Illinois General Assembly - Illinois Compiled Statutes

Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide.

Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.

810 ILCS 5/4-103

(810 ILCS 5/4-103) (from Ch. 26, par. 4-103)

Sec. 4-103.

Variation by agreement; measure of damages; action
constituting ordinary care.

(a) The effect of the provisions of this Article may be varied by
agreement, but the parties to the agreement cannot disclaim a bank's
responsibility for its lack of good faith or failure to exercise
ordinary care or limit the measure of damages for the lack or failure.
However, the parties may determine by agreement the standards by which the
bank's responsibility is to be measured if those standards are not
manifestly unreasonable.

(b) Federal Reserve regulations and operating circulars, clearing-house
rules, and the like have the effect of agreements under subsection (a),
whether or not specifically assented to by all parties interested in items
handled.

(c) Action or non-action approved by this Article or pursuant to Federal
Reserve regulations or operating circulars is the exercise of
ordinary care and, in the absence of special instructions, action or
non-action consistent with clearing-house rules and the like or with a
general banking usage not disapproved by this Article, is prima
facie the exercise of ordinary care.

(d) The specification or approval of certain procedures by this Article
is not disapproval of other procedures that may be reasonable
under the circumstances.

(e) The measure of damages for failure to exercise ordinary care in
handling an item is the amount of the item reduced by an amount that could
not have been realized by the exercise of ordinary care. If there is also
bad faith it includes any other damages the party suffered as a proximate
consequence.

(Source: P.A. 87-582; 87-1135.)