Illinois Compiled Statutes

810 ILCS 5/3-414 (2026)

Obligation of drawer

✓ current as of May 2026
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(810 ILCS 5/3-414) (from Ch. 26, par. 3-414)
    Sec. 3-414. Obligation of drawer.
    (a) This Section does not apply to cashier's checks or other drafts drawn on the drawer.
    (b) If an unaccepted draft is dishonored, the drawer is obliged to pay the draft (i) according to its terms at the time it was issued or, if not issued, at the time it first came into possession of a holder, or (ii) if the drawer signed an incomplete instrument, according to its terms when completed as stated in Sections 3-115 and 3-407. The obligation is owed to a person entitled to enforce the draft or to an indorser who paid the draft under Section 3-415.
    (c) If a draft is accepted by a bank, the drawer is discharged, regardless of when or by whom acceptance was obtained.
    (d) If a draft is accepted and the acceptor is not a bank, the obligation of the drawer to pay the draft if the draft is dishonored by the acceptor is the same as the obligation of an indorser under Section 3-415(a) and (c).
    (e) If a draft states that it is drawn "without recourse" or otherwise disclaims liability of the drawer to pay the draft, the drawer is not liable under subsection (b) to pay the draft if the draft is not a check. A disclaimer of the liability stated in subsection (b) is not effective if the draft is a check.
    (f) If (i) a check is not presented for payment or given to a depositary bank for collection within 30 days after its date, (ii) the drawee suspends payments after expiration of the 30-day period without paying the check, and (iii) because of the suspension of payments, the drawer is deprived of funds maintained with the drawee to cover payment of the check, the drawer to the extent deprived of funds may discharge its obligation to pay the check by assigning to the person entitled to enforce the check the rights of the drawer against the drawee with respect to the funds.
(Source: P.A. 87-582; 87-1135.)

    
Notes of Decisions
Cited in 2 cases (1 in the last 5 years), 2016–2023 · leading case: Affiliated Heath Grp., Ltd v. Devon Bank, 2016 IL App (1st) 152685 (Ill. App. Ct. 2016).
Affiliated Heath Grp., Ltd v. Devon Bank, 2016 IL App (1st) 152685 (Ill. App. Ct. 2016). · cites it 2× “810 ILCS 5/3-414 (West 2014). ¶ 11 On August 13, 2014, the circuit court dismissed all claims against Insurers Aetna and Blue Cross/Blue Shield with prejudice.”
W. & Lake Check Cashers, LLC v. Propane Pete, LLC, 2023 IL App (2d) 220291 (Ill. App. Ct. 2023). “Defendant argues that sections 3-414(c), 3- 415(d), and 3-602(a) of the Code (810 ILCS 5/3-414(c), 3-415(d), 3-602(a) (West 2020)) “proscribe [sic] for no liability of a drawer of a check[, i.”
— 810 ILCS 5/3-414(c) — 2 cases
Affiliated Heath Grp., Ltd v. Devon Bank, 2016 IL App (1st) 152685 (Ill. App. Ct. 2016). “810 ILCS 5/3-414 (West 2014). ¶ 11 On August 13, 2014, the circuit court dismissed all claims against Insurers Aetna and Blue Cross/Blue Shield with prejudice.”
W. & Lake Check Cashers, LLC v. Propane Pete, LLC, 2023 IL App (2d) 220291 (Ill. App. Ct. 2023). “Defendant argues that sections 3-414(c), 3- 415(d), and 3-602(a) of the Code (810 ILCS 5/3-414(c), 3-415(d), 3-602(a) (West 2020)) “proscribe [sic] for no liability of a drawer of a check[, i.”
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.