In Illinois, if a customer is currently overdrawn, but brings in a check made payable to them from another customer (with available funds), can we require that he/she deposit the check and bring account current before cashing? Since the funds are available in the drawers account, I'm not sure if we are allowed to refuse.

I suppose in other words, does IL law allow a bank to consider a lien on client's property in its possession to cover a debt owed by the client to the bank? Does it allow for this type of Banker's lien or setoff?

Please advise.