Tennessee § 35-2-108 - Deposit in name of principal — Drawing checks.
Full text of Tennessee Tennessee Code Annotated § 35-2-108 — Deposit in name of principal — Drawing checks., with citation guidance and answers to common questions.
§ 35-2-108. Deposit in name of principal — Drawing checks.
If a check is drawn upon the account of the principal in a bank or savings institution by a fiduciary who is empowered to draw checks upon the principal's account, the bank or savings institution is authorized to pay such check 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 such 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. Acts 1953, ch. 82, § 8 (Williams, § 9596.25); T.C.A. (orig. ed.), § 35-209; Acts 1985, ch. 167, § 2.
Source: official Tennessee text · Last verified 2026-08-27
Frequently Asked Questions About Tennessee § 35-2-108
What does Tennessee Code Annotated § 35-2-108 cover?
Section 35-2-108 ("Deposit in name of principal — Drawing checks.") is part of the Tennessee Code Annotated, the codified statutory law of Tennessee. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Tennessee § 35-2-108?
A common citation format is "Tennessee Code Annotated § 35-2-108" (Tennessee). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Tennessee law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Tennessee official source linked on this page or consult a licensed Tennessee attorney.
How does Tennessee § 35-2-108 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Tennessee can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Tennessee.