Merrill Lynch, Pierce, Fenner and Smith, Inc. v. Devon Bank, an Illinois Banking Corporation

EASTERBROOK, Circuit Judge.

Manus, Inc., gave the Los Angeles office of Merrill Lynch, Pierce, Fenner & Smith, Inc., a check for $647,250 payable to Merrill Lynch’s order. The check was drawn on Devon Bank in Chicago. Merrill Lynch immediately deposited the check with Crocker National Bank in Los Angeles; a clearing house presented the check to Devon for payment at 9:30 a.m. on Wednesday, August 1, 1979. The clearing house and Devon provisionally settled for the check immediately. Under § 4-301(1) of the Uniform Commercial Code, Devon had to decide no later than midnight of the next banking…