Tenn. Code Ann. § 47-9-327

Priority of security interests in deposit account

Known as the Uniform Commercial Code

The act spans §§ 47–47 (578 sections).

Applied in 1 court decision — leading case 903 F. Supp. 2d 568 - American Bank, FSB v. Cornerstone Community Bank (2012)

Most recently applied in 903 F. Supp. 2d 568 - American Bank, FSB v. Cornerstone Community Bank (October 2012)

Acts 2000, ch. 846, § 1.

The following rules govern priority among conflicting security interests in the same deposit account:

(1) A security interest held by a secured party having control of the deposit account under § 47-9-104 has priority over a conflicting security interest held by a secured party that does not have control.

(2) Except as otherwise provided in paragraphs (3) and (4), security interests perfected by control under § 47-9-314 rank according to priority in time of obtaining control.

(3) Except as otherwise provided in paragraph (4), a security interest held by the bank with which the deposit account is maintained has priority over a conflicting security interest held by another secured party.

(4) A security interest perfected by control under § 47-9-104(a)(3) has priority over a security interest held by the bank with which the deposit account is maintained.

Current official text: Tennessee Code (LexisNexis). Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Tennessee statutes; confirm against the official source for the current text. Not legal advice.