Illinois Compiled Statutes
810 ILCS 5/4A-204 (2026)
Refund of payment and duty of customer to report with respect to an unauthorized payment order
✓ current as of May 2026
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(810 ILCS 5/4A-204)
(from Ch. 26, par. 4A-204)
Sec. 4A-204. Refund of payment and duty of customer to report with
respect to an unauthorized payment order.
(a) If a receiving bank accepts a payment order issued
in the name of its customer as sender which is (i) not authorized and not
effective as the order of the customer under Section 4A-202, or (ii) not
enforceable, in whole or in part, against the customer under Section
4A-203, the bank shall refund any payment of the payment order received
from the customer to the extent the bank is not entitled to enforce payment
and shall pay interest on the refundable amount calculated from the date
the bank received payment to the date of the refund. However, the customer
is not entitled to interest from the bank on the amount to be refunded if
the customer fails to exercise ordinary care to determine that the order
was not authorized by the customer and to notify the bank of the relevant
facts within a reasonable time not exceeding 90 days after the date the
customer received notification from the bank that the order was accepted or
that the customer's account was debited with respect to the order. The
bank is not entitled to any recovery from the customer on account of a
failure by the customer to give notification as stated in this Section.
(b) Reasonable time under subsection (a) may be fixed by agreement as
stated in Section 1-302(b), but the obligation of a receiving bank to
refund payment as stated in subsection (a) may not otherwise be varied
by agreement.
(Source: P.A. 95-895, eff. 1-1-09.)
Notes of Decisions
Cited in 2
cases (1 in the last 5 years), 2020–2021 · leading case: Whitaker v. Wedbush Sec., Inc., 2020 IL 124792 (Ill. 2020).
Whitaker v. Wedbush Sec., Inc., 2020 IL 124792 (Ill. 2020). “See 810 ILCS 5/4A-204(a) (West 2014) (requiring bank to refund payment plus interest when it accepts an unauthorized payment order).”
Whitaker v. Wedbush Sec., Inc., 2020 IL 124792 (Ill. 2021). “See 810 ILCS 5/4A-204(a) (West 2014) (requiring bank to refund payment plus interest when it accepts an unauthorized payment order).”
— 810 ILCS 5/4A-204(a) — 2 cases
Whitaker v. Wedbush Sec., Inc., 2020 IL 124792 (Ill. 2020). “See 810 ILCS 5/4A-204(a) (West 2014) (requiring bank to refund payment plus interest when it accepts an unauthorized payment order).”
Whitaker v. Wedbush Sec., Inc., 2020 IL 124792 (Ill. 2021). “See 810 ILCS 5/4A-204(a) (West 2014) (requiring bank to refund payment plus interest when it accepts an unauthorized payment order).”
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