The purchase of the Cashier's Check created a debtor-creditor relationship between Debtor and the Bank. See Gillespie v. Riley Management Corp., 13 Ill.App.3d 988, 301 N.E.2d 506, 508 (1973). That relationship contemplated delivery of the Check to NPS, the named payee in this case.
A cashier's check is defined as a bill of exchange drawn by a bank upon itself and accepted in advance by the act of issuance. Gillespie v. Riley Management Corp., 13 Ill. App.3d 988, 991, 301 N.E.2d 506, 508 (2d Dist. 1973), aff'd and remanded, 59 Ill.2d 211, 319 N.E.2d 753 (1974). When a purchaser has paid the consideration and the bank has transferred the cashier's check to the purchaser, for delivery to the payee, the contract between the bank and purchaser has become executed, a debtor-creditor relationship takes place and, by definition, the check issues.
This appeal pertains only to count VI. The trial court dismissed the plaintiff's complaint, and she appealed to the appellate court, which reversed the trial court. The defendant National City Bank in Chicago appealed from the judgment of the appellate court ( 13 Ill. App.3d 988) holding that a cashier's check, purchased by a corporation and made payable to it and a third party, may not be returned by the purchaser to the issuing bank for credit without the endorsement of the two payees. We allowed petition for leave to appeal.
First Fed argues that a drawer's delivery of checks to a copayee is not negligence.Gillespie v. Riley Mngm't Corp., 13 Ill. App.3d 988, 992, 301 N.E.2d 506, 509 (1973); Muzzy v. Rockingham County Trust Co., 113 N.H. 520, 524, 309 A.2d 893, 895 (1973). First National's vice president in charge of home improvement loans, along with a vice president in charge of home improvement loans of another Kenosha bank, testified that the delivery of payment checks to the contractor, without any notice to the customer, is not good banking practice and is commercially unreasonable.