Tenn. Code Ann. » Tenn. Code / Title 35 / Chapter 2
Tennessee Code Annotated

Tenn. Code Ann. § 35-2-107 (2026)

Deposit in name of fiduciary as such - Drawing check

✓ current as of May 2026
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If a deposit is made in a bank or savings institution to the credit of a fiduciary as such, the bank or savings institution is authorized to pay the amount of the deposit or any part thereof upon the check of the fiduciary, signed with the name in which such deposit is entered, without being liable to the principal, unless the bank or savings institution pays the check with actual knowledge that the fiduciary is committing a breach of the fiduciary's obligation as fiduciary in drawing the check or with knowledge of such facts that its action in paying the check amounts to bad faith. If, however, such a check is payable to the drawee bank or savings institution and is delivered to it in payment of or as security for a personal debt of the fiduciary to it, the bank or savings institution is liable to the principal if the fiduciary in fact commits a breach of the obligation as fiduciary in drawing or delivering the check except as provided in § 35-2-106.

Acts 1953, ch. 82, § 7 (Williams, § 9596.24); T.C.A. (orig. ed.), § 35-208; Acts 1985, ch. 167, § 2.

Notes of Decisions
Cited in 3 cases, 2012–2020 · leading case: Notredan, LLC v. Old Repub. Exch. Facilitator Co., 875 F. Supp. 2d 780 (W.D. Tenn. 2012).
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Notredan, LLC v. Old Repub. Exch. Facilitator Co., 875 F. Supp. 2d 780 (W.D. Tenn. 2012). · cites it 2× “The Tennessee Uniform Fiduciaries Act, Tenn.Code Ann. §§ 35-2-107 et seq., ("the UFA”) "shields depositary banks from liability arising from the actions of a fiduciary depositor, unless the bank acts with ‘actual knowledge’ of a breach or 'knowledge of such facts that its action…”
EFS, Inc. v. Regions Bank (McLemore), 682 F.3d 414 (6th Cir. 2012). “” Tenn. Code Ann. §§ 35-2-107 , -109; see C-Wood Lumber Co.”
John R. Fuller v. Cmty. Nat'l Bank (2020). · cites it 5× “The court held that the undisputed material facts established that plaintiff could demonstrate neither of these elements.”
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