(810 ILCS 5/4-401) (from Ch. 26, par. 4-401)

Sec. 4-401.

When bank may charge customer's account.

(a) A bank may charge against the account of a customer an item that is
properly payable from that account even though the charge creates an
overdraft. An item is properly payable if it is authorized by the customer
and is in accordance with any agreement between the customer and bank.

(b) A customer is not liable for the amount of an overdraft if the
customer neither signed the item nor benefited from the proceeds of the item.

(c) A bank may charge against the account of a customer a check that is
otherwise properly payable from the account, even though payment was made
before the date of the check, unless the customer has given notice to the
bank of the postdating describing the check with reasonable certainty.  The
notice is effective for the period stated in Section 4-403(b) for stop-payment
orders, and must be received at such time and in such manner as to afford the
bank a reasonable opportunity to act on it before any action by the bank with
respect to the check described in Section 4-303.  If a bank charges against the
account of a customer a check before the date stated in the notice of
postdating, the bank is liable for damages for the loss resulting from its act.
The loss may include damages for dishonor of subsequent items under Section
4-402.

(d) A bank that in good faith makes payment to a holder may charge the
indicated account of its customer according to:

(1) the original terms of the altered item; or

(2) the terms of the completed item, even though the bank knows the item has been