ILCS » Chapter 760 · Act 65
Illinois Compiled Statutes

760 ILCS 65/9 (2026)

Notwithstanding any other law, if a fiduciary makes a deposit in a bank to his personal credit of checks drawn by him upon an account in his own name as fiduciary, or of checks payable to him as fiduciary, or of checks drawn by him upon an account in the name of his principal if he is empowered to draw checks thereon, or of checks payable to his principal and indorsed by him, if he is empowered to indorse such checks, or if he otherwise makes a deposit of funds held by him as fiduciary, the bank receiving such deposit is not bound to inquire whether the fiduciary is committing thereby a breach of his obligation as fiduciary; and the bank is authorized to pay the amount of the deposit or any part thereof upon the personal check of the fiduciary without being liable to the principal, unless the bank receives the deposit or pays the check with actual knowledge that the fiduciary is committing a breach of his obligation as fiduciary in making such deposit or in drawing such check, or with knowledge of such facts that its action in receiving the deposit or paying the check amounts to bad faith

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(760 ILCS 65/9) (from Ch. 17, par. 2009)
    Sec. 9. Notwithstanding any other law, if a fiduciary makes a deposit in a bank to his personal credit of checks drawn by him upon an account in his own name as fiduciary, or of checks payable to him as fiduciary, or of checks drawn by him upon an account in the name of his principal if he is empowered to draw checks thereon, or of checks payable to his principal and indorsed by him, if he is empowered to indorse such checks, or if he otherwise makes a deposit of funds held by him as fiduciary, the bank receiving such deposit is not bound to inquire whether the fiduciary is committing thereby a breach of his obligation as fiduciary; and the bank is authorized to pay the amount of the deposit or any part thereof upon the personal check of the fiduciary without being liable to the principal, unless the bank receives the deposit or pays the check with actual knowledge that the fiduciary is committing a breach of his obligation as fiduciary in making such deposit or in drawing such check, or with knowledge of such facts that its action in receiving the deposit or paying the check amounts to bad faith.
(Source: P.A. 90-665, eff. 7-30-98.)

    
Notes of Decisions
Cited in 13 cases, 1995–2020 · leading case: Cont'l Cas. Co. v. Am. Nat'l Bank & Trust Co., 768 N.E.2d 352 (Ill. App. Ct. 2002).
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Cont'l Cas. Co. v. Am. Nat'l Bank & Trust Co., 768 N.E.2d 352 (Ill. App. Ct. 2002). · cites it 4× “Count I sought damages for common law breach of contract, and count II sought damages for violation of section 9 of the Illinois Fiduciary Obligations Act (the Act) (760 ILCS 65/9 (West 1996)). GAI eventually assigned all of its causes of action, rights and claims it had against…”
Mikrut v. First Bank of Oak Park, 832 N.E.2d 376 (Ill. App. Ct. 2005). · cites it 4× “” 760 ILCS 65/9 (West 2000). As a preliminary matter, we consider plaintiffs’ first argument that section 9 of the Fiduciary Obligations Act is applicable here.”
Springfield Twp. v. Mellon PSFS Bank, 889 A.2d 1184 (Pa. 2005). · cites it 2× “2d 352 (2002) (summary judgment inappropriate where facts sufficient to show bank engaged in bad faith pursuant to 760 ILCS 65/9 (UFA § 9) because it was commercially unreasonable for it to maintain ATM deposit procedures which allowed unauthorized fiduciary to deposit checks…”
Time Savers, Inc. v. LaSalle Bank, NA, 863 N.E.2d 1156 (Ill. App. Ct. 2007). “ot bound to inquire whether the fiduciary is committing thereby a breach of his obligation as fiduciary; and the bank is authorized to pay the amount of the deposit or any part thereof upon the personal check of the fiduciary without being liable to the principal, unless the…”
Cont'l Cas. Co. v. Am. Nat'l Bank & Trust Co., 896 N.E.2d 340 (Ill. App. Ct. 2008). · cites it 3× “(hereinafter GAI), appeals the order of the circuit court granting summary judgment in favor of defendant, American National Bank & Trust Company of Chicago (hereinafter ANB), on plaintiffs action for breach of contract and violation of section 9 of the Illinois Fiduciary…”
Cnty. of MacOn v. Edgcomb, 654 N.E.2d 598 (Ill. App. Ct. 1995). “There has been a broad rule under the Act that where a fiduciary makes deposits to his personal account, even of checks payable to himself as a fiduciary or of checks payable to the principal and endorsed by the fiduciary, the bank has no liability for withdrawals in the absence…”
West Bend Mut. Ins. Co v. Belmont State Corp., 712 F.3d 1030 (7th Cir. 2013). “And the district court added that the Bank would be protected by § 9 of that Act, 760 ILCS 65/9, because it lacked actual knowledge that Gizynski was not entitled to the money.”
Lawyers Title Ins. v. Dearborn Title Corp., 993 F. Supp. 1159 (N.D. Ill. 1998). “Counts IX and X First Midwest moves for summary judgment on Counts IX and X on the grounds that Lawyers Title has not identified the specific checks or instruments that are the basis of its claims under the IFOA, 760 ILCS 65/9, and the IUCC, 810 ILCS 5/3-307.”
Praither v. Northbrook Bank & Trust Co., 2020 IL App (1st) 192451-U (Ill. App. Ct. 2020). “1-19-2451 amended complaint where the complaint sufficiently pled facts that (1) defendant Northbrook failed to exercise ordinary care to protect plaintiffs from defendant Tamer Moumen’s fraud; (2) Northbrook was liable for violations of the Fiduciary Obligations Act (FOA) (760…”
Cont'l Cas. Co. v. Am. Nat'l Bank & Trust Co. (Ill. App. Ct. 2002). · cites it 4× “Count I sought damages for common law breach of contract, and count II sought damages for violation of section 9 of the Illinois Uniform Fiduciaries Act (the Act) (760 ILCS 65/9 (West 1996)). GAI eventually assigned all of its causes of action, rights and claims it had against…”
Mikrut v. First Bank of Oak Park (Ill. App. Ct. 2005). · cites it 4× “" 760 ILCS 65/9 (West 2000). As a preliminary matter, we consider plaintiffs' first argument that section 9 of the Fiduciary Obligations Act is applicable here.”
Cont'l Cas. Co. v. Am. Nat'l Bank & Trust Co. of Chicago (Ill. App. Ct. 2008). · cites it 3× “From 1992 until approximately July 1994, Lawrence Cohn was a partner with the accounting firm of Friedman Eisenstein Raemer & Schwartz, LLP (hereinafter FERS).”
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