(a) For the purpose of allowing time to process items, prove balances, and make the necessary entries on its books to determine its position for the day, a bank may fix an afternoon hour of two o’clock (2:00) p.m. or later as a cutoff hour for the handling of money and items and the making of entries on its books.

Terms Used In Tennessee Code 47-4-108

  • Afternoon: means the period of a day between twelve o'clock noon (12:00 noon) and twelve o'clock midnight (12:00 midnight). See Tennessee Code 47-4-104
  • Banking day: means the part of a day on which a bank is open to the public for carrying on substantially all of its banking functions, except that any day that is not a banking day for purposes of federal reserve regulations, Regulation CC (12 C. See Tennessee Code 47-4-104
  • Item: means an instrument or a promise or order to pay money handled by a bank for collection or payment. See Tennessee Code 47-4-104
(b) An item or deposit of money received on any day after a cutoff hour so fixed or after the close of the banking day may be treated as being received at the opening of the next banking day.
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