Chapter 810 - Uniform Commercial Code - Subject Matter and Definitions

(810 ILCS 5/Art. 4A Pt. 1 heading)

PART 1. SUBJECT MATTER AND DEFINITIONS

(810 ILCS 5/4A-101) (from Ch.26, par. 4A-101)
Sec. 4A-101. Short title. This Article may be cited as Uniform Commercial Code-Funds Transfers.
(Source: P.A. 86-1291.)

(810 ILCS 5/4A-102) (from Ch.26, par. 4A-102)
Sec. 4A-102. Subject matter. Except as otherwise provided in Section 4A-108, this Article applies to funds transfers defined in Section 4A-104.
(Source: P.A. 86-1291.)

    (810 ILCS 5/4A-103) (from Ch.26, par. 4A-103)
    Sec. 4A-103. Payment order; definitions.
    (a) In this Article:
        (1) "Payment order" means an instruction of a sender

to a receiving bank, transmitted orally, electronically, or in writing, to pay, or to cause another bank to pay, a fixed or determinable amount of money to a beneficiary if:

(i) the instruction does not state a condition

to payment to the beneficiary other than time of payment,

(ii) the receiving bank is to be reimbursed by

debiting an account of, or otherwise receiving payment from, the sender, and

(iii) the instruction is transmitted by the

senderdirectly to the receiving bank or to an agent, funds transfer system, or communication system for transmittal to the receiving bank.

(2) "Beneficiary" means the person to be paid by the

beneficiary's bank.

(3) "Beneficiary's bank" means the bank identified

ina payment order in which an account of the beneficiary is to be credited pursuant to the order or which otherwise is to make payment to the beneficiary if the order does not provide for payment to an account.

(4) "Receiving bank" means the bank to which the

sender'sinstruction is addressed.

(5) "Sender" means the person giving the instruction

tothe receiving bank.

(b) If an instruction complying with subsection (a)(1) is to make more than one payment to a beneficiary, the instruction is a separate payment order with respect to each payment.
(c) A payment order is issued when it is sent to the receiving bank.
(Source: P.A. 86-1291.)

    (810 ILCS 5/4A-104) (from Ch.26, par. 4A-104)
    Sec. 4A-104. Funds transfer; definitions. In this Article:
    (a) "Funds transfer" means the series of transactions, beginning with the originator's payment order, made for the purpose of making payment to the beneficiary of the order. The term includes any payment order issued by the originator's bank or an intermediary bank intended to carry out the originator's payment order. A funds transfer is completed by acceptance by the beneficiary's bank of a payment order for the benefit of the beneficiary of the originator's payment order.
    (b) "Intermediary bank" means a receiving bank other than the originator's bank or the beneficiary's bank.
    (c) "Originator" means the sender of the first payment order in a funds transfer.
    (d) "Originator's bank" means (i) the receiving bank to which the payment order of the originator is issued if the originator is not a bank, or (ii) the originator if the originator is a bank.
(Source: P.A. 86-1291.)

    (810 ILCS 5/4A-105) (from Ch.26, par. 4A-105)
    Sec. 4A-105. Other definitions.
    (a) In this Article:
        (1) "Authorized account" means a deposit account of

acustomer in a bank designated by the customer as a source of payment of payment orders issued by the customer to the bank. If a customer does not so designate an account, any account of the customer is an authorized account if payment of a payment order from that account is not inconsistent with a restriction on the use of that account.

(2) "Bank" means a person engaged in the business of

banking and includes a savings bank, savings and loan association, credit union, and trust company. A branch or separate office of a bank is a separate bank for purposes of this Article.

(3) "Customer" means a person, including a bank,

havingan account with a bank or from whom a bank has agreed to receive payment orders.

(4) "Funds transfer business day" of a receiving

bankmeans the part of a day during which the receiving bank is open for the receipt, processing, and transmittal of payment orders and cancellations and amendments of payment orders.

(5) "Funds transfer system" means a wire transfer

network, automated clearinghouse, or other communication system of a clearing house or other association of banks through which a payment order by a bank may be transmitted to the bank to which the order is addressed.

(6) "Good faith" means honesty in fact and the

observanceof reasonable commercial standards of fair dealing.

(7) "Prove" with respect to a fact means to meet the

burdenof establishing the fact (Section 1-201(8)).

(b) Other definitions applying to this Article and the Sections in which they appear are:

`"Acceptance"`	`Section 4A-209`
`"Beneficiary"`	`Section 4A-103`
`"Beneficiary's bank"`	`Section 4A-103`
`"Executed"`	`Section 4A-301`
`"Execution date"`	`Section 4A-301`
`"Funds transfer"`	`Section 4A-104`
`"Funds transfer system rule"`	`Section 4A-501`
`"Intermediary bank"`	`Section 4A-104`
`"Originator"`	`Section 4A-104`
`"Originator's bank"`	`Section 4A-104`
`"Payment by beneficiary's bank`
`to beneficiary"`	`Section 4A-405`
`"Payment by originator to`
`beneficiary"`	`Section 4A-406`
`"Payment by sender`
`to receiving bank"`	`Section 4A-403`
`"Payment date"`	`Section 4A-401`
`"Payment order"`	`Section 4A-103`
`"Receiving bank"`	`Section 4A-103`
`"Security procedure"`	`Section 4A-201`
`"Sender"`	`Section 4A-103`
`(c) The following definitions in Article 4 apply to this Article:`
`"Clearing house"`	`Section 4-104`
`"Item"`	`Section 4-104`
`"Suspends payments"`	`Section 4-104`

(d) In addition, Article 1 contains general definitions and principles of construction and interpretation applicable throughout this Article.
(Source: P.A. 86-1291.)

    (810 ILCS 5/4A-106) (from Ch.26, par. 4A-106)
    Sec. 4A-106. Time payment order is received.
    (a) The time of receipt of a payment order or communication cancelling or amending a payment order is determined by the rules applicable to receipt of a notice stated in Section 1-201(27). A receiving bank may fix a cut-off time or times on a funds transfer business day for the receipt and processing of payment orders and communications cancelling or amending payment orders. Different cut-off times may apply to payment orders, cancellations, or amendments, or to different categories of payment orders, cancellations, or amendments. A cut-off time may apply to senders generally or different cut-off times may apply to different senders or categories of payment orders. If a payment order or communication cancelling or amending a payment order is received after the close of a funds transfer business day or after the appropriate cut-off time on a funds transfer business day, the receiving bank may treat the payment order or communication as received at the opening of the next funds transfer business day.
    (b) If this Article refers to an execution date or payment date or states a day on which a receiving bank is required to take action, and the date or day does not fall on a funds transfer business day, the next day that is a funds transfer business day is treated as the date or day stated, unless the contrary is stated in this Article.
(Source: P.A. 86-1291.)

(810 ILCS 5/4A-107) (from Ch.26, par. 4A-107)
Sec. 4A-107. Federal Reserve regulations and operating circulars. Regulations of the Board of Governors of the Federal Reserve System and operating circulars of the Federal Reserve Banks supersede any inconsistent provision of this Article to the extent of the inconsistency.
(Source: P.A. 86-1291.)

(810 ILCS 5/4A-108) (from Ch.26, par. 4A-108)
Sec. 4A-108. Exclusion of consumer transactions governed by federal law. This Article does not apply to a funds transfer any part of which is governed by the Electronic Fund Transfer Act of 1978 (Title XX, Public Law 95-630, 92 Stat. 3728, 15 U.S.C. Section 1693 et seq.) as amended from time to time.
(Source: P.A. 86-1291.)