Yeiser v. Bank of Adamsville

OPINION

FONES, Justice.

This case involves a UCC issue of first impression in Tennessee, to wit, whether a payor bank that fails to “wire advice” of non-payment of checks of twenty-five hundred dollars or more as required by Federal Reserve Operating Letter is “accountable” for the face amount of the checks, although the checks are “returned” as contemplated by T.C.A. § 47-4-301 before its “midnight deadline.”

Plaintiff, Yeiser’s company, was engaged in business as the Lion Oil Distributor in Hardin, Wayne, McNairy, and Henderson Counties with headquarters in Savannah, Tennessee. R. L. Helton…