Tennessee Code 47-4-109 – Delays

(a) Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specific item drawn on a payor other than a bank, and with or without the approval of any person involved, may waive, modify, or extend time limits imposed or permitted by chapters 1-9 of this title for a period not exceeding two (2) additional banking days without discharge of drawers or endorsers or liability to its transferor or a prior party.

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Terms Used In Tennessee Code 47-4-109

Item: means an instrument or a promise or order to pay money handled by a bank for collection or payment. See Tennessee Code 47-4-104
Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105

(b) Delay by a collecting bank or payor bank beyond time limits prescribed or permitted by chapters 1-9 of this title or by instructions is excused if (i) the delay is caused by interruption of communication or computer facilities, suspension of payments by another bank, war, emergency conditions, failure of equipment, or other circumstances beyond the control of the bank, and (ii) the bank exercises such diligence as the circumstances require.

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Tennessee Code 47-4-109 – Delays

Terms Used In Tennessee Code 47-4-109

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