Peoria Savings & Loan Ass'n v. Jefferson Trust & Savings Bank

The defendant, Jefferson Trust and Savings Bank of Peoria (Jefferson), appeals a judgment entered in the circuit court of Peoria County for the plaintiff, Peoria Savings and Loan Association (Peoria Savings). The appellate court affirmed the judgment and we granted leave to appeal. Broadly stated, the issue is whether Jefferson became a holder in due course of a $70,000 check drawn by Peoria Savings under section 3 — 303(b) of the Uniform Commercial Code (Ill. Rev. Stat. 1975, ch. 26, par. 3 — 303(b)) (taking an instrument in payment of an antecedent claim).

On January 30, 1975, Owen D.…