Illinois Compiled Statutes
810 ILCS 5/4A-404 (2026)
Obligation of beneficiary's bank to pay and give notice to beneficiary
✓ current as of May 2026
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(810 ILCS 5/4A-404)
(from Ch. 26, par. 4A-404)
Sec. 4A-404.
Obligation of beneficiary's bank to pay and give notice
to beneficiary.
(a) Subject to Sections 4A-211(e), 4A-405(d), and
4A-405(e), if a beneficiary's bank accepts a payment order, the bank is
obliged to pay the amount of the order to the beneficiary of the order.
Payment is due on the payment date of the order, but if acceptance occurs
on the payment date after the close of the funds transfer business day of
the bank, payment is due on the next funds transfer business day. If the
bank refuses to pay after demand by the beneficiary and receipt of notice
of particular circumstances that will give rise to consequential damages as
a result of nonpayment, the beneficiary may recover damages resulting from
the refusal to pay to the extent the bank had notice of the damages, unless
the bank proves that it did not pay because of a reasonable doubt
concerning the right of the beneficiary to payment.
(b) If a payment order accepted by the beneficiary's bank instructs
payment to an account of the beneficiary, the bank is obliged to notify the
beneficiary of receipt of the order before midnight of the next
funds transfer business day following the payment date. If the payment
order does not instruct payment to an account of the beneficiary, the bank
is required to notify the beneficiary only if notice is required by the
order. Notice may be given by first class mail or any other means
reasonable in the circumstances. If the bank fails to give the required
notice, the bank is obliged to pay interest to the beneficiary on the
amount of the payment order from the day notice should have been given
until the day the beneficiary learned of receipt of the payment order by
the bank. No other damages are recoverable. Reasonable attorney's fees
are also recoverable if demand for interest is made and refused before an
action is brought on the claim.
(c) The right of a beneficiary to receive payment and damages as stated
in subsection (a) may not be varied by agreement or a funds transfer system
rule. The right of a beneficiary to be notified as stated in subsection
(b) may be varied by agreement of the beneficiary or by a funds transfer
system rule if the beneficiary is notified of the rule before initiation of
the funds transfer.
(Source: P.A. 86-1291.)
Notes of Decisions
Cited in 1
case (1 in the last 5 years), 2026–2026 · leading case: Martin v. Fifth Third Bank, Nat'l Ass'n, 2026 IL App (1st) 250705 (Ill. App. Ct. 2026).
Martin v. Fifth Third Bank, Nat'l Ass'n, 2026 IL App (1st) 250705 (Ill. App. Ct. 2026). “” ¶ 12 The circuit court granted Fifth Third’s motion to dismiss with prejudice as follows: “The Uniform Commercial Code, 810 ILCS 5/4A-404, provides that if a bank accepts a wire transfer it is obligated, subject to exceptions not raised here, to pay the beneficiary, and will…”
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