Tenn. Code Ann. § 45-19-102 — TN Code / Title 45 / Chapter 19 / Section 45-19-102
Immunity for provision of financial information
Status: in_force

(a) A "financial institution," as defined in § 45-19-101(e) , or any financial institution's contractor that may process any records pursuant to this chapter, shall be absolutely immune from any civil or criminal liability under common law or under any contract, statute or regulation for: (1) The disclosure of any information pursuant to this part, for the escrow, encumbrance, seizure or surrender of any assets held by the financial institution in response to a notice of lien or levy issued by any state child support enforcement agency or its contractors or agents, or for disclosing any records to the federal parent locator service as may be required by this part or for any action taken in good faith to comply with the requirements of this part; (2) Subject to subsection (b), any erroneous disclosure, encumbrance, seizure or surrender made in a good faith effort to comply with the requirements of this part; or (3) Subject to subsection (b), any good faith failure to effect, or good faith delay in effecting, a disclosure, encumbrance, seizure or surrender in compliance with the requirements of this part, if the failure or delay results from an error or from events beyond the control of the financial institution. (b) Subdivisions (a)(2) and (3) shall apply to erroneous acts or failures to act only if the error from which the act or failure results is an unintentional bona fide error, including, but not limited to, a clerical or computer malfunction or programming error. In the event of an erroneous act under subdivision (a)(2) or an erroneous or other failure to act under subdivision (a)(3), the financial institution shall, upon discovery thereof, exercise the diligence that the circumstances require. Acts 1997, ch. 551, § 14; 2001, ch. 447, § 13.
(a) A "financial institution," as defined in § 45-19-101(e) , or any financial institution's contractor that may process any records pursuant to this chapter, shall be absolutely immune from any civil or criminal liability under common law or under any contract, statute or regulation for: (1) The disclosure of any information pursuant to this part, for the escrow, encumbrance, seizure or surrender of any assets held by the financial institution in response to a notice of lien or levy issued by any state child support enforcement agency or its contractors or agents, or for disclosing any records to the federal parent locator service as may be required by this part or for any action taken in good faith to comply with the requirements of this part; (2) Subject to subsection (b), any erroneous disclosure, encumbrance, seizure or surrender made in a good faith effort to comply with the requirements of this part; or (3) Subject to subsection (b), any good faith failure to effect, or good faith delay in effecting, a disclosure, encumbrance, seizure or surrender in compliance with the requirements of this part, if the failure or delay results from an error or from events beyond the control of the financial institution.
(1) The disclosure of any information pursuant to this part, for the escrow, encumbrance, seizure or surrender of any assets held by the financial institution in response to a notice of lien or levy issued by any state child support enforcement agency or its contractors or agents, or for disclosing any records to the federal parent locator service as may be required by this part or for any action taken in good faith to comply with the requirements of this part;
(2) Subject to subsection (b), any erroneous disclosure, encumbrance, seizure or surrender made in a good faith effort to comply with the requirements of this part; or
(3) Subject to subsection (b), any good faith failure to effect, or good faith delay in effecting, a disclosure, encumbrance, seizure or surrender in compliance with the requirements of this part, if the failure or delay results from an error or from events beyond the control of the financial institution.
(b) Subdivisions (a)(2) and (3) shall apply to erroneous acts or failures to act only if the error from which the act or failure results is an unintentional bona fide error, including, but not limited to, a clerical or computer malfunction or programming error. In the event of an erroneous act under subdivision (a)(2) or an erroneous or other failure to act under subdivision (a)(3), the financial institution shall, upon discovery thereof, exercise the diligence that the circumstances require.
Acts 1997, ch. 551, § 14; 2001, ch. 447, § 13.
Tenn. Code Ann. § 45-17-109 — TN Code / Title 45 / Chapter 17 / Section 45-17-109
Reports to commissioner
Status: in_force

Within fifteen (15) days of the occurrence of any one (1) of the events listed in subdivisions (1)-(6), a licensee shall file a written report with the commissioner describing the event and its expected impact on the activities of the licensee in this state: (1) The filing for bankruptcy or reorganization by the licensee; (2) The institution of revocation or suspension proceedings against the licensee by any state or governmental authority; (3) The denial of the opportunity to engage in the deferred presentment services business by any state or governmental authority; (4) Any felony indictment of the licensee or any of its directors, officers or principals; (5) Any felony conviction of the licensee or any of its directors, officers or principals; and (6) Other events that the commissioner may determine and identify by rule. Acts 1997, ch. 255, § 10; 1999, ch. 14, § 1.
Within fifteen (15) days of the occurrence of any one (1) of the events listed in subdivisions (1)-(6), a licensee shall file a written report with the commissioner describing the event and its expected impact on the activities of the licensee in this state:
(1) The filing for bankruptcy or reorganization by the licensee;
(2) The institution of revocation or suspension proceedings against the licensee by any state or governmental authority;
(3) The denial of the opportunity to engage in the deferred presentment services business by any state or governmental authority;
(4) Any felony indictment of the licensee or any of its directors, officers or principals;
(5) Any felony conviction of the licensee or any of its directors, officers or principals; and
(6) Other events that the commissioner may determine and identify by rule.
Acts 1997, ch. 255, § 10; 1999, ch. 14, § 1.
Tenn. Code Ann. § 45-4-1002 — TN Code / Title 45 / Chapter 4 / Section 45-4-1002
Examinations - Examiners - Supervision fee
Status: in_force

(a) The commissioner shall either personally or by competent examiner appointed by the commissioner visit and examine every credit union subject to the commissioner's supervision at least once in each year; provided, that this provision requiring examination at least once in each year may be extended to eighteen (18) months. In making a determination, the commissioner should consider the credit union's quality of management, capitalization, internal controls and any other factors the commissioner deems relevant. In no event may a credit union's examination cycle be extended to eighteen (18) months if it did not receive a composite rating of one (1) or two (2) at its last examination. The commissioner may order examinations and shall at all times be given free access to all the books, papers, securities and other sources of information in respect to the credit union. For that purpose, the commissioner shall have the power to subpoena and examine, personally or through a deputy duly authorized, witnesses on oath and documents pertaining to the business of the credit union. The commissioner may have follow-up examinations and visitations conducted on a credit union if the commissioner believes that the examinations and visitations are necessary to protect the interests of the members of the credit union. (b) The commissioner is authorized and empowered to appoint examiners who are conversant with credit union law and correct rules and practices thereunder or made so by usage. (c) (1) The commissioner shall assess each credit union an annual supervision fee as described in this subsection (c). (2) The commissioner shall determine an annual budget for the credit union division attributable to the regulation and examination of credit unions. The budget shall be divided among the credit unions by the commissioner and shall be assessed to each credit union as a supervision fee. (3) The supervision fee assessed to each credit union shall be allocated in proportion to the total assets reported by the credit union in its June 30 Statement of Financial Condition, commonly known as the June 30 call report; provided, that: (A) The commissioner may establish minimum assessment tiers, which shall not exceed five thousand dollars ($5,000); (B) The maximum assessment shall not exceed eighty percent (80%) of the allocated amount as calculated pursuant to this subdivision (c)(3) for any credit union with an asset size greater than one billion dollars ($1,000,000,000); (C) The commissioner may annually adjust the percentage provided in subdivision (c)(3)(B) to another percentage, not exceeding eighty percent (80%), unless adjusting the percentage will result in any credit union being assessed a supervision fee higher than the previous year's supervision fee; and (D) In determining the minimum assessment tiers and the maximum assessment, the commissioner may consider: (i) The asset size of each credit union; (ii) The concentration risk on department revenue sources; (iii) The budgetary needs of the credit union division; and (iv) Other information that the commissioner considers relevant to the determination. (4) If a credit union that was a state credit union on July 1 did not file a June 30 Statement of Financial Condition, the commissioner shall determine that credit union's assets for purposes of making the assessment from other sources of information. (5) The supervision fee shall be paid into the state treasury upon notice from the commissioner, and all moneys collected by the commissioner shall be used for the administration of the department and for the department's sole use. (6) (A) The department's budget is accounted for on a fiscal year basis, July 1 through June 30. A credit union that is a state credit union on the first day of a fiscal year shall pay the full credit union supervision fee for that fiscal year. The supervision fee shall not be prorated for any reason. (B) Unless credit unions are notified otherwise by the department, the department shall send each credit union or its successor notice of the credit union's supervision fee in December of the fiscal year in which the fee is being collected. Payment shall be due within thirty (30) days of receipt of the notice. Amended by 2015 Tenn. Acts, ch. 241,s 1, eff. 4/24/2015. Acts 1923, ch. 68, § 8; Shan. Supp., § 2198a12; Code 1932, § 3840; Acts 1931, ch. 67, § 1; 1937, ch. 264, § 6; 1941, ch. 124, §§ 1-3; 1947, ch. 90, § 1; C. Supp. 1950, § 3840 (Williams, § 3840, 3840.1, 3840.2, 3840.3); Acts 1951, ch. 126, § 1; 1959, ch. 82, § 1; 1972, ch. 454, § 1; 1973, ch. 294, § 6; 1975, ch. 81, §§ 1, 2; T.C.A. (orig. ed.), § 45-1809; Acts 1980, ch. 524, §§ 1, 2; 1981, ch. 53, § 4; 1988, ch. 550, § 2; 1998, ch. 585, § 1.
(a) The commissioner shall either personally or by competent examiner appointed by the commissioner visit and examine every credit union subject to the commissioner's supervision at least once in each year; provided, that this provision requiring examination at least once in each year may be extended to eighteen (18) months. In making a determination, the commissioner should consider the credit union's quality of management, capitalization, internal controls and any other factors the commissioner deems relevant. In no event may a credit union's examination cycle be extended to eighteen (18) months if it did not receive a composite rating of one (1) or two (2) at its last examination. The commissioner may order examinations and shall at all times be given free access to all the books, papers, securities and other sources of information in respect to the credit union. For that purpose, the commissioner shall have the power to subpoena and examine, personally or through a deputy duly authorized, witnesses on oath and documents pertaining to the business of the credit union. The commissioner may have follow-up examinations and visitations conducted on a credit union if the commissioner believes that the examinations and visitations are necessary to protect the interests of the members of the credit union.
(b) The commissioner is authorized and empowered to appoint examiners who are conversant with credit union law and correct rules and practices thereunder or made so by usage.
(c) (1) The commissioner shall assess each credit union an annual supervision fee as described in this subsection (c). (2) The commissioner shall determine an annual budget for the credit union division attributable to the regulation and examination of credit unions. The budget shall be divided among the credit unions by the commissioner and shall be assessed to each credit union as a supervision fee. (3) The supervision fee assessed to each credit union shall be allocated in proportion to the total assets reported by the credit union in its June 30 Statement of Financial Condition, commonly known as the June 30 call report; provided, that: (A) The commissioner may establish minimum assessment tiers, which shall not exceed five thousand dollars ($5,000); (B) The maximum assessment shall not exceed eighty percent (80%) of the allocated amount as calculated pursuant to this subdivision (c)(3) for any credit union with an asset size greater than one billion dollars ($1,000,000,000); (C) The commissioner may annually adjust the percentage provided in subdivision (c)(3)(B) to another percentage, not exceeding eighty percent (80%), unless adjusting the percentage will result in any credit union being assessed a supervision fee higher than the previous year's supervision fee; and (D) In determining the minimum assessment tiers and the maximum assessment, the commissioner may consider: (i) The asset size of each credit union; (ii) The concentration risk on department revenue sources; (iii) The budgetary needs of the credit union division; and (iv) Other information that the commissioner considers relevant to the determination. (4) If a credit union that was a state credit union on July 1 did not file a June 30 Statement of Financial Condition, the commissioner shall determine that credit union's assets for purposes of making the assessment from other sources of information. (5) The supervision fee shall be paid into the state treasury upon notice from the commissioner, and all moneys collected by the commissioner shall be used for the administration of the department and for the department's sole use. (6) (A) The department's budget is accounted for on a fiscal year basis, July 1 through June 30. A credit union that is a state credit union on the first day of a fiscal year shall pay the full credit union supervision fee for that fiscal year. The supervision fee shall not be prorated for any reason. (B) Unless credit unions are notified otherwise by the department, the department shall send each credit union or its successor notice of the credit union's supervision fee in December of the fiscal year in which the fee is being collected. Payment shall be due within thirty (30) days of receipt of the notice.
(1) The commissioner shall assess each credit union an annual supervision fee as described in this subsection (c).
(2) The commissioner shall determine an annual budget for the credit union division attributable to the regulation and examination of credit unions. The budget shall be divided among the credit unions by the commissioner and shall be assessed to each credit union as a supervision fee.
(3) The supervision fee assessed to each credit union shall be allocated in proportion to the total assets reported by the credit union in its June 30 Statement of Financial Condition, commonly known as the June 30 call report; provided, that: (A) The commissioner may establish minimum assessment tiers, which shall not exceed five thousand dollars ($5,000); (B) The maximum assessment shall not exceed eighty percent (80%) of the allocated amount as calculated pursuant to this subdivision (c)(3) for any credit union with an asset size greater than one billion dollars ($1,000,000,000); (C) The commissioner may annually adjust the percentage provided in subdivision (c)(3)(B) to another percentage, not exceeding eighty percent (80%), unless adjusting the percentage will result in any credit union being assessed a supervision fee higher than the previous year's supervision fee; and (D) In determining the minimum assessment tiers and the maximum assessment, the commissioner may consider: (i) The asset size of each credit union; (ii) The concentration risk on department revenue sources; (iii) The budgetary needs of the credit union division; and (iv) Other information that the commissioner considers relevant to the determination.
(A) The commissioner may establish minimum assessment tiers, which shall not exceed five thousand dollars ($5,000);
(B) The maximum assessment shall not exceed eighty percent (80%) of the allocated amount as calculated pursuant to this subdivision (c)(3) for any credit union with an asset size greater than one billion dollars ($1,000,000,000);
(C) The commissioner may annually adjust the percentage provided in subdivision (c)(3)(B) to another percentage, not exceeding eighty percent (80%), unless adjusting the percentage will result in any credit union being assessed a supervision fee higher than the previous year's supervision fee; and
(D) In determining the minimum assessment tiers and the maximum assessment, the commissioner may consider: (i) The asset size of each credit union; (ii) The concentration risk on department revenue sources; (iii) The budgetary needs of the credit union division; and (iv) Other information that the commissioner considers relevant to the determination.
(i) The asset size of each credit union;
(ii) The concentration risk on department revenue sources;
(iii) The budgetary needs of the credit union division; and
(iv) Other information that the commissioner considers relevant to the determination.
(4) If a credit union that was a state credit union on July 1 did not file a June 30 Statement of Financial Condition, the commissioner shall determine that credit union's assets for purposes of making the assessment from other sources of information.
(5) The supervision fee shall be paid into the state treasury upon notice from the commissioner, and all moneys collected by the commissioner shall be used for the administration of the department and for the department's sole use.
(6) (A) The department's budget is accounted for on a fiscal year basis, July 1 through June 30. A credit union that is a state credit union on the first day of a fiscal year shall pay the full credit union supervision fee for that fiscal year. The supervision fee shall not be prorated for any reason. (B) Unless credit unions are notified otherwise by the department, the department shall send each credit union or its successor notice of the credit union's supervision fee in December of the fiscal year in which the fee is being collected. Payment shall be due within thirty (30) days of receipt of the notice.
(A) The department's budget is accounted for on a fiscal year basis, July 1 through June 30. A credit union that is a state credit union on the first day of a fiscal year shall pay the full credit union supervision fee for that fiscal year. The supervision fee shall not be prorated for any reason.
(B) Unless credit unions are notified otherwise by the department, the department shall send each credit union or its successor notice of the credit union's supervision fee in December of the fiscal year in which the fee is being collected. Payment shall be due within thirty (30) days of receipt of the notice.
Amended by 2015 Tenn. Acts, ch. 241,s 1, eff. 4/24/2015.
Acts 1923, ch. 68, § 8; Shan. Supp., § 2198a12; Code 1932, § 3840; Acts 1931, ch. 67, § 1; 1937, ch. 264, § 6; 1941, ch. 124, §§ 1-3; 1947, ch. 90, § 1; C. Supp. 1950, § 3840 (Williams, § 3840, 3840.1, 3840.2, 3840.3); Acts 1951, ch. 126, § 1; 1959, ch. 82, § 1; 1972, ch. 454, § 1; 1973, ch. 294, § 6; 1975, ch. 81, §§ 1, 2; T.C.A. (orig. ed.), § 45-1809; Acts 1980, ch. 524, §§ 1, 2; 1981, ch. 53, § 4; 1988, ch. 550, § 2; 1998, ch. 585, § 1.
Tenn. Code Ann. § 45-2-703 — TN Code / Title 45 / Chapter 2 / Section 45-2-703
Deposits in two or more names - Multiple-party deposit accounts
Status: in_force

(a) When a deposit has been made or is hereafter made, in any bank, in the names of two (2) or more persons, payable to either, or survivor, the deposit, or any part of the deposit, or any interest or dividend on the deposit, may be paid to either person, whether the others are living or not; and the receipt or acquittance of the person so paid shall be a valid and sufficient release and discharge to the bank for any payment so made. Any balance so created, including, but not limited to, any balance held by spouses, shall be subject to assignment by, or the claim of any creditor of, either depositor, as if the depositor were the sole owner of the funds; provided, that if the creditor realizes its claim by any means other than enforcement of an assignment, pledge, or the grant of a security interest made by any one (1) of the depositors, any other depositor not indebted to the creditor may, by commencing a separate action against the creditor, establish the rights that the depositor may have in the funds. (b) A bank paying a survivor in accordance with subsection (a) is not liable for any estate, inheritance or succession tax due this state. (c) As used in subsections (c)-(f), "multiple-party deposit account" means a deposit account, including a certificate of deposit, established in the names of, payable to, or in form subject to withdrawal by two (2) or more natural persons, or any of them, including, but not limited to, an account of the type described in subsection (a). (d) (1) When opening a multiple-party deposit account, or amending an existing deposit account so as to create a multiple-party deposit account, each bank shall utilize account documents that enable the depositor to designate ownership interest therein in terms substantially similar to the following: (A) Joint tenants with right of survivorship; (B) Additional authorized signatory; and (C) Other deposit designations that may be acceptable to the bank. (2) Account documents that enable the depositor to indicate the depositor's intent of the ownership interest in any multiple-party deposit account may include any of the following: (A) The signature card; (B) The deposit agreement; (C) A certificate of deposit; (D) A document confirming purchase of a certificate of deposit; or (E) Other documents provided by the bank or deposit institution that indicate the intent of the depositor. (e) Accounts described in subsection (c) shall establish the following interests: (1) A designation of joint tenants with right of survivorship, or substantially similar language, shall be conclusive evidence in any action or proceeding of the intentions of all named that title vests in the survivor; (2) The designation of a person as an additional authorized signatory, or substantially similar language, shall be conclusive evidence in any action or proceeding that the person so designated has power of attorney with respect to the account and is not an owner of the account; (3) Other designations acceptable to the bank shall establish interests in accordance with their respective provisions; (4) In the absence of any specific designation in accordance with subsection (d), property held under the title, tenancy by the entireties, carries a right of survivorship; property held under the title, joint tenancy, carries no right of survivorship unless a contrary intention is expressly stated. Any other person to whose order the accounts or certificate of deposit is subject shall be presumed to have power of attorney with respect to the account or certificate of deposit and not to be an owner of the account or certificate of deposit. The presumptions may be rebutted by clear and convincing evidence presented in the course of legal or equitable proceedings. Final judicial determinations contrary to the presumptions shall not affect a bank's earlier payment in accordance therewith, or the limitations on liability conferred by § 45-2-707(a) and (b) ; and (5) Absent a specific designation in the account documents referenced in subsection (d) that an account holds funds of a tenancy by the entirety, funds deposited into an account held by spouses in accordance with this section are not held by a tenancy by the entirety. (f) Without incurring any liability, any bank may, but shall not be required to, provide to depositors disclosures in form similar to the following: (1) Joint tenants with right of survivorship. This designation means that the deposit account or certificate of deposit shall become the property of each owner as joint tenants, and that the survivor is entitled to all moneys in the account or represented by the certificate even if the first person to die had a will specifically directing disposition to someone else. The bank may release all moneys in the account or represented by the certificate to, or honor checks or orders drawn by, or withdrawal requests from, the survivor upon the death of any joint tenant; and (2) Additional authorized signatory. This designation means that the person named as additional authorized signatory shall have authority during the lifetime of one (1) or more owners to withdraw moneys from the deposit account or represented by the certificate of deposit. Moneys remaining in the account or represented by the instrument upon the owner's death shall become part of the deceased owner's estate, subject to the deceased person's will or applicable law if the deceased person left no will. The bank may release all moneys in the account or represented by the certificate to, or honor checks or orders drawn by, or withdrawal requests from, the authorized signatory until notified of revocation of the authority. (g) Without incurring any liability, any bank may, but is not required to, remove a joint owner on a multiple-party deposit where two (2) or more persons are joint tenants with right of survivorship upon the written request of another person designated as a joint owner of the account. (h) Subsections (c)-(g) do not apply to any accounts in existence prior to January 1, 1989. Amended by 2020 Tenn. Acts, ch. 605, Secs.s7, s8 eff. 3/20/2020. Amended by 2014 Tenn. Acts, ch. 597, s 1, eff. 3/28/2014. Acts 1969, ch. 36, § 1 (3.204); T.C.A., § 45-407; Acts 1983, ch. 110, § 1; 1988, ch. 926, §§ 1, 2.
(a) When a deposit has been made or is hereafter made, in any bank, in the names of two (2) or more persons, payable to either, or survivor, the deposit, or any part of the deposit, or any interest or dividend on the deposit, may be paid to either person, whether the others are living or not; and the receipt or acquittance of the person so paid shall be a valid and sufficient release and discharge to the bank for any payment so made. Any balance so created, including, but not limited to, any balance held by spouses, shall be subject to assignment by, or the claim of any creditor of, either depositor, as if the depositor were the sole owner of the funds; provided, that if the creditor realizes its claim by any means other than enforcement of an assignment, pledge, or the grant of a security interest made by any one (1) of the depositors, any other depositor not indebted to the creditor may, by commencing a separate action against the creditor, establish the rights that the depositor may have in the funds.
(b) A bank paying a survivor in accordance with subsection (a) is not liable for any estate, inheritance or succession tax due this state.
(c) As used in subsections (c)-(f), "multiple-party deposit account" means a deposit account, including a certificate of deposit, established in the names of, payable to, or in form subject to withdrawal by two (2) or more natural persons, or any of them, including, but not limited to, an account of the type described in subsection (a).
(d) (1) When opening a multiple-party deposit account, or amending an existing deposit account so as to create a multiple-party deposit account, each bank shall utilize account documents that enable the depositor to designate ownership interest therein in terms substantially similar to the following: (A) Joint tenants with right of survivorship; (B) Additional authorized signatory; and (C) Other deposit designations that may be acceptable to the bank. (2) Account documents that enable the depositor to indicate the depositor's intent of the ownership interest in any multiple-party deposit account may include any of the following: (A) The signature card; (B) The deposit agreement; (C) A certificate of deposit; (D) A document confirming purchase of a certificate of deposit; or (E) Other documents provided by the bank or deposit institution that indicate the intent of the depositor.
(1) When opening a multiple-party deposit account, or amending an existing deposit account so as to create a multiple-party deposit account, each bank shall utilize account documents that enable the depositor to designate ownership interest therein in terms substantially similar to the following: (A) Joint tenants with right of survivorship; (B) Additional authorized signatory; and (C) Other deposit designations that may be acceptable to the bank.
(A) Joint tenants with right of survivorship;
(B) Additional authorized signatory; and
(C) Other deposit designations that may be acceptable to the bank.
(2) Account documents that enable the depositor to indicate the depositor's intent of the ownership interest in any multiple-party deposit account may include any of the following: (A) The signature card; (B) The deposit agreement; (C) A certificate of deposit; (D) A document confirming purchase of a certificate of deposit; or (E) Other documents provided by the bank or deposit institution that indicate the intent of the depositor.
(A) The signature card;
(B) The deposit agreement;
(C) A certificate of deposit;
(D) A document confirming purchase of a certificate of deposit; or
(E) Other documents provided by the bank or deposit institution that indicate the intent of the depositor.
(e) Accounts described in subsection (c) shall establish the following interests: (1) A designation of joint tenants with right of survivorship, or substantially similar language, shall be conclusive evidence in any action or proceeding of the intentions of all named that title vests in the survivor; (2) The designation of a person as an additional authorized signatory, or substantially similar language, shall be conclusive evidence in any action or proceeding that the person so designated has power of attorney with respect to the account and is not an owner of the account; (3) Other designations acceptable to the bank shall establish interests in accordance with their respective provisions; (4) In the absence of any specific designation in accordance with subsection (d), property held under the title, tenancy by the entireties, carries a right of survivorship; property held under the title, joint tenancy, carries no right of survivorship unless a contrary intention is expressly stated. Any other person to whose order the accounts or certificate of deposit is subject shall be presumed to have power of attorney with respect to the account or certificate of deposit and not to be an owner of the account or certificate of deposit. The presumptions may be rebutted by clear and convincing evidence presented in the course of legal or equitable proceedings. Final judicial determinations contrary to the presumptions shall not affect a bank's earlier payment in accordance therewith, or the limitations on liability conferred by § 45-2-707(a) and (b) ; and (5) Absent a specific designation in the account documents referenced in subsection (d) that an account holds funds of a tenancy by the entirety, funds deposited into an account held by spouses in accordance with this section are not held by a tenancy by the entirety.
(1) A designation of joint tenants with right of survivorship, or substantially similar language, shall be conclusive evidence in any action or proceeding of the intentions of all named that title vests in the survivor;
(2) The designation of a person as an additional authorized signatory, or substantially similar language, shall be conclusive evidence in any action or proceeding that the person so designated has power of attorney with respect to the account and is not an owner of the account;
(3) Other designations acceptable to the bank shall establish interests in accordance with their respective provisions;
(4) In the absence of any specific designation in accordance with subsection (d), property held under the title, tenancy by the entireties, carries a right of survivorship; property held under the title, joint tenancy, carries no right of survivorship unless a contrary intention is expressly stated. Any other person to whose order the accounts or certificate of deposit is subject shall be presumed to have power of attorney with respect to the account or certificate of deposit and not to be an owner of the account or certificate of deposit. The presumptions may be rebutted by clear and convincing evidence presented in the course of legal or equitable proceedings. Final judicial determinations contrary to the presumptions shall not affect a bank's earlier payment in accordance therewith, or the limitations on liability conferred by § 45-2-707(a) and (b) ; and
(5) Absent a specific designation in the account documents referenced in subsection (d) that an account holds funds of a tenancy by the entirety, funds deposited into an account held by spouses in accordance with this section are not held by a tenancy by the entirety.
(f) Without incurring any liability, any bank may, but shall not be required to, provide to depositors disclosures in form similar to the following: (1) Joint tenants with right of survivorship. This designation means that the deposit account or certificate of deposit shall become the property of each owner as joint tenants, and that the survivor is entitled to all moneys in the account or represented by the certificate even if the first person to die had a will specifically directing disposition to someone else. The bank may release all moneys in the account or represented by the certificate to, or honor checks or orders drawn by, or withdrawal requests from, the survivor upon the death of any joint tenant; and (2) Additional authorized signatory. This designation means that the person named as additional authorized signatory shall have authority during the lifetime of one (1) or more owners to withdraw moneys from the deposit account or represented by the certificate of deposit. Moneys remaining in the account or represented by the instrument upon the owner's death shall become part of the deceased owner's estate, subject to the deceased person's will or applicable law if the deceased person left no will. The bank may release all moneys in the account or represented by the certificate to, or honor checks or orders drawn by, or withdrawal requests from, the authorized signatory until notified of revocation of the authority.
(1) Joint tenants with right of survivorship. This designation means that the deposit account or certificate of deposit shall become the property of each owner as joint tenants, and that the survivor is entitled to all moneys in the account or represented by the certificate even if the first person to die had a will specifically directing disposition to someone else. The bank may release all moneys in the account or represented by the certificate to, or honor checks or orders drawn by, or withdrawal requests from, the survivor upon the death of any joint tenant; and
(2) Additional authorized signatory. This designation means that the person named as additional authorized signatory shall have authority during the lifetime of one (1) or more owners to withdraw moneys from the deposit account or represented by the certificate of deposit. Moneys remaining in the account or represented by the instrument upon the owner's death shall become part of the deceased owner's estate, subject to the deceased person's will or applicable law if the deceased person left no will. The bank may release all moneys in the account or represented by the certificate to, or honor checks or orders drawn by, or withdrawal requests from, the authorized signatory until notified of revocation of the authority.
(g) Without incurring any liability, any bank may, but is not required to, remove a joint owner on a multiple-party deposit where two (2) or more persons are joint tenants with right of survivorship upon the written request of another person designated as a joint owner of the account.
(h) Subsections (c)-(g) do not apply to any accounts in existence prior to January 1, 1989.
Amended by 2020 Tenn. Acts, ch. 605, Secs.s7, s8 eff. 3/20/2020.
Amended by 2014 Tenn. Acts, ch. 597, s 1, eff. 3/28/2014.
Acts 1969, ch. 36, § 1 (3.204); T.C.A., § 45-407; Acts 1983, ch. 110, § 1; 1988, ch. 926, §§ 1, 2.
Tenn. Code Ann. § 45-10-112 — TN Code / Title 45 / Chapter 10 / Section 45-10-112
Opening of sealed envelope
Status: in_force

Unless the sealed envelope or wrapper is returned to a witness who is to appear personally, the copy of the records shall remain sealed and shall be opened only at the time of trial, deposition, or other hearing, upon the direction of the judge, court, officer, body, tribunal or other issuer conducting the proceeding, in the presence of all parties who have appeared in person or by counsel at the trial, deposition, hearing or other proceeding. Acts 1983, ch. 224, § 12.
Unless the sealed envelope or wrapper is returned to a witness who is to appear personally, the copy of the records shall remain sealed and shall be opened only at the time of trial, deposition, or other hearing, upon the direction of the judge, court, officer, body, tribunal or other issuer conducting the proceeding, in the presence of all parties who have appeared in person or by counsel at the trial, deposition, hearing or other proceeding.
Acts 1983, ch. 224, § 12.
Tenn. Code Ann. § 45-12-124 — TN Code / Title 45 / Chapter 12 / Section 45-12-124
Reserved
Status: repealed

Repealed by 2015 Tenn. Acts, ch. 438,s 2, eff. 5/18/2015. Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
Repealed by 2015 Tenn. Acts, ch. 438,s 2, eff. 5/18/2015.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
Tenn. Code Ann. § 45-3-113 — TN Code / Title 45 / Chapter 3 / Section 45-3-113
Mutual associations - Expense fund requirements
Status: in_force

(a) The incorporators of a mutual association, in addition to their subscriptions to deposit accounts, shall create an expense fund in an amount not less than fifty percent (50%) of the minimum capital required by this chapter for the association to commence business. (b) Any organization and operating expenses may be paid from the fund until such time as the net income of the association is sufficient to pay the interest that is declared and paid or credited to deposit account holders from sources available for the payment of interest. Acts 1978, ch. 708, § 1.13; T.C.A., § 45-1313.
(a) The incorporators of a mutual association, in addition to their subscriptions to deposit accounts, shall create an expense fund in an amount not less than fifty percent (50%) of the minimum capital required by this chapter for the association to commence business.
(b) Any organization and operating expenses may be paid from the fund until such time as the net income of the association is sufficient to pay the interest that is declared and paid or credited to deposit account holders from sources available for the payment of interest.
Acts 1978, ch. 708, § 1.13; T.C.A., § 45-1313.
Tenn. Code Ann. § 45-2-204 — TN Code / Title 45 / Chapter 2 / Section 45-2-204
Application for charter - Acceptance, nonacceptance and filing of application - Notice to other banks - Formation of interim bank
Status: in_force

(a) After the incorporators have received notification from the commissioner that the notice of intention and other accompanying documents are approved as to form, the incorporators or, after the charter has been filed, the corporation seeking authority to conduct banking business in Tennessee, may file an application and request for charter, if not previously requested, with the commissioner. The incorporators shall submit the following, if not previously filed with the commissioner: (1) The information required by the commissioner in § 45-2-202(b) ; (2) The application fee required by the commissioner; (3) Proposed bylaws in the form the commissioner prescribes; and (4) An application in the form and containing the information the commissioner requires, including the following: (A) The name, residence and occupation of each subscriber from whom subscriptions have been accepted as of the date the application is filed, and the number of shares for which each subscriber has subscribed, which list shall be updated not less than every thirty (30) business days to add all additional subscribers and any amendments to any information previously filed; (B) The past and present connection with any bank, other than as a customer on terms generally available to the public, of each director and each subscriber to more than ten percent (10%) of the capital stock, updated as necessary to identify subscribers not previously identified in the application; and (C) The address at which it is proposed that the state bank do business, or, if the address is not known, the area within the community in which it is proposed that the business be located. (b) (1) If the application, the proposed charter or any other accompanying documents do not comply with the requirements of this chapter and chapter 1 of this title, the commissioner shall, within twenty (20) business days after the receipt thereof, either: (A) Return them to the incorporators, calling attention to the defect or defects therein; or (B) Notify the incorporators of the rejection of the application, calling attention to the defect or defects therein. (2) If the application, proposed charter and accompanying documents, if any, are not so returned or rejected by the commissioner within twenty (20) business days of the receipt thereof, they shall be deemed to have been filed with the commissioner. (c) Should the application be rejected or should a certificate of authority not be granted, the commissioner shall give appropriate notice to the secretary of state. The incorporators shall either: (1) Return the original charter to the commissioner and take the steps that are necessary to dissolve the proposed state bank as a corporate entity as provided in the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27; provided, that all subscription proceeds, except those proceeds made by incorporators to establish an organizational expense fund as provided in § 45-2-203 , shall be returned to all subscribers in accordance with the subscription agreement; or (2) Amend the original charter to rename the corporate entity and revise any other provisions as determined by the commissioner as provided in the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27. (d) The commissioner may also require publication of the notice. (e) Notwithstanding this chapter and chapter 1 of this title to the contrary, the commissioner may prescribe by rule or regulation the application procedure for the formation of an interim bank to facilitate an interim bank merger, as defined in § 45-2-1402 . Acts 1969, ch. 36, § 1 (3.307); 1973, ch. 294, § 6; 1977, ch. 36, § 1; T.C.A., § 45-204; Acts 1983, ch. 74, § 4; 1996, ch. 768, § 8; 2006, ch. 660, § 1.
(a) After the incorporators have received notification from the commissioner that the notice of intention and other accompanying documents are approved as to form, the incorporators or, after the charter has been filed, the corporation seeking authority to conduct banking business in Tennessee, may file an application and request for charter, if not previously requested, with the commissioner. The incorporators shall submit the following, if not previously filed with the commissioner: (1) The information required by the commissioner in § 45-2-202(b) ; (2) The application fee required by the commissioner; (3) Proposed bylaws in the form the commissioner prescribes; and (4) An application in the form and containing the information the commissioner requires, including the following: (A) The name, residence and occupation of each subscriber from whom subscriptions have been accepted as of the date the application is filed, and the number of shares for which each subscriber has subscribed, which list shall be updated not less than every thirty (30) business days to add all additional subscribers and any amendments to any information previously filed; (B) The past and present connection with any bank, other than as a customer on terms generally available to the public, of each director and each subscriber to more than ten percent (10%) of the capital stock, updated as necessary to identify subscribers not previously identified in the application; and (C) The address at which it is proposed that the state bank do business, or, if the address is not known, the area within the community in which it is proposed that the business be located.
(1) The information required by the commissioner in § 45-2-202(b) ;
(2) The application fee required by the commissioner;
(3) Proposed bylaws in the form the commissioner prescribes; and
(4) An application in the form and containing the information the commissioner requires, including the following: (A) The name, residence and occupation of each subscriber from whom subscriptions have been accepted as of the date the application is filed, and the number of shares for which each subscriber has subscribed, which list shall be updated not less than every thirty (30) business days to add all additional subscribers and any amendments to any information previously filed; (B) The past and present connection with any bank, other than as a customer on terms generally available to the public, of each director and each subscriber to more than ten percent (10%) of the capital stock, updated as necessary to identify subscribers not previously identified in the application; and (C) The address at which it is proposed that the state bank do business, or, if the address is not known, the area within the community in which it is proposed that the business be located.
(A) The name, residence and occupation of each subscriber from whom subscriptions have been accepted as of the date the application is filed, and the number of shares for which each subscriber has subscribed, which list shall be updated not less than every thirty (30) business days to add all additional subscribers and any amendments to any information previously filed;
(B) The past and present connection with any bank, other than as a customer on terms generally available to the public, of each director and each subscriber to more than ten percent (10%) of the capital stock, updated as necessary to identify subscribers not previously identified in the application; and
(C) The address at which it is proposed that the state bank do business, or, if the address is not known, the area within the community in which it is proposed that the business be located.
(b) (1) If the application, the proposed charter or any other accompanying documents do not comply with the requirements of this chapter and chapter 1 of this title, the commissioner shall, within twenty (20) business days after the receipt thereof, either: (A) Return them to the incorporators, calling attention to the defect or defects therein; or (B) Notify the incorporators of the rejection of the application, calling attention to the defect or defects therein. (2) If the application, proposed charter and accompanying documents, if any, are not so returned or rejected by the commissioner within twenty (20) business days of the receipt thereof, they shall be deemed to have been filed with the commissioner.
(1) If the application, the proposed charter or any other accompanying documents do not comply with the requirements of this chapter and chapter 1 of this title, the commissioner shall, within twenty (20) business days after the receipt thereof, either: (A) Return them to the incorporators, calling attention to the defect or defects therein; or (B) Notify the incorporators of the rejection of the application, calling attention to the defect or defects therein.
(A) Return them to the incorporators, calling attention to the defect or defects therein; or
(B) Notify the incorporators of the rejection of the application, calling attention to the defect or defects therein.
(2) If the application, proposed charter and accompanying documents, if any, are not so returned or rejected by the commissioner within twenty (20) business days of the receipt thereof, they shall be deemed to have been filed with the commissioner.
(c) Should the application be rejected or should a certificate of authority not be granted, the commissioner shall give appropriate notice to the secretary of state. The incorporators shall either: (1) Return the original charter to the commissioner and take the steps that are necessary to dissolve the proposed state bank as a corporate entity as provided in the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27; provided, that all subscription proceeds, except those proceeds made by incorporators to establish an organizational expense fund as provided in § 45-2-203 , shall be returned to all subscribers in accordance with the subscription agreement; or (2) Amend the original charter to rename the corporate entity and revise any other provisions as determined by the commissioner as provided in the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27.
(1) Return the original charter to the commissioner and take the steps that are necessary to dissolve the proposed state bank as a corporate entity as provided in the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27; provided, that all subscription proceeds, except those proceeds made by incorporators to establish an organizational expense fund as provided in § 45-2-203 , shall be returned to all subscribers in accordance with the subscription agreement; or
(2) Amend the original charter to rename the corporate entity and revise any other provisions as determined by the commissioner as provided in the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27.
(d) The commissioner may also require publication of the notice.
(e) Notwithstanding this chapter and chapter 1 of this title to the contrary, the commissioner may prescribe by rule or regulation the application procedure for the formation of an interim bank to facilitate an interim bank merger, as defined in § 45-2-1402 .
Acts 1969, ch. 36, § 1 (3.307); 1973, ch. 294, § 6; 1977, ch. 36, § 1; T.C.A., § 45-204; Acts 1983, ch. 74, § 4; 1996, ch. 768, § 8; 2006, ch. 660, § 1.
Tenn. Code Ann. § 45-16-102 — TN Code / Title 45 / Chapter 16 / Section 45-16-102
Usage fees authorized
Status: in_force

An agreement to share electronic terminals or participate in a shared electronic network shall not prohibit, limit, or restrict the right of a financial institution to charge a usage fee for use of its electronic terminals, require a financial institution to limit or waive its rights or obligations under this section, or require the financial institution to otherwise distinguish or discriminate on classes or types of transactions. This section shall not limit or restrict any other fee that a financial institution may impose on its customers pursuant to any deposit, lending, or other written agreement that it has with a customer, or to any other transaction where a customer has no written agreement, but which a customer has notice of the fee. Acts 1996, ch. 899, § 1.
An agreement to share electronic terminals or participate in a shared electronic network shall not prohibit, limit, or restrict the right of a financial institution to charge a usage fee for use of its electronic terminals, require a financial institution to limit or waive its rights or obligations under this section, or require the financial institution to otherwise distinguish or discriminate on classes or types of transactions. This section shall not limit or restrict any other fee that a financial institution may impose on its customers pursuant to any deposit, lending, or other written agreement that it has with a customer, or to any other transaction where a customer has no written agreement, but which a customer has notice of the fee.
Acts 1996, ch. 899, § 1.
Tenn. Code Ann. § 45-2-218 — TN Code / Title 45 / Chapter 2 / Section 45-2-218
Charter amendment
Status: in_force

(a) A state bank shall apply to the commissioner to amend its charter or to change its location or the location of any of its branches. The change of location shall be consistent with § 45-2-614 . (b) An application for an amendment of the charter shall be authorized by the vote of at least a majority of the outstanding voting stock at a meeting of stockholders except as provided by § 48-20-102(1)-(7) . (c) Notice of the application shall be sent to the persons and organizations that the commissioner may require. (d) In making a determination, the commissioner shall consider whether the public convenience and advantage would be served by granting the application and shall be guided by the standards prescribed for the approval of an application for a charter, insofar as they are reasonably applicable. (e) Any amendment to the charter of an incorporated bank increasing or decreasing its capital stock or otherwise must be recorded in accordance with § 45-2-205(c) . (f) Any other provision of the law to the contrary notwithstanding, any bank that was exercising fiduciary powers on April 2, 1969, may continue to exercise the powers without changing any provisions of its charter. (g) Notwithstanding any law to the contrary, the name, address, and zip code of each incorporator does not need to be set forth in a restated charter. Amended by 2020 Tenn. Acts, ch. 605, s 4, eff. 3/20/2020. Acts 1969, ch. 36, § 1 (3.313); 1971, ch. 343, § 1; 1971, ch. 433, § 1; 1973, ch. 294, § 6; T.C.A., § 45-218; Acts 1994, ch. 551, § 8; 2001, ch. 54, § 10.
(a) A state bank shall apply to the commissioner to amend its charter or to change its location or the location of any of its branches. The change of location shall be consistent with § 45-2-614 .
(b) An application for an amendment of the charter shall be authorized by the vote of at least a majority of the outstanding voting stock at a meeting of stockholders except as provided by § 48-20-102(1)-(7) .
(c) Notice of the application shall be sent to the persons and organizations that the commissioner may require.
(d) In making a determination, the commissioner shall consider whether the public convenience and advantage would be served by granting the application and shall be guided by the standards prescribed for the approval of an application for a charter, insofar as they are reasonably applicable.
(e) Any amendment to the charter of an incorporated bank increasing or decreasing its capital stock or otherwise must be recorded in accordance with § 45-2-205(c) .
(f) Any other provision of the law to the contrary notwithstanding, any bank that was exercising fiduciary powers on April 2, 1969, may continue to exercise the powers without changing any provisions of its charter.
(g) Notwithstanding any law to the contrary, the name, address, and zip code of each incorporator does not need to be set forth in a restated charter.
Amended by 2020 Tenn. Acts, ch. 605, s 4, eff. 3/20/2020.
Acts 1969, ch. 36, § 1 (3.313); 1971, ch. 343, § 1; 1971, ch. 433, § 1; 1973, ch. 294, § 6; T.C.A., § 45-218; Acts 1994, ch. 551, § 8; 2001, ch. 54, § 10.
Tenn. Code Ann. § 45-3-524 — TN Code / Title 45 / Chapter 3 / Section 45-3-524
Payment and negotiation of check when no estate has been opened or the estate has been closed
Status: in_force

(a) (1) Notwithstanding § 30-2-317 , where no executor or administrator of a decedent has qualified and given notice of the person's qualifications to the savings institution, or where the qualified executor or administrator of a decedent has been discharged and a check or checks made payable to the decedent or the decedent's estate is presented to the savings institution for payment or collection, the savings institution may, in its discretion, and at any time after ninety (90) days from the death of the deceased, negotiate or send for collection and pay out the proceeds of one or more checks made payable to the decedent or the decedent's estate, whether written or electronic, all sums that do not exceed ten thousand dollars ($10,000) in the aggregate: (A) To the executor named in any will known to the savings institution whether probated or not; (B) To any personal representative appointed by a court whether active or discharged; or (C) In the absence of knowledge of a purported will naming a surviving executor or an administrator to the: (i) Surviving spouse; or (ii) Next of kin. (2) In the case of conflicting claims, the order of priority shall be that set out in subdivision (a)(1). (b) The receipt of any guardian, administrator or executor, duly appointed or qualified by the courts of this state, or any other state, or of any spouse or next of kin acknowledging the negotiation, payment or transfer of funds of a check, standing in the name of the person whose estate the fiduciary represents, shall be a good and sufficient acquittance for payment or transfer and shall constitute a valid defense in favor of the savings institution against the demands or claims of all parties. (c) The negotiation or payment of a check under this section without an endorsement of the payee or with the endorsement of a person authorized by this section to negotiate the check shall not be a violation of or give rise to any claim under title 47, chapter 3 or 4. (d) No savings institution shall be liable for damages, penalty or tax by reason of any payment made pursuant to this section. Amended by 2016 Tenn. Acts, ch. 804,Secs.s7, s8, s9 eff. 4/14/2016. Acts 2014, ch. 597, § 3.
(a) (1) Notwithstanding § 30-2-317 , where no executor or administrator of a decedent has qualified and given notice of the person's qualifications to the savings institution, or where the qualified executor or administrator of a decedent has been discharged and a check or checks made payable to the decedent or the decedent's estate is presented to the savings institution for payment or collection, the savings institution may, in its discretion, and at any time after ninety (90) days from the death of the deceased, negotiate or send for collection and pay out the proceeds of one or more checks made payable to the decedent or the decedent's estate, whether written or electronic, all sums that do not exceed ten thousand dollars ($10,000) in the aggregate: (A) To the executor named in any will known to the savings institution whether probated or not; (B) To any personal representative appointed by a court whether active or discharged; or (C) In the absence of knowledge of a purported will naming a surviving executor or an administrator to the: (i) Surviving spouse; or (ii) Next of kin. (2) In the case of conflicting claims, the order of priority shall be that set out in subdivision (a)(1).
(1) Notwithstanding § 30-2-317 , where no executor or administrator of a decedent has qualified and given notice of the person's qualifications to the savings institution, or where the qualified executor or administrator of a decedent has been discharged and a check or checks made payable to the decedent or the decedent's estate is presented to the savings institution for payment or collection, the savings institution may, in its discretion, and at any time after ninety (90) days from the death of the deceased, negotiate or send for collection and pay out the proceeds of one or more checks made payable to the decedent or the decedent's estate, whether written or electronic, all sums that do not exceed ten thousand dollars ($10,000) in the aggregate: (A) To the executor named in any will known to the savings institution whether probated or not; (B) To any personal representative appointed by a court whether active or discharged; or (C) In the absence of knowledge of a purported will naming a surviving executor or an administrator to the: (i) Surviving spouse; or (ii) Next of kin.
(A) To the executor named in any will known to the savings institution whether probated or not;
(B) To any personal representative appointed by a court whether active or discharged; or
(C) In the absence of knowledge of a purported will naming a surviving executor or an administrator to the: (i) Surviving spouse; or (ii) Next of kin.
(i) Surviving spouse; or
(ii) Next of kin.
(2) In the case of conflicting claims, the order of priority shall be that set out in subdivision (a)(1).
(b) The receipt of any guardian, administrator or executor, duly appointed or qualified by the courts of this state, or any other state, or of any spouse or next of kin acknowledging the negotiation, payment or transfer of funds of a check, standing in the name of the person whose estate the fiduciary represents, shall be a good and sufficient acquittance for payment or transfer and shall constitute a valid defense in favor of the savings institution against the demands or claims of all parties.
(c) The negotiation or payment of a check under this section without an endorsement of the payee or with the endorsement of a person authorized by this section to negotiate the check shall not be a violation of or give rise to any claim under title 47, chapter 3 or 4.
(d) No savings institution shall be liable for damages, penalty or tax by reason of any payment made pursuant to this section.
Amended by 2016 Tenn. Acts, ch. 804,Secs.s7, s8, s9 eff. 4/14/2016.
Acts 2014, ch. 597, § 3.
Tenn. Code Ann. § 45-8-213 — TN Code / Title 45 / Chapter 8 / Section 45-8-213
Conflicts of interest
Status: in_force

(a) If a licensee provides financing assistance to a business firm or engages in another business transaction, and if that financing assistance or transaction involves a potential conflict of interest, the terms and conditions under which the licensee provides the financing assistance or engages in the transaction shall not be less favorable to the licensee than the terms and conditions that would be required by the licensee in the ordinary course of business if the transaction did not involve a potential conflict of interest. Each person who participates in the decision of the licensee relating to a transaction described in this section and has knowledge of a potential conflict of interest involving that transaction shall take care that the potential conflict of interest is disclosed in the documents of the transaction or, for a business transaction not involving financing assistance, in appropriate documents. (b) For the purposes of subsection (a), transactions engaged in by a licensee that involve a potential conflict of interest include, but are not limited to, the following: (1) Providing financing assistance to a principal shareholder of the licensee, to a person controlled by a principal shareholder of the licensee, or to a director, officer, partner, relative, controlling person, or affiliate of a principal shareholder of the licensee; (2) Providing financing assistance to a business firm that is a principal shareholder of the licensee, or to a director, officer, partner, relative, controlling person, or affiliate of a principal shareholder of the licensee, or to a person controlled by a principal shareholder of the licensee that provides or plans to provide contemporaneous financing assistance; (3) Providing financing assistance to a business firm that has or is expected to have a substantial business relationship with another business firm that has a director, officer, or controlling person who is also a director, officer or controlling person of the licensee or who is the spouse of a director, officer, or controlling person of the licensee; (4) Providing financing assistance to a business firm if that business firm, or a director, officer or controlling person of that business firm, contemporaneously, has loaned or will loan money to an associate of the licensee; (5) Providing financing assistance for the purchase of property of an associate or principal shareholder of the licensee; and (6) Selling or otherwise transferring any of its assets to an associate or principal shareholder of the licensee. (c) Nothing in this section or in any other section of this part limits the authority of the commissioner to determine that an act involves a conflict of interest and, therefore, is an unsafe or unsound act. (d) Except with the approval of the commissioner, a licensee shall not provide a lien on or security interest in any of its property for the purpose of securing an obligation of, or an obligation incurred for the benefit of, another person, other than a direct or indirect subsidiary thereof. Acts 1989, ch. 124, § 13; 1997, ch. 131, § 7.
(a) If a licensee provides financing assistance to a business firm or engages in another business transaction, and if that financing assistance or transaction involves a potential conflict of interest, the terms and conditions under which the licensee provides the financing assistance or engages in the transaction shall not be less favorable to the licensee than the terms and conditions that would be required by the licensee in the ordinary course of business if the transaction did not involve a potential conflict of interest. Each person who participates in the decision of the licensee relating to a transaction described in this section and has knowledge of a potential conflict of interest involving that transaction shall take care that the potential conflict of interest is disclosed in the documents of the transaction or, for a business transaction not involving financing assistance, in appropriate documents.
(b) For the purposes of subsection (a), transactions engaged in by a licensee that involve a potential conflict of interest include, but are not limited to, the following: (1) Providing financing assistance to a principal shareholder of the licensee, to a person controlled by a principal shareholder of the licensee, or to a director, officer, partner, relative, controlling person, or affiliate of a principal shareholder of the licensee; (2) Providing financing assistance to a business firm that is a principal shareholder of the licensee, or to a director, officer, partner, relative, controlling person, or affiliate of a principal shareholder of the licensee, or to a person controlled by a principal shareholder of the licensee that provides or plans to provide contemporaneous financing assistance; (3) Providing financing assistance to a business firm that has or is expected to have a substantial business relationship with another business firm that has a director, officer, or controlling person who is also a director, officer or controlling person of the licensee or who is the spouse of a director, officer, or controlling person of the licensee; (4) Providing financing assistance to a business firm if that business firm, or a director, officer or controlling person of that business firm, contemporaneously, has loaned or will loan money to an associate of the licensee; (5) Providing financing assistance for the purchase of property of an associate or principal shareholder of the licensee; and (6) Selling or otherwise transferring any of its assets to an associate or principal shareholder of the licensee.
(1) Providing financing assistance to a principal shareholder of the licensee, to a person controlled by a principal shareholder of the licensee, or to a director, officer, partner, relative, controlling person, or affiliate of a principal shareholder of the licensee;
(2) Providing financing assistance to a business firm that is a principal shareholder of the licensee, or to a director, officer, partner, relative, controlling person, or affiliate of a principal shareholder of the licensee, or to a person controlled by a principal shareholder of the licensee that provides or plans to provide contemporaneous financing assistance;
(3) Providing financing assistance to a business firm that has or is expected to have a substantial business relationship with another business firm that has a director, officer, or controlling person who is also a director, officer or controlling person of the licensee or who is the spouse of a director, officer, or controlling person of the licensee;
(4) Providing financing assistance to a business firm if that business firm, or a director, officer or controlling person of that business firm, contemporaneously, has loaned or will loan money to an associate of the licensee;
(5) Providing financing assistance for the purchase of property of an associate or principal shareholder of the licensee; and
(6) Selling or otherwise transferring any of its assets to an associate or principal shareholder of the licensee.
(c) Nothing in this section or in any other section of this part limits the authority of the commissioner to determine that an act involves a conflict of interest and, therefore, is an unsafe or unsound act.
(d) Except with the approval of the commissioner, a licensee shall not provide a lien on or security interest in any of its property for the purpose of securing an obligation of, or an obligation incurred for the benefit of, another person, other than a direct or indirect subsidiary thereof.
Acts 1989, ch. 124, § 13; 1997, ch. 131, § 7.
Tenn. Code Ann. § 45-2-601 — TN Code / Title 45 / Chapter 2 / Section 45-2-601
General powers - Request for waiver or modification of terms and conditions applicable to national bank or authority to exercise any incidental power or engage in any incidental activity - Summary of approved applications
Status: in_force

(a) Subject to regulation by the commissioner and any restrictions expressly imposed by this chapter and chapter 1 of this title, any bank may enjoy any and all rights and may exercise any and all powers conferred upon banking corporations for profit by the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27. (b) A state bank may exercise any power or engage in any activity that it could exercise or engage in if it were a national bank, upon the same terms and conditions applicable to a national bank, subject to regulation by the commissioner for the purpose of maintaining the state bank's safety and soundness. (c) (1) A state bank may request a waiver or modification of the terms and conditions applicable to a national bank referenced in subsection (b) by filing an application containing the information required by the commissioner. The commissioner may grant the waiver or modification in whole or in part if the commissioner finds that the waiver or modification will support the state bank's ability to serve the citizens of this state, the state bank's ability to promote the economic progress of this state, and the state bank's safety and soundness. The commissioner may impose terms or conditions as a condition of granting a waiver or modification under this subdivision (c)(1). (2) A state bank may request the authority to exercise any incidental power or engage in any incidental activity that is reasonably necessary to enable the state bank to exercise a power or engage in an activity pursuant to subsection (b) by filing an application containing the information required by the commissioner. The commissioner may authorize the state bank to exercise the incidental power or engage in the incidental activity if the commissioner finds that exercising the incidental power or engaging in the incidental activity will support the state bank's ability to serve the citizens of this state, the state bank's ability to promote the economic progress of this state, and the state bank's safety and soundness. The commissioner may impose terms or conditions as a condition of granting authorization under this subdivision (c)(2). (d) (1) The commissioner shall publish a summary of each application submitted under subsection (c) that is approved by the commissioner, which must include only any waiver or modification of the terms or conditions applicable to a national bank; any authorized incidental power or activity; any terms or conditions imposed by the commissioner with respect to the waiver, modification, or authorization; and any other information as determined by the commissioner. (2) Any state bank may exercise any power or engage in any activity specified in the summaries of approved waivers, modifications, and authorized incidental powers and activities published pursuant to subdivision (d)(1), upon the same terms and conditions imposed with respect to the waivers, modifications, or authorizations, and subject to regulation by the commissioner for the purpose of maintaining the state bank's safety and soundness. Amended by 2021 Tenn. Acts, ch. 283, s 1, eff. 4/30/2021. Acts 1969, ch. 36, § 1 (3.101); 1973, ch. 294 § 6; 1977, ch. 274, § 1; T.C.A., § 45-401; Acts 1986, ch. 666, § 1; 1994, ch. 551, § 19.
(a) Subject to regulation by the commissioner and any restrictions expressly imposed by this chapter and chapter 1 of this title, any bank may enjoy any and all rights and may exercise any and all powers conferred upon banking corporations for profit by the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27.
(b) A state bank may exercise any power or engage in any activity that it could exercise or engage in if it were a national bank, upon the same terms and conditions applicable to a national bank, subject to regulation by the commissioner for the purpose of maintaining the state bank's safety and soundness.
(c) (1) A state bank may request a waiver or modification of the terms and conditions applicable to a national bank referenced in subsection (b) by filing an application containing the information required by the commissioner. The commissioner may grant the waiver or modification in whole or in part if the commissioner finds that the waiver or modification will support the state bank's ability to serve the citizens of this state, the state bank's ability to promote the economic progress of this state, and the state bank's safety and soundness. The commissioner may impose terms or conditions as a condition of granting a waiver or modification under this subdivision (c)(1). (2) A state bank may request the authority to exercise any incidental power or engage in any incidental activity that is reasonably necessary to enable the state bank to exercise a power or engage in an activity pursuant to subsection (b) by filing an application containing the information required by the commissioner. The commissioner may authorize the state bank to exercise the incidental power or engage in the incidental activity if the commissioner finds that exercising the incidental power or engaging in the incidental activity will support the state bank's ability to serve the citizens of this state, the state bank's ability to promote the economic progress of this state, and the state bank's safety and soundness. The commissioner may impose terms or conditions as a condition of granting authorization under this subdivision (c)(2).
(1) A state bank may request a waiver or modification of the terms and conditions applicable to a national bank referenced in subsection (b) by filing an application containing the information required by the commissioner. The commissioner may grant the waiver or modification in whole or in part if the commissioner finds that the waiver or modification will support the state bank's ability to serve the citizens of this state, the state bank's ability to promote the economic progress of this state, and the state bank's safety and soundness. The commissioner may impose terms or conditions as a condition of granting a waiver or modification under this subdivision (c)(1).
(2) A state bank may request the authority to exercise any incidental power or engage in any incidental activity that is reasonably necessary to enable the state bank to exercise a power or engage in an activity pursuant to subsection (b) by filing an application containing the information required by the commissioner. The commissioner may authorize the state bank to exercise the incidental power or engage in the incidental activity if the commissioner finds that exercising the incidental power or engaging in the incidental activity will support the state bank's ability to serve the citizens of this state, the state bank's ability to promote the economic progress of this state, and the state bank's safety and soundness. The commissioner may impose terms or conditions as a condition of granting authorization under this subdivision (c)(2).
(d) (1) The commissioner shall publish a summary of each application submitted under subsection (c) that is approved by the commissioner, which must include only any waiver or modification of the terms or conditions applicable to a national bank; any authorized incidental power or activity; any terms or conditions imposed by the commissioner with respect to the waiver, modification, or authorization; and any other information as determined by the commissioner. (2) Any state bank may exercise any power or engage in any activity specified in the summaries of approved waivers, modifications, and authorized incidental powers and activities published pursuant to subdivision (d)(1), upon the same terms and conditions imposed with respect to the waivers, modifications, or authorizations, and subject to regulation by the commissioner for the purpose of maintaining the state bank's safety and soundness.
(1) The commissioner shall publish a summary of each application submitted under subsection (c) that is approved by the commissioner, which must include only any waiver or modification of the terms or conditions applicable to a national bank; any authorized incidental power or activity; any terms or conditions imposed by the commissioner with respect to the waiver, modification, or authorization; and any other information as determined by the commissioner.
(2) Any state bank may exercise any power or engage in any activity specified in the summaries of approved waivers, modifications, and authorized incidental powers and activities published pursuant to subdivision (d)(1), upon the same terms and conditions imposed with respect to the waivers, modifications, or authorizations, and subject to regulation by the commissioner for the purpose of maintaining the state bank's safety and soundness.
Amended by 2021 Tenn. Acts, ch. 283, s 1, eff. 4/30/2021.
Acts 1969, ch. 36, § 1 (3.101); 1973, ch. 294 § 6; 1977, ch. 274, § 1; T.C.A., § 45-401; Acts 1986, ch. 666, § 1; 1994, ch. 551, § 19.
Tenn. Code Ann. § 45-2-1409 — TN Code / Title 45 / Chapter 2 / Section 45-2-1409
Notice and filing requirements
Status: in_force

Any out-of-state bank that will be the resulting bank pursuant to an interstate merger transaction involving a Tennessee state bank shall notify the commissioner of the proposed merger not later than the date on which it files an application for an interstate merger transaction with the responsible federal bank supervisory agency, and shall submit a copy of that application to the commissioner and pay the filing fee, if any, required by the commissioner. Any Tennessee state bank that is a party to the interstate merger transaction shall comply with all applicable state and federal laws. Any out-of-state bank that is the resulting bank in the interstate merger transaction shall provide satisfactory evidence to the commissioner of compliance with applicable requirements of Tennessee law. Acts 1996, ch. 562, § 1.
Any out-of-state bank that will be the resulting bank pursuant to an interstate merger transaction involving a Tennessee state bank shall notify the commissioner of the proposed merger not later than the date on which it files an application for an interstate merger transaction with the responsible federal bank supervisory agency, and shall submit a copy of that application to the commissioner and pay the filing fee, if any, required by the commissioner. Any Tennessee state bank that is a party to the interstate merger transaction shall comply with all applicable state and federal laws. Any out-of-state bank that is the resulting bank in the interstate merger transaction shall provide satisfactory evidence to the commissioner of compliance with applicable requirements of Tennessee law.
Acts 1996, ch. 562, § 1.
Tenn. Code Ann. § 45-2-208 — TN Code / Title 45 / Chapter 2 / Section 45-2-208
Capital notes and debentures
Status: in_force

(a) Any bank, after obtaining the prior approval of the shareholders owning two-thirds (2/3) of the stock of the bank entitled to vote and after obtaining the prior approval of the commissioner, may issue and sell its convertible or nonconvertible capital notes or debentures. Capital notes or debentures that are by their terms convertible into stock may be converted into shares of common or preferred stock in accordance with the provisions therefor as may be made in the capital notes or debentures with the approval of the commissioner. (b) Capital notes and debentures issued by banks shall be unsecured indebtedness of the bank and shall be subordinate to the claims of all depositors and of all other creditors of the bank, regardless of whether the claims of the depositors arose before or after the issuance of the capital notes or debentures. In order to secure the payment of the capital notes or debentures, however, provisions for sinking funds may be made. In the event of liquidation, all depositors and all other creditors of the bank shall be entitled to be paid in full before payment shall be made on account of principal or interest on the capital notes or debentures. No payment shall be made at any time on account of the principal thereof unless following the payment the aggregate of the capital, surplus and undivided profits and capital notes or debentures thereafter outstanding shall be at least equal to the aggregate immediately before the original issuance of the capital notes or debentures, or as may otherwise be expressly authorized by the commissioner. The claims of holders of capital notes or debentures shall, however, be superior to the claims of stockholders for dividends or other claims on account of shares of capital stock held by them. (c) The amount of outstanding capital notes and debentures issued and outstanding by any bank shall be, subject to the approval of the commissioner, treated as capital for the purpose of computing the loan limits prescribed by § 45-2-1102(a) and for the purpose of computing investment limits prescribed by § 45-2-607(a)(9) . Acts 1969, ch. 36, § 1 (3.302); 1973, ch. 294, § 6; T.C.A., § 45-208.
(a) Any bank, after obtaining the prior approval of the shareholders owning two-thirds (2/3) of the stock of the bank entitled to vote and after obtaining the prior approval of the commissioner, may issue and sell its convertible or nonconvertible capital notes or debentures. Capital notes or debentures that are by their terms convertible into stock may be converted into shares of common or preferred stock in accordance with the provisions therefor as may be made in the capital notes or debentures with the approval of the commissioner.
(b) Capital notes and debentures issued by banks shall be unsecured indebtedness of the bank and shall be subordinate to the claims of all depositors and of all other creditors of the bank, regardless of whether the claims of the depositors arose before or after the issuance of the capital notes or debentures. In order to secure the payment of the capital notes or debentures, however, provisions for sinking funds may be made. In the event of liquidation, all depositors and all other creditors of the bank shall be entitled to be paid in full before payment shall be made on account of principal or interest on the capital notes or debentures. No payment shall be made at any time on account of the principal thereof unless following the payment the aggregate of the capital, surplus and undivided profits and capital notes or debentures thereafter outstanding shall be at least equal to the aggregate immediately before the original issuance of the capital notes or debentures, or as may otherwise be expressly authorized by the commissioner. The claims of holders of capital notes or debentures shall, however, be superior to the claims of stockholders for dividends or other claims on account of shares of capital stock held by them.
(c) The amount of outstanding capital notes and debentures issued and outstanding by any bank shall be, subject to the approval of the commissioner, treated as capital for the purpose of computing the loan limits prescribed by § 45-2-1102(a) and for the purpose of computing investment limits prescribed by § 45-2-607(a)(9) .
Acts 1969, ch. 36, § 1 (3.302); 1973, ch. 294, § 6; T.C.A., § 45-208.
Tenn. Code Ann. § 45-2-1902 — TN Code / Title 45 / Chapter 2 / Section 45-2-1902
Organization - Filing fees - Authorized activities
Status: in_force

(a) (1) Subject to this chapter and to the approval of the commissioner, any domestic lender, foreign lender, or holding company may organize, own, and control a credit card state bank on the terms and conditions provided in this part. Notwithstanding § 45-2-607(11) , a state bank may own up to one hundred percent (100%) of the shares of a credit card state bank. (2) Effective July 1, 2020, the language ", including a domestic holding company," in subdivision (a)(1) is hereby deleted. However, any company that organized pursuant to such language, § 45-2-1901(3)(A)(ii) or (3)(B) , and this part prior to July 1, 2020, and that continues to own or control a credit card state bank after July 1, 2020, shall retain authority to own or control a credit card state bank under the terms and conditions provided in this part. (b) If the credit card bank is to be organized under the laws of this state, the bank shall be organized as provided in this chapter, and the commissioner shall supervise, regulate, examine, and exercise enforcement authority as provided for in this chapter and chapter 1 of this title, and all applicable rules and regulations, to the extent the commissioner deems applicable to the entities. The credit card state bank shall at all times maintain capital stock and paid-in surplus of not less than two million dollars ($2,000,000). (c) In connection with the application to organize, own, and control a credit card state bank, the applicant shall pay a filing fee in an amount determined by rule by the commissioner. (d) A credit card state bank shall: (1) (A) Engage only in credit card operations or the making of loans; (B) Effective July 1, 2020, the language "or debit, including prepaid debit," in subdivision (d)(1)(A) is hereby deleted. However, any company that organized pursuant to such language, § 45-2-1901(3)(A)(ii) or (3)(B) , and this part prior to July 1, 2020, and that continues to own or control a credit card state bank after July 1, 2020, shall retain authority to own or control a credit card state bank under the terms and conditions provided in this part; (2) Not accept demand deposits or deposits that the depositor may withdraw by check or similar means for payment to third parties or others; (3) Not accept any savings or time deposits of less than one hundred thousand dollars ($100,000); (4) Maintain only one (1) office that accepts deposits; and (5) (A) If in existence on May 17, 1999, not engage in the business of making commercial loans, unless the charter is amended to include a provision electing to engage in commercial lending; or (B) If organized on or after May 17, 1999, not engage in the business of making commercial loans, unless the charter contains a provision or is subsequently amended to include a provision electing to engage in commercial lending. (e) A credit card state bank, unless the subsidiary of a domestic lender or domestic holding company, shall either: (1) Have, within one (1) year of the date it commences operations, fifty (50) employees located in this state devoted to the credit card activities contemplated by this part; or (2) Contract with a qualifying organization for the performance of the services. (f) A credit card state bank may issue credit in accordance with §§ 45-2-1903 - 45-2-1908. (g) A domestic lender is not required to establish a credit card state bank in order to issue credit cards, create credit card accounts and make loans, but may itself issue credit cards, create credit card accounts and make loans in accordance with §§ 45-2-1903 - 45-2-1908, or as otherwise permitted by law. Acts 1993, ch. 447, § 5; 1999, ch. 168, §§ 1, 2; 2007, ch. 6, §§ 2-4; 2012, ch. 646, §§ 2, 3; 2015, ch. 230, § 3; 2018, ch. 550, § 1.
(a) (1) Subject to this chapter and to the approval of the commissioner, any domestic lender, foreign lender, or holding company may organize, own, and control a credit card state bank on the terms and conditions provided in this part. Notwithstanding § 45-2-607(11) , a state bank may own up to one hundred percent (100%) of the shares of a credit card state bank. (2) Effective July 1, 2020, the language ", including a domestic holding company," in subdivision (a)(1) is hereby deleted. However, any company that organized pursuant to such language, § 45-2-1901(3)(A)(ii) or (3)(B) , and this part prior to July 1, 2020, and that continues to own or control a credit card state bank after July 1, 2020, shall retain authority to own or control a credit card state bank under the terms and conditions provided in this part.
(1) Subject to this chapter and to the approval of the commissioner, any domestic lender, foreign lender, or holding company may organize, own, and control a credit card state bank on the terms and conditions provided in this part. Notwithstanding § 45-2-607(11) , a state bank may own up to one hundred percent (100%) of the shares of a credit card state bank.
(2) Effective July 1, 2020, the language ", including a domestic holding company," in subdivision (a)(1) is hereby deleted. However, any company that organized pursuant to such language, § 45-2-1901(3)(A)(ii) or (3)(B) , and this part prior to July 1, 2020, and that continues to own or control a credit card state bank after July 1, 2020, shall retain authority to own or control a credit card state bank under the terms and conditions provided in this part.
(b) If the credit card bank is to be organized under the laws of this state, the bank shall be organized as provided in this chapter, and the commissioner shall supervise, regulate, examine, and exercise enforcement authority as provided for in this chapter and chapter 1 of this title, and all applicable rules and regulations, to the extent the commissioner deems applicable to the entities. The credit card state bank shall at all times maintain capital stock and paid-in surplus of not less than two million dollars ($2,000,000).
(c) In connection with the application to organize, own, and control a credit card state bank, the applicant shall pay a filing fee in an amount determined by rule by the commissioner.
(d) A credit card state bank shall: (1) (A) Engage only in credit card operations or the making of loans; (B) Effective July 1, 2020, the language "or debit, including prepaid debit," in subdivision (d)(1)(A) is hereby deleted. However, any company that organized pursuant to such language, § 45-2-1901(3)(A)(ii) or (3)(B) , and this part prior to July 1, 2020, and that continues to own or control a credit card state bank after July 1, 2020, shall retain authority to own or control a credit card state bank under the terms and conditions provided in this part; (2) Not accept demand deposits or deposits that the depositor may withdraw by check or similar means for payment to third parties or others; (3) Not accept any savings or time deposits of less than one hundred thousand dollars ($100,000); (4) Maintain only one (1) office that accepts deposits; and (5) (A) If in existence on May 17, 1999, not engage in the business of making commercial loans, unless the charter is amended to include a provision electing to engage in commercial lending; or (B) If organized on or after May 17, 1999, not engage in the business of making commercial loans, unless the charter contains a provision or is subsequently amended to include a provision electing to engage in commercial lending.
(1) (A) Engage only in credit card operations or the making of loans; (B) Effective July 1, 2020, the language "or debit, including prepaid debit," in subdivision (d)(1)(A) is hereby deleted. However, any company that organized pursuant to such language, § 45-2-1901(3)(A)(ii) or (3)(B) , and this part prior to July 1, 2020, and that continues to own or control a credit card state bank after July 1, 2020, shall retain authority to own or control a credit card state bank under the terms and conditions provided in this part;
(A) Engage only in credit card operations or the making of loans;
(B) Effective July 1, 2020, the language "or debit, including prepaid debit," in subdivision (d)(1)(A) is hereby deleted. However, any company that organized pursuant to such language, § 45-2-1901(3)(A)(ii) or (3)(B) , and this part prior to July 1, 2020, and that continues to own or control a credit card state bank after July 1, 2020, shall retain authority to own or control a credit card state bank under the terms and conditions provided in this part;
(2) Not accept demand deposits or deposits that the depositor may withdraw by check or similar means for payment to third parties or others;
(3) Not accept any savings or time deposits of less than one hundred thousand dollars ($100,000);
(4) Maintain only one (1) office that accepts deposits; and
(5) (A) If in existence on May 17, 1999, not engage in the business of making commercial loans, unless the charter is amended to include a provision electing to engage in commercial lending; or (B) If organized on or after May 17, 1999, not engage in the business of making commercial loans, unless the charter contains a provision or is subsequently amended to include a provision electing to engage in commercial lending.
(A) If in existence on May 17, 1999, not engage in the business of making commercial loans, unless the charter is amended to include a provision electing to engage in commercial lending; or
(B) If organized on or after May 17, 1999, not engage in the business of making commercial loans, unless the charter contains a provision or is subsequently amended to include a provision electing to engage in commercial lending.
(e) A credit card state bank, unless the subsidiary of a domestic lender or domestic holding company, shall either: (1) Have, within one (1) year of the date it commences operations, fifty (50) employees located in this state devoted to the credit card activities contemplated by this part; or (2) Contract with a qualifying organization for the performance of the services.
(1) Have, within one (1) year of the date it commences operations, fifty (50) employees located in this state devoted to the credit card activities contemplated by this part; or
(2) Contract with a qualifying organization for the performance of the services.
(f) A credit card state bank may issue credit in accordance with §§ 45-2-1903 - 45-2-1908.
(g) A domestic lender is not required to establish a credit card state bank in order to issue credit cards, create credit card accounts and make loans, but may itself issue credit cards, create credit card accounts and make loans in accordance with §§ 45-2-1903 - 45-2-1908, or as otherwise permitted by law.
Acts 1993, ch. 447, § 5; 1999, ch. 168, §§ 1, 2; 2007, ch. 6, §§ 2-4; 2012, ch. 646, §§ 2, 3; 2015, ch. 230, § 3; 2018, ch. 550, § 1.
Tenn. Code Ann. § 45-1-124 — TN Code / Title 45 / Chapter 1 / Section 45-1-124
Application of this chapter and chapter 2 of this title
Status: in_force

(a) The existence of state banks formed or existing on April 2, 1969, shall not be impaired by the enactment of this chapter and chapter 2 of this title, or by any change in the requirements for the formation of state banks, or by any amendment or repeal of the laws under which they were formed or created, and except as otherwise expressly provided in those chapters, the repeal of a prior act or acts by those chapters shall not affect any right accrued or established, or any liability or penalty incurred, under the act, prior to the repeal of the act. (b) To the full extent consistent with such rights, liabilities, and penalties, all state banks and, to the extent applicable, all banks, shall hereafter be operated in accordance with this chapter and chapter 2 of this title. Unless the commissioner determines otherwise, this chapter and chapter 2 of this title, and the rules of this chapter and chapter 2 of this title, shall also apply to the operation and regulation of state trust companies and banks whose purposes and powers are limited to fiduciary purposes and powers. (c) All powers granted in this chapter and chapter 2 of this title may be freely exercised by any corporation, which is empowered by its charter under any prior act of the general assembly and any amendments thereto, to exercise the rights and powers that appertain and belong to a banking institution or to conduct a general banking business, without the necessity of amending its charter, unless the charter expressly prohibits the exercise of such powers. (d) Except to the extent inconsistent with or contrary to specific provisions of chapters 1, 2 and 3 of this title, Tennessee state banks, trust companies, savings and loan associations, and savings banks, and their directors, officers and shareholders shall be governed by and subject to the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27, as the same may be amended from time to time, and successor statutes thereto. The commissioner has the authority to interpret the Tennessee Business Corporation Act as it applies to financial institutions subject to regulation by the commissioner. (e) The charter of a trust company granted by the commissioner shall not be void due to the enactment of any amendment or repeal of the laws under which it was formed if the trust company is in operation, as determined by the commissioner, on July 1, 1999. (f) A company engaged in activities subject to this chapter and chapter 2 of this title, on July 1, 1999, but formed, as determined by the commissioner, prior to the enactment of chapter 620 of the Public Acts of 1980, and not previously subject to regulation by the commissioner, may continue to act as a fiduciary without submitting an application. However, the entity shall be otherwise fully subject to this chapter and chapter 2 of this title. (g) A company authorized by its charter, prior to the enactment of chapter 620 of the Public Acts of 1980, to engage in fiduciary activities, but not engaging in fiduciary activities on July 1, 1999, must file the appropriate application to establish a trust company and then fully comply with this chapter and chapter 2 of this title. (h) All state trust companies operating on July 1, 1999, shall have a period of time that the commissioner determines to be reasonable and prudent to conform to the requirements of this chapter and chapter 2 of this title and the regulations under this chapter and chapter 2 of this title, but the period shall not exceed three (3) years from July 1, 1999. During this period of time, to conform to the requirements of this chapter and chapter 2 of this title, the commissioner may conduct examinations at the company's expense, and apply the requirements of this chapter and chapter 2 of this title as deemed appropriate. Acts 1969, ch. 36, § 1 (1.104); T.C.A., § 45-123; Acts 1980, ch. 620, § 3; 1994, ch. 551, § 2; 1999, ch. 112, §§ 3, 4.
(a) The existence of state banks formed or existing on April 2, 1969, shall not be impaired by the enactment of this chapter and chapter 2 of this title, or by any change in the requirements for the formation of state banks, or by any amendment or repeal of the laws under which they were formed or created, and except as otherwise expressly provided in those chapters, the repeal of a prior act or acts by those chapters shall not affect any right accrued or established, or any liability or penalty incurred, under the act, prior to the repeal of the act.
(b) To the full extent consistent with such rights, liabilities, and penalties, all state banks and, to the extent applicable, all banks, shall hereafter be operated in accordance with this chapter and chapter 2 of this title. Unless the commissioner determines otherwise, this chapter and chapter 2 of this title, and the rules of this chapter and chapter 2 of this title, shall also apply to the operation and regulation of state trust companies and banks whose purposes and powers are limited to fiduciary purposes and powers.
(c) All powers granted in this chapter and chapter 2 of this title may be freely exercised by any corporation, which is empowered by its charter under any prior act of the general assembly and any amendments thereto, to exercise the rights and powers that appertain and belong to a banking institution or to conduct a general banking business, without the necessity of amending its charter, unless the charter expressly prohibits the exercise of such powers.
(d) Except to the extent inconsistent with or contrary to specific provisions of chapters 1, 2 and 3 of this title, Tennessee state banks, trust companies, savings and loan associations, and savings banks, and their directors, officers and shareholders shall be governed by and subject to the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27, as the same may be amended from time to time, and successor statutes thereto. The commissioner has the authority to interpret the Tennessee Business Corporation Act as it applies to financial institutions subject to regulation by the commissioner.
(e) The charter of a trust company granted by the commissioner shall not be void due to the enactment of any amendment or repeal of the laws under which it was formed if the trust company is in operation, as determined by the commissioner, on July 1, 1999.
(f) A company engaged in activities subject to this chapter and chapter 2 of this title, on July 1, 1999, but formed, as determined by the commissioner, prior to the enactment of chapter 620 of the Public Acts of 1980, and not previously subject to regulation by the commissioner, may continue to act as a fiduciary without submitting an application. However, the entity shall be otherwise fully subject to this chapter and chapter 2 of this title.
(g) A company authorized by its charter, prior to the enactment of chapter 620 of the Public Acts of 1980, to engage in fiduciary activities, but not engaging in fiduciary activities on July 1, 1999, must file the appropriate application to establish a trust company and then fully comply with this chapter and chapter 2 of this title.
(h) All state trust companies operating on July 1, 1999, shall have a period of time that the commissioner determines to be reasonable and prudent to conform to the requirements of this chapter and chapter 2 of this title and the regulations under this chapter and chapter 2 of this title, but the period shall not exceed three (3) years from July 1, 1999. During this period of time, to conform to the requirements of this chapter and chapter 2 of this title, the commissioner may conduct examinations at the company's expense, and apply the requirements of this chapter and chapter 2 of this title as deemed appropriate.
Acts 1969, ch. 36, § 1 (1.104); T.C.A., § 45-123; Acts 1980, ch. 620, § 3; 1994, ch. 551, § 2; 1999, ch. 112, §§ 3, 4.
Tenn. Code Ann. § 45-18-104 — TN Code / Title 45 / Chapter 18 / Section 45-18-104
License requirement
Status: in_force

(a) No person shall engage in, or in any manner advertise engagement in, the business of cashing payment instruments without first obtaining a license under this chapter. A separate license shall be required for each location from which the business is conducted. (b) Any licensed money transmitter or registered industrial loan and thrift company engaged in the business of cashing payment instruments on October 1, 2007, may continue to engage in the business of cashing payment instruments without a license issued by the commissioner, until the commissioner has acted upon the application for license, if the application is filed by December 31, 2007. Acts 1997 , ch. 309, §4; 2007 , ch. 80, § 2.
(a) No person shall engage in, or in any manner advertise engagement in, the business of cashing payment instruments without first obtaining a license under this chapter. A separate license shall be required for each location from which the business is conducted.
(b) Any licensed money transmitter or registered industrial loan and thrift company engaged in the business of cashing payment instruments on October 1, 2007, may continue to engage in the business of cashing payment instruments without a license issued by the commissioner, until the commissioner has acted upon the application for license, if the application is filed by December 31, 2007.
Acts 1997 , ch. 309, §4; 2007 , ch. 80, § 2.
Tenn. Code Ann. § 45-2-1020 — TN Code / Title 45 / Chapter 2 / Section 45-2-1020
Merger authority
Status: in_force

A state trust company may merge with another trust company or into a depository institution pursuant to the applicable provisions of part 13 of this chapter, or as otherwise permitted. However, any requirement that an institution must be in operation for three (3) years before engaging in a merger transaction shall not apply to trust companies. Mergers of state trust companies into a resulting out-of-state trust institution is permitted to the same extent that the other state's law permits Tennessee trust institutions to merge with trust companies of the other state. If a state trust company merges into an out-of-state trust institution, the resulting out-of-state trust institution may operate a trust office at the location of the state trust company pursuant to the notice requirements for the offices under this chapter, but the office shall not constitute a branch. Acts 1999, ch. 112, § 10; 2003, ch. 32, § 9.
A state trust company may merge with another trust company or into a depository institution pursuant to the applicable provisions of part 13 of this chapter, or as otherwise permitted. However, any requirement that an institution must be in operation for three (3) years before engaging in a merger transaction shall not apply to trust companies. Mergers of state trust companies into a resulting out-of-state trust institution is permitted to the same extent that the other state's law permits Tennessee trust institutions to merge with trust companies of the other state. If a state trust company merges into an out-of-state trust institution, the resulting out-of-state trust institution may operate a trust office at the location of the state trust company pursuant to the notice requirements for the offices under this chapter, but the office shall not constitute a branch.
Acts 1999, ch. 112, § 10; 2003, ch. 32, § 9.
Tenn. Code Ann. § 45-2-1718 — TN Code / Title 45 / Chapter 2 / Section 45-2-1718
Criminal sanctions for violations
Status: in_force

(a) Except as otherwise specifically provided in this chapter and chapter 1, any person responsible for an act or omission expressly declared to be a criminal offense by this chapter and chapter 1 of this title commits: (1) A Class C misdemeanor; or (2) If the act or omission was intended to defraud, a Class E felony. (b) An officer, director, or employee of a bank is responsible for an act or omission of the institution declared to be a criminal offense against this chapter and chapter 1 of this title whenever, knowing that the act or omission is unlawful, the person participates in authorizing, executing, ratifying or concealing the act, or in authorizing or ratifying the omission or, having a duty to take the required action, omits to do so. (c) Unless otherwise provided in this chapter and chapter 1 of this title, it is no defense to a criminal prosecution hereunder that the defendant did not know the facts establishing the criminal character of the act or omission charged, if the defendant could and should have known the facts in the proper performance of the defendant's duty. Acts 1969, ch. 36, § 1 (3.618); T.C.A., § 45-1118; Acts 1989, ch. 591, §§ 38, 113.
(a) Except as otherwise specifically provided in this chapter and chapter 1, any person responsible for an act or omission expressly declared to be a criminal offense by this chapter and chapter 1 of this title commits: (1) A Class C misdemeanor; or (2) If the act or omission was intended to defraud, a Class E felony.
(1) A Class C misdemeanor; or
(2) If the act or omission was intended to defraud, a Class E felony.
(b) An officer, director, or employee of a bank is responsible for an act or omission of the institution declared to be a criminal offense against this chapter and chapter 1 of this title whenever, knowing that the act or omission is unlawful, the person participates in authorizing, executing, ratifying or concealing the act, or in authorizing or ratifying the omission or, having a duty to take the required action, omits to do so.
(c) Unless otherwise provided in this chapter and chapter 1 of this title, it is no defense to a criminal prosecution hereunder that the defendant did not know the facts establishing the criminal character of the act or omission charged, if the defendant could and should have known the facts in the proper performance of the defendant's duty.
Acts 1969, ch. 36, § 1 (3.618); T.C.A., § 45-1118; Acts 1989, ch. 591, §§ 38, 113.
Tenn. Code Ann. § 45-3-1110 — TN Code / Title 45 / Chapter 3 / Section 45-3-1110
Voluntary liquidation and dissolution
Status: in_force

(a) (1) Approval by Commissioner. With the written approval of the commissioner, an association may voluntarily liquidate and dissolve. The commissioner shall grant approval if, from a written application submitted to the commissioner in the form that the commissioner requires, it appears that: (A) A resolution proposing a voluntary liquidation and dissolution has been adopted by a majority of the existing members of the board of directors of the association; and (B) The association is not in an impaired condition and has or will have sufficient liquid assets to pay off all depositors and other creditors immediately. (2) Approval by the commissioner shall be in writing, and notice of approval shall be sent by certified mail to the home office of the association within thirty (30) days after receipt of the application to liquidate and dissolve by the commissioner. If the commissioner disapproves the application within the time specified, the commissioner shall state the commissioner's disapproval and objections in writing and send the same by certified mail to the home office of the association, giving the association an opportunity to make changes and resubmit the application so as to obviate the objections. In the event that the commissioner disapproves the liquidation and dissolution after the resubmission, the commissioner shall send written notice of the final disapproval by certified mail to the home office of the association. Failure to send notice of approval or disapproval within the time specified shall be deemed to constitute approval of the voluntary liquidation and dissolution by the commissioner. (b) Submission to Stockholders or Members. In the event the commissioner does approve the liquidation and dissolution, it shall be submitted to an annual or special meeting of stockholders or members. The liquidation and dissolution shall be adopted upon receiving the affirmative vote, in person or by proxy, of at least two-thirds (2/3) of the outstanding voting stock or votes of members. A certified report of the proceedings of the meeting shall be filed promptly with the commissioner. (c) Cessation of Business. (1) Upon approval by the commissioner and adoption by the stockholders or members, the association shall forthwith cease to do business, shall have only the powers necessary to effect an orderly liquidation and shall proceed to pay its depositors and creditors and stockholders or members and to wind up its affairs; and (2) Within thirty (30) days after receipt of notice of approval, the association shall send a notice of liquidation by mail to each depositor, other creditor, person interested in funds held as a fiduciary, stockholder or member or other interested person. The notice shall be posted conspicuously on the premises of the association and shall be given publication that the commissioner may require. The association shall send with the notice a statement of the amount on its books shown to be the claim of the depositor or other creditor. The notice shall demand that the property held by the association as bailee be withdrawn by the person entitled thereto and that claims of depositors and other creditors, if the amount claimed differs from that stated in the notice to be due, be filed with the association before a specified date not earlier than sixty (60) days thereafter in accordance with the procedure prescribed in the notice. (d) Claims of Depositors and Other Creditors. The approval of an application for liquidation and dissolution shall not impair any right of a depositor, or other creditor to payment in full, and all lawful claims of depositors and other creditors shall promptly be paid. (e) Distribution of Assets. Any assets remaining after the discharge of all obligations shall be distributed to the stockholders or members in accordance with their respective interests. Distribution shall not be made before: (1) All claims of depositors and creditors have been paid or, in the case of any disputed claims, the association has transmitted to the commissioner a sum adequate to meet any liability that may be judicially determined; and (2) Any funds payable to a depositor or creditor or any property held as bailee and unclaimed have been transmitted to the commissioner. Any unclaimed distribution to a stockholder or member or property held as bailee shall be held until ninety (90) days after the final distribution and then transmitted to the commissioner. Any unclaimed property so held by the commissioner shall be treated as property held in the course of dissolution and reported to the treasurer in accordance with title 66, chapter 29, part 1. (f) Possession by Commissioner. If the commissioner finds, during the course of the liquidation and dissolution, that the assets will be insufficient for the full discharge of all obligations or that completion of the liquidation has been unduly delayed, the commissioner may take possession and complete the liquidation in the manner provided in this chapter. (g) Reports; Final Order. The commissioner may require reports of the progress of liquidation, and whenever the commissioner is satisfied that the liquidation has been properly completed, the commissioner shall cancel the certificate of authority and the charter and enter an order of dissolution. Acts 1978, ch. 708, § 4.18; T.C.A., § 45-1618; Acts 1983, ch. 78, § 12.
(a) (1) Approval by Commissioner. With the written approval of the commissioner, an association may voluntarily liquidate and dissolve. The commissioner shall grant approval if, from a written application submitted to the commissioner in the form that the commissioner requires, it appears that: (A) A resolution proposing a voluntary liquidation and dissolution has been adopted by a majority of the existing members of the board of directors of the association; and (B) The association is not in an impaired condition and has or will have sufficient liquid assets to pay off all depositors and other creditors immediately. (2) Approval by the commissioner shall be in writing, and notice of approval shall be sent by certified mail to the home office of the association within thirty (30) days after receipt of the application to liquidate and dissolve by the commissioner. If the commissioner disapproves the application within the time specified, the commissioner shall state the commissioner's disapproval and objections in writing and send the same by certified mail to the home office of the association, giving the association an opportunity to make changes and resubmit the application so as to obviate the objections. In the event that the commissioner disapproves the liquidation and dissolution after the resubmission, the commissioner shall send written notice of the final disapproval by certified mail to the home office of the association. Failure to send notice of approval or disapproval within the time specified shall be deemed to constitute approval of the voluntary liquidation and dissolution by the commissioner.
(1) Approval by Commissioner. With the written approval of the commissioner, an association may voluntarily liquidate and dissolve. The commissioner shall grant approval if, from a written application submitted to the commissioner in the form that the commissioner requires, it appears that: (A) A resolution proposing a voluntary liquidation and dissolution has been adopted by a majority of the existing members of the board of directors of the association; and (B) The association is not in an impaired condition and has or will have sufficient liquid assets to pay off all depositors and other creditors immediately.
(A) A resolution proposing a voluntary liquidation and dissolution has been adopted by a majority of the existing members of the board of directors of the association; and
(B) The association is not in an impaired condition and has or will have sufficient liquid assets to pay off all depositors and other creditors immediately.
(2) Approval by the commissioner shall be in writing, and notice of approval shall be sent by certified mail to the home office of the association within thirty (30) days after receipt of the application to liquidate and dissolve by the commissioner. If the commissioner disapproves the application within the time specified, the commissioner shall state the commissioner's disapproval and objections in writing and send the same by certified mail to the home office of the association, giving the association an opportunity to make changes and resubmit the application so as to obviate the objections. In the event that the commissioner disapproves the liquidation and dissolution after the resubmission, the commissioner shall send written notice of the final disapproval by certified mail to the home office of the association. Failure to send notice of approval or disapproval within the time specified shall be deemed to constitute approval of the voluntary liquidation and dissolution by the commissioner.
(b) Submission to Stockholders or Members. In the event the commissioner does approve the liquidation and dissolution, it shall be submitted to an annual or special meeting of stockholders or members. The liquidation and dissolution shall be adopted upon receiving the affirmative vote, in person or by proxy, of at least two-thirds (2/3) of the outstanding voting stock or votes of members. A certified report of the proceedings of the meeting shall be filed promptly with the commissioner.
(c) Cessation of Business. (1) Upon approval by the commissioner and adoption by the stockholders or members, the association shall forthwith cease to do business, shall have only the powers necessary to effect an orderly liquidation and shall proceed to pay its depositors and creditors and stockholders or members and to wind up its affairs; and (2) Within thirty (30) days after receipt of notice of approval, the association shall send a notice of liquidation by mail to each depositor, other creditor, person interested in funds held as a fiduciary, stockholder or member or other interested person. The notice shall be posted conspicuously on the premises of the association and shall be given publication that the commissioner may require. The association shall send with the notice a statement of the amount on its books shown to be the claim of the depositor or other creditor. The notice shall demand that the property held by the association as bailee be withdrawn by the person entitled thereto and that claims of depositors and other creditors, if the amount claimed differs from that stated in the notice to be due, be filed with the association before a specified date not earlier than sixty (60) days thereafter in accordance with the procedure prescribed in the notice.
(1) Upon approval by the commissioner and adoption by the stockholders or members, the association shall forthwith cease to do business, shall have only the powers necessary to effect an orderly liquidation and shall proceed to pay its depositors and creditors and stockholders or members and to wind up its affairs; and
(2) Within thirty (30) days after receipt of notice of approval, the association shall send a notice of liquidation by mail to each depositor, other creditor, person interested in funds held as a fiduciary, stockholder or member or other interested person. The notice shall be posted conspicuously on the premises of the association and shall be given publication that the commissioner may require. The association shall send with the notice a statement of the amount on its books shown to be the claim of the depositor or other creditor. The notice shall demand that the property held by the association as bailee be withdrawn by the person entitled thereto and that claims of depositors and other creditors, if the amount claimed differs from that stated in the notice to be due, be filed with the association before a specified date not earlier than sixty (60) days thereafter in accordance with the procedure prescribed in the notice.
(d) Claims of Depositors and Other Creditors. The approval of an application for liquidation and dissolution shall not impair any right of a depositor, or other creditor to payment in full, and all lawful claims of depositors and other creditors shall promptly be paid.
(e) Distribution of Assets. Any assets remaining after the discharge of all obligations shall be distributed to the stockholders or members in accordance with their respective interests. Distribution shall not be made before: (1) All claims of depositors and creditors have been paid or, in the case of any disputed claims, the association has transmitted to the commissioner a sum adequate to meet any liability that may be judicially determined; and (2) Any funds payable to a depositor or creditor or any property held as bailee and unclaimed have been transmitted to the commissioner. Any unclaimed distribution to a stockholder or member or property held as bailee shall be held until ninety (90) days after the final distribution and then transmitted to the commissioner. Any unclaimed property so held by the commissioner shall be treated as property held in the course of dissolution and reported to the treasurer in accordance with title 66, chapter 29, part 1.
(1) All claims of depositors and creditors have been paid or, in the case of any disputed claims, the association has transmitted to the commissioner a sum adequate to meet any liability that may be judicially determined; and
(2) Any funds payable to a depositor or creditor or any property held as bailee and unclaimed have been transmitted to the commissioner. Any unclaimed distribution to a stockholder or member or property held as bailee shall be held until ninety (90) days after the final distribution and then transmitted to the commissioner. Any unclaimed property so held by the commissioner shall be treated as property held in the course of dissolution and reported to the treasurer in accordance with title 66, chapter 29, part 1.
(f) Possession by Commissioner. If the commissioner finds, during the course of the liquidation and dissolution, that the assets will be insufficient for the full discharge of all obligations or that completion of the liquidation has been unduly delayed, the commissioner may take possession and complete the liquidation in the manner provided in this chapter.
(g) Reports; Final Order. The commissioner may require reports of the progress of liquidation, and whenever the commissioner is satisfied that the liquidation has been properly completed, the commissioner shall cancel the certificate of authority and the charter and enter an order of dissolution.
Acts 1978, ch. 708, § 4.18; T.C.A., § 45-1618; Acts 1983, ch. 78, § 12.
Tenn. Code Ann. § 45-13-305 — TN Code / Title 45 / Chapter 13 / Section 45-13-305
Testing of loan originators
Status: in_force

(a) In order to meet the written test requirement referred to in § 45-13-302(c)(5) , an individual shall pass, in accordance with the standards established under this section, a qualified written test developed by the Nationwide Mortgage Licensing System and Registry and administered by a test provider approved by the Nationwide Mortgage Licensing System and Registry based upon reasonable standards. (b) A written test shall not be treated as a qualified written test for purposes of subsection (a) unless the test adequately measures the applicant's knowledge and comprehension in appropriate subject areas, including: (1) Ethics; (2) Federal law and regulation pertaining to mortgage origination; (3) State law and regulation pertaining to mortgage origination; and (4) Federal and state law and regulation, including instruction on fraud, consumer protection, the nontraditional mortgage marketplace and fair lending issues. (c) Nothing in this section shall prohibit a test provider approved by the Nationwide Mortgage Licensing System and Registry from providing a test at the location of the employer of the applicant or the location of any subsidiary or affiliate of the employer of the applicant, or the location of any entity with which the applicant holds an exclusive arrangement to conduct the business of a mortgage loan originator. (d) Minimum Competence: (1) An individual shall not be considered to have passed a qualified written test unless the individual achieves a test score of not less than seventy-five percent (75%) correct answers to questions; (2) An individual may retake a test three (3) consecutive times with each consecutive taking occurring at least thirty (30) days after the preceding test; (3) After failing three (3) consecutive tests, an individual shall wait at least six (6) months before taking the test again; and (4) A licensed mortgage loan originator who fails to maintain a valid license for a period of five (5) years or longer shall retake the test, not taking into account any time during which the individual is a registered mortgage loan originator. Acts 2009, ch. 499, § 8.
(a) In order to meet the written test requirement referred to in § 45-13-302(c)(5) , an individual shall pass, in accordance with the standards established under this section, a qualified written test developed by the Nationwide Mortgage Licensing System and Registry and administered by a test provider approved by the Nationwide Mortgage Licensing System and Registry based upon reasonable standards.
(b) A written test shall not be treated as a qualified written test for purposes of subsection (a) unless the test adequately measures the applicant's knowledge and comprehension in appropriate subject areas, including: (1) Ethics; (2) Federal law and regulation pertaining to mortgage origination; (3) State law and regulation pertaining to mortgage origination; and (4) Federal and state law and regulation, including instruction on fraud, consumer protection, the nontraditional mortgage marketplace and fair lending issues.
(1) Ethics;
(2) Federal law and regulation pertaining to mortgage origination;
(3) State law and regulation pertaining to mortgage origination; and
(4) Federal and state law and regulation, including instruction on fraud, consumer protection, the nontraditional mortgage marketplace and fair lending issues.
(c) Nothing in this section shall prohibit a test provider approved by the Nationwide Mortgage Licensing System and Registry from providing a test at the location of the employer of the applicant or the location of any subsidiary or affiliate of the employer of the applicant, or the location of any entity with which the applicant holds an exclusive arrangement to conduct the business of a mortgage loan originator.
(d) Minimum Competence: (1) An individual shall not be considered to have passed a qualified written test unless the individual achieves a test score of not less than seventy-five percent (75%) correct answers to questions; (2) An individual may retake a test three (3) consecutive times with each consecutive taking occurring at least thirty (30) days after the preceding test; (3) After failing three (3) consecutive tests, an individual shall wait at least six (6) months before taking the test again; and (4) A licensed mortgage loan originator who fails to maintain a valid license for a period of five (5) years or longer shall retake the test, not taking into account any time during which the individual is a registered mortgage loan originator.
(1) An individual shall not be considered to have passed a qualified written test unless the individual achieves a test score of not less than seventy-five percent (75%) correct answers to questions;
(2) An individual may retake a test three (3) consecutive times with each consecutive taking occurring at least thirty (30) days after the preceding test;
(3) After failing three (3) consecutive tests, an individual shall wait at least six (6) months before taking the test again; and
(4) A licensed mortgage loan originator who fails to maintain a valid license for a period of five (5) years or longer shall retake the test, not taking into account any time during which the individual is a registered mortgage loan originator.
Acts 2009, ch. 499, § 8.
Tenn. Code Ann. § 45-3-1102 — TN Code / Title 45 / Chapter 3 / Section 45-3-1102
Merger and consolidation
Status: in_force

(a) Merger. Any two (2) or more associations may merge into one (1) of the associations in the manner set forth herein. The board of directors of each association shall, by resolution adopted by a majority of the existing members of each board, approve a plan of merger setting forth: (1) The names and locations of the home offices of the associations proposing to merge, and the name and location of the home office of the association into which they propose to merge, which is designated as the surviving association; (2) The names and addresses of each director and officer of the surviving association; (3) The terms and conditions of the proposed merger and the mode of carrying it into effect; (4) The manner and basis of converting the deposit accounts of each merging association into deposit accounts of the surviving association; (5) In the case of capital stock associations, the manner and basis of converting shares of stock of each merging association into shares of stock of the surviving association; (6) A statement of any changes in the charter or bylaws of the surviving association to be effected by the merger; (7) A statement in the form that the commissioner requires, that the surviving association has received a firm commitment for the insurance of deposit accounts by an insurer qualified under this chapter and that no lapse in the insurance of deposit accounts of each merging association shall at any time occur; (8) A statement that the plan of merger is subject to approval by the commissioner and by the stockholders or members of each merging association; (9) Provisions for terminating any activities and disposing of any assets that do not conform to the requirements of the surviving association; and (10) Other provisions with respect to the proposed merger that are deemed necessary or desirable by the boards of directors of the merging associations, and that the commissioner by rule or regulation requires to effect the purposes of this chapter. (b) Consolidation. Any two (2) or more associations may consolidate into a new association in the manner set forth herein. The board of directors of each association shall, by resolution adopted by the majority of the existing members of each board, approve a plan of consolidation setting forth: (1) The names and locations of the home offices of the associations proposing to consolidate and the name and location of the home office of the association into which they propose to consolidate, which is designated as the new association; (2) The names and addresses of each director and officer of the new association; (3) The terms and conditions of the proposed consolidation and the mode of carrying it into effect; (4) The manner and basis of converting the deposit accounts of each association into deposit accounts of the new association; (5) In the case of capital stock associations, the manner and basis of converting shares of stock of each association into shares of stock of the new association; (6) With respect to the new association, all of the provisions required to be set forth in the charter and bylaws of an association organized under this chapter; (7) A statement in the form that the commissioner requires, that the new association has received a firm commitment for the insurance of deposit accounts by an insurer qualified under this chapter and that no lapse in the insurance of deposit accounts of each association proposing to consolidate shall at any time occur; (8) A statement that the plan of consolidation is subject to approval by the commissioner and by the stockholders or members of each consolidating association; (9) When the merger involves a bank, provisions for terminating any activities and disposing of any assets that do not conform to the requirements of the surviving association; and (10) Other provisions with respect to the proposed consolidation that are deemed necessary or desirable by the boards of directors of the consolidating associations, and that the commissioner by rule or regulation requires to effect the purposes of this chapter. (c) Approval by Commissioner. (1) After approval by the board of directors of each merging or consolidating association, the plan of merger or consolidation shall be submitted to the commissioner for approval, together with certified copies of the authorizing resolutions of each board of directors showing approval by a majority of the existing board. (2) The commissioner shall approve the plan of merger or consolidation if it appears that: (A) The surviving or new association meets the requirements of this chapter as to the formation of an association; (B) The plan of merger or consolidation provides an adequate capital structure in relation to deposit liabilities of the surviving or new association; (C) The plan is fair and equitable; (D) The merger or consolidation is not contrary to the public interest; and (E) When the merger or consolidation involves a bank, the schedule for termination of any nonconforming activities and disposition of any nonconforming assets is timely, and the plan for termination and disposition does not include any unsafe and unsound practices. (3) Approval by the commissioner shall be in writing, and notice of approval shall be sent by certified mail to the home offices of the merging associations. (4) If the commissioner disapproves a plan of merger or consolidation, the commissioner shall send the commissioner's objections in writing by certified mail to the home offices of the merging or consolidating associations and give an opportunity to the merging or consolidating associations to amend and resubmit the plan so as to obviate the objections. In the event that the commissioner disapproves the plan after resubmission, the commissioner shall send written notice of the final disapproval by certified mail to the home offices of the merging or consolidating associations. (d) Approval by Stockholders or Members. Upon receipt of approval by the commissioner of the plan of merger or consolidation, the plan shall be submitted to a vote at an annual or special meeting of stockholders or members. The plan of merger or consolidation shall be approved upon receiving the affirmative vote, in person or by proxy, of at least two-thirds (2/3) of the outstanding voting stock or votes of members of each of the associations. (e) Procedure After Approval. (1) Upon approval, articles of merger or consolidation shall be prepared and executed, and shall set forth: (A) The plan of merger or the plan of consolidation; (B) As to each association, the number of votes present at the meeting in person or by proxy; and (C) As to each association, the number of votes for and against the plan, respectively. (2) The articles of merger or articles of consolidation shall be filed with the secretary of state in accordance with law, and a certified copy shall be filed with the commissioner. Upon filing by the secretary of state, the merger or consolidation shall be effective. (f) Banks. Subject to the provision set forth in this section, a state or national bank may merge or consolidate with an association so that the surviving institution is an association. If the association is a federal association, the action to be taken by the merging or consolidating financial institution shall be the same as those prescribed for federal associations at the time of the action by the laws of the United States and not by the laws of this state, except that a vote of two-thirds (2/3) of each class of voting stock of a state bank shall be required for a merger or consolidation. Acts 1978, ch. 708, § 4.10; T.C.A., § 45-1610; Acts 1985, ch. 174, § 8.
(a) Merger. Any two (2) or more associations may merge into one (1) of the associations in the manner set forth herein. The board of directors of each association shall, by resolution adopted by a majority of the existing members of each board, approve a plan of merger setting forth: (1) The names and locations of the home offices of the associations proposing to merge, and the name and location of the home office of the association into which they propose to merge, which is designated as the surviving association; (2) The names and addresses of each director and officer of the surviving association; (3) The terms and conditions of the proposed merger and the mode of carrying it into effect; (4) The manner and basis of converting the deposit accounts of each merging association into deposit accounts of the surviving association; (5) In the case of capital stock associations, the manner and basis of converting shares of stock of each merging association into shares of stock of the surviving association; (6) A statement of any changes in the charter or bylaws of the surviving association to be effected by the merger; (7) A statement in the form that the commissioner requires, that the surviving association has received a firm commitment for the insurance of deposit accounts by an insurer qualified under this chapter and that no lapse in the insurance of deposit accounts of each merging association shall at any time occur; (8) A statement that the plan of merger is subject to approval by the commissioner and by the stockholders or members of each merging association; (9) Provisions for terminating any activities and disposing of any assets that do not conform to the requirements of the surviving association; and (10) Other provisions with respect to the proposed merger that are deemed necessary or desirable by the boards of directors of the merging associations, and that the commissioner by rule or regulation requires to effect the purposes of this chapter.
(1) The names and locations of the home offices of the associations proposing to merge, and the name and location of the home office of the association into which they propose to merge, which is designated as the surviving association;
(2) The names and addresses of each director and officer of the surviving association;
(3) The terms and conditions of the proposed merger and the mode of carrying it into effect;
(4) The manner and basis of converting the deposit accounts of each merging association into deposit accounts of the surviving association;
(5) In the case of capital stock associations, the manner and basis of converting shares of stock of each merging association into shares of stock of the surviving association;
(6) A statement of any changes in the charter or bylaws of the surviving association to be effected by the merger;
(7) A statement in the form that the commissioner requires, that the surviving association has received a firm commitment for the insurance of deposit accounts by an insurer qualified under this chapter and that no lapse in the insurance of deposit accounts of each merging association shall at any time occur;
(8) A statement that the plan of merger is subject to approval by the commissioner and by the stockholders or members of each merging association;
(9) Provisions for terminating any activities and disposing of any assets that do not conform to the requirements of the surviving association; and
(10) Other provisions with respect to the proposed merger that are deemed necessary or desirable by the boards of directors of the merging associations, and that the commissioner by rule or regulation requires to effect the purposes of this chapter.
(b) Consolidation. Any two (2) or more associations may consolidate into a new association in the manner set forth herein. The board of directors of each association shall, by resolution adopted by the majority of the existing members of each board, approve a plan of consolidation setting forth: (1) The names and locations of the home offices of the associations proposing to consolidate and the name and location of the home office of the association into which they propose to consolidate, which is designated as the new association; (2) The names and addresses of each director and officer of the new association; (3) The terms and conditions of the proposed consolidation and the mode of carrying it into effect; (4) The manner and basis of converting the deposit accounts of each association into deposit accounts of the new association; (5) In the case of capital stock associations, the manner and basis of converting shares of stock of each association into shares of stock of the new association; (6) With respect to the new association, all of the provisions required to be set forth in the charter and bylaws of an association organized under this chapter; (7) A statement in the form that the commissioner requires, that the new association has received a firm commitment for the insurance of deposit accounts by an insurer qualified under this chapter and that no lapse in the insurance of deposit accounts of each association proposing to consolidate shall at any time occur; (8) A statement that the plan of consolidation is subject to approval by the commissioner and by the stockholders or members of each consolidating association; (9) When the merger involves a bank, provisions for terminating any activities and disposing of any assets that do not conform to the requirements of the surviving association; and (10) Other provisions with respect to the proposed consolidation that are deemed necessary or desirable by the boards of directors of the consolidating associations, and that the commissioner by rule or regulation requires to effect the purposes of this chapter.
(1) The names and locations of the home offices of the associations proposing to consolidate and the name and location of the home office of the association into which they propose to consolidate, which is designated as the new association;
(2) The names and addresses of each director and officer of the new association;
(3) The terms and conditions of the proposed consolidation and the mode of carrying it into effect;
(4) The manner and basis of converting the deposit accounts of each association into deposit accounts of the new association;
(5) In the case of capital stock associations, the manner and basis of converting shares of stock of each association into shares of stock of the new association;
(6) With respect to the new association, all of the provisions required to be set forth in the charter and bylaws of an association organized under this chapter;
(7) A statement in the form that the commissioner requires, that the new association has received a firm commitment for the insurance of deposit accounts by an insurer qualified under this chapter and that no lapse in the insurance of deposit accounts of each association proposing to consolidate shall at any time occur;
(8) A statement that the plan of consolidation is subject to approval by the commissioner and by the stockholders or members of each consolidating association;
(9) When the merger involves a bank, provisions for terminating any activities and disposing of any assets that do not conform to the requirements of the surviving association; and
(10) Other provisions with respect to the proposed consolidation that are deemed necessary or desirable by the boards of directors of the consolidating associations, and that the commissioner by rule or regulation requires to effect the purposes of this chapter.
(c) Approval by Commissioner. (1) After approval by the board of directors of each merging or consolidating association, the plan of merger or consolidation shall be submitted to the commissioner for approval, together with certified copies of the authorizing resolutions of each board of directors showing approval by a majority of the existing board. (2) The commissioner shall approve the plan of merger or consolidation if it appears that: (A) The surviving or new association meets the requirements of this chapter as to the formation of an association; (B) The plan of merger or consolidation provides an adequate capital structure in relation to deposit liabilities of the surviving or new association; (C) The plan is fair and equitable; (D) The merger or consolidation is not contrary to the public interest; and (E) When the merger or consolidation involves a bank, the schedule for termination of any nonconforming activities and disposition of any nonconforming assets is timely, and the plan for termination and disposition does not include any unsafe and unsound practices. (3) Approval by the commissioner shall be in writing, and notice of approval shall be sent by certified mail to the home offices of the merging associations. (4) If the commissioner disapproves a plan of merger or consolidation, the commissioner shall send the commissioner's objections in writing by certified mail to the home offices of the merging or consolidating associations and give an opportunity to the merging or consolidating associations to amend and resubmit the plan so as to obviate the objections. In the event that the commissioner disapproves the plan after resubmission, the commissioner shall send written notice of the final disapproval by certified mail to the home offices of the merging or consolidating associations.
(1) After approval by the board of directors of each merging or consolidating association, the plan of merger or consolidation shall be submitted to the commissioner for approval, together with certified copies of the authorizing resolutions of each board of directors showing approval by a majority of the existing board.
(2) The commissioner shall approve the plan of merger or consolidation if it appears that: (A) The surviving or new association meets the requirements of this chapter as to the formation of an association; (B) The plan of merger or consolidation provides an adequate capital structure in relation to deposit liabilities of the surviving or new association; (C) The plan is fair and equitable; (D) The merger or consolidation is not contrary to the public interest; and (E) When the merger or consolidation involves a bank, the schedule for termination of any nonconforming activities and disposition of any nonconforming assets is timely, and the plan for termination and disposition does not include any unsafe and unsound practices.
(A) The surviving or new association meets the requirements of this chapter as to the formation of an association;
(B) The plan of merger or consolidation provides an adequate capital structure in relation to deposit liabilities of the surviving or new association;
(C) The plan is fair and equitable;
(D) The merger or consolidation is not contrary to the public interest; and
(E) When the merger or consolidation involves a bank, the schedule for termination of any nonconforming activities and disposition of any nonconforming assets is timely, and the plan for termination and disposition does not include any unsafe and unsound practices.
(3) Approval by the commissioner shall be in writing, and notice of approval shall be sent by certified mail to the home offices of the merging associations.
(4) If the commissioner disapproves a plan of merger or consolidation, the commissioner shall send the commissioner's objections in writing by certified mail to the home offices of the merging or consolidating associations and give an opportunity to the merging or consolidating associations to amend and resubmit the plan so as to obviate the objections. In the event that the commissioner disapproves the plan after resubmission, the commissioner shall send written notice of the final disapproval by certified mail to the home offices of the merging or consolidating associations.
(d) Approval by Stockholders or Members. Upon receipt of approval by the commissioner of the plan of merger or consolidation, the plan shall be submitted to a vote at an annual or special meeting of stockholders or members. The plan of merger or consolidation shall be approved upon receiving the affirmative vote, in person or by proxy, of at least two-thirds (2/3) of the outstanding voting stock or votes of members of each of the associations.
(e) Procedure After Approval. (1) Upon approval, articles of merger or consolidation shall be prepared and executed, and shall set forth: (A) The plan of merger or the plan of consolidation; (B) As to each association, the number of votes present at the meeting in person or by proxy; and (C) As to each association, the number of votes for and against the plan, respectively. (2) The articles of merger or articles of consolidation shall be filed with the secretary of state in accordance with law, and a certified copy shall be filed with the commissioner. Upon filing by the secretary of state, the merger or consolidation shall be effective.
(1) Upon approval, articles of merger or consolidation shall be prepared and executed, and shall set forth: (A) The plan of merger or the plan of consolidation; (B) As to each association, the number of votes present at the meeting in person or by proxy; and (C) As to each association, the number of votes for and against the plan, respectively.
(A) The plan of merger or the plan of consolidation;
(B) As to each association, the number of votes present at the meeting in person or by proxy; and
(C) As to each association, the number of votes for and against the plan, respectively.
(2) The articles of merger or articles of consolidation shall be filed with the secretary of state in accordance with law, and a certified copy shall be filed with the commissioner. Upon filing by the secretary of state, the merger or consolidation shall be effective.
(f) Banks. Subject to the provision set forth in this section, a state or national bank may merge or consolidate with an association so that the surviving institution is an association. If the association is a federal association, the action to be taken by the merging or consolidating financial institution shall be the same as those prescribed for federal associations at the time of the action by the laws of the United States and not by the laws of this state, except that a vote of two-thirds (2/3) of each class of voting stock of a state bank shall be required for a merger or consolidation.
Acts 1978, ch. 708, § 4.10; T.C.A., § 45-1610; Acts 1985, ch. 174, § 8.
Tenn. Code Ann. § 45-2-2004 — TN Code / Title 45 / Chapter 2 / Section 45-2-2004
Conversion to public trust company
Status: in_force

(a) A private trust company may terminate its status as a private trust company and commence transacting business with the general public. A private trust company desiring to commence transacting business with the general public shall file a notice on a form prescribed by the commissioner, which shall set forth the name of the private trust company and an acknowledgment that any exemption granted or otherwise applicable to the private trust company shall cease to apply on the effective date of the notice, furnish a copy of the resolution adopted by the board authorizing the private trust company to commence transacting business with the general public, and pay the filing fee, if any, prescribed by the commissioner. The commissioner may examine or investigate the private trust company, at the company's expense, in order to act on the notice. (b) The notificant may commence transacting business with the general public on the thirty-first day after the date the commissioner receives the notice, unless the commissioner specifies an earlier or later date. (c) The thirty-day period of review may be extended by the commissioner on determination that the written notice raises issues that require additional information or additional time for analysis. If the period for review is extended, the notificant may commence transacting business with the public only on prior written approval by the commissioner. (d) The commissioner may deny approval of the notice of the private trust company to commence transacting business with the general public if the commissioner finds that the notificant lacks sufficient financial resources to undertake the proposed expansion without adversely affecting its safety or soundness, or that the proposed transacting of business with the general public would be contrary to the public interest, or if the commissioner determines that the notificant will not within a reasonable period be in compliance with any provision from which the notificant had been previously exempted. (e) Upon the effective date of conversion, the private trust company shall then be subject to all of this chapter and chapter 1 of this title, and the rules thereof that are applicable to non-exempt state trust companies. Acts 1999, ch. 112, § 18.
(a) A private trust company may terminate its status as a private trust company and commence transacting business with the general public. A private trust company desiring to commence transacting business with the general public shall file a notice on a form prescribed by the commissioner, which shall set forth the name of the private trust company and an acknowledgment that any exemption granted or otherwise applicable to the private trust company shall cease to apply on the effective date of the notice, furnish a copy of the resolution adopted by the board authorizing the private trust company to commence transacting business with the general public, and pay the filing fee, if any, prescribed by the commissioner. The commissioner may examine or investigate the private trust company, at the company's expense, in order to act on the notice.
(b) The notificant may commence transacting business with the general public on the thirty-first day after the date the commissioner receives the notice, unless the commissioner specifies an earlier or later date.
(c) The thirty-day period of review may be extended by the commissioner on determination that the written notice raises issues that require additional information or additional time for analysis. If the period for review is extended, the notificant may commence transacting business with the public only on prior written approval by the commissioner.
(d) The commissioner may deny approval of the notice of the private trust company to commence transacting business with the general public if the commissioner finds that the notificant lacks sufficient financial resources to undertake the proposed expansion without adversely affecting its safety or soundness, or that the proposed transacting of business with the general public would be contrary to the public interest, or if the commissioner determines that the notificant will not within a reasonable period be in compliance with any provision from which the notificant had been previously exempted.
(e) Upon the effective date of conversion, the private trust company shall then be subject to all of this chapter and chapter 1 of this title, and the rules thereof that are applicable to non-exempt state trust companies.
Acts 1999, ch. 112, § 18.
Tenn. Code Ann. § 45-20-102 — TN Code / Title 45 / Chapter 20 / Section 45-20-102
Chapter definitions
Status: in_force

As used in this chapter, unless the context otherwise requires: (1) "Affiliate" means any company that controls, is controlled by, or is under common control with another company, as set forth in the federal Bank Holding Company Act of 1956 ( 12 U.S.C. § 1841 et seq.), and the regulations promulgated pursuant to that act; (2) "Annual percentage rate" means the annual percentage rate for the loan calculated according to the federal Truth-in-Lending Act ( 15 U.S.C. § 1601 et seq.), and the regulations, including official staff commentary, promulgated pursuant to that act, by the board of governors of the federal reserve system; (3) "Bona fide loan discount points" means loan discount points actually paid by the borrower to the lender for the purpose of reducing, and that in fact result in a bona fide reduction of, the interest rate applicable to the loan by a minimum of twenty-five (25) basis points per discount point; (4) "Borrower" means a natural person obligated to pay a home loan, including a co-borrower; (5) "Commissioner" means the commissioner of financial institutions; (6) "Construction loan" means a loan for the initial construction of a borrower's principal dwelling on land owned by the borrower, with a maturity of less than eighteen (18) months, that only requires the payment of interest until the time that the entire unpaid balance is due and payable, or a fee in lieu of interest; (7) "Department" means the department of financial institutions; (8) "High-cost home loan" means a home loan in which the terms of the loan meet or exceed the rate threshold or the total points and fees threshold; (9) "Home loan" means a loan in which: (A) The principal amount of the loan does not exceed the lesser of the conforming loan size limit for a single-family dwelling as established by the federal national mortgage association, or three hundred fifty thousand dollars ($350,000); (B) The debt is incurred primarily for personal, family, or household purposes; (C) The loan is secured by a mortgage or deed of trust on real estate in this state, upon which there is located or there is to be located a structure: (i) Designed principally for occupancy by one (1) to four (4) families; and (ii) That is or will be occupied by a borrower as the borrower's principal dwelling; and (D) "Home loan" does not include: (i) Any residential mortgage transaction as defined in 12 CFR 226.2(a)(24) ; (ii) An open-end credit loan as defined in section 12 CFR 226.2(a)(20) , and as used in the official staff commentary of the board of governors of the federal reserve system, except as provided in § 45-20-106 ; (iii) A reverse mortgage transaction, as defined in title 47, chapter 30; (iv) A construction loan; and (v) Any loan that is insured or guaranteed by, securitized for, or sold to a government agency, including the department of housing and urban development, the department of veteran affairs, the Tennessee housing development agency, or the United States department of agriculture; (10) "Lender" means "lender" as defined in 24 CFR 3500.2 . "Lender" also means a "mortgage loan broker" as defined in § 45-13-102 ; (11) "Person" means any individual, corporation, partnership, trust, or any other business unit or legal entity, as the context may require; (12) (A) "Points and fees" means as defined in 12 CFR 226.32 , and as used in the official staff commentary of the board of governors of the federal reserve system; (B) "Points and fees" shall exclude up to and including two (2) bona fide loan discount points; and (C) "Points and fees" shall not include charges for all items listed in 12 CFR 226.4(c)(7) , as provided in 12 CFR 226.32(b)(1)(iii) , where the charges are paid to an affiliate of the lender and the amount is reasonably consistent with amounts charged for comparable services by a party not affiliated with the lender at the time the loan is made; provided, however, that only the amount of the charge that exceeds the charge for comparable items shall be included within the term "points and fees"; (13) "Principal loan amount" is the total amount of money paid to, received by, or credited to the account of the borrower on which interest is to be computed; (14) "Rate threshold" means that the annual percentage rate of the loan at the time the loan is consummated is such that the loan is considered a mortgage pursuant to § 152 of the Home Ownership Equity Protection Act of 1994 ( 15 U.S.C. § 1602(aa) ), and the regulations adopted pursuant to 15 U.S.C. § 1602(aa) by the federal reserve system, including 12 CFR 226.32 , and as used in the official staff commentary of the board of governors of the federal reserve system; (15) "Servicer" means any person who in the regular course of business assumes responsibility for servicing and accepting payments for a high-cost home loan; (16) "Total loan amount" means the term as defined in 12 CFR 226.32 and as used in the official staff commentary of the board of governors of the federal reserve system; and (17) "Total points and fees threshold" means the total points and fees payable by the borrower at or before the loan closing that exceed: (A) The greater of five percent (5%) of the total loan amount or two thousand four hundred dollars ($2,400), if the total loan amount is more than thirty thousand dollars ($30,000); or (B) Eight percent (8%) of the total loan amount, if the total loan amount is thirty thousand dollars ($30,000) or less. Acts 2006, ch. 801, § 2.
As used in this chapter, unless the context otherwise requires:
(1) "Affiliate" means any company that controls, is controlled by, or is under common control with another company, as set forth in the federal Bank Holding Company Act of 1956 ( 12 U.S.C. § 1841 et seq.), and the regulations promulgated pursuant to that act;
(2) "Annual percentage rate" means the annual percentage rate for the loan calculated according to the federal Truth-in-Lending Act ( 15 U.S.C. § 1601 et seq.), and the regulations, including official staff commentary, promulgated pursuant to that act, by the board of governors of the federal reserve system;
(3) "Bona fide loan discount points" means loan discount points actually paid by the borrower to the lender for the purpose of reducing, and that in fact result in a bona fide reduction of, the interest rate applicable to the loan by a minimum of twenty-five (25) basis points per discount point;
(4) "Borrower" means a natural person obligated to pay a home loan, including a co-borrower;
(5) "Commissioner" means the commissioner of financial institutions;
(6) "Construction loan" means a loan for the initial construction of a borrower's principal dwelling on land owned by the borrower, with a maturity of less than eighteen (18) months, that only requires the payment of interest until the time that the entire unpaid balance is due and payable, or a fee in lieu of interest;
(7) "Department" means the department of financial institutions;
(8) "High-cost home loan" means a home loan in which the terms of the loan meet or exceed the rate threshold or the total points and fees threshold;
(9) "Home loan" means a loan in which: (A) The principal amount of the loan does not exceed the lesser of the conforming loan size limit for a single-family dwelling as established by the federal national mortgage association, or three hundred fifty thousand dollars ($350,000); (B) The debt is incurred primarily for personal, family, or household purposes; (C) The loan is secured by a mortgage or deed of trust on real estate in this state, upon which there is located or there is to be located a structure: (i) Designed principally for occupancy by one (1) to four (4) families; and (ii) That is or will be occupied by a borrower as the borrower's principal dwelling; and (D) "Home loan" does not include: (i) Any residential mortgage transaction as defined in 12 CFR 226.2(a)(24) ; (ii) An open-end credit loan as defined in section 12 CFR 226.2(a)(20) , and as used in the official staff commentary of the board of governors of the federal reserve system, except as provided in § 45-20-106 ; (iii) A reverse mortgage transaction, as defined in title 47, chapter 30; (iv) A construction loan; and (v) Any loan that is insured or guaranteed by, securitized for, or sold to a government agency, including the department of housing and urban development, the department of veteran affairs, the Tennessee housing development agency, or the United States department of agriculture;
(A) The principal amount of the loan does not exceed the lesser of the conforming loan size limit for a single-family dwelling as established by the federal national mortgage association, or three hundred fifty thousand dollars ($350,000);
(B) The debt is incurred primarily for personal, family, or household purposes;
(C) The loan is secured by a mortgage or deed of trust on real estate in this state, upon which there is located or there is to be located a structure: (i) Designed principally for occupancy by one (1) to four (4) families; and (ii) That is or will be occupied by a borrower as the borrower's principal dwelling; and
(i) Designed principally for occupancy by one (1) to four (4) families; and
(ii) That is or will be occupied by a borrower as the borrower's principal dwelling; and
(D) "Home loan" does not include: (i) Any residential mortgage transaction as defined in 12 CFR 226.2(a)(24) ; (ii) An open-end credit loan as defined in section 12 CFR 226.2(a)(20) , and as used in the official staff commentary of the board of governors of the federal reserve system, except as provided in § 45-20-106 ; (iii) A reverse mortgage transaction, as defined in title 47, chapter 30; (iv) A construction loan; and (v) Any loan that is insured or guaranteed by, securitized for, or sold to a government agency, including the department of housing and urban development, the department of veteran affairs, the Tennessee housing development agency, or the United States department of agriculture;
(i) Any residential mortgage transaction as defined in 12 CFR 226.2(a)(24) ;
(ii) An open-end credit loan as defined in section 12 CFR 226.2(a)(20) , and as used in the official staff commentary of the board of governors of the federal reserve system, except as provided in § 45-20-106 ;
(iii) A reverse mortgage transaction, as defined in title 47, chapter 30;
(iv) A construction loan; and
(v) Any loan that is insured or guaranteed by, securitized for, or sold to a government agency, including the department of housing and urban development, the department of veteran affairs, the Tennessee housing development agency, or the United States department of agriculture;
(10) "Lender" means "lender" as defined in 24 CFR 3500.2 . "Lender" also means a "mortgage loan broker" as defined in § 45-13-102 ;
(11) "Person" means any individual, corporation, partnership, trust, or any other business unit or legal entity, as the context may require;
(12) (A) "Points and fees" means as defined in 12 CFR 226.32 , and as used in the official staff commentary of the board of governors of the federal reserve system; (B) "Points and fees" shall exclude up to and including two (2) bona fide loan discount points; and (C) "Points and fees" shall not include charges for all items listed in 12 CFR 226.4(c)(7) , as provided in 12 CFR 226.32(b)(1)(iii) , where the charges are paid to an affiliate of the lender and the amount is reasonably consistent with amounts charged for comparable services by a party not affiliated with the lender at the time the loan is made; provided, however, that only the amount of the charge that exceeds the charge for comparable items shall be included within the term "points and fees";
(A) "Points and fees" means as defined in 12 CFR 226.32 , and as used in the official staff commentary of the board of governors of the federal reserve system;
(B) "Points and fees" shall exclude up to and including two (2) bona fide loan discount points; and
(C) "Points and fees" shall not include charges for all items listed in 12 CFR 226.4(c)(7) , as provided in 12 CFR 226.32(b)(1)(iii) , where the charges are paid to an affiliate of the lender and the amount is reasonably consistent with amounts charged for comparable services by a party not affiliated with the lender at the time the loan is made; provided, however, that only the amount of the charge that exceeds the charge for comparable items shall be included within the term "points and fees";
(13) "Principal loan amount" is the total amount of money paid to, received by, or credited to the account of the borrower on which interest is to be computed;
(14) "Rate threshold" means that the annual percentage rate of the loan at the time the loan is consummated is such that the loan is considered a mortgage pursuant to § 152 of the Home Ownership Equity Protection Act of 1994 ( 15 U.S.C. § 1602(aa) ), and the regulations adopted pursuant to 15 U.S.C. § 1602(aa) by the federal reserve system, including 12 CFR 226.32 , and as used in the official staff commentary of the board of governors of the federal reserve system;
(15) "Servicer" means any person who in the regular course of business assumes responsibility for servicing and accepting payments for a high-cost home loan;
(16) "Total loan amount" means the term as defined in 12 CFR 226.32 and as used in the official staff commentary of the board of governors of the federal reserve system; and
(17) "Total points and fees threshold" means the total points and fees payable by the borrower at or before the loan closing that exceed: (A) The greater of five percent (5%) of the total loan amount or two thousand four hundred dollars ($2,400), if the total loan amount is more than thirty thousand dollars ($30,000); or (B) Eight percent (8%) of the total loan amount, if the total loan amount is thirty thousand dollars ($30,000) or less.
(A) The greater of five percent (5%) of the total loan amount or two thousand four hundred dollars ($2,400), if the total loan amount is more than thirty thousand dollars ($30,000); or
(B) Eight percent (8%) of the total loan amount, if the total loan amount is thirty thousand dollars ($30,000) or less.
Acts 2006, ch. 801, § 2.
Tenn. Code Ann. § 45-6-207 — TN Code / Title 45 / Chapter 6 / Section 45-6-207
Petition for license - Fee for investigation
Status: in_force

(a) Every person, firm or corporation desiring to engage in the business of pawnbroker shall petition the county clerk in the county in which the pawnbroker establishment is to be operated for a license to conduct the business. (b) The petitions shall provide: (1) The name of the person, and in case of a firm or corporation, the names of the persons composing the firm or of the officers and stockholders of the corporation; (2) The place, street, and number where business is to be carried on; (3) Specify the amount of net assets or capital proposed to be used by the petitioner in the business; (4) The signature of at least ten (10) freeholders, citizens of the county in which petitioner resides, of good reputation, certifying to the good reputation and moral character of the applicant or applicants; (5) The statement required in subdivision (b)(3) shall be accompanied by an unaudited statement from a certified public accountant and shall contain the following statement: According to the information provided to me, the net assets, as defined in Tennessee Code Annotated, § 45-6-203 , or proposed capital to be used by the applicant, ______________ (name) in the pawnbroker business, are valued at not less than seventy-five thousand dollars ($75,000); (6) An affidavit by petitioner that petitioner has not been convicted of a felony within the past ten (10) years, that directly affects the petitioner's ability to lawfully and fairly operate pursuant to this part; (7) A certificate from the chief of police and/or sheriff and/or the Tennessee bureau of investigation that petitioner is of good moral character and has not been convicted of a felony within the past ten (10) years; and (8) Certified funds in the amount of fifty dollars ($50.00) payable to the county clerk to defray the costs of investigation of the petition, plus to pay directly for the costs of the city, sheriff, and Tennessee bureau of investigation investigating the petitioner. Acts 1988, ch, 724, § 7; 1993, ch. 229, § 1.
(a) Every person, firm or corporation desiring to engage in the business of pawnbroker shall petition the county clerk in the county in which the pawnbroker establishment is to be operated for a license to conduct the business.
(b) The petitions shall provide: (1) The name of the person, and in case of a firm or corporation, the names of the persons composing the firm or of the officers and stockholders of the corporation; (2) The place, street, and number where business is to be carried on; (3) Specify the amount of net assets or capital proposed to be used by the petitioner in the business; (4) The signature of at least ten (10) freeholders, citizens of the county in which petitioner resides, of good reputation, certifying to the good reputation and moral character of the applicant or applicants; (5) The statement required in subdivision (b)(3) shall be accompanied by an unaudited statement from a certified public accountant and shall contain the following statement: According to the information provided to me, the net assets, as defined in Tennessee Code Annotated, § 45-6-203 , or proposed capital to be used by the applicant, ______________ (name) in the pawnbroker business, are valued at not less than seventy-five thousand dollars ($75,000); (6) An affidavit by petitioner that petitioner has not been convicted of a felony within the past ten (10) years, that directly affects the petitioner's ability to lawfully and fairly operate pursuant to this part; (7) A certificate from the chief of police and/or sheriff and/or the Tennessee bureau of investigation that petitioner is of good moral character and has not been convicted of a felony within the past ten (10) years; and (8) Certified funds in the amount of fifty dollars ($50.00) payable to the county clerk to defray the costs of investigation of the petition, plus to pay directly for the costs of the city, sheriff, and Tennessee bureau of investigation investigating the petitioner.
(1) The name of the person, and in case of a firm or corporation, the names of the persons composing the firm or of the officers and stockholders of the corporation;
(2) The place, street, and number where business is to be carried on;
(3) Specify the amount of net assets or capital proposed to be used by the petitioner in the business;
(4) The signature of at least ten (10) freeholders, citizens of the county in which petitioner resides, of good reputation, certifying to the good reputation and moral character of the applicant or applicants;
(5) The statement required in subdivision (b)(3) shall be accompanied by an unaudited statement from a certified public accountant and shall contain the following statement: According to the information provided to me, the net assets, as defined in Tennessee Code Annotated, § 45-6-203 , or proposed capital to be used by the applicant, ______________ (name) in the pawnbroker business, are valued at not less than seventy-five thousand dollars ($75,000);
According to the information provided to me, the net assets, as defined in Tennessee Code Annotated, § 45-6-203 , or proposed capital to be used by the applicant, ______________ (name) in the pawnbroker business, are valued at not less than seventy-five thousand dollars ($75,000);
(6) An affidavit by petitioner that petitioner has not been convicted of a felony within the past ten (10) years, that directly affects the petitioner's ability to lawfully and fairly operate pursuant to this part;
(7) A certificate from the chief of police and/or sheriff and/or the Tennessee bureau of investigation that petitioner is of good moral character and has not been convicted of a felony within the past ten (10) years; and
(8) Certified funds in the amount of fifty dollars ($50.00) payable to the county clerk to defray the costs of investigation of the petition, plus to pay directly for the costs of the city, sheriff, and Tennessee bureau of investigation investigating the petitioner.
Acts 1988, ch, 724, § 7; 1993, ch. 229, § 1.
Tenn. Code Ann. § 45-4-701 — TN Code / Title 45 / Chapter 4 / Section 45-4-701
Capital
Status: in_force

The capital of the credit union shall consist of the payments that have been made to it by the several members thereof on shares. Acts 1923, ch. 68, § 15; Shan. Supp., § 2198a22; Code 1932, § 3849; C. Supp. 1950, § 3849; T.C.A. (orig. ed.), § 45-1824.
The capital of the credit union shall consist of the payments that have been made to it by the several members thereof on shares.
Acts 1923, ch. 68, § 15; Shan. Supp., § 2198a22; Code 1932, § 3849; C. Supp. 1950, § 3849; T.C.A. (orig. ed.), § 45-1824.
Tenn. Code Ann. § 45-2-401 — TN Code / Title 45 / Chapter 2 / Section 45-2-401
Directors and officers - Qualifications of directors - Election - Terms
Status: in_force

(a) (1) The affairs of a state bank must be managed by a board of directors, which shall exercise its powers and be responsible for the discharge of its duties. (2) The charter or bylaws may establish a variable range for the size of the board of directors by fixing a minimum of not less than five (5) members and a maximum of not more than twenty-five (25) members. If a variable range is established, then the number of directors may be fixed or changed from time to time, within the minimum and maximum, by the shareholders or the board of directors; however, unless the charter or bylaws provide otherwise, only the shareholders may change the range for the size of the board or change from a fixed to a variable-range size board or vice versa. (3) Each bank director must, during each director's whole term of service, be a citizen of the United States. (4) A majority of the directors must reside in a state in which the bank has a branch location or within one hundred (100) miles of the location of any branch, for at least one (1) year immediately preceding their election and during their term of service as a director. However, the commissioner may waive the residency requirement of this subdivision (a)(4) if the commissioner finds that: (A) The business experience and ability of each proposed director is relevant to the bank, its market, and the type of services the bank provides or intends to provide; and (B) The waiver of the residency requirement will support the safety and soundness of the bank. (5) The bylaws of the bank may specify other qualifications for directors. (6) Any director who becomes disqualified shall resign the office, but, upon removal of the disqualification, is eligible for election. The board of directors or the commissioner may remove a director who is disqualified. An action taken by a director prior to resignation or removal is not subject to attack on the ground of the director's disqualification. (b) Except in cases of disqualification, directors shall serve until their successors are elected and qualified. (c) Directors shall be elected by the stockholders at the first meeting and thereafter at the annual meeting or at a special meeting called for the purpose. If the charter provides for cumulative voting, the votes of each share may be cast for one (1) person or divided among two (2) or more, as the stockholders may choose. The person or persons (to the number of directors to be elected) having the largest number of votes shall be elected. (d) The term of office of directors shall be one (1) year or, if the bylaws so provide, three (3) years, in which case one-third (1/3) of the directors, or as nearly one-third (1/3) as possible, shall be elected for each year following the first election of directors. Vacancies at any one time to the number of one-third (1/3) of the board may be filled by vote of the board of directors until the next meeting of the stockholders. (e) The officers designated by the bylaws shall be elected by the board of directors. The bank shall have only one (1) officer designated as president and the president shall be a member of the board of directors. No officer shall be elected or a contract executed for employment for a period longer than three (3) years. An officer may be removed by the board of directors at any time but removal shall not prejudice any rights that the officer may have to damages for breach of contract of employment. Amended by 2020 Tenn. Acts, ch. 605, s 3, eff. 3/20/2020. Acts 1969, ch. 36, § 1 (3.315); 1971, ch. 77, § 1; 1973, ch. 294, § 6; T.C.A., § 45-226; Acts 1989, ch. 57, § 1; 1994, ch. 551, § 10; 1996, ch. 768, §§ 15, 16; 2001, ch. 54, § 11.
(a) (1) The affairs of a state bank must be managed by a board of directors, which shall exercise its powers and be responsible for the discharge of its duties. (2) The charter or bylaws may establish a variable range for the size of the board of directors by fixing a minimum of not less than five (5) members and a maximum of not more than twenty-five (25) members. If a variable range is established, then the number of directors may be fixed or changed from time to time, within the minimum and maximum, by the shareholders or the board of directors; however, unless the charter or bylaws provide otherwise, only the shareholders may change the range for the size of the board or change from a fixed to a variable-range size board or vice versa. (3) Each bank director must, during each director's whole term of service, be a citizen of the United States. (4) A majority of the directors must reside in a state in which the bank has a branch location or within one hundred (100) miles of the location of any branch, for at least one (1) year immediately preceding their election and during their term of service as a director. However, the commissioner may waive the residency requirement of this subdivision (a)(4) if the commissioner finds that: (A) The business experience and ability of each proposed director is relevant to the bank, its market, and the type of services the bank provides or intends to provide; and (B) The waiver of the residency requirement will support the safety and soundness of the bank. (5) The bylaws of the bank may specify other qualifications for directors. (6) Any director who becomes disqualified shall resign the office, but, upon removal of the disqualification, is eligible for election. The board of directors or the commissioner may remove a director who is disqualified. An action taken by a director prior to resignation or removal is not subject to attack on the ground of the director's disqualification.
(1) The affairs of a state bank must be managed by a board of directors, which shall exercise its powers and be responsible for the discharge of its duties.
(2) The charter or bylaws may establish a variable range for the size of the board of directors by fixing a minimum of not less than five (5) members and a maximum of not more than twenty-five (25) members. If a variable range is established, then the number of directors may be fixed or changed from time to time, within the minimum and maximum, by the shareholders or the board of directors; however, unless the charter or bylaws provide otherwise, only the shareholders may change the range for the size of the board or change from a fixed to a variable-range size board or vice versa.
(3) Each bank director must, during each director's whole term of service, be a citizen of the United States.
(4) A majority of the directors must reside in a state in which the bank has a branch location or within one hundred (100) miles of the location of any branch, for at least one (1) year immediately preceding their election and during their term of service as a director. However, the commissioner may waive the residency requirement of this subdivision (a)(4) if the commissioner finds that: (A) The business experience and ability of each proposed director is relevant to the bank, its market, and the type of services the bank provides or intends to provide; and (B) The waiver of the residency requirement will support the safety and soundness of the bank.
(A) The business experience and ability of each proposed director is relevant to the bank, its market, and the type of services the bank provides or intends to provide; and
(B) The waiver of the residency requirement will support the safety and soundness of the bank.
(5) The bylaws of the bank may specify other qualifications for directors.
(6) Any director who becomes disqualified shall resign the office, but, upon removal of the disqualification, is eligible for election. The board of directors or the commissioner may remove a director who is disqualified. An action taken by a director prior to resignation or removal is not subject to attack on the ground of the director's disqualification.
(b) Except in cases of disqualification, directors shall serve until their successors are elected and qualified.
(c) Directors shall be elected by the stockholders at the first meeting and thereafter at the annual meeting or at a special meeting called for the purpose. If the charter provides for cumulative voting, the votes of each share may be cast for one (1) person or divided among two (2) or more, as the stockholders may choose. The person or persons (to the number of directors to be elected) having the largest number of votes shall be elected.
(d) The term of office of directors shall be one (1) year or, if the bylaws so provide, three (3) years, in which case one-third (1/3) of the directors, or as nearly one-third (1/3) as possible, shall be elected for each year following the first election of directors. Vacancies at any one time to the number of one-third (1/3) of the board may be filled by vote of the board of directors until the next meeting of the stockholders.
(e) The officers designated by the bylaws shall be elected by the board of directors. The bank shall have only one (1) officer designated as president and the president shall be a member of the board of directors. No officer shall be elected or a contract executed for employment for a period longer than three (3) years. An officer may be removed by the board of directors at any time but removal shall not prejudice any rights that the officer may have to damages for breach of contract of employment.
Amended by 2020 Tenn. Acts, ch. 605, s 3, eff. 3/20/2020.
Acts 1969, ch. 36, § 1 (3.315); 1971, ch. 77, § 1; 1973, ch. 294, § 6; T.C.A., § 45-226; Acts 1989, ch. 57, § 1; 1994, ch. 551, § 10; 1996, ch. 768, §§ 15, 16; 2001, ch. 54, § 11.