HB4430

Illinois HB4430 mandates banks to verify payee identity and endorsement validity before processing checks for payment, credit, or loan disbursement.

Illinois HB4430 amends the Illinois Banking Act by requiring banks to confirm the identity of a payee and verify endorsements are proper before processing a check for payment, credit, or loan disbursement. This verification can be done through various means, including review of government-issued identification, comparison with account records, or confirmation through a clearing bank or issuing bank. The bill exempts checks processed solely through automated check clearing processes without manual review, that are authorized by federal law.