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810 ILCS 5/Art. 4 Pt. 5

(810 ILCS 5/Art. 4 Pt. 5 heading) PART 5.

COLLECTION OF DOCUMENTARY DRAFTS

810 ILCS 5/4-501

(810 ILCS 5/4-501) (from Ch. 26, par. 4-501)

Sec. 4-501.

Handling of documentary drafts; duty to send for presentment and
to notify customer of dishonor.

A bank that takes a documentary draft for collection shall present or send
the draft and accompanying documents for presentment and, upon learning that
the draft has not been paid or accepted in due course, shall seasonably notify
its customer of the fact even though it may have discounted or bought the draft
or extended credit available for withdrawal as of right.

(Source: P.A. 87-1135.)

810 ILCS 5/4-502

(810 ILCS 5/4-502) (from Ch. 26, par. 4-502)

Sec. 4-502.

Presentment of "on arrival" drafts.

If a draft or the relevant instructions require presentment "on
arrival", "when goods arrive" or the like, the collecting bank need not
present until in its judgment a reasonable time for arrival of the goods
has expired. Refusal to pay or accept because the goods have not arrived is
not dishonor; the bank must notify its transferor of the refusal but need
not present the draft again until it is instructed to do so or learns of
the arrival of the goods.

(Source: P.A. 87-1135.)

810 ILCS 5/4-503

(810 ILCS 5/4-503) (from Ch. 26, par. 4-503)

Sec. 4-503.

Responsibility of presenting bank for documents and goods;
report of reasons for dishonor; referee in case of need. Unless otherwise
instructed and except as provided in Article 5, a bank presenting a
documentary draft:

(1) must deliver the documents to the drawee on acceptance of the
draft if it is payable more than 3 days after presentment; otherwise, only
on payment; and

(2) upon dishonor, either in the case of presentment for acceptance
or presentment for payment, may seek and follow instructions from any
referee in case of need designated in the draft or, if the presenting bank
does not choose to utilize the referee's services, it must use diligence
and
good faith to ascertain the reason for dishonor, must notify its transferor of
the dishonor and of the results of its effort to ascertain the reasons
therefor, and must request instructions.

However, the presenting bank is under no obligation with respect to goods
represented by the documents except to follow any reasonable instructions
seasonably received; it has a right to reimbursement for any expense incurred
in following instructions and to prepayment of or indemnity for those expenses.

(Source: P.A. 87-582; 87-1135.)

810 ILCS 5/4-504

(810 ILCS 5/4-504) (from Ch. 26, par. 4-504)

Sec. 4-504.

Privilege of Presenting Bank to Deal With Goods; Security
Interest for Expenses.

(a) A presenting bank that, following the dishonor of a documentary
draft, has seasonably requested instructions but does not receive them
within a reasonable time may store, sell, or otherwise deal with the goods
in any reasonable manner.

(b) For its reasonable expenses incurred by action under subsection (a)
the presenting bank has a lien upon the goods or their proceeds, which may
be foreclosed in the same manner as an unpaid seller's lien.

(Source: P.A. 87-582; 87-1135.)