ILCS » Chapter 760 · Act 65
Illinois Compiled Statutes

760 ILCS 65/4 (2026)

If any negotiable instrument payable or indorsed to a fiduciary as such is indorsed by the fiduciary, or if any negotiable instrument payable or indorsed to his principal is indorsed by a fiduciary empowered to indorse such instrument on behalf of his principal, the indorsee is not bound to inquire whether the fiduciary is committing a breach of his obligation as fiduciary in indorsing or delivering the instrument, and is not chargeable with notice that the fiduciary is committing a breach of his obligation as fiduciary unless he takes the instrument with actual knowledge of such breach or with knowledge of such facts that his action in taking the instrument amounts to bad faith

✓ current as of May 2026
Find cases: SyfertCases citing this section IL-ILGAilga.gov JustiaChapter on Justia CornellLII Search CasesGoogle Scholar
(760 ILCS 65/4) (from Ch. 17, par. 2004)
    Sec. 4. If any negotiable instrument payable or indorsed to a fiduciary as such is indorsed by the fiduciary, or if any negotiable instrument payable or indorsed to his principal is indorsed by a fiduciary empowered to indorse such instrument on behalf of his principal, the indorsee is not bound to inquire whether the fiduciary is committing a breach of his obligation as fiduciary in indorsing or delivering the instrument, and is not chargeable with notice that the fiduciary is committing a breach of his obligation as fiduciary unless he takes the instrument with actual knowledge of such breach or with knowledge of such facts that his action in taking the instrument amounts to bad faith. If, however, such instrument is transferred by the fiduciary in payment of or as a security for a personal debt of the fiduciary to the actual knowledge of the creditor, or is transferred in any transaction known by the transferee to be for the personal benefit of the fiduciary, the creditor or other transferee is liable to the principal if the fiduciary in fact commits a breach of his obligation as fiduciary in transferring the instrument.
(Source: Laws 1931, p. 676.)

    
Notes of Decisions
Cited in 3 cases, 1995–2005 · leading case: Cnty. of MacOn v. Edgcomb, 654 N.E.2d 598 (Ill. App. Ct. 1995).
Sort: Relevance Newest Treatment
Cnty. of MacOn v. Edgcomb, 654 N.E.2d 598 (Ill. App. Ct. 1995). · cites it 3× “) The Act addresses the liability of those to whom the fiduciary endorses an instrument (section 4), or makes an instrument (section 5), or the bank upon which the instruments are drawn, whether the account is in the name of the fiduciary as such (section 7), or in the name of…”
Mikrut v. First Bank of Oak Park, 832 N.E.2d 376 (Ill. App. Ct. 2005). “3d at 435 , citing 760 ILCS 65/4, 5 (West 1992). Moreover, the payor bank is protected under section 7 when it pays the amount of the deposit if the fiduciary’s check is “ ‘signed with the name in which such deposit is entered.”
Mikrut v. First Bank of Oak Park (Ill. App. Ct. 2005). “3d at 435 , citing 760 ILCS 65/4, 5 (West 1992). Moreov er, the payor bank is protected under section 7 when it pays the amount of the deposit if the fiduciary's check is " 'signed with the name in which such deposit is entered.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.