Illinois Compiled Statutes 810 ILCS 5/4-202 – Responsibility for collection or return; when action timely
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(a) A collecting bank must exercise ordinary care in:
(1) presenting an item or sending it for presentment;
(2) sending notice of dishonor or nonpayment or
(1) presenting an item or sending it for presentment;
Terms Used In Illinois Compiled Statutes 810 ILCS 5/4-202
- Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(2) sending notice of dishonor or nonpayment or
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returning an item other than a documentary draft to the bank’s transferor after learning that the item has not been paid or accepted, as the case may be;
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(3) settling for an item when the bank receives final
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settlement; and
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(4) notifying its transferor of any loss or delay in
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transit within a reasonable time after discovery thereof.
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(b) A collecting bank exercises ordinary care under subsection (a) by taking proper action before its midnight deadline following receipt of an item, notice, or settlement. Taking proper action within a reasonably longer time may constitute the exercise of ordinary care, but the bank has the burden of establishing timeliness.
(c) Subject to subsection (a) (1), a bank is not liable for the insolvency, neglect, misconduct, mistake, or default of another bank or person or for loss or destruction of an item in the possession of others or in transit.
(c) Subject to subsection (a) (1), a bank is not liable for the insolvency, neglect, misconduct, mistake, or default of another bank or person or for loss or destruction of an item in the possession of others or in transit.