Tennessee Code Annotated
Tenn. Code Ann. § 47-4-211 (2026)
When bank gives value for purposes of holder in due course
✓ current as of May 2026
For purposes of determining its status as a holder in due course, a bank has given value to the extent it has a security interest in an item, if the bank otherwise complies with the requirements of § 47-3-302 on what constitutes a holder in due course.
Acts 1963, ch. 81, § 1 (4-209); T.C.A. § 47-4-209; Acts 1995, ch. 397, § 3.
Notes of Decisions
Cited in 3
cases, 1973–1997 · leading case: McConnico v. Third Nat'l Bank in Nashville, 499 S.W.2d 874 (Tenn. 1973).
McConnico v. Third Nat'l Bank in Nashville, 499 S.W.2d 874 (Tenn. 1973). “When a bank receives a final settlement for an item as described by T.C.A. §§ 47-4-211(3), 4-213(2), the credit which it gave to its customer for the item becomes final.”
Brown v. Fed. Sav. Bank (In Re Brown), 209 B.R. 874 (Bankr. W.D. Tenn. 1997). “In contrast, here the two defendant banks were unaware of the debtor’s kiting activity until the end of that scheme, when the debtor was confronted by his employer bank, FSB, with the evidence of the scheme.”
Smallman v. Home Fed. Sav. Bank of Tennessee, 786 S.W.2d 954 (Tenn. Ct. App. 1989). “These rights to revoke, charge-back and obtain refund terminate if and when a settlement for the item received by the bank is or becomes final (subsection (3) of § 47-4-211 and subsections (2) and (3) of § 47-4-213).”
— Tenn. Code Ann. § 47-4-211(3) — 1 case
McConnico v. Third Nat'l Bank in Nashville, 499 S.W.2d 874 (Tenn. 1973). “When a bank receives a final settlement for an item as described by T.C.A. §§ 47-4-211(3), 4-213(2), the credit which it gave to its customer for the item becomes final.”
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