Mitchell Buick & Oldsmobile Sales, Inc. v. McHenry Savings Bank

Defendant, McHenry Savings Bank (McHenry), appeals the judgment of the circuit court for $10,000 in favor of plaintiff, Mitchell Buick & Oldsmobile Sales, Inc. The parties agreed to vary the terms of the Uniform Commercial Code — Bank Deposits and Collections (Ill. Rev. Stat. 1989, ch. 26, par. 4 — 101 et seq.) when McHenry agreed to hold a check for payment rather than dishonor the check immediately. The issue on appeal is whether McHenry breached that agreement by refusing to pay plaintiff’s check when the drawer deposited other checks into the account irrespective of whether the checks…