account and the |
| account is identified only by number, the instrument is payable to the person to whom the account is payable. If an instrument is payable to an account identified by number and by the name of a person, the instrument is payable to the named person, whether or not that person is the owner of the account identified by number.
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(2) If an instrument is payable to:
(i) a trust, an estate, or a person described as
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| trustee or representative of a trust or estate, the instrument is payable to the trustee, the representative, or a successor of either, whether or not the beneficiary or estate is also named;
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(ii) a person described as agent or similar
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| representative of a named or identified person, the instrument is payable to the represented person, the representative, or a successor of the representative;
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(iii) a fund or organization that is not a legal
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| entity, the instrument is payable to a representative of the members of the fund or organization; or
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(iv) an office or to a person described as
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| holding an office, the instrument is payable to the named person, the incumbent of the office, or a successor to the incumbent.
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(d) If an instrument is payable to 2 or more persons alternatively, it
is payable to any of them and may be negotiated, discharged, or enforced by
any or all of them in possession of the instrument. If an instrument is
payable to 2 or more persons not alternatively, it is payable to all of
them and may be negotiated, discharged, or enforced only by all of them.
If an instrument payable to 2 or more persons is ambiguous as to whether it
is payable to the persons alternatively, the instrument is payable to the
persons alternatively.
(Source: P.A. 87-582; 87-1135.)
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(810 ILCS 5/3-118) (from Ch. 26, par. 3-118)
Sec. 3-118.
Statute of limitations.
(a) (Blank).
(b) (Blank).
(c) Except as provided in subsection (d), an action to enforce the
obligation of a party to an unaccepted draft to pay the draft must be
commenced within 3 years after dishonor of the draft or 10 years after the
date of the draft, whichever period expires first.
(d) An action to enforce the obligation of the acceptor of a certified
check or the issuer of a teller's check, cashier's check, or traveler's
check must be commenced within 3 years after demand for payment is made to
the acceptor or issuer, as the case may be.
(e) An action to enforce the obligation of a party to a certificate of
deposit to pay the instrument must be commenced within 6 years after demand
for payment is made to the maker, but if the instrument states a due date
and the maker is not required to pay before that date, the 6-year period
begins when a demand for payment is in effect and the due date has passed.
(f) An action to enforce the obligation of a
party to pay an accepted draft, other than a certified check, must
be commenced (i) within 6 years after the due date or dates stated in the draft
or acceptance if the obligation of the acceptor is payable at a
definite time, or (ii) within 6 years after the date of the acceptance
if the obligation of the acceptor is payable on demand.
(g) Unless governed by other law regarding claims for indemnity or
contribution, an action (i) for conversion of an instrument, for money had
and received, or like action based on conversion, (ii) for breach of
warranty, or (iii) to enforce an obligation, duty, or right arising under
this Article and not governed by this Section must be commenced within 3
years after the cause of action accrues.
(Source: P.A. 90-451, eff. 1-1-98.)
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