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FIRST NAT. BANK IN HARVEY v. COLONIAL BANK

No. 92 C 1679.

831 F.Supp. 637 (1993)

FIRST NATIONAL BANK IN HARVEY, Plaintiff, v. COLONIAL BANK and Federal Reserve Bank, Defendants.

United States District Court, N.D. Illinois, E.D.

August 30, 1993.

Attorney(s) appearing for the Case

Martin W. Salzman, Freeborn & Peters, Eric S. Rein, Bret Andrew Rappaport, Schwartz, Cooper, Kolb & Gaynor, Chtd., Chicago, IL, for plaintiff.

Mitchell S. Goldgehn, Nathan H. Lichtenstein, Andrew Scott Williams, Aronberg, Goldgehn, Davis & Garmisa, Chicago, IL, for Colonial Bank.

Mitchell S. Goldgehn, Nathan H. Lichtenstein, Andrew Scott Williams, Aronberg, Goldgehn, Davis & Garmisa, Elizabeth Ann Knospe, Anna M. Voytovich, Federal Reserve Bank Of Chicago, Chicago, IL, for Federal Reserve Bank.

MEMORANDUM OPINION

GRADY, District Judge.

This diversity action is before the court on plaintiff's motion for summary judgment on Count V of the complaint. As explained below, the court denies the motion.

BACKGROUND

On February 10, 1992, First National Bank in Harvey ("First National") received for deposit to the checking account of Shelly International Marketing, Inc. ("Shelly") thirteen checks drawn on the account of World...

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