Tennessee Code Annotated
Tenn. Code Ann. § 47-4-303 (2026)
When items subject to notice, stop-payment order, legal process, or setoff - Order in which items may be charged or certified
✓ current as of May 2026
- (a) Any knowledge, notice, or stop-payment order received by, legal process served upon, or setoff exercised by a payor bank comes too late to terminate, suspend, or modify the bank's right or duty to pay an item or to charge its customer's account for the item if the knowledge, notice, stop-payment order, or legal process is received or served and a reasonable time for the bank to act thereon expires or the setoff is exercised after the earliest of the following:
- (1) the bank accepts or certifies the item;
- (2) the bank pays the item in cash;
- (3) the bank settles for the item without having a right to revoke the settlement under statute, clearing-house rule, or agreement;
- (4) the bank becomes accountable for the amount of the item under § 47-4-302 dealing with the payor bank's responsibility for late return of items; or
- (5) with respect to checks, a cutoff hour no earlier than one hour after the opening of the next banking day after the banking day on which the bank received the check and no later than the close of that next banking day or, if no cutoff hour is fixed, the close of the next banking day after the banking day on which the bank received the check.
- (b) Subject to subsection (a), items may be accepted, paid, certified, or charged to the indicated account of its customer in any order.
Acts 1963, ch. 81, § 1 (4-303); 1995, ch. 397, § 3.
Notes of Decisions
Cited in 5
cases, 1985–2008 · leading case: Smith v. First Union Nat'l Bank of Tennessee, 958 S.W.2d 113 (Tenn. Ct. App. 1997).
Smith v. First Union Nat'l Bank of Tennessee, 958 S.W.2d 113 (Tenn. Ct. App. 1997). “The term does not include a payment order governed by chapter 4A of this title or a credit or debit card slip; 5 * * * * We find the terms “convenient to the bank” as used in T.C.A. § 47-4-303 to be clear and unambiguous and inures to the benefit of the bank.”
Union Exp. Co. v. N.I.B. Intermarket, A.B., 786 S.W.2d 628 (Tenn. 1990). “First American appeals this decision, arguing that the injunction is inappropriate regardless of whether or not Skanska is a holder in due course because the injunction was issued after First American accepted *631 the time draft, and thus was untimely under Tenn.Code Ann. §…”
White v. Wachovia Bank, N.A., 563 F. Supp. 2d 1358 (N.D. Ga. 2008). “at 115 (citing T.C.A. § 47-4-303(b) (1994) (internal quotations omitted)).”
Stringfellow v. First Am. Nat'l Bank, 878 S.W.2d 940 (Tenn. 1994). “provision codified at Tenn.Code Ann. § 47-4-303(l)(a), which basically provides that a stop payment order comes too late if received after the bank has accepted or certified an item.”
Davis v. Am. Express Co. (In Re Wilson), 56 B.R. 74 (Bankr. E.D. Tenn. 1985). “Since a check is not an assignment of a customer’s funds but merely represents the customer’s order upon the bank to pay a specified sum to the order of a certain person, a number of events between issuance and presentment might interfere with the normal payment procedure. These…”
— Tenn. Code Ann. § 47-4-303(1) — 1 case
Union Exp. Co. v. N.I.B. Intermarket, A.B., 786 S.W.2d 628 (Tenn. 1990). “First American appeals this decision, arguing that the injunction is inappropriate regardless of whether or not Skanska is a holder in due course because the injunction was issued after First American accepted *631 the time draft, and thus was untimely under Tenn.Code Ann. §…”
— Tenn. Code Ann. § 47-4-303(2) — 1 case
Smith v. First Union Nat'l Bank of Tennessee, 958 S.W.2d 113 (Tenn. Ct. App. 1997). “The term does not include a payment order governed by chapter 4A of this title or a credit or debit card slip; 5 * * * * We find the terms “convenient to the bank” as used in T.C.A. § 47-4-303 to be clear and unambiguous and inures to the benefit of the bank.”
— Tenn. Code Ann. § 47-4-303(b) — 2 cases
Smith v. First Union Nat'l Bank of Tennessee, 958 S.W.2d 113 (Tenn. Ct. App. 1997). “The term does not include a payment order governed by chapter 4A of this title or a credit or debit card slip; 5 * * * * We find the terms “convenient to the bank” as used in T.C.A. § 47-4-303 to be clear and unambiguous and inures to the benefit of the bank.”
White v. Wachovia Bank, N.A., 563 F. Supp. 2d 1358 (N.D. Ga. 2008). “at 115 (citing T.C.A. § 47-4-303(b) (1994) (internal quotations omitted)).”
— Tenn. Code Ann. § 47-4-303(l)(a) — 1 case
Stringfellow v. First Am. Nat'l Bank, 878 S.W.2d 940 (Tenn. 1994). “provision codified at Tenn.Code Ann. § 47-4-303(l)(a), which basically provides that a stop payment order comes too late if received after the bank has accepted or certified an item.”
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