(a) If a check or other bill of exchange is drawn by a fiduciary as such or in the name of the principal by a fiduciary empowered to draw such instrument in the name of the principal, payable to the fiduciary personally, or payable to a third person and by the third person transferred to the fiduciary, and is thereafter transferred by the fiduciary, whether in payment of a personal debt of the fiduciary or otherwise, the transferee is not bound to inquire whether the fiduciary is committing a breach of the fiduciary’s obligation as fiduciary in transferring the instrument, and is not chargeable with notice that the fiduciary is committing a breach of the obligation as fiduciary unless the transferee takes the instrument with actual knowledge of such breach or with knowledge of such facts that the action in taking the instrument amounts to bad faith, except and provided that title 34, chapter 5, being the Uniform Veterans’ Guardianship Act, is not by this chapter amended.
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Terms Used In Tennessee Code 35-2-106

  • Fiduciary: A trustee, executor, or administrator.
  • Fiduciary: includes a trustee under any trust, expressed, implied, resulting or constructive, executor, administrator, personal representative, guardian, conservator, curator, receiver, trustee in bankruptcy, assignee for the benefit of creditors, partner, agent, officer of a corporation, public or private, public officer, or any other person acting in a fiduciary capacity for any person, trust or estate. See Tennessee Code 35-2-102
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Person: includes a corporation, partnership, or other association, or two (2) or more persons having a joint or common interest. See Tennessee Code 35-2-102
  • Principal: includes any person to whom a fiduciary as such owes an obligation. See Tennessee Code 35-2-102
(b) This chapter shall not apply in any situation governed by the Uniform Veterans’ Guardianship Act.
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