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Bank refuses to accept "bank of Jersey" bank note ?

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Posted 31st Mar 2015
The daughters gran was in Jersey last year & she forgot she had money left over.
She gave my oldest daughter a £10 Jersey bank note last week that has the queens head on it,but because it does not say Sterling,the bank said they can't accept it.
The bank in question was TSB.

Is this correct & can't only be spent in Jersey ?
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