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Can you summarize 47 TNCO Chapter 4?
Commercial Instruments And Transactions > Bank Deposits and Collections
Short Summary
The Uniform Commercial Code Bank Deposits and Collections governs the rules and regulations related to bank deposits and collections in Tennessee. It aims to provide a uniform statement of the principal rules of the bank collection process, ensuring uniformity in the law of bank collections. The document promotes the efficiency of the check collection process, particularly through the use of automated systems and electronic transmission of check information. It defines the rights between parties with respect to bank deposits and collections, creating a legal framework that accommodates automation and truncation for the benefit of all bank customers. The document does not regulate the terms of the bank-customer agreement or prescribe constraints on the relationship between banks and customers. It establishes the rules for the liability of a bank when handling items for presentment, payment, or collection, stating that the law of the place where the bank is located governs the bank’s liability. The document also addresses conflicts of laws and specifies that applicable federal law may supersede provisions of this document in relation to checks. It allows for the variation of provisions by agreement, as long as the agreement does not disclaim a bank’s responsibility for lack of good faith or failure to exercise ordinary care. The document provides definitions for various terms used in the context of bank deposits and collections in Tennessee and clarifies the meaning of terms from other chapters of the Tennessee Code. It also defines different types of banks involved in financial transactions. The document discusses the treatment of branches as separate banks for various purposes and establishes a statute of limitations for actions to enforce obligations, duties, or rights arising under this chapter. Overall, the document provides a comprehensive framework for the regulation of bank deposits and collections in Tennessee.
Whom does it apply to?
Collecting banks, owners of items, parties involved in the collection process, payor banks, customers
What does it govern?
Bank deposits and collections
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Tennessee