Tennessee Code 47-4-501 – Handling of documentary drafts; duty to send for presentment and to notify customer of dishonor
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Terms Used In Tennessee Code 47-4-501
- Customer: means a person having an account with a bank or for whom a bank has agreed to collect items, including a bank that maintains an account at another bank. See Tennessee Code 47-4-104
- Documentary draft: means a draft to be presented for acceptance or payment if specified documents, certificated securities (§. See Tennessee Code 47-4-104
- Draft: means a draft as defined in §. See Tennessee Code 47-4-104
A bank that takes a documentary draft for collection shall present or send the draft and accompanying documents for presentment and, upon learning that the draft has not been paid or accepted in due course, shall seasonably notify its customer of the fact even though it may have discounted or bought the draft or extended credit available for withdrawal as of right.