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Can you summarize 810 ILCS 5/4-303?
COLLECTION OF ITEMS: PAYOR BANKS >
Short Summary
This section of the Illinois Compiled Statutes, specifically the Uniform Commercial Code, governs the collection of items by payor banks. It outlines the circumstances under which knowledge, notice, stop-payment orders, legal processes, or setoffs received by a payor bank do not terminate, suspend, or modify the bank’s right or duty to pay an item or charge its customer’s account. The section specifies the order in which items may be charged or certified and provides criteria for when the bank becomes accountable for the amount of the item. Additionally, it establishes a cutoff hour for checks and allows items to be accepted, paid, certified, or charged to the customer’s account in any order, subject to certain conditions. No specific exemptions or penalties are mentioned in this section.
Whom does it apply to?
Payor banks
What does it govern?
Collection of items: payor banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Illinois