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Can you summarize TNCO 47-4-404?
Relationship Between Payor Bank and Its Customer > Bank not obliged to pay check more than six months old.
Short Summary
According to the Tennessee Code, a bank is not obligated to pay a check presented by a customer more than six months after its date, except for certified checks. However, the bank may charge the customer’s account for a payment made in good faith after the six-month period. This provision is in line with banking and commercial practice, as checks outstanding for longer than six months are considered stale. The section does not apply to certified checks, as they are the primary obligation of the certifying bank. The customer’s account is typically charged when the check is certified.
Whom does it apply to?
Customers with checking accounts
What does it govern?
Bank Deposits and Collections
What are exemptions?
Certified checks
What are the Penalties?
No penalties mentioned
Jurisdiction
Tennessee