Banks Doing Business In Illinois Beware!

Law360, New York (February 22, 2007, 12:00 AM EST) -- What are the implications for a branch bank, or the main office of a bank having multiple branches, when a court seizes (e.g., via a restraining order, garnishment, or attachment) a bank depositor’s funds on deposit in another branch?

The answer has historically hinged on the relationship between a bank and its branches and is governed by the Separate Entity Rule.

That may not be the case, however, if the branch bank served with a seizure writ or similar devise is in Illinois. Illinois is “a...
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