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Can you summarize TNCO 45-2-711?
Deposits in Banks > Payment and negotiation of check when no estate has been opened or the estate has been closed.
Short Summary
This legal provision, found in the Tennessee Code under the section for Banks and Financial Institutions, addresses the payment and negotiation of checks in situations where no estate has been opened or the estate has been closed. It states that if no executor or administrator of a decedent has qualified and given notice to the bank, or if the qualified executor or administrator has been discharged, the bank may, at its discretion, negotiate or send for collection and pay out the proceeds of checks made payable to the decedent or the decedent’s estate. This can be done after ninety (90) days from the death of the deceased, as long as the total amount does not exceed ten thousand dollars ($10,000). The bank can make the payment to the executor named in any will known to the bank, to any personal representative appointed by a court, or in the absence of knowledge of a will, to the surviving spouse or next of kin. The provision also establishes the order of priority in case of conflicting claims and provides that the bank is protected against demands or claims if it receives the acknowledgment of a guardian, administrator, executor, spouse, or next of kin. Additionally, it clarifies that the negotiation or payment of a check under this section without an endorsement or with the endorsement of an authorized person does not violate any other applicable laws. Finally, the provision states that banks are not liable for damages, penalties, or taxes resulting from payments made in accordance with this section.
Whom does it apply to?
Banks and financial institutions
What does it govern?
Payment and negotiation of checks when no estate has been opened or the estate has been closed
What are exemptions?
No exemptions are mentioned
What are the Penalties?
No penalties are mentioned
Jurisdiction
Tennessee