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Illinois Compiled Statutes

810 ILCS 5/3-602 (2026)

Payment

✓ current as of May 2026
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(810 ILCS 5/3-602) (from Ch. 26, par. 3-602)
    Sec. 3-602. Payment.
    (a) Subject to subsection (b), an instrument is paid to the extent payment is made (i) by or on behalf of a party obliged to pay the instrument, and (ii) to a person entitled to enforce the instrument. To the extent of the payment, the obligation of the party obliged to pay the instrument is discharged even though payment is made with knowledge of a claim to the instrument under Section 3-306 by another person.
    (b) The obligation of a party to pay the instrument is not discharged under subsection (a) if:
        (1) a claim to the instrument under Section 3-306 is
    
enforceable against the party receiving payment and (i) payment is made with knowledge by the payor that payment is prohibited by injunction or similar process of a court of competent jurisdiction, or (ii) in the case of an instrument other than a cashier's check, teller's check, or certified check, the party making payment accepted, from the person having a claim to the instrument, indemnity against loss resulting from refusal to pay the person entitled to enforce the instrument, or
        (2) the person making payment knows that the
    
instrument is a stolen instrument and pays a person it knows is in wrongful possession of the instrument.
(Source: P.A. 87-582; 87-1135.)

    
Notes of Decisions
Cited in 1 case, 2020–2020 · leading case: Kasongo v. Am. Gen. Life Ins. Co. (N.D. Ill. 2020).
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Kasongo v. Am. Gen. Life Ins. Co. (N.D. Ill. 2020). · cites it 2× “810 ILCS 5/3-602(a). As explained above, because Parkway Bank involved a co-payee, the court there looked to Section 3- 110(d), which states that a co-payee acting alone is not entitled to enforce a check.”
— 810 ILCS 5/3-602(a) — 1 case
Kasongo v. Am. Gen. Life Ins. Co. (N.D. Ill. 2020). “810 ILCS 5/3-602(a). As explained above, because Parkway Bank involved a co-payee, the court there looked to Section 3- 110(d), which states that a co-payee acting alone is not entitled to enforce a check.”
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