Tenn. Code Ann. § 45-3-105 — TN Code / Title 45 / Chapter 3 / Section 45-3-105
Powers of associations generally
Status: in_force

Every association has all the powers enumerated, authorized and permitted in this section and other rights, privileges, and powers as may be incidental to or reasonably necessary or appropriate for the accomplishment of the objects and purposes of the association, including those rights and powers not in conflict with this chapter conferred generally upon corporations by the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27. Without limiting the foregoing, and except as otherwise provided by this chapter, every association has the power to: (1) Deposits and Investments. Acquire deposits and pay interest on deposits, and lend and invest its funds; (2) Property Transfers. Acquire, hold, sell, dispose of, convey, mortgage, pledge, or lease any real or personal property; (3) Borrowing. Subject to any rules or regulations promulgated by the commissioner, borrow from sources, individual and corporate, for the uses and purposes of the association, which borrowings may be evidenced by the notes, bonds, debentures, or other obligations or securities as the commissioner may prescribe; and pledge, mortgage, or otherwise encumber any of its assets in connection therewith; provided, that in no event shall any borrowing by an association exceed seventy percent (70%) of the deposit liability of the association unless the commissioner shall grant written approval of a greater percentage; (4) Sale of Loans. Sell any loan, without recourse, including any participating interests therein; (5) Insurance of Accounts. Obtain and maintain insurance of its deposit accounts by the federal savings and loan insurance corporation, any agency of this state or other federal agency established for the purpose of insuring deposit accounts in associations, or with any other insurer approved by the commissioner and having a net worth not less than one hundred million dollars ($100,000,000); (6) Membership in Organizations. Qualify as and become a member of a Federal Home Loan Bank, or any other agency of the United States or the state of Tennessee or of any organization to the extent that the agency or organization assists in furthering or facilitating the association's purposes or powers, and comply with any reasonable conditions of eligibility; (7) Safe Deposit Boxes. Maintain and let safes, boxes, or other receptacles for the safekeeping of personal property in the same manner as banks are authorized to do under the laws of this state; provided, that in the event of any conflict with the law relating to safe deposit boxes in banks, this law shall be controlling. Any association has the right to construct a vault on its real estate, or on premises leased by it, or to rent any vault that in the judgment of the directors will provide reasonable means of safety against loss by theft, fire, or other cause, in which vault may be placed safes, boxes, or receptacles, for the keeping of jewelry, diamonds, gold, bank notes, bonds, notes, and other valuables, and that may be rented by the association to other persons on terms that may be agreed by the parties, but it is understood that in no event shall the association be liable for any loss of the jewelry, diamonds, gold, bank notes, bonds, notes, or other valuables by theft, robbery, fire, or other cause, the association not being the insurer of the safety of the property, nor in any manner liable therefor. The association is not required to take any note of property thus deposited, as the person who rents a safe, box, or receptacle is, for the term of the lease, the owner thereof; (8) Money Orders, etc. Sell money orders, travel checks, and similar instruments drawn by it on its bank accounts or as agents for any organization empowered to sell the instruments within this state; (9) Fiscal Agent. Act as fiscal agent of the United States, of this state, or of any subdivision of this state when duly designated for that purpose, and as fiscal agent perform the reasonable functions that may be required by it; (10) Servicing. Service loans and investments for others; (11) Limited Trusteeship. Act as trustee or custodian within the contemplation of the Federal Self-Employed Individual Tax Retirement Act of 1962, the Federal Employee Retirement Income Security Act of 1974, or similar federal acts, all as may be amended from time to time; and act as trustee or custodian with regard to other activities that may be authorized to federal associations by federal law or regulation. An association exercising the powers authorized by this subdivision (11) shall segregate all funds held in those fiduciary capacities from the general assets of the association and shall keep a separate set of books and records, showing in detail all transactions made under authority of this subdivision (11). If the individual records are kept as aforementioned, all funds held in the fiduciary capacities by an association may be commingled for appropriate purposes of investment. The funds may be invested in deposit accounts of the association in the event that the trust, custodial, or other plan does not prohibit the investment; (12) Employee Stock Option Plans. Establish, as part of its compensation benefits to its full-time employees, a plan or plans whereby the employing association may issue shares of its capital stock to the employees as compensation to them at a value to be established periodically, but at least annually, by the board of directors of the employing association, which value may be less than the market value of the stock or less than the price at which the stock may be offered to nonemployees; provided, that the plan is approved by a majority of the stockholders of the employing association. The plan may include provisions for the creation of a retirement trust whereby the stock issued to the employees and accumulated earnings on the stock are held in trust for the employees' retirement; and (13) Electronic Funds Transfer Systems. Subject to rules and regulations of the commissioner, transfer funds between holders of deposit accounts, and third parties, or their designees, by means of electronic funds transfer systems. No such system or any part of the system, including terminals or processing centers, shall of itself be considered a branch or satellite office. Acts 1978, ch. 708, § 1.05; T.C.A., § 45-1305; Acts 1981, ch. 36, § 1; 1984, ch. 626, § 1; 1994, ch. 551, § 19.
Every association has all the powers enumerated, authorized and permitted in this section and other rights, privileges, and powers as may be incidental to or reasonably necessary or appropriate for the accomplishment of the objects and purposes of the association, including those rights and powers not in conflict with this chapter conferred generally upon corporations by the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27. Without limiting the foregoing, and except as otherwise provided by this chapter, every association has the power to:
(1) Deposits and Investments. Acquire deposits and pay interest on deposits, and lend and invest its funds;
(2) Property Transfers. Acquire, hold, sell, dispose of, convey, mortgage, pledge, or lease any real or personal property;
(3) Borrowing. Subject to any rules or regulations promulgated by the commissioner, borrow from sources, individual and corporate, for the uses and purposes of the association, which borrowings may be evidenced by the notes, bonds, debentures, or other obligations or securities as the commissioner may prescribe; and pledge, mortgage, or otherwise encumber any of its assets in connection therewith; provided, that in no event shall any borrowing by an association exceed seventy percent (70%) of the deposit liability of the association unless the commissioner shall grant written approval of a greater percentage;
(4) Sale of Loans. Sell any loan, without recourse, including any participating interests therein;
(5) Insurance of Accounts. Obtain and maintain insurance of its deposit accounts by the federal savings and loan insurance corporation, any agency of this state or other federal agency established for the purpose of insuring deposit accounts in associations, or with any other insurer approved by the commissioner and having a net worth not less than one hundred million dollars ($100,000,000);
(6) Membership in Organizations. Qualify as and become a member of a Federal Home Loan Bank, or any other agency of the United States or the state of Tennessee or of any organization to the extent that the agency or organization assists in furthering or facilitating the association's purposes or powers, and comply with any reasonable conditions of eligibility;
(7) Safe Deposit Boxes. Maintain and let safes, boxes, or other receptacles for the safekeeping of personal property in the same manner as banks are authorized to do under the laws of this state; provided, that in the event of any conflict with the law relating to safe deposit boxes in banks, this law shall be controlling. Any association has the right to construct a vault on its real estate, or on premises leased by it, or to rent any vault that in the judgment of the directors will provide reasonable means of safety against loss by theft, fire, or other cause, in which vault may be placed safes, boxes, or receptacles, for the keeping of jewelry, diamonds, gold, bank notes, bonds, notes, and other valuables, and that may be rented by the association to other persons on terms that may be agreed by the parties, but it is understood that in no event shall the association be liable for any loss of the jewelry, diamonds, gold, bank notes, bonds, notes, or other valuables by theft, robbery, fire, or other cause, the association not being the insurer of the safety of the property, nor in any manner liable therefor. The association is not required to take any note of property thus deposited, as the person who rents a safe, box, or receptacle is, for the term of the lease, the owner thereof;
(8) Money Orders, etc. Sell money orders, travel checks, and similar instruments drawn by it on its bank accounts or as agents for any organization empowered to sell the instruments within this state;
(9) Fiscal Agent. Act as fiscal agent of the United States, of this state, or of any subdivision of this state when duly designated for that purpose, and as fiscal agent perform the reasonable functions that may be required by it;
(10) Servicing. Service loans and investments for others;
(11) Limited Trusteeship. Act as trustee or custodian within the contemplation of the Federal Self-Employed Individual Tax Retirement Act of 1962, the Federal Employee Retirement Income Security Act of 1974, or similar federal acts, all as may be amended from time to time; and act as trustee or custodian with regard to other activities that may be authorized to federal associations by federal law or regulation. An association exercising the powers authorized by this subdivision (11) shall segregate all funds held in those fiduciary capacities from the general assets of the association and shall keep a separate set of books and records, showing in detail all transactions made under authority of this subdivision (11). If the individual records are kept as aforementioned, all funds held in the fiduciary capacities by an association may be commingled for appropriate purposes of investment. The funds may be invested in deposit accounts of the association in the event that the trust, custodial, or other plan does not prohibit the investment;
(12) Employee Stock Option Plans. Establish, as part of its compensation benefits to its full-time employees, a plan or plans whereby the employing association may issue shares of its capital stock to the employees as compensation to them at a value to be established periodically, but at least annually, by the board of directors of the employing association, which value may be less than the market value of the stock or less than the price at which the stock may be offered to nonemployees; provided, that the plan is approved by a majority of the stockholders of the employing association. The plan may include provisions for the creation of a retirement trust whereby the stock issued to the employees and accumulated earnings on the stock are held in trust for the employees' retirement; and
(13) Electronic Funds Transfer Systems. Subject to rules and regulations of the commissioner, transfer funds between holders of deposit accounts, and third parties, or their designees, by means of electronic funds transfer systems. No such system or any part of the system, including terminals or processing centers, shall of itself be considered a branch or satellite office.
Acts 1978, ch. 708, § 1.05; T.C.A., § 45-1305; Acts 1981, ch. 36, § 1; 1984, ch. 626, § 1; 1994, ch. 551, § 19.
Tenn. Code Ann. § 45-7-131 — TN Code / Title 45 / Chapter 7 / Section 45-7-131
Receipts
Status: in_force

(a) This section does not apply to: (1) Money received for transmission subject to the Remittance Transfer Rule ( 12 CFR Part 1005, Subpart B); (2) Money received for transmission that is not primarily for personal, family, or household purposes; (3) Money received for transmission pursuant to a written agreement between the licensee and payee to process payments for goods or services provided by the payee; or (4) Payroll processing services. (b) For purposes of this section, "receipt" means a paper receipt, electronic record, or other written confirmation. For a transaction conducted in person, the receipt may be provided electronically if the sender requests or agrees to receive an electronic receipt. For a transaction conducted electronically or by phone, a receipt may be provided electronically. All electronic receipts must be provided in a retainable form. (c) (1) A licensee or its authorized delegate shall provide the sender a receipt for money received for transmission. (2) The receipt must contain the following information, as applicable: (A) The name of the sender; (B) The name of the designated recipient; (C) The date of the transaction; (D) The unique transaction or identification number; (E) The name of the licensee, NMLS Unique ID, the licensee's business address, and the licensee's customer service telephone number; (F) The amount of the transaction in United States dollars; (G) Any fee charged by the licensee to the sender for the transaction; and (H) Any taxes collected by the licensee from the sender for the transaction. (3) The receipt required by this section must be in English and in the language principally used by the licensee or authorized delegate to advertise, solicit, or negotiate, either orally or in writing, for a transaction conducted in person, electronically, or by phone, if other than English. Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
(a) This section does not apply to: (1) Money received for transmission subject to the Remittance Transfer Rule ( 12 CFR Part 1005, Subpart B); (2) Money received for transmission that is not primarily for personal, family, or household purposes; (3) Money received for transmission pursuant to a written agreement between the licensee and payee to process payments for goods or services provided by the payee; or (4) Payroll processing services.
(1) Money received for transmission subject to the Remittance Transfer Rule ( 12 CFR Part 1005, Subpart B);
(2) Money received for transmission that is not primarily for personal, family, or household purposes;
(3) Money received for transmission pursuant to a written agreement between the licensee and payee to process payments for goods or services provided by the payee; or
(4) Payroll processing services.
(b) For purposes of this section, "receipt" means a paper receipt, electronic record, or other written confirmation. For a transaction conducted in person, the receipt may be provided electronically if the sender requests or agrees to receive an electronic receipt. For a transaction conducted electronically or by phone, a receipt may be provided electronically. All electronic receipts must be provided in a retainable form.
(c) (1) A licensee or its authorized delegate shall provide the sender a receipt for money received for transmission. (2) The receipt must contain the following information, as applicable: (A) The name of the sender; (B) The name of the designated recipient; (C) The date of the transaction; (D) The unique transaction or identification number; (E) The name of the licensee, NMLS Unique ID, the licensee's business address, and the licensee's customer service telephone number; (F) The amount of the transaction in United States dollars; (G) Any fee charged by the licensee to the sender for the transaction; and (H) Any taxes collected by the licensee from the sender for the transaction. (3) The receipt required by this section must be in English and in the language principally used by the licensee or authorized delegate to advertise, solicit, or negotiate, either orally or in writing, for a transaction conducted in person, electronically, or by phone, if other than English.
(1) A licensee or its authorized delegate shall provide the sender a receipt for money received for transmission.
(2) The receipt must contain the following information, as applicable: (A) The name of the sender; (B) The name of the designated recipient; (C) The date of the transaction; (D) The unique transaction or identification number; (E) The name of the licensee, NMLS Unique ID, the licensee's business address, and the licensee's customer service telephone number; (F) The amount of the transaction in United States dollars; (G) Any fee charged by the licensee to the sender for the transaction; and (H) Any taxes collected by the licensee from the sender for the transaction.
(A) The name of the sender;
(B) The name of the designated recipient;
(C) The date of the transaction;
(D) The unique transaction or identification number;
(E) The name of the licensee, NMLS Unique ID, the licensee's business address, and the licensee's customer service telephone number;
(F) The amount of the transaction in United States dollars;
(G) Any fee charged by the licensee to the sender for the transaction; and
(H) Any taxes collected by the licensee from the sender for the transaction.
(3) The receipt required by this section must be in English and in the language principally used by the licensee or authorized delegate to advertise, solicit, or negotiate, either orally or in writing, for a transaction conducted in person, electronically, or by phone, if other than English.
Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Tenn. Code Ann. § 45-3-1003 — TN Code / Title 45 / Chapter 3 / Section 45-3-1003
Other fees and expenses
Status: in_force

(a) Change of Location of Office or Change of Name. The application to change the location of the home or a branch office of an association or to change the name of an association shall be accompanied by a fee of fifty dollars ($50.00). (b) Amendments to Charter. Each application for approval of an amendment to the charter of any association shall be accompanied by a fee of fifty dollars ($50.00). (c) Mergers and Consolidations. Each application for the merger or consolidation of two (2) or more associations shall be accompanied by a fee of three hundred dollars ($300), which fee shall be paid in equal parts by the associations proposing to merge or consolidate. (d) Reorganizations; Transfers of Assets; Dissolution. Each proposed plan of reorganization, proposal for the sale of all or substantially all of the assets of an association, and each proposal of liquidation and dissolution shall be accompanied by a fee of one hundred twenty-five dollars ($125). (e) Conversion. Each application for conversion of an association subject to this chapter or of a federal association shall be accompanied by a fee of five hundred dollars ($500). (f) Examinations. Each association shall pay a minimum examination fee of one hundred twenty-five dollars ($125) for any examination conducted by the commissioner or the commissioner's designated representative; provided, that in the event the examination fee does not adequately cover all reasonable costs and expenses of any examination, the commissioner shall assess any association being examined all additional expenses of the examination in excess of the one hundred twenty-five dollar ($125) fee, which expenses shall include travel and other expenses and the cost to the department of the working time of its examiners or other department employees involved in the examination. The fees provided herein shall be retained by the department as expendable receipts for the division of loans. (g) Commissioner's Approval. In addition to all other fees required by this chapter, the commissioner is authorized, in the commissioner's discretion, to charge a fee not exceeding ten dollars ($10.00) upon each application for the commissioner's approval, submitted pursuant to any provision of this chapter. (h) Other Expenses. The commissioner is authorized to assess an association for all other reasonable costs and expenses, not otherwise set forth, incurred by the department in performing any acts in the course of its official duties and, in furtherance of its supervisory responsibilities, the acts that may pertain to the regulation and supervision of the association. Acts 1978, ch. 708, § 5.21; T.C.A., § 45-1721; Acts 1981, ch. 416, § 4.
(a) Change of Location of Office or Change of Name. The application to change the location of the home or a branch office of an association or to change the name of an association shall be accompanied by a fee of fifty dollars ($50.00).
(b) Amendments to Charter. Each application for approval of an amendment to the charter of any association shall be accompanied by a fee of fifty dollars ($50.00).
(c) Mergers and Consolidations. Each application for the merger or consolidation of two (2) or more associations shall be accompanied by a fee of three hundred dollars ($300), which fee shall be paid in equal parts by the associations proposing to merge or consolidate.
(d) Reorganizations; Transfers of Assets; Dissolution. Each proposed plan of reorganization, proposal for the sale of all or substantially all of the assets of an association, and each proposal of liquidation and dissolution shall be accompanied by a fee of one hundred twenty-five dollars ($125).
(e) Conversion. Each application for conversion of an association subject to this chapter or of a federal association shall be accompanied by a fee of five hundred dollars ($500).
(f) Examinations. Each association shall pay a minimum examination fee of one hundred twenty-five dollars ($125) for any examination conducted by the commissioner or the commissioner's designated representative; provided, that in the event the examination fee does not adequately cover all reasonable costs and expenses of any examination, the commissioner shall assess any association being examined all additional expenses of the examination in excess of the one hundred twenty-five dollar ($125) fee, which expenses shall include travel and other expenses and the cost to the department of the working time of its examiners or other department employees involved in the examination. The fees provided herein shall be retained by the department as expendable receipts for the division of loans.
(g) Commissioner's Approval. In addition to all other fees required by this chapter, the commissioner is authorized, in the commissioner's discretion, to charge a fee not exceeding ten dollars ($10.00) upon each application for the commissioner's approval, submitted pursuant to any provision of this chapter.
(h) Other Expenses. The commissioner is authorized to assess an association for all other reasonable costs and expenses, not otherwise set forth, incurred by the department in performing any acts in the course of its official duties and, in furtherance of its supervisory responsibilities, the acts that may pertain to the regulation and supervision of the association.
Acts 1978, ch. 708, § 5.21; T.C.A., § 45-1721; Acts 1981, ch. 416, § 4.
Tenn. Code Ann. § 45-2-1707 — TN Code / Title 45 / Chapter 2 / Section 45-2-1707
Payment of penalties and judgments against others
Status: in_force

(a) It is unlawful for a state bank to pay a fine or penalty imposed by law upon any other person or any judgment against the person or to reimburse directly, or indirectly, any person by whom the fine, penalty or judgment has been paid, except in settlement of its own liability or in connection with the acquisition of property against which the judgment is a lien, or as provided in § 45-2-211 . (b) A violation of this section is a Class C misdemeanor. Acts 1969, ch. 36, § 1 (3.607); T.C.A., § 45-1107; Acts 1989, ch. 591, § 113.
(a) It is unlawful for a state bank to pay a fine or penalty imposed by law upon any other person or any judgment against the person or to reimburse directly, or indirectly, any person by whom the fine, penalty or judgment has been paid, except in settlement of its own liability or in connection with the acquisition of property against which the judgment is a lien, or as provided in § 45-2-211 .
(b) A violation of this section is a Class C misdemeanor.
Acts 1969, ch. 36, § 1 (3.607); T.C.A., § 45-1107; Acts 1989, ch. 591, § 113.
Tenn. Code Ann. § 45-2-1702 — TN Code / Title 45 / Chapter 2 / Section 45-2-1702
Receiving deposit, premium payment or investment in failing financial institution
Status: in_force

(a) A person directing or participating in the direction of a financial institution commits an offense who receives or permits the receipt of a deposit, premium payment or investment in the institution knowing that, due to the financial condition of the institution: (1) It is or will be unable to make payment of the deposit on demand, if it is a deposit ordinarily payable on demand; or (2) It is about to suspend operations or go into receivership. (b) It is a defense to prosecution under this section that the person making the deposit, premium payment or investment was adequately informed of the financial condition of the institution. (c) An offense under this section is a Class E felony. Acts 1969, ch. 36, § 1 (3.602); T.C.A., § 45-1102; Acts 1989, ch. 591, §§ 111, 118.
(a) A person directing or participating in the direction of a financial institution commits an offense who receives or permits the receipt of a deposit, premium payment or investment in the institution knowing that, due to the financial condition of the institution: (1) It is or will be unable to make payment of the deposit on demand, if it is a deposit ordinarily payable on demand; or (2) It is about to suspend operations or go into receivership.
(1) It is or will be unable to make payment of the deposit on demand, if it is a deposit ordinarily payable on demand; or
(2) It is about to suspend operations or go into receivership.
(b) It is a defense to prosecution under this section that the person making the deposit, premium payment or investment was adequately informed of the financial condition of the institution.
(c) An offense under this section is a Class E felony.
Acts 1969, ch. 36, § 1 (3.602); T.C.A., § 45-1102; Acts 1989, ch. 591, §§ 111, 118.
Tenn. Code Ann. § 45-12-126 — TN Code / Title 45 / Chapter 12 / Section 45-12-126
Allocation of certain fees
Status: in_force

The department may, in the department's sole discretion, allocate a portion of the total amount collected in fees pursuant to §§ 45-12-106 and 45-12-109 to the Tennessee financial literacy commission, created by § 49-6-1702 . Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
The department may, in the department's sole discretion, allocate a portion of the total amount collected in fees pursuant to §§ 45-12-106 and 45-12-109 to the Tennessee financial literacy commission, created by § 49-6-1702 .
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
Tenn. Code Ann. § 45-13-102 — TN Code / Title 45 / Chapter 13 / Section 45-13-102
Purpose
Status: in_force

The origination or offering of financing for residential real property has a direct, valuable and immediate impact upon Tennessee's consumers, Tennessee's economy, the neighborhoods and communities of this state and the housing and real estate industry. The general assembly finds that accessibility to mortgage credit is vital to the state's citizens. It is the purpose of this chapter to ensure a sound system of making residential mortgage loans through the licensing, examination and regulation of mortgage lenders, mortgage loan brokers, mortgage loan servicers and mortgage loan originators. It is also the purpose of this chapter to carry out the purposes and to be compliant with the requirements of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 ( 12 U.S.C. § 5101 et seq.). Acts 2009, ch. 499, § 8.
The origination or offering of financing for residential real property has a direct, valuable and immediate impact upon Tennessee's consumers, Tennessee's economy, the neighborhoods and communities of this state and the housing and real estate industry. The general assembly finds that accessibility to mortgage credit is vital to the state's citizens. It is the purpose of this chapter to ensure a sound system of making residential mortgage loans through the licensing, examination and regulation of mortgage lenders, mortgage loan brokers, mortgage loan servicers and mortgage loan originators. It is also the purpose of this chapter to carry out the purposes and to be compliant with the requirements of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 ( 12 U.S.C. § 5101 et seq.).
Acts 2009, ch. 499, § 8.
Tenn. Code Ann. § 45-12-111 — TN Code / Title 45 / Chapter 12 / Section 45-12-111
Interest, fees, and charges
Status: in_force

(a) Notwithstanding any other statutory limitation, a licensee authorized to make flex loans under this chapter may charge and collect interest, fees, and charges in a manner consistent with this section. (b) A licensee may charge and collect a periodic interest rate not to exceed twenty-four percent (24%) per annum. (c) (1) In addition to the periodic interest rate authorized under subsection (b), a licensee may also charge and collect a customary fee to defray the ordinary costs of opening, administering, and terminating a flex loan plan, including, but not limited to, costs associated with: (A) Underwriting and documenting the account; (B) Securing and maintaining account information; (C) Validating customer information; (D) Offering electronic and phone access to accounts; (E) Processing account transactions; (F) Responding to customer inquiries; (G) Providing periodic billing statements; (H) Inspection, verification, and protection of collateral and establishment, perfection, and release of the security interest; and (I) All other services or activities conducted by the licensee under the flex loan plan. (2) The customary fee shall not be deemed interest for any purpose of law and shall not exceed a daily rate of seven-tenths of one percent (0.7%) of the average daily principal balance in any billing cycle. (d) No flex loan plan under this chapter shall have an outstanding principal balance in excess of four thousand dollars ($4,000) at any time. (e) Any flex loan plan under this chapter shall require payment on or before the due date of each billing cycle in an amount sufficient to reduce any outstanding principal balance by at least three percent (3%) per calendar month. (f) (1) In the event a customer defaults under the terms of a flex loan plan and the licensee refers the customer's account to an attorney, including a regular salaried employee of the licensee, for collection, the licensee may: (A) If the flex loan plan so provides, charge and collect from the customer a reasonable attorney's fee; and (B) If the flex loan plan, or in the case of secured plans, the security agreement or similar instrument, so provides, recover from the customer all collection and court costs, including, in the case of secured plans, all costs of enforcing the security agreement or similar instrument actually incurred by the licensee, including those incurred on appeal. (2) A licensee may charge and collect interest following default of the customer or judgment in favor of the licensee at the periodic rate permitted by this section. (3) Disposition of property after default shall occur in a commercially reasonable manner in accordance with title 47, chapter 9, part 6. (g) If a check is returned to a licensee from a payer financial institution due to insufficient funds, no licensee shall have the authority to assess a handling charge against the maker or drawer of the returned check. Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
(a) Notwithstanding any other statutory limitation, a licensee authorized to make flex loans under this chapter may charge and collect interest, fees, and charges in a manner consistent with this section.
(b) A licensee may charge and collect a periodic interest rate not to exceed twenty-four percent (24%) per annum.
(c) (1) In addition to the periodic interest rate authorized under subsection (b), a licensee may also charge and collect a customary fee to defray the ordinary costs of opening, administering, and terminating a flex loan plan, including, but not limited to, costs associated with: (A) Underwriting and documenting the account; (B) Securing and maintaining account information; (C) Validating customer information; (D) Offering electronic and phone access to accounts; (E) Processing account transactions; (F) Responding to customer inquiries; (G) Providing periodic billing statements; (H) Inspection, verification, and protection of collateral and establishment, perfection, and release of the security interest; and (I) All other services or activities conducted by the licensee under the flex loan plan. (2) The customary fee shall not be deemed interest for any purpose of law and shall not exceed a daily rate of seven-tenths of one percent (0.7%) of the average daily principal balance in any billing cycle.
(1) In addition to the periodic interest rate authorized under subsection (b), a licensee may also charge and collect a customary fee to defray the ordinary costs of opening, administering, and terminating a flex loan plan, including, but not limited to, costs associated with: (A) Underwriting and documenting the account; (B) Securing and maintaining account information; (C) Validating customer information; (D) Offering electronic and phone access to accounts; (E) Processing account transactions; (F) Responding to customer inquiries; (G) Providing periodic billing statements; (H) Inspection, verification, and protection of collateral and establishment, perfection, and release of the security interest; and (I) All other services or activities conducted by the licensee under the flex loan plan.
(A) Underwriting and documenting the account;
(B) Securing and maintaining account information;
(C) Validating customer information;
(D) Offering electronic and phone access to accounts;
(E) Processing account transactions;
(F) Responding to customer inquiries;
(G) Providing periodic billing statements;
(H) Inspection, verification, and protection of collateral and establishment, perfection, and release of the security interest; and
(I) All other services or activities conducted by the licensee under the flex loan plan.
(2) The customary fee shall not be deemed interest for any purpose of law and shall not exceed a daily rate of seven-tenths of one percent (0.7%) of the average daily principal balance in any billing cycle.
(d) No flex loan plan under this chapter shall have an outstanding principal balance in excess of four thousand dollars ($4,000) at any time.
(e) Any flex loan plan under this chapter shall require payment on or before the due date of each billing cycle in an amount sufficient to reduce any outstanding principal balance by at least three percent (3%) per calendar month.
(f) (1) In the event a customer defaults under the terms of a flex loan plan and the licensee refers the customer's account to an attorney, including a regular salaried employee of the licensee, for collection, the licensee may: (A) If the flex loan plan so provides, charge and collect from the customer a reasonable attorney's fee; and (B) If the flex loan plan, or in the case of secured plans, the security agreement or similar instrument, so provides, recover from the customer all collection and court costs, including, in the case of secured plans, all costs of enforcing the security agreement or similar instrument actually incurred by the licensee, including those incurred on appeal. (2) A licensee may charge and collect interest following default of the customer or judgment in favor of the licensee at the periodic rate permitted by this section. (3) Disposition of property after default shall occur in a commercially reasonable manner in accordance with title 47, chapter 9, part 6.
(1) In the event a customer defaults under the terms of a flex loan plan and the licensee refers the customer's account to an attorney, including a regular salaried employee of the licensee, for collection, the licensee may: (A) If the flex loan plan so provides, charge and collect from the customer a reasonable attorney's fee; and (B) If the flex loan plan, or in the case of secured plans, the security agreement or similar instrument, so provides, recover from the customer all collection and court costs, including, in the case of secured plans, all costs of enforcing the security agreement or similar instrument actually incurred by the licensee, including those incurred on appeal.
(A) If the flex loan plan so provides, charge and collect from the customer a reasonable attorney's fee; and
(B) If the flex loan plan, or in the case of secured plans, the security agreement or similar instrument, so provides, recover from the customer all collection and court costs, including, in the case of secured plans, all costs of enforcing the security agreement or similar instrument actually incurred by the licensee, including those incurred on appeal.
(2) A licensee may charge and collect interest following default of the customer or judgment in favor of the licensee at the periodic rate permitted by this section.
(3) Disposition of property after default shall occur in a commercially reasonable manner in accordance with title 47, chapter 9, part 6.
(g) If a check is returned to a licensee from a payer financial institution due to insufficient funds, no licensee shall have the authority to assess a handling charge against the maker or drawer of the returned check.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
Tenn. Code Ann. § 45-2-1018 — TN Code / Title 45 / Chapter 2 / Section 45-2-1018
Engaging in commerce prohibited
Status: in_force

A state trust company may not invest its funds in trade or commerce by buying, selling, or otherwise dealing in goods or by owning or operating a business not related to its fiduciary business, except as necessary to fulfill a fiduciary obligation to a client. Acts 1999, ch. 112, § 10.
A state trust company may not invest its funds in trade or commerce by buying, selling, or otherwise dealing in goods or by owning or operating a business not related to its fiduciary business, except as necessary to fulfill a fiduciary obligation to a client.
Acts 1999, ch. 112, § 10.
Tenn. Code Ann. § 45-2-1715 — TN Code / Title 45 / Chapter 2 / Section 45-2-1715
Unlawful increase of capital stock
Status: in_force

Any officer or director of a bank who knowingly and willfully issues, participates in issuing, or concurs in a vote to issue, any increase of its capital stock beyond the amount of the capital stock thereof duly authorized by or in pursuance of law, or who knowingly and willfully sells or agrees to sell, or is interested directly or indirectly in the sale of the shares of stock of the bank, or in any agreement to sell the same, commits a Class C misdemeanor. Acts 1969, ch. 36, § 1 (3.614); T.C.A., § 45-1115; Acts 1989, ch. 591, § 113.
Any officer or director of a bank who knowingly and willfully issues, participates in issuing, or concurs in a vote to issue, any increase of its capital stock beyond the amount of the capital stock thereof duly authorized by or in pursuance of law, or who knowingly and willfully sells or agrees to sell, or is interested directly or indirectly in the sale of the shares of stock of the bank, or in any agreement to sell the same, commits a Class C misdemeanor.
Acts 1969, ch. 36, § 1 (3.614); T.C.A., § 45-1115; Acts 1989, ch. 591, § 113.
Tenn. Code Ann. § 45-2-1310 — TN Code / Title 45 / Chapter 2 / Section 45-2-1310
Resulting bank without trust powers
Status: in_force

Where a resulting state bank is not to exercise trust powers, the commissioner shall not approve a merger or conversion until satisfied that adequate provision has been made for successors to fiduciary positions held by the merging banks or the converting bank. Acts 1969, ch. 36, § 1 (3.410); 1973, ch. 294, § 6; T.C.A., § 45-610.
Where a resulting state bank is not to exercise trust powers, the commissioner shall not approve a merger or conversion until satisfied that adequate provision has been made for successors to fiduciary positions held by the merging banks or the converting bank.
Acts 1969, ch. 36, § 1 (3.410); 1973, ch. 294, § 6; T.C.A., § 45-610.
Tenn. Code Ann. § 45-2-106 — TN Code / Title 45 / Chapter 2 / Section 45-2-106
Provisions applicable to savings and loan associations and savings banks - Conflicting laws
Status: in_force

(a) The following provisions of this chapter are applicable to state and federal savings and loan associations and savings banks; provided, that in the event of a conflict between the provisions and the provisions of a law on the same subject relating specifically to state or federal savings and loan associations or savings banks, the provisions of the specific law shall be controlling: (1) Section 45-2-703 relating to deposits in two (2) or more names; (2) Section 45-2-704 relating to deposits in trust; (3) Section 45-2-706 relating to adverse claims to deposits; (4) Section 45-2-707 relating to powers of attorney; (5) Section 45-2-806 relating to the deposit of public funds and security requirements; (6) Part 9 of this chapter relating to safe deposit and safekeeping; and (7) Part 10 of this chapter relating to fiduciary powers. (b) The following provisions of this chapter are applicable to state and federal savings and loan associations, savings banks, and credit unions; provided, that in the event of a conflict between the provisions and the provisions of a law on the same subject relating specifically to state or federal savings and loan associations, savings banks or credit unions, the provisions of the specific law shall be controlling: (1) Section 45-2-708 , relating to payment from accounts or contents of safe deposit boxes when no executor or administrator has qualified and given notice of the executor or administrator's qualifications; and (2) Section 45-2-710 , relating to the accrual of a civil action to enforce a claim on accounts. Acts 1985, ch. 168, § 2; 1992, ch. 834, § 1; 2005, ch. 30, § 3.
(a) The following provisions of this chapter are applicable to state and federal savings and loan associations and savings banks; provided, that in the event of a conflict between the provisions and the provisions of a law on the same subject relating specifically to state or federal savings and loan associations or savings banks, the provisions of the specific law shall be controlling: (1) Section 45-2-703 relating to deposits in two (2) or more names; (2) Section 45-2-704 relating to deposits in trust; (3) Section 45-2-706 relating to adverse claims to deposits; (4) Section 45-2-707 relating to powers of attorney; (5) Section 45-2-806 relating to the deposit of public funds and security requirements; (6) Part 9 of this chapter relating to safe deposit and safekeeping; and (7) Part 10 of this chapter relating to fiduciary powers.
(1) Section 45-2-703 relating to deposits in two (2) or more names;
(2) Section 45-2-704 relating to deposits in trust;
(3) Section 45-2-706 relating to adverse claims to deposits;
(4) Section 45-2-707 relating to powers of attorney;
(5) Section 45-2-806 relating to the deposit of public funds and security requirements;
(6) Part 9 of this chapter relating to safe deposit and safekeeping; and
(7) Part 10 of this chapter relating to fiduciary powers.
(b) The following provisions of this chapter are applicable to state and federal savings and loan associations, savings banks, and credit unions; provided, that in the event of a conflict between the provisions and the provisions of a law on the same subject relating specifically to state or federal savings and loan associations, savings banks or credit unions, the provisions of the specific law shall be controlling: (1) Section 45-2-708 , relating to payment from accounts or contents of safe deposit boxes when no executor or administrator has qualified and given notice of the executor or administrator's qualifications; and (2) Section 45-2-710 , relating to the accrual of a civil action to enforce a claim on accounts.
(1) Section 45-2-708 , relating to payment from accounts or contents of safe deposit boxes when no executor or administrator has qualified and given notice of the executor or administrator's qualifications; and
(2) Section 45-2-710 , relating to the accrual of a civil action to enforce a claim on accounts.
Acts 1985, ch. 168, § 2; 1992, ch. 834, § 1; 2005, ch. 30, § 3.
Tenn. Code Ann. § 45-5-603 — TN Code / Title 45 / Chapter 5 / Section 45-5-603
Capital structure
Status: in_force

(a) To be registered as an industrial bank and to be authorized to issue thrift certificates, an industrial bank must have the capital structure required of state banks. (b) To be registered as an industrial investment company and to be authorized to issue investment certificates, an industrial investment company must have a capital structure in keeping with the scope of its existing and proposed operations, as determined by the commissioner. In making the determinations, the commissioner shall consider the justification offered by the applicant in support of its existing or proposed capital structure; the amount of outstanding and proposed investment certificates of the applicant; the number and characteristics of any existing holders of the certificates and of the market contemplated for any proposed offering; the terms of any proposed offering; the assets and liabilities of the company; the history of profitability of the company; and any other factors deemed pertinent to the protection of investors in the certificates. In no event shall the commissioner require a capital structure for an industrial investment company less than that required for a comparable industrial loan and thrift company or more than that required for a comparable industrial bank. Acts 1983, ch. 274, § 20.
(a) To be registered as an industrial bank and to be authorized to issue thrift certificates, an industrial bank must have the capital structure required of state banks.
(b) To be registered as an industrial investment company and to be authorized to issue investment certificates, an industrial investment company must have a capital structure in keeping with the scope of its existing and proposed operations, as determined by the commissioner. In making the determinations, the commissioner shall consider the justification offered by the applicant in support of its existing or proposed capital structure; the amount of outstanding and proposed investment certificates of the applicant; the number and characteristics of any existing holders of the certificates and of the market contemplated for any proposed offering; the terms of any proposed offering; the assets and liabilities of the company; the history of profitability of the company; and any other factors deemed pertinent to the protection of investors in the certificates. In no event shall the commissioner require a capital structure for an industrial investment company less than that required for a comparable industrial loan and thrift company or more than that required for a comparable industrial bank.
Acts 1983, ch. 274, § 20.
Tenn. Code Ann. § 45-3-809 — TN Code / Title 45 / Chapter 3 / Section 45-3-809
Annual report
Status: in_force

(a) Each association shall furnish the commissioner, annually, within ninety (90) days after the end of the period covered by the audit, or a shorter time that is prescribed by the commissioner, an annual written report, in the form prescribed by the commissioner, of its affairs and operations, which shall include a complete statement of its financial condition, certified by the president or a vice president and attested by the secretary or an assistant secretary, including two (2) signed copies of the report of the auditor showing the result of the audit, and including a balance sheet of the association as of the date of the audit and a statement of the income and expenses of the association during the year ending with the date of the audit. (b) The balance sheet and statement of income and expenses shall be certified by the auditor making the audit. (c) The commissioner may require other information in the annual report that the commissioner deems necessary to provide the commissioner with information as to all aspects of the financial condition of the association and may prescribe the scope of the annual audit, and require the auditor to furnish the commissioner with information additional to that contained in the report of the auditor. (d) The commissioner may also require that copies of the annual report be mailed to stockholders or members in the form and manner that the commissioner prescribes. Acts 1978, ch. 708, § 3.09; T.C.A., § 45-1516.
(a) Each association shall furnish the commissioner, annually, within ninety (90) days after the end of the period covered by the audit, or a shorter time that is prescribed by the commissioner, an annual written report, in the form prescribed by the commissioner, of its affairs and operations, which shall include a complete statement of its financial condition, certified by the president or a vice president and attested by the secretary or an assistant secretary, including two (2) signed copies of the report of the auditor showing the result of the audit, and including a balance sheet of the association as of the date of the audit and a statement of the income and expenses of the association during the year ending with the date of the audit.
(b) The balance sheet and statement of income and expenses shall be certified by the auditor making the audit.
(c) The commissioner may require other information in the annual report that the commissioner deems necessary to provide the commissioner with information as to all aspects of the financial condition of the association and may prescribe the scope of the annual audit, and require the auditor to furnish the commissioner with information additional to that contained in the report of the auditor.
(d) The commissioner may also require that copies of the annual report be mailed to stockholders or members in the form and manner that the commissioner prescribes.
Acts 1978, ch. 708, § 3.09; T.C.A., § 45-1516.
Tenn. Code Ann. § 45-10-118 — TN Code / Title 45 / Chapter 10 / Section 45-10-118
Disclosure relative to child support enforcement
Status: in_force

(a) Notwithstanding any other provisions of any law or regulation to the contrary, a financial institution shall disclose upon request to any Title IV-D child support agency of this state or any other state or territory or the federal government, their contractors or duly authorized agents, that are seeking to establish, modify, or enforce any child support obligation, any financial information, including, but not limited to, assets and liabilities, relative to any person who is the subject of any judicial or administrative action or process that establishes, modifies or enforces child support obligations. (b) Access to records upon request of the entities shall include automated access to data bases containing financial information wherever agreements pursuant to § 45-19-101 have been entered between the department of human services and any financial institution. (c) Notwithstanding any other law or regulation to the contrary, any financial institution or any financial institution's contractor that may process any records pursuant to this section that discloses pursuant to this section any financial record to any Title IV-D child support agency of this state or any other state or territory or the federal government, their contractors or duly authorized agents that are attempting to establish, modify or enforce a child support obligation shall not be liable under any law or regulation of this state to any person for the disclosure, and shall be absolutely immune from any civil or criminal liability for the disclosure in response to the requirements of this section. (d) A child support enforcement agency that obtains a financial record from a financial institution pursuant to this section or any other provision of law may disclose the information only as permitted pursuant to § 71-1-131 . (e) For purposes of this section, "financial institution" means: (1) A depository institution, as defined in § 3(c) of the Federal Deposit Insurance Act ( 12 U.S.C. § 1813(c) ); (2) An institution-affiliated party, as defined in § 3(u) of the Federal Deposit Insurance Act ( 12 U.S.C. § 1813(u) ); (3) Any federal credit union or state credit union, as defined in § 101 of the Federal Credit Union Act ( 12 U.S.C. § 1752 ), including an institution-affiliated party of the credit union, as defined in § 206 of the Federal Credit Union Act ( 12 U.S.C. § 1786 ); and (4) Any benefit association, insurance company, safe deposit company, money market mutual fund, securities broker/dealer, or similar entity authorized to conduct business in this state. (f) For the purposes of this section, "financial record" has the meaning given the term by § 1101 of the Right to Financial Privacy Act of 1978 ( 12 U.S.C. § 3401 ). (g) For the production of financial information or financial records, other than those specifically provided in the data match provisions of ch. 19, part 1 of this title by contract with the financial institution, the department shall pay a reasonable fee not to exceed the actual cost to the financial institution for researching or producing financial records. A reasonable fee shall be deemed to be the lesser of the financial institution's ordinary and customary fees for producing customer records or the fees established by the federal reserve board for the production of records. Acts 1997 , ch. 551, § 13.
(a) Notwithstanding any other provisions of any law or regulation to the contrary, a financial institution shall disclose upon request to any Title IV-D child support agency of this state or any other state or territory or the federal government, their contractors or duly authorized agents, that are seeking to establish, modify, or enforce any child support obligation, any financial information, including, but not limited to, assets and liabilities, relative to any person who is the subject of any judicial or administrative action or process that establishes, modifies or enforces child support obligations.
(b) Access to records upon request of the entities shall include automated access to data bases containing financial information wherever agreements pursuant to § 45-19-101 have been entered between the department of human services and any financial institution.
(c) Notwithstanding any other law or regulation to the contrary, any financial institution or any financial institution's contractor that may process any records pursuant to this section that discloses pursuant to this section any financial record to any Title IV-D child support agency of this state or any other state or territory or the federal government, their contractors or duly authorized agents that are attempting to establish, modify or enforce a child support obligation shall not be liable under any law or regulation of this state to any person for the disclosure, and shall be absolutely immune from any civil or criminal liability for the disclosure in response to the requirements of this section.
(d) A child support enforcement agency that obtains a financial record from a financial institution pursuant to this section or any other provision of law may disclose the information only as permitted pursuant to § 71-1-131 .
(e) For purposes of this section, "financial institution" means: (1) A depository institution, as defined in § 3(c) of the Federal Deposit Insurance Act ( 12 U.S.C. § 1813(c) ); (2) An institution-affiliated party, as defined in § 3(u) of the Federal Deposit Insurance Act ( 12 U.S.C. § 1813(u) ); (3) Any federal credit union or state credit union, as defined in § 101 of the Federal Credit Union Act ( 12 U.S.C. § 1752 ), including an institution-affiliated party of the credit union, as defined in § 206 of the Federal Credit Union Act ( 12 U.S.C. § 1786 ); and (4) Any benefit association, insurance company, safe deposit company, money market mutual fund, securities broker/dealer, or similar entity authorized to conduct business in this state.
(1) A depository institution, as defined in § 3(c) of the Federal Deposit Insurance Act ( 12 U.S.C. § 1813(c) );
(2) An institution-affiliated party, as defined in § 3(u) of the Federal Deposit Insurance Act ( 12 U.S.C. § 1813(u) );
(3) Any federal credit union or state credit union, as defined in § 101 of the Federal Credit Union Act ( 12 U.S.C. § 1752 ), including an institution-affiliated party of the credit union, as defined in § 206 of the Federal Credit Union Act ( 12 U.S.C. § 1786 ); and
(4) Any benefit association, insurance company, safe deposit company, money market mutual fund, securities broker/dealer, or similar entity authorized to conduct business in this state.
(f) For the purposes of this section, "financial record" has the meaning given the term by § 1101 of the Right to Financial Privacy Act of 1978 ( 12 U.S.C. § 3401 ).
(g) For the production of financial information or financial records, other than those specifically provided in the data match provisions of ch. 19, part 1 of this title by contract with the financial institution, the department shall pay a reasonable fee not to exceed the actual cost to the financial institution for researching or producing financial records. A reasonable fee shall be deemed to be the lesser of the financial institution's ordinary and customary fees for producing customer records or the fees established by the federal reserve board for the production of records.
Acts 1997 , ch. 551, § 13.
Tenn. Code Ann. § 45-20-101 — TN Code / Title 45 / Chapter 20 / Section 45-20-101
Short title
Status: in_force

This chapter shall be known and may be cited as the "Tennessee Home Loan Protection Act." Acts 2006, ch. 801, § 1.
This chapter shall be known and may be cited as the "Tennessee Home Loan Protection Act."
Acts 2006, ch. 801, § 1.
Tenn. Code Ann. § 45-3-406 — TN Code / Title 45 / Chapter 3 / Section 45-3-406
Transfers to loss reserves
Status: in_force

(a) If, at the date of any closing of its books, the loss reserves of an association equal an aggregate amount of a percentage as the commissioner may prescribe, then an amount necessary to increase its loss reserves to the required amount shall be transferred from the net income of the association to its loss reserves. (b) In the event that any credit to the loss reserves of an association is made following July 1, 1978, in excess of the minimum percentage required herein, the dollar amount of the excess may be carried over as a credit toward the minimum requirement for any subsequent accounting period. Acts 1978, ch. 708, § 2.35; T.C.A., § 45-1435.
(a) If, at the date of any closing of its books, the loss reserves of an association equal an aggregate amount of a percentage as the commissioner may prescribe, then an amount necessary to increase its loss reserves to the required amount shall be transferred from the net income of the association to its loss reserves.
(b) In the event that any credit to the loss reserves of an association is made following July 1, 1978, in excess of the minimum percentage required herein, the dollar amount of the excess may be carried over as a credit toward the minimum requirement for any subsequent accounting period.
Acts 1978, ch. 708, § 2.35; T.C.A., § 45-1435.
Tenn. Code Ann. § 45-2-505 — TN Code / Title 45 / Chapter 2 / Section 45-2-505
Supervision and examinations - Disclosures to federal reserve board
Status: in_force

The bank shall continue to be subject to the supervision and examinations required by the laws of this state, except that the federal reserve board shall have the right, if it deems necessary, to make examinations, and the authorities of this state having supervision over the bank or trust company may disclose to the federal reserve board, or to examiners duly appointed by it, all information in reference to the affairs of any bank that has become, or desires to become, a member of a federal reserve bank. Acts 1969, ch. 36, § 1 (3.323); T.C.A., § 45-305.
The bank shall continue to be subject to the supervision and examinations required by the laws of this state, except that the federal reserve board shall have the right, if it deems necessary, to make examinations, and the authorities of this state having supervision over the bank or trust company may disclose to the federal reserve board, or to examiners duly appointed by it, all information in reference to the affairs of any bank that has become, or desires to become, a member of a federal reserve bank.
Acts 1969, ch. 36, § 1 (3.323); T.C.A., § 45-305.
Tenn. Code Ann. § 45-5-507 — TN Code / Title 45 / Chapter 5 / Section 45-5-507
Filing of written report with commissioner - Events impacting activities of registrant
Status: in_force

Within fifteen (15) days of the occurrence of any one (1) of the events listed in this section, a registrant shall file a written report with the commissioner describing the event and its expected impact on the activities of the registrant: (1) The filing for bankruptcy or reorganization by the registrant; (2) The institution of revocation or suspension proceedings against the registrant by any state or governmental authority; (3) The denial of the opportunity to engage in business by any state or governmental authority; (4) Any felony indictment of the registrant or any of its officers, directors or principals, or partners; (5) Any felony conviction of the registrant or any of its officers, directors, principals, or partners; and (6) Other events that the commissioner may determine and identify by rule. Acts 2001, ch. 165, § 9.
Within fifteen (15) days of the occurrence of any one (1) of the events listed in this section, a registrant shall file a written report with the commissioner describing the event and its expected impact on the activities of the registrant:
(1) The filing for bankruptcy or reorganization by the registrant;
(2) The institution of revocation or suspension proceedings against the registrant by any state or governmental authority;
(3) The denial of the opportunity to engage in business by any state or governmental authority;
(4) Any felony indictment of the registrant or any of its officers, directors or principals, or partners;
(5) Any felony conviction of the registrant or any of its officers, directors, principals, or partners; and
(6) Other events that the commissioner may determine and identify by rule.
Acts 2001, ch. 165, § 9.
Tenn. Code Ann. § 45-18-101 — TN Code / Title 45 / Chapter 18 / Section 45-18-101
Short title
Status: in_force

This chapter shall be known and may be cited as the "Check Cashing Act of 1997." Acts 1997, ch. 309, § 1.
This chapter shall be known and may be cited as the "Check Cashing Act of 1997."
Acts 1997, ch. 309, § 1.
Tenn. Code Ann. § 45-3-602 — TN Code / Title 45 / Chapter 3 / Section 45-3-602
Investments in real estate
Status: in_force

(a) Business Property. Every association has the power to invest in real property or interests in real property that the board of directors may deem necessary for the conduct of the business of the association, which, for the purposes of this chapter, shall be deemed to include the ownership of stock of a wholly owned subsidiary corporation having as its exclusive activity the ownership and management of the property or interests, but the amount so invested shall not exceed the net worth of the association; provided, that the commissioner may authorize a greater amount to be so invested. (b) Purchase of Real Estate. Every association has the power to invest an amount not exceeding the lesser of its net worth or five percent (5%) of its assets in the purchase of real estate in its primary lending area for the purpose of producing income or for inventory and sale or for improvement, including the erection of buildings on the real estate, for sale or rental purposes, and the association may hold, sell, lease, operate, or otherwise exercise the rights of an owner as to the property. Marketable title to all real estate acquired under this subsection (b) shall be taken and held in the name of the association, and the title shall immediately be recorded in accordance with the laws of this state. Acts 1978, ch. 708, § 2.28; T.C.A., § 45-1428.
(a) Business Property. Every association has the power to invest in real property or interests in real property that the board of directors may deem necessary for the conduct of the business of the association, which, for the purposes of this chapter, shall be deemed to include the ownership of stock of a wholly owned subsidiary corporation having as its exclusive activity the ownership and management of the property or interests, but the amount so invested shall not exceed the net worth of the association; provided, that the commissioner may authorize a greater amount to be so invested.
(b) Purchase of Real Estate. Every association has the power to invest an amount not exceeding the lesser of its net worth or five percent (5%) of its assets in the purchase of real estate in its primary lending area for the purpose of producing income or for inventory and sale or for improvement, including the erection of buildings on the real estate, for sale or rental purposes, and the association may hold, sell, lease, operate, or otherwise exercise the rights of an owner as to the property. Marketable title to all real estate acquired under this subsection (b) shall be taken and held in the name of the association, and the title shall immediately be recorded in accordance with the laws of this state.
Acts 1978, ch. 708, § 2.28; T.C.A., § 45-1428.
Tenn. Code Ann. § 45-7-114 — TN Code / Title 45 / Chapter 7 / Section 45-7-114
Information requirements for certain individuals
Status: in_force

(a) Any individual in control of a licensee or applicant, any individual that seeks to acquire control of a licensee, and each key individual shall furnish to the commissioner the following items: (1) The individual's fingerprints for submission to the federal bureau of investigation and the commissioner for purposes of a national criminal history background check, unless the individual currently resides outside of the United States and has resided outside of the United States for the last ten (10) years; (2) Information pertaining to the individual's personal history and experience in a form and in a medium prescribed by the commissioner; and (3) The individual's authorization for the commissioner or NMLS, or both, to obtain: (A) An independent credit report from a consumer reporting agency; (B) Information related to any criminal convictions or pending charges; and (C) Information related to any regulatory or administrative action and any civil litigation involving claims of fraud, misrepresentation, conversion, mismanagement of funds, breach of fiduciary duty, or breach of contract. (b) If the individual has resided outside of the United States at any time in the last ten (10) years, the individual shall also provide an investigative background report prepared by an independent search firm acceptable to the commissioner that meets the following requirements: (1) At a minimum, the search firm shall: (A) Demonstrate that it has sufficient knowledge, resources, and employs accepted and reasonable methodologies to conduct the research of the background report; and (B) Not be affiliated with or have an interest with the individual it is researching; and (2) The investigative background report must be written in the English language and must, at a minimum, contain the following: (A) If available in the individual's current jurisdiction of residency, a comprehensive credit report, or any equivalent information obtained or generated by the independent search firm to accomplish such report, including a search of the court data in the countries, provinces, states, cities, towns, and contiguous areas where the individual resided and worked; (B) Criminal records information for the past ten (10) years, including, but not limited to, felonies, misdemeanors, or similar convictions for violations of the law in the countries, provinces, states, cities, towns, and contiguous areas where the individual resided and worked; (C) Employment history; (D) Media history, including an electronic search of national and local publications, wire services, and business applications; and (E) Financial services-related regulatory history, including, but not limited to, money transmission, securities, banking, insurance, and mortgage-related industries. Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024. Acts 1994, ch. 715, § 1; T.C.A., § 45-7-214 .
(a) Any individual in control of a licensee or applicant, any individual that seeks to acquire control of a licensee, and each key individual shall furnish to the commissioner the following items: (1) The individual's fingerprints for submission to the federal bureau of investigation and the commissioner for purposes of a national criminal history background check, unless the individual currently resides outside of the United States and has resided outside of the United States for the last ten (10) years; (2) Information pertaining to the individual's personal history and experience in a form and in a medium prescribed by the commissioner; and (3) The individual's authorization for the commissioner or NMLS, or both, to obtain: (A) An independent credit report from a consumer reporting agency; (B) Information related to any criminal convictions or pending charges; and (C) Information related to any regulatory or administrative action and any civil litigation involving claims of fraud, misrepresentation, conversion, mismanagement of funds, breach of fiduciary duty, or breach of contract.
(1) The individual's fingerprints for submission to the federal bureau of investigation and the commissioner for purposes of a national criminal history background check, unless the individual currently resides outside of the United States and has resided outside of the United States for the last ten (10) years;
(2) Information pertaining to the individual's personal history and experience in a form and in a medium prescribed by the commissioner; and
(3) The individual's authorization for the commissioner or NMLS, or both, to obtain: (A) An independent credit report from a consumer reporting agency; (B) Information related to any criminal convictions or pending charges; and (C) Information related to any regulatory or administrative action and any civil litigation involving claims of fraud, misrepresentation, conversion, mismanagement of funds, breach of fiduciary duty, or breach of contract.
(A) An independent credit report from a consumer reporting agency;
(B) Information related to any criminal convictions or pending charges; and
(C) Information related to any regulatory or administrative action and any civil litigation involving claims of fraud, misrepresentation, conversion, mismanagement of funds, breach of fiduciary duty, or breach of contract.
(b) If the individual has resided outside of the United States at any time in the last ten (10) years, the individual shall also provide an investigative background report prepared by an independent search firm acceptable to the commissioner that meets the following requirements: (1) At a minimum, the search firm shall: (A) Demonstrate that it has sufficient knowledge, resources, and employs accepted and reasonable methodologies to conduct the research of the background report; and (B) Not be affiliated with or have an interest with the individual it is researching; and (2) The investigative background report must be written in the English language and must, at a minimum, contain the following: (A) If available in the individual's current jurisdiction of residency, a comprehensive credit report, or any equivalent information obtained or generated by the independent search firm to accomplish such report, including a search of the court data in the countries, provinces, states, cities, towns, and contiguous areas where the individual resided and worked; (B) Criminal records information for the past ten (10) years, including, but not limited to, felonies, misdemeanors, or similar convictions for violations of the law in the countries, provinces, states, cities, towns, and contiguous areas where the individual resided and worked; (C) Employment history; (D) Media history, including an electronic search of national and local publications, wire services, and business applications; and (E) Financial services-related regulatory history, including, but not limited to, money transmission, securities, banking, insurance, and mortgage-related industries.
(1) At a minimum, the search firm shall: (A) Demonstrate that it has sufficient knowledge, resources, and employs accepted and reasonable methodologies to conduct the research of the background report; and (B) Not be affiliated with or have an interest with the individual it is researching; and
(A) Demonstrate that it has sufficient knowledge, resources, and employs accepted and reasonable methodologies to conduct the research of the background report; and
(B) Not be affiliated with or have an interest with the individual it is researching; and
(2) The investigative background report must be written in the English language and must, at a minimum, contain the following: (A) If available in the individual's current jurisdiction of residency, a comprehensive credit report, or any equivalent information obtained or generated by the independent search firm to accomplish such report, including a search of the court data in the countries, provinces, states, cities, towns, and contiguous areas where the individual resided and worked; (B) Criminal records information for the past ten (10) years, including, but not limited to, felonies, misdemeanors, or similar convictions for violations of the law in the countries, provinces, states, cities, towns, and contiguous areas where the individual resided and worked; (C) Employment history; (D) Media history, including an electronic search of national and local publications, wire services, and business applications; and (E) Financial services-related regulatory history, including, but not limited to, money transmission, securities, banking, insurance, and mortgage-related industries.
(A) If available in the individual's current jurisdiction of residency, a comprehensive credit report, or any equivalent information obtained or generated by the independent search firm to accomplish such report, including a search of the court data in the countries, provinces, states, cities, towns, and contiguous areas where the individual resided and worked;
(B) Criminal records information for the past ten (10) years, including, but not limited to, felonies, misdemeanors, or similar convictions for violations of the law in the countries, provinces, states, cities, towns, and contiguous areas where the individual resided and worked;
(C) Employment history;
(D) Media history, including an electronic search of national and local publications, wire services, and business applications; and
(E) Financial services-related regulatory history, including, but not limited to, money transmission, securities, banking, insurance, and mortgage-related industries.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; T.C.A., § 45-7-214 .
Tenn. Code Ann. § 45-2-1907 — TN Code / Title 45 / Chapter 2 / Section 45-2-1907
Amendment of credit card agreement
Status: in_force

(a) Except as otherwise provided in subsection (b), a bank may amend its credit card agreement with a cardholder by any method permitted therein upon complying with applicable federal disclosure laws, including, but not limited to, by sending a written change-in-terms notice prior to the effective date of the change, if the change-in-terms notice is required by federal law. The agreement, as so amended, may be made applicable to all or any part of the outstanding indebtedness under the plan on or after the effective date of the amendment, including indebtedness arising out of extensions of credit made prior to the amendment. (b) An amendment that materially increases applicable interest rates or other charges or is otherwise materially adverse to the cardholder shall take effect only if the cardholder consents. If the cardholder does give any required consent, the amendment may be made applicable to all or any part of the outstanding indebtedness under the plan on or after the effective date of the amendment, including indebtedness arising out of extensions of credit made prior to the amendment. If the cardholder does not give any required consent, the cardholder shall be permitted to pay the outstanding unpaid indebtedness in accordance with the terms of the agreement, without giving effect to the amendment, and the bank may terminate any further credit extensions under the plan, unless the credit card agreement provides otherwise. (c) The cardholder's consent, for purposes of subsection (b), may be expressed by any affirmative act, including, but not limited to, continued usage of the account after a date specified in a change-in-terms or amendment notice sent by the bank. As an alternative, the change-in-terms or amendment notice may require that the cardholder take specified action, such as returning all credit cards and other access devices to the account by a specified date, in which case the cardholder's failure to take action shall be deemed consent by the cardholder to the changed or amended terms. Acts 1993, ch. 447, § 10.
(a) Except as otherwise provided in subsection (b), a bank may amend its credit card agreement with a cardholder by any method permitted therein upon complying with applicable federal disclosure laws, including, but not limited to, by sending a written change-in-terms notice prior to the effective date of the change, if the change-in-terms notice is required by federal law. The agreement, as so amended, may be made applicable to all or any part of the outstanding indebtedness under the plan on or after the effective date of the amendment, including indebtedness arising out of extensions of credit made prior to the amendment.
(b) An amendment that materially increases applicable interest rates or other charges or is otherwise materially adverse to the cardholder shall take effect only if the cardholder consents. If the cardholder does give any required consent, the amendment may be made applicable to all or any part of the outstanding indebtedness under the plan on or after the effective date of the amendment, including indebtedness arising out of extensions of credit made prior to the amendment. If the cardholder does not give any required consent, the cardholder shall be permitted to pay the outstanding unpaid indebtedness in accordance with the terms of the agreement, without giving effect to the amendment, and the bank may terminate any further credit extensions under the plan, unless the credit card agreement provides otherwise.
(c) The cardholder's consent, for purposes of subsection (b), may be expressed by any affirmative act, including, but not limited to, continued usage of the account after a date specified in a change-in-terms or amendment notice sent by the bank. As an alternative, the change-in-terms or amendment notice may require that the cardholder take specified action, such as returning all credit cards and other access devices to the account by a specified date, in which case the cardholder's failure to take action shall be deemed consent by the cardholder to the changed or amended terms.
Acts 1993, ch. 447, § 10.
Tenn. Code Ann. § 45-13-306 — TN Code / Title 45 / Chapter 13 / Section 45-13-306
Standards for mortgage loan originator license renewal
Status: in_force

(a) The minimum standards for license renewal for mortgage loan originators shall include the following: (1) Continues to meet the minimum standards for licensure under § 45-13-302(c) ; (2) Satisfies the annual continuing education requirements described in § 45-13-307 ; and (3) Pays a nonrefundable renewal fee of one hundred dollars ($100), which amount may be decreased or increased by rule of the commissioner. (b) To renew a mortgage loan originator license for the following calendar year, the commissioner must receive on or before December 31 a completed renewal application and fee meeting the requirements of subsection (a). If the renewal requirements are not timely met, the mortgage loan originator license shall expire at the close of business on December 31. (c) Should the commissioner deny a renewal application, the applicant may make written demand to the commissioner for a hearing on the question of whether the license should be renewed; provided, that the request for hearing be received by the commissioner within thirty (30) days from the date of denial; and provided, further, that the failure to timely request a hearing shall cause the license to be automatically revoked without further notice or hearing at the end of the thirty-day period. If a hearing is timely requested under this subsection (c), it shall be conducted under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, and the license shall not expire until resolution of the appeal in accordance with the Uniform Administrative Procedures Act. Acts 2009, ch. 499, § 8.
(a) The minimum standards for license renewal for mortgage loan originators shall include the following: (1) Continues to meet the minimum standards for licensure under § 45-13-302(c) ; (2) Satisfies the annual continuing education requirements described in § 45-13-307 ; and (3) Pays a nonrefundable renewal fee of one hundred dollars ($100), which amount may be decreased or increased by rule of the commissioner.
(1) Continues to meet the minimum standards for licensure under § 45-13-302(c) ;
(2) Satisfies the annual continuing education requirements described in § 45-13-307 ; and
(3) Pays a nonrefundable renewal fee of one hundred dollars ($100), which amount may be decreased or increased by rule of the commissioner.
(b) To renew a mortgage loan originator license for the following calendar year, the commissioner must receive on or before December 31 a completed renewal application and fee meeting the requirements of subsection (a). If the renewal requirements are not timely met, the mortgage loan originator license shall expire at the close of business on December 31.
(c) Should the commissioner deny a renewal application, the applicant may make written demand to the commissioner for a hearing on the question of whether the license should be renewed; provided, that the request for hearing be received by the commissioner within thirty (30) days from the date of denial; and provided, further, that the failure to timely request a hearing shall cause the license to be automatically revoked without further notice or hearing at the end of the thirty-day period. If a hearing is timely requested under this subsection (c), it shall be conducted under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, and the license shall not expire until resolution of the appeal in accordance with the Uniform Administrative Procedures Act.
Acts 2009, ch. 499, § 8.
Tenn. Code Ann. § 45-7-116 — TN Code / Title 45 / Chapter 7 / Section 45-7-116
Renewal of license
Status: in_force

(a) (1) A license under this chapter must be renewed annually. (2) A nonrefundable supervision fee, as provided in § 45-1-118(i) , must be paid between November 1 and December 31 of each year. (3) The renewal term is for a period of one (1) year and begins on January 1 of each year after the initial license term and expires on December 31 of the year the renewal term begins. (b) A licensee shall submit a renewal report with the supervision fee, in a form and in a medium prescribed by the commissioner, between November 1 and December 31 of each year. The renewal report must state or contain a description of each material change in information submitted by the licensee in its original license application that has not been reported to the commissioner. (c) Failure to timely pay the supervision fee or to timely submit a completed renewal report causes the license to expire at the close of business on December 31. An abatement of the supervision fee must not be made if the license is surrendered, cancelled, revoked, or suspended prior to the expiration of the period for which it was issued. (d) Licenses issued or renewed under the former provisions of this chapter expire on December 31, 2024. Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024. Acts 1994, ch. 715, § 1; 2011, ch. 100, § 1; T.C.A., § 45-7-216 .
(a) (1) A license under this chapter must be renewed annually. (2) A nonrefundable supervision fee, as provided in § 45-1-118(i) , must be paid between November 1 and December 31 of each year. (3) The renewal term is for a period of one (1) year and begins on January 1 of each year after the initial license term and expires on December 31 of the year the renewal term begins.
(1) A license under this chapter must be renewed annually.
(2) A nonrefundable supervision fee, as provided in § 45-1-118(i) , must be paid between November 1 and December 31 of each year.
(3) The renewal term is for a period of one (1) year and begins on January 1 of each year after the initial license term and expires on December 31 of the year the renewal term begins.
(b) A licensee shall submit a renewal report with the supervision fee, in a form and in a medium prescribed by the commissioner, between November 1 and December 31 of each year. The renewal report must state or contain a description of each material change in information submitted by the licensee in its original license application that has not been reported to the commissioner.
(c) Failure to timely pay the supervision fee or to timely submit a completed renewal report causes the license to expire at the close of business on December 31. An abatement of the supervision fee must not be made if the license is surrendered, cancelled, revoked, or suspended prior to the expiration of the period for which it was issued.
(d) Licenses issued or renewed under the former provisions of this chapter expire on December 31, 2024.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; 2011, ch. 100, § 1; T.C.A., § 45-7-216 .
Tenn. Code Ann. § 45-3-108 — TN Code / Title 45 / Chapter 3 / Section 45-3-108
Ownership of associations - Changes affecting control
Status: in_force

(a) The rights and incidents of ownership in a capital stock association shall be vested in the holders of capital stock as shown on the books of the association and in no other persons. Depositors in capital stock associations shall not be vested with any rights or incidents of ownership in the association. The rights and incidents of ownership in a mutual association shall be vested in the depositors of the association. (b) Section 45-2-103 is applicable to state-chartered savings and loan associations. Unless the context requires other meaning, references to bank in § 45-2-103 include state-chartered savings and loan associations for the purposes of this subsection (b) only, and shall not be construed to give the associations any rights or powers not set forth in this chapter. Acts 1978, ch. 708, § 1.08; T.C.A., § 45-1308; Acts 1984, ch. 697, §§ 1, 2.
(a) The rights and incidents of ownership in a capital stock association shall be vested in the holders of capital stock as shown on the books of the association and in no other persons. Depositors in capital stock associations shall not be vested with any rights or incidents of ownership in the association. The rights and incidents of ownership in a mutual association shall be vested in the depositors of the association.
(b) Section 45-2-103 is applicable to state-chartered savings and loan associations. Unless the context requires other meaning, references to bank in § 45-2-103 include state-chartered savings and loan associations for the purposes of this subsection (b) only, and shall not be construed to give the associations any rights or powers not set forth in this chapter.
Acts 1978, ch. 708, § 1.08; T.C.A., § 45-1308; Acts 1984, ch. 697, §§ 1, 2.
Tenn. Code Ann. § 45-3-506 — TN Code / Title 45 / Chapter 3 / Section 45-3-506
Power of attorney on accounts
Status: in_force

(a) Any association may continue to recognize the authority of a power of attorney authorizing in writing as attorney-in-fact to operate, in whole or in part, the account of a depositor, unless and until it receives actual notice of the revocation of authority. (b) Actual notice of the death, adjudication of incompetency, or adjudication of bankruptcy of the depositor shall constitute actual notice of revocation of the authority of the attorney-in-fact, except where the Uniform Durable Power of Attorney Act, compiled in title 34, chapter 6, is applicable. (c) No association shall be liable for damages, penalty, or tax by reason of any payment made pursuant to this section. Acts 1978, ch. 708, § 2.06; T.C.A., § 45-1406; Acts 1983, ch. 299, § 10.
(a) Any association may continue to recognize the authority of a power of attorney authorizing in writing as attorney-in-fact to operate, in whole or in part, the account of a depositor, unless and until it receives actual notice of the revocation of authority.
(b) Actual notice of the death, adjudication of incompetency, or adjudication of bankruptcy of the depositor shall constitute actual notice of revocation of the authority of the attorney-in-fact, except where the Uniform Durable Power of Attorney Act, compiled in title 34, chapter 6, is applicable.
(c) No association shall be liable for damages, penalty, or tax by reason of any payment made pursuant to this section.
Acts 1978, ch. 708, § 2.06; T.C.A., § 45-1406; Acts 1983, ch. 299, § 10.
Tenn. Code Ann. § 45-2-1704 — TN Code / Title 45 / Chapter 2 / Section 45-2-1704
Unlawful gratuity or compensation
Status: in_force

(a) It is unlawful for an affiliate of a bank or for an officer, director or employee of a bank or affiliate of a bank to willfully and knowingly and without authority from the board of directors or governing body of the bank or two (2) or more of the active managing officers of the bank to receive, consent to receive, or agree to receive, any commission, emolument, gratuity or reward, or any promise of any commission, emolument, reward, property or thing of value or of personal advantage for procuring, or endeavoring to procure, for any person any loan from, or the purchase or discount of, any paper, note, draft, check or bill of exchange by the bank. (b) As used in this section, "affiliate" includes: (1) Any person who holds a majority of the stock of a bank, any other corporation in which the person owns a majority of the stock and any partnership in which the person has an interest; (2) Any corporation in which the bank or an officer, director, or employee thereof holds a majority of the stock and any partnership in which the person has an interest; and (3) Any corporation of which a majority of the directors are officers, directors, or employees of the bank or of which officers, directors, trustees or employees constitute a majority of the directors of the bank. (c) A violation of this section is a Class C misdemeanor. Acts 1969, ch. 36, § 1 (3.604); T.C.A., § 45-1104; Acts 1989, ch. 591, § 113.
(a) It is unlawful for an affiliate of a bank or for an officer, director or employee of a bank or affiliate of a bank to willfully and knowingly and without authority from the board of directors or governing body of the bank or two (2) or more of the active managing officers of the bank to receive, consent to receive, or agree to receive, any commission, emolument, gratuity or reward, or any promise of any commission, emolument, reward, property or thing of value or of personal advantage for procuring, or endeavoring to procure, for any person any loan from, or the purchase or discount of, any paper, note, draft, check or bill of exchange by the bank.
(b) As used in this section, "affiliate" includes: (1) Any person who holds a majority of the stock of a bank, any other corporation in which the person owns a majority of the stock and any partnership in which the person has an interest; (2) Any corporation in which the bank or an officer, director, or employee thereof holds a majority of the stock and any partnership in which the person has an interest; and (3) Any corporation of which a majority of the directors are officers, directors, or employees of the bank or of which officers, directors, trustees or employees constitute a majority of the directors of the bank.
(1) Any person who holds a majority of the stock of a bank, any other corporation in which the person owns a majority of the stock and any partnership in which the person has an interest;
(2) Any corporation in which the bank or an officer, director, or employee thereof holds a majority of the stock and any partnership in which the person has an interest; and
(3) Any corporation of which a majority of the directors are officers, directors, or employees of the bank or of which officers, directors, trustees or employees constitute a majority of the directors of the bank.
(c) A violation of this section is a Class C misdemeanor.
Acts 1969, ch. 36, § 1 (3.604); T.C.A., § 45-1104; Acts 1989, ch. 591, § 113.
Tenn. Code Ann. § 45-16-104 — TN Code / Title 45 / Chapter 16 / Section 45-16-104
Rules and regulations
Status: in_force

The commissioner of financial institutions is authorized to promulgate rules and regulations to effectuate the purposes of this chapter. Acts 1996, ch. 899, § 2.
The commissioner of financial institutions is authorized to promulgate rules and regulations to effectuate the purposes of this chapter.
Acts 1996, ch. 899, § 2.
Tenn. Code Ann. § 45-6-219 — TN Code / Title 45 / Chapter 6 / Section 45-6-219
Authority of counties, incorporated municipalities, cities and taxing districts to regulate
Status: in_force

(a) (1) Counties, incorporated municipalities, cities and taxing districts in this state have the authority by ordinance to adopt provisions of this part and have the authority to adopt further rules and regulations that the legislative bodies of the counties, incorporated municipalities, cities and taxing districts may deem right and proper. No county, incorporated municipality, city or taxing district has the authority to: (A) Regulate interest, fees and insurance charges; (B) Regulate hours; (C) Regulate the nature of the business or types of pawn transactions; (D) Regulate license requirements; (E) Require reports or pawn tickets providing identification, information or descriptions different from that required in § 45-6-209 ; or (F) Require a pawnbroker to hold over-the-counter purchase of goods that the seller does not intend to buy back for a period of more than twenty (20) business days before offering the merchandise for resale. (2) Counties shall have no more authority than incorporated municipalities, cities and taxing districts have under this subsection (a) in regulating pawnbrokers. (b) A law enforcement official from any county, municipality, city or taxing district may not charge a pawnbroker, firm or corporation a fee for receiving, reviewing or processing daily reports or pawn tickets as defined in § 45-6-209 , or any other information required by the law enforcement official. Acts 1988, ch. 724, § 19; 1995, ch. 186, §§ 11, 12; 1996, ch. 885, §§ 1, 2; 1997, ch. 409, § 2.
(a) (1) Counties, incorporated municipalities, cities and taxing districts in this state have the authority by ordinance to adopt provisions of this part and have the authority to adopt further rules and regulations that the legislative bodies of the counties, incorporated municipalities, cities and taxing districts may deem right and proper. No county, incorporated municipality, city or taxing district has the authority to: (A) Regulate interest, fees and insurance charges; (B) Regulate hours; (C) Regulate the nature of the business or types of pawn transactions; (D) Regulate license requirements; (E) Require reports or pawn tickets providing identification, information or descriptions different from that required in § 45-6-209 ; or (F) Require a pawnbroker to hold over-the-counter purchase of goods that the seller does not intend to buy back for a period of more than twenty (20) business days before offering the merchandise for resale. (2) Counties shall have no more authority than incorporated municipalities, cities and taxing districts have under this subsection (a) in regulating pawnbrokers.
(1) Counties, incorporated municipalities, cities and taxing districts in this state have the authority by ordinance to adopt provisions of this part and have the authority to adopt further rules and regulations that the legislative bodies of the counties, incorporated municipalities, cities and taxing districts may deem right and proper. No county, incorporated municipality, city or taxing district has the authority to: (A) Regulate interest, fees and insurance charges; (B) Regulate hours; (C) Regulate the nature of the business or types of pawn transactions; (D) Regulate license requirements; (E) Require reports or pawn tickets providing identification, information or descriptions different from that required in § 45-6-209 ; or (F) Require a pawnbroker to hold over-the-counter purchase of goods that the seller does not intend to buy back for a period of more than twenty (20) business days before offering the merchandise for resale.
(A) Regulate interest, fees and insurance charges;
(B) Regulate hours;
(C) Regulate the nature of the business or types of pawn transactions;
(D) Regulate license requirements;
(E) Require reports or pawn tickets providing identification, information or descriptions different from that required in § 45-6-209 ; or
(F) Require a pawnbroker to hold over-the-counter purchase of goods that the seller does not intend to buy back for a period of more than twenty (20) business days before offering the merchandise for resale.
(2) Counties shall have no more authority than incorporated municipalities, cities and taxing districts have under this subsection (a) in regulating pawnbrokers.
(b) A law enforcement official from any county, municipality, city or taxing district may not charge a pawnbroker, firm or corporation a fee for receiving, reviewing or processing daily reports or pawn tickets as defined in § 45-6-209 , or any other information required by the law enforcement official.
Acts 1988, ch. 724, § 19; 1995, ch. 186, §§ 11, 12; 1996, ch. 885, §§ 1, 2; 1997, ch. 409, § 2.
Tenn. Code Ann. § 45-13-502 — TN Code / Title 45 / Chapter 13 / Section 45-13-502
Nationwide Mortgage Licensing System and Registry as agent
Status: in_force

The commissioner may use the Nationwide Mortgage Licensing System and Registry as an agent for channeling information, whether criminal or noncriminal in nature, whether derived from or distributed to the United States department of justice or any other state or federal governmental agency, or any other source, that the commissioner is authorized to request or distribute under this chapter. Acts 2009, ch. 499, § 8.
The commissioner may use the Nationwide Mortgage Licensing System and Registry as an agent for channeling information, whether criminal or noncriminal in nature, whether derived from or distributed to the United States department of justice or any other state or federal governmental agency, or any other source, that the commissioner is authorized to request or distribute under this chapter.
Acts 2009, ch. 499, § 8.
Tenn. Code Ann. § 45-7-126 — TN Code / Title 45 / Chapter 7 / Section 45-7-126
Relationship between licensee and authorized delegate
Status: in_force

(a) As used in this section, "remit" means to make direct payments of money to a licensee or its representative authorized to receive money or to deposit money in a bank in an account specified by the licensee. (b) Before a licensee is authorized to conduct business through an authorized delegate or allows a person to act as the licensee's authorized delegate, the licensee must: (1) Adopt, and update as necessary, written policies and procedures reasonably designed to ensure that the licensee's authorized delegates comply with applicable state and federal law; (2) Enter into a written contract that complies with subsection (d); and (3) Conduct a reasonable risk-based background investigation sufficient for the licensee to determine whether the authorized delegate has complied and will likely comply with applicable state and federal law. (c) An authorized delegate must operate in full compliance with this chapter. (d) The written contract required by subsection (b) must be signed by the licensee and the authorized delegate and, at a minimum, must: (1) Appoint the person signing the contract as the licensee's authorized delegate with the authority to conduct money transmission on behalf of the licensee; (2) State the nature and scope of the relationship between the licensee and the authorized delegate and the respective rights and responsibilities of the parties; (3) Require the authorized delegate to agree to fully comply with all applicable state and federal laws, rules, and regulations pertaining to money transmission, including this chapter and rules implementing this chapter, as well as relevant provisions of the Bank Secrecy Act and the USA PATRIOT Act of 2001 (Pub. L. No. 107-56); (4) Require the authorized delegate to remit and handle money and monetary value in accordance with the terms of the contract between the licensee and the authorized delegate; (5) Impose a trust on money and monetary value net of fees received for money transmission for the benefit of the licensee; (6) Require the authorized delegate to prepare and maintain records as required by this chapter or rules implementing this chapter, or as reasonably requested by the commissioner; (7) Acknowledge that the authorized delegate consents to examination or investigation by the commissioner; (8) State that the licensee is subject to supervision and regulation by the commissioner and that, as part of that supervision and regulation, the commissioner may suspend or revoke an authorized delegate designation or require the licensee to terminate an authorized delegate designation; and (9) Acknowledge receipt of the written policies and procedures required under subdivision (b)(1). (e) If the licensee's license is suspended, revoked, surrendered, or expired, the licensee must, within five (5) business days, provide documentation to the commissioner that the licensee has notified all authorized delegates of the licensee of the suspension, revocation, surrender, or expiration of a license. Upon suspension, revocation, surrender, or expiration of a license, applicable authorized delegates shall immediately cease to provide money transmission as an authorized delegate of the licensee. (f) An authorized delegate may not use a subdelegate to conduct money transmission on behalf of a licensee. Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024. Acts 1994, ch. 715, § 1; T.C.A., § 45-7-226 .
(a) As used in this section, "remit" means to make direct payments of money to a licensee or its representative authorized to receive money or to deposit money in a bank in an account specified by the licensee.
(b) Before a licensee is authorized to conduct business through an authorized delegate or allows a person to act as the licensee's authorized delegate, the licensee must: (1) Adopt, and update as necessary, written policies and procedures reasonably designed to ensure that the licensee's authorized delegates comply with applicable state and federal law; (2) Enter into a written contract that complies with subsection (d); and (3) Conduct a reasonable risk-based background investigation sufficient for the licensee to determine whether the authorized delegate has complied and will likely comply with applicable state and federal law.
(1) Adopt, and update as necessary, written policies and procedures reasonably designed to ensure that the licensee's authorized delegates comply with applicable state and federal law;
(2) Enter into a written contract that complies with subsection (d); and
(3) Conduct a reasonable risk-based background investigation sufficient for the licensee to determine whether the authorized delegate has complied and will likely comply with applicable state and federal law.
(c) An authorized delegate must operate in full compliance with this chapter.
(d) The written contract required by subsection (b) must be signed by the licensee and the authorized delegate and, at a minimum, must: (1) Appoint the person signing the contract as the licensee's authorized delegate with the authority to conduct money transmission on behalf of the licensee; (2) State the nature and scope of the relationship between the licensee and the authorized delegate and the respective rights and responsibilities of the parties; (3) Require the authorized delegate to agree to fully comply with all applicable state and federal laws, rules, and regulations pertaining to money transmission, including this chapter and rules implementing this chapter, as well as relevant provisions of the Bank Secrecy Act and the USA PATRIOT Act of 2001 (Pub. L. No. 107-56); (4) Require the authorized delegate to remit and handle money and monetary value in accordance with the terms of the contract between the licensee and the authorized delegate; (5) Impose a trust on money and monetary value net of fees received for money transmission for the benefit of the licensee; (6) Require the authorized delegate to prepare and maintain records as required by this chapter or rules implementing this chapter, or as reasonably requested by the commissioner; (7) Acknowledge that the authorized delegate consents to examination or investigation by the commissioner; (8) State that the licensee is subject to supervision and regulation by the commissioner and that, as part of that supervision and regulation, the commissioner may suspend or revoke an authorized delegate designation or require the licensee to terminate an authorized delegate designation; and (9) Acknowledge receipt of the written policies and procedures required under subdivision (b)(1).
(1) Appoint the person signing the contract as the licensee's authorized delegate with the authority to conduct money transmission on behalf of the licensee;
(2) State the nature and scope of the relationship between the licensee and the authorized delegate and the respective rights and responsibilities of the parties;
(3) Require the authorized delegate to agree to fully comply with all applicable state and federal laws, rules, and regulations pertaining to money transmission, including this chapter and rules implementing this chapter, as well as relevant provisions of the Bank Secrecy Act and the USA PATRIOT Act of 2001 (Pub. L. No. 107-56);
(4) Require the authorized delegate to remit and handle money and monetary value in accordance with the terms of the contract between the licensee and the authorized delegate;
(5) Impose a trust on money and monetary value net of fees received for money transmission for the benefit of the licensee;
(6) Require the authorized delegate to prepare and maintain records as required by this chapter or rules implementing this chapter, or as reasonably requested by the commissioner;
(7) Acknowledge that the authorized delegate consents to examination or investigation by the commissioner;
(8) State that the licensee is subject to supervision and regulation by the commissioner and that, as part of that supervision and regulation, the commissioner may suspend or revoke an authorized delegate designation or require the licensee to terminate an authorized delegate designation; and
(9) Acknowledge receipt of the written policies and procedures required under subdivision (b)(1).
(e) If the licensee's license is suspended, revoked, surrendered, or expired, the licensee must, within five (5) business days, provide documentation to the commissioner that the licensee has notified all authorized delegates of the licensee of the suspension, revocation, surrender, or expiration of a license. Upon suspension, revocation, surrender, or expiration of a license, applicable authorized delegates shall immediately cease to provide money transmission as an authorized delegate of the licensee.
(f) An authorized delegate may not use a subdelegate to conduct money transmission on behalf of a licensee.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; T.C.A., § 45-7-226 .
Tenn. Code Ann. § 45-14-111 — TN Code / Title 45 / Chapter 14 / Section 45-14-111
Costs, fees and assessments
Status: in_force

Savings banks shall pay the costs, fees and assessments computed in the manner provided for commercial banks (but not for nondepository trust companies) in § 45-1-118 . Acts 1991, ch. 177, § 12.
Savings banks shall pay the costs, fees and assessments computed in the manner provided for commercial banks (but not for nondepository trust companies) in § 45-1-118 .
Acts 1991, ch. 177, § 12.
Tenn. Code Ann. § 45-17-116 — TN Code / Title 45 / Chapter 17 / Section 45-17-116
Consent orders
Status: in_force

(a) The commissioner may enter into consent orders at any time with any person to resolve any matter arising under this chapter. A consent order shall be signed by the person to whom it is issued, or a duly authorized representative, and shall indicate agreement to the terms contained therein. A consent order need not constitute an admission by any person that any provision of this chapter, or any rule, regulation or order promulgated or issued under this chapter has been violated, nor need it constitute a finding by the commissioner that the person has violated any provision of this chapter or any rule, regulation or order promulgated or issued under this chapter. (b) Notwithstanding the issuance of a consent order, the commissioner may seek civil or criminal penalties or compromise civil penalties concerning matters encompassed by the consent order. (c) In cases involving extraordinary circumstances requiring immediate action, the commissioner may take any enforcement action authorized by this chapter without providing the opportunity for a prior hearing, but shall promptly afford a subsequent hearing upon an application to rescind the action taken that is filed with the commissioner within twenty (20) days after receipt of the notice of the commissioner's emergency action. Acts 1997, ch. 255, § 17; 1999, ch. 14, § 1.
(a) The commissioner may enter into consent orders at any time with any person to resolve any matter arising under this chapter. A consent order shall be signed by the person to whom it is issued, or a duly authorized representative, and shall indicate agreement to the terms contained therein. A consent order need not constitute an admission by any person that any provision of this chapter, or any rule, regulation or order promulgated or issued under this chapter has been violated, nor need it constitute a finding by the commissioner that the person has violated any provision of this chapter or any rule, regulation or order promulgated or issued under this chapter.
(b) Notwithstanding the issuance of a consent order, the commissioner may seek civil or criminal penalties or compromise civil penalties concerning matters encompassed by the consent order.
(c) In cases involving extraordinary circumstances requiring immediate action, the commissioner may take any enforcement action authorized by this chapter without providing the opportunity for a prior hearing, but shall promptly afford a subsequent hearing upon an application to rescind the action taken that is filed with the commissioner within twenty (20) days after receipt of the notice of the commissioner's emergency action.
Acts 1997, ch. 255, § 17; 1999, ch. 14, § 1.
Tenn. Code Ann. § 45-10-107 — TN Code / Title 45 / Chapter 10 / Section 45-10-107
Requisites of subpoena
Status: in_force

(a) A financial institution shall not be required to produce financial records in response to a subpoena unless: (1) The subpoena indicates that the requirements of § 45-10-106 have been met; (2) The subpoena describes with specificity the financial records to be produced, including: (A) The name and address of the customer to whom the records relate; (B) The name or functional description of the records; (C) The time period covered by the records; and (D) Any additional information necessary to identify the records sought; (3) The subpoena has been served upon the financial institution on a date that allows adequate time, which shall not be less than fifteen (15) days, within which to locate, copy and deliver the records; and (4) In civil actions, the subpoena contains a bond for costs incident to the subpoena as provided in § 45-10-108 . (b) By agreement between the financial institution and the issuer or upon proper application to the appropriate court and after notice to the affected person, the fifteen-day period may be shortened where fifteen (15) days are not required, or may be lengthened where fifteen (15) days are not sufficient. Nothing herein shall restrict the power of the appropriate court for good cause shown to cause subpoenas to be issued or responses thereto to be made in less than any of the time periods set forth herein, including instanter. (c) A financial institution shall not be deemed to violate this chapter because it produces financial records in response to a subpoena containing the representation required under subdivision (a)(1), even if the representation is false and a claim to that effect is made to the financial institution, unless the production violates a court order duly served on the financial institution. (d) A financial institution refusing to comply with a subpoena that fails to meet all applicable requirements of subsection (a) need not file a motion to quash the subpoena, but shall notify the issuer of the grounds of its refusal within a reasonable time after being served with the subpoena. (e) (1) A financial institution may file with the appropriate court a copy of the notice of refusal to comply with a subpoena that was conveyed to the issuer as provided in subsection (d). The copy shall contain a notice to the clerk of court, which shall be prominently on the face of the copy in substantially the following form: Case / Docket No. ______________ Notice to the clerk of court: Pursuant to Tennessee Code Annotated § 45-10-107 , this notice shall suspend issuance of any order to show cause or compel a response to the subpoena issued to the financial institution filing this copy of a notice of refusal to comply with a subpoena. (2) Receipt of a copy of the notice submitted under subdivision (e)(1) by the clerk of the appropriate court shall serve as notice to the court that the court shall not issue an order to show cause or compel the financial institution to respond to a subpoena that the financial institution has determined fails to meet all the applicable requirements of subsection (a), unless the court deems that the requirements have been satisfied. The notice shall not prevent the court from issuing an order once a subpoena meets the requirements of subsection (a). Acts 1983, ch. 224, § 7; 1995, ch. 309, §6; 2008 , ch. 788, § 1.
(a) A financial institution shall not be required to produce financial records in response to a subpoena unless: (1) The subpoena indicates that the requirements of § 45-10-106 have been met; (2) The subpoena describes with specificity the financial records to be produced, including: (A) The name and address of the customer to whom the records relate; (B) The name or functional description of the records; (C) The time period covered by the records; and (D) Any additional information necessary to identify the records sought; (3) The subpoena has been served upon the financial institution on a date that allows adequate time, which shall not be less than fifteen (15) days, within which to locate, copy and deliver the records; and (4) In civil actions, the subpoena contains a bond for costs incident to the subpoena as provided in § 45-10-108 .
(1) The subpoena indicates that the requirements of § 45-10-106 have been met;
(2) The subpoena describes with specificity the financial records to be produced, including: (A) The name and address of the customer to whom the records relate; (B) The name or functional description of the records; (C) The time period covered by the records; and (D) Any additional information necessary to identify the records sought;
(A) The name and address of the customer to whom the records relate;
(B) The name or functional description of the records;
(C) The time period covered by the records; and
(D) Any additional information necessary to identify the records sought;
(3) The subpoena has been served upon the financial institution on a date that allows adequate time, which shall not be less than fifteen (15) days, within which to locate, copy and deliver the records; and
(4) In civil actions, the subpoena contains a bond for costs incident to the subpoena as provided in § 45-10-108 .
(b) By agreement between the financial institution and the issuer or upon proper application to the appropriate court and after notice to the affected person, the fifteen-day period may be shortened where fifteen (15) days are not required, or may be lengthened where fifteen (15) days are not sufficient. Nothing herein shall restrict the power of the appropriate court for good cause shown to cause subpoenas to be issued or responses thereto to be made in less than any of the time periods set forth herein, including instanter.
(c) A financial institution shall not be deemed to violate this chapter because it produces financial records in response to a subpoena containing the representation required under subdivision (a)(1), even if the representation is false and a claim to that effect is made to the financial institution, unless the production violates a court order duly served on the financial institution.
(d) A financial institution refusing to comply with a subpoena that fails to meet all applicable requirements of subsection (a) need not file a motion to quash the subpoena, but shall notify the issuer of the grounds of its refusal within a reasonable time after being served with the subpoena.
(e) (1) A financial institution may file with the appropriate court a copy of the notice of refusal to comply with a subpoena that was conveyed to the issuer as provided in subsection (d). The copy shall contain a notice to the clerk of court, which shall be prominently on the face of the copy in substantially the following form: Case / Docket No. ______________ Notice to the clerk of court: Pursuant to Tennessee Code Annotated § 45-10-107 , this notice shall suspend issuance of any order to show cause or compel a response to the subpoena issued to the financial institution filing this copy of a notice of refusal to comply with a subpoena. (2) Receipt of a copy of the notice submitted under subdivision (e)(1) by the clerk of the appropriate court shall serve as notice to the court that the court shall not issue an order to show cause or compel the financial institution to respond to a subpoena that the financial institution has determined fails to meet all the applicable requirements of subsection (a), unless the court deems that the requirements have been satisfied. The notice shall not prevent the court from issuing an order once a subpoena meets the requirements of subsection (a).
(1) A financial institution may file with the appropriate court a copy of the notice of refusal to comply with a subpoena that was conveyed to the issuer as provided in subsection (d). The copy shall contain a notice to the clerk of court, which shall be prominently on the face of the copy in substantially the following form: Case / Docket No. ______________ Notice to the clerk of court: Pursuant to Tennessee Code Annotated § 45-10-107 , this notice shall suspend issuance of any order to show cause or compel a response to the subpoena issued to the financial institution filing this copy of a notice of refusal to comply with a subpoena.
Case / Docket No. ______________
Notice to the clerk of court: Pursuant to Tennessee Code Annotated § 45-10-107 , this notice shall suspend issuance of any order to show cause or compel a response to the subpoena issued to the financial institution filing this copy of a notice of refusal to comply with a subpoena.
(2) Receipt of a copy of the notice submitted under subdivision (e)(1) by the clerk of the appropriate court shall serve as notice to the court that the court shall not issue an order to show cause or compel the financial institution to respond to a subpoena that the financial institution has determined fails to meet all the applicable requirements of subsection (a), unless the court deems that the requirements have been satisfied. The notice shall not prevent the court from issuing an order once a subpoena meets the requirements of subsection (a).
Acts 1983, ch. 224, § 7; 1995, ch. 309, §6; 2008 , ch. 788, § 1.
Tenn. Code Ann. § 45-14-106 — TN Code / Title 45 / Chapter 14 / Section 45-14-106
Capital requirements
Status: in_force

Savings banks are subject to the same capital requirements as are commercial banks chartered under the laws of this state. Acts 1991, ch. 177, § 7.
Savings banks are subject to the same capital requirements as are commercial banks chartered under the laws of this state.
Acts 1991, ch. 177, § 7.
Tenn. Code Ann. § 45-18-109 — TN Code / Title 45 / Chapter 18 / Section 45-18-109
License renewal
Status: in_force

(a) (1) Licenses issued pursuant to this chapter expire on December 31. A license may be renewed for the ensuing twelve-month period upon application by the license holder showing continued compliance with the qualifications for a license, filing of the completed renewal form, and payment of the nonrefundable supervision fee, as provided in § 45-1-118(i) . A licensee making timely and complete application and payment for renewal of its license may continue to operate under its existing license until its application is approved or denied. The completed renewal application and the payment of the annual supervision fee must be sent to the department on or before December 31, but no earlier than November 1, of each year. (2) A license holder submitting a renewal application pursuant to this chapter for a license expiring on March 31, 2018, must pay the supervision fee as provided in § 45-1-118(i) for each location. The completed renewal application and payment must be sent to the department on or before March 1, 2018. A renewed license issued under this chapter with a beginning effective date of April 1, 2018, expires on December 31, 2018. (b) The licensee shall include in its annual renewal report: (1) A copy of its most recent unconsolidated annual financial statement, including balance sheet, statement of income or loss, statement of changes in shareholder's equity and statement of changes in financial position, except that a licensee may provide the most recent consolidated annual financial statement of the parent corporation if the statement includes the balance sheet, statement of income or loss, statement of changes in shareholder's equity and statement of changes of financial position of the licensee; (2) Any material changes to any of the information submitted by the licensee on its original application that have not previously been reported to the commissioner on any other report required to be filed under this chapter; (3) Notification of material litigation relating to the businesses regulated under this chapter; and (4) Other information that the commissioner may deem appropriate for the proper enforcement of this chapter. (c) The commissioner may establish a biennial license arrangement for the filing of the application for licensure renewal, but in no case shall the supervision fee be payable for more than one (1) year at a time. Amended by 2017 Tenn. Acts, ch. 122,Sec.s10, eff. 7/1/2017 and s 9 eff. 4/1/2018. Amended by 2014 Tenn. Acts, ch. 736,s 30, Sec.s31 eff. 7/1/2015. Amended by 2014 Tenn. Acts, ch. 736,s 29, eff. 7/1/2015. Acts 1997, ch. 309, § 9.
(a) (1) Licenses issued pursuant to this chapter expire on December 31. A license may be renewed for the ensuing twelve-month period upon application by the license holder showing continued compliance with the qualifications for a license, filing of the completed renewal form, and payment of the nonrefundable supervision fee, as provided in § 45-1-118(i) . A licensee making timely and complete application and payment for renewal of its license may continue to operate under its existing license until its application is approved or denied. The completed renewal application and the payment of the annual supervision fee must be sent to the department on or before December 31, but no earlier than November 1, of each year. (2) A license holder submitting a renewal application pursuant to this chapter for a license expiring on March 31, 2018, must pay the supervision fee as provided in § 45-1-118(i) for each location. The completed renewal application and payment must be sent to the department on or before March 1, 2018. A renewed license issued under this chapter with a beginning effective date of April 1, 2018, expires on December 31, 2018.
(1) Licenses issued pursuant to this chapter expire on December 31. A license may be renewed for the ensuing twelve-month period upon application by the license holder showing continued compliance with the qualifications for a license, filing of the completed renewal form, and payment of the nonrefundable supervision fee, as provided in § 45-1-118(i) . A licensee making timely and complete application and payment for renewal of its license may continue to operate under its existing license until its application is approved or denied. The completed renewal application and the payment of the annual supervision fee must be sent to the department on or before December 31, but no earlier than November 1, of each year.
(2) A license holder submitting a renewal application pursuant to this chapter for a license expiring on March 31, 2018, must pay the supervision fee as provided in § 45-1-118(i) for each location. The completed renewal application and payment must be sent to the department on or before March 1, 2018. A renewed license issued under this chapter with a beginning effective date of April 1, 2018, expires on December 31, 2018.
(b) The licensee shall include in its annual renewal report: (1) A copy of its most recent unconsolidated annual financial statement, including balance sheet, statement of income or loss, statement of changes in shareholder's equity and statement of changes in financial position, except that a licensee may provide the most recent consolidated annual financial statement of the parent corporation if the statement includes the balance sheet, statement of income or loss, statement of changes in shareholder's equity and statement of changes of financial position of the licensee; (2) Any material changes to any of the information submitted by the licensee on its original application that have not previously been reported to the commissioner on any other report required to be filed under this chapter; (3) Notification of material litigation relating to the businesses regulated under this chapter; and (4) Other information that the commissioner may deem appropriate for the proper enforcement of this chapter.
(1) A copy of its most recent unconsolidated annual financial statement, including balance sheet, statement of income or loss, statement of changes in shareholder's equity and statement of changes in financial position, except that a licensee may provide the most recent consolidated annual financial statement of the parent corporation if the statement includes the balance sheet, statement of income or loss, statement of changes in shareholder's equity and statement of changes of financial position of the licensee;
(2) Any material changes to any of the information submitted by the licensee on its original application that have not previously been reported to the commissioner on any other report required to be filed under this chapter;
(3) Notification of material litigation relating to the businesses regulated under this chapter; and
(4) Other information that the commissioner may deem appropriate for the proper enforcement of this chapter.
(c) The commissioner may establish a biennial license arrangement for the filing of the application for licensure renewal, but in no case shall the supervision fee be payable for more than one (1) year at a time.
Amended by 2017 Tenn. Acts, ch. 122,Sec.s10, eff. 7/1/2017 and s 9 eff. 4/1/2018.
Amended by 2014 Tenn. Acts, ch. 736,s 30, Sec.s31 eff. 7/1/2015.
Amended by 2014 Tenn. Acts, ch. 736,s 29, eff. 7/1/2015.
Acts 1997, ch. 309, § 9.
Tenn. Code Ann. § 45-7-132 — TN Code / Title 45 / Chapter 7 / Section 45-7-132
Notice
Status: in_force

(a) A licensee or authorized delegate shall conspicuously disclose on the licensee's website or mobile application, and conspicuously post on the premises of each physical location in this state where the licensee or authorized delegate conducts money transmission, the name and phone number of the department and a statement that the licensee's customers can contact the department with questions or complaints about the licensee's money transmission services. (b) A licensee or authorized delegate may include on a receipt the name and phone number of the department and a statement that the licensee's customers can contact the department with complaints about the licensee's money transmission services. Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
(a) A licensee or authorized delegate shall conspicuously disclose on the licensee's website or mobile application, and conspicuously post on the premises of each physical location in this state where the licensee or authorized delegate conducts money transmission, the name and phone number of the department and a statement that the licensee's customers can contact the department with questions or complaints about the licensee's money transmission services.
(b) A licensee or authorized delegate may include on a receipt the name and phone number of the department and a statement that the licensee's customers can contact the department with complaints about the licensee's money transmission services.
Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Tenn. Code Ann. § 45-3-703 — TN Code / Title 45 / Chapter 3 / Section 45-3-703
Other loans
Status: in_force

(a) Loans Secured by Deposit Accounts or Capital Stock. Every association has the power to make loans secured by deposit accounts with the association to the extent of the withdrawal value thereof. Unless approved in writing by the commissioner, no association shall make a loan to any person if the loan is secured in whole or in part by issued and outstanding shares of capital stock of any kind or class of the association. (b) Improvement Loans. Every association has the power to make property improvement loans made pursuant to any title of the National Housing Act, as the act may be amended from time to time, and to make other loans, secured or unsecured, to homeowners and other property owners for the maintenance, repair, alteration, modernization, landscaping, improvement, including new construction, furnishing or equipping of their properties, subject to limitations, terms, and conditions that may be established by rules and regulations of the commissioner. (c) Mobile Home Loans. Every association has the power to make loans made for the purpose of mobile home financing, subject to limitations and conditions prescribed by the commissioner, including, but not limited to, any limitations as to the maximum amount of all the loans by each association. (d) Loans Secured by Loans. Every association has the power to make loans secured by the pledge of loans or investments of a type in which the association is authorized to invest; provided, that the loans or investments so pledged shall be subject to all requirements that would be applicable were the association to originate the loans or investments. (e) Other Loans. Every association has the power to invest in other loans not specifically referred to in this section if the powers are granted to federal associations in Tennessee, in the manner that the commissioner may by rule permit. (f) Participation - Power to Hold and Sell Loans. The power granted to every association to make loans pursuant to this chapter also includes the power to participate with other lenders in the making of the loans, and includes the power to hold and sell the loans at the times and upon the terms and conditions that the board of directors of each association determines. Acts 1978, ch. 708, § 2.26; T.C.A., § 45-1426.
(a) Loans Secured by Deposit Accounts or Capital Stock. Every association has the power to make loans secured by deposit accounts with the association to the extent of the withdrawal value thereof. Unless approved in writing by the commissioner, no association shall make a loan to any person if the loan is secured in whole or in part by issued and outstanding shares of capital stock of any kind or class of the association.
(b) Improvement Loans. Every association has the power to make property improvement loans made pursuant to any title of the National Housing Act, as the act may be amended from time to time, and to make other loans, secured or unsecured, to homeowners and other property owners for the maintenance, repair, alteration, modernization, landscaping, improvement, including new construction, furnishing or equipping of their properties, subject to limitations, terms, and conditions that may be established by rules and regulations of the commissioner.
(c) Mobile Home Loans. Every association has the power to make loans made for the purpose of mobile home financing, subject to limitations and conditions prescribed by the commissioner, including, but not limited to, any limitations as to the maximum amount of all the loans by each association.
(d) Loans Secured by Loans. Every association has the power to make loans secured by the pledge of loans or investments of a type in which the association is authorized to invest; provided, that the loans or investments so pledged shall be subject to all requirements that would be applicable were the association to originate the loans or investments.
(e) Other Loans. Every association has the power to invest in other loans not specifically referred to in this section if the powers are granted to federal associations in Tennessee, in the manner that the commissioner may by rule permit.
(f) Participation - Power to Hold and Sell Loans. The power granted to every association to make loans pursuant to this chapter also includes the power to participate with other lenders in the making of the loans, and includes the power to hold and sell the loans at the times and upon the terms and conditions that the board of directors of each association determines.
Acts 1978, ch. 708, § 2.26; T.C.A., § 45-1426.
Tenn. Code Ann. § 45-2-2203 — TN Code / Title 45 / Chapter 2 / Section 45-2-2203
Government registry of privately owned firearms and owners prohibited - Exceptions - Financial institutions prohibited from discriminating against firearms retailers - Exclusions
Status: in_force

(a) Except for those records kept during the regular course of a criminal investigation and prosecution, or as otherwise required by law, a government entity, or an official, employee, or agent of a governmental entity, shall not knowingly keep or cause to be kept any list, record, or registry of privately owned firearms or the owners of such firearms. (b) A financial institution, including an agent of the financial institution, shall not: (1) Require or permit the assignment of a firearms code in a way that distinguishes a firearms retailer from other retailers; or (2) Subject to subsections (c) and (d), decline a payment card transaction involving a firearms retailer based solely on the assignment of a firearms code. (c) This section does not prohibit a financial institution from declining or otherwise refusing to process a payment card transaction for any of the following reasons: (1) If necessary to comply with applicable state or federal law; (2) If requested by the customer; (3) If necessary due to fraud controls; or (4) For the purpose of merchant category exclusions offered by a financial institution for the purpose of expenditure control or corporate card control. (d) This section does not limit the authority of a financial institution to negotiate with responsible parties or otherwise impair a financial institution's actions related to any of the following: (1) Dispute processing; (2) Fraud risk, credit management, or other controls in the ordinary course of business operations; (3) Protecting against illegal activities, breach, or cyber risks; or (4) Restricting the use or availability of a firearms code in this state. Added by 2024 Tenn. Acts, ch. 773,s 1, eff. 7/1/2024.
(a) Except for those records kept during the regular course of a criminal investigation and prosecution, or as otherwise required by law, a government entity, or an official, employee, or agent of a governmental entity, shall not knowingly keep or cause to be kept any list, record, or registry of privately owned firearms or the owners of such firearms.
(b) A financial institution, including an agent of the financial institution, shall not: (1) Require or permit the assignment of a firearms code in a way that distinguishes a firearms retailer from other retailers; or (2) Subject to subsections (c) and (d), decline a payment card transaction involving a firearms retailer based solely on the assignment of a firearms code.
(1) Require or permit the assignment of a firearms code in a way that distinguishes a firearms retailer from other retailers; or
(2) Subject to subsections (c) and (d), decline a payment card transaction involving a firearms retailer based solely on the assignment of a firearms code.
(c) This section does not prohibit a financial institution from declining or otherwise refusing to process a payment card transaction for any of the following reasons: (1) If necessary to comply with applicable state or federal law; (2) If requested by the customer; (3) If necessary due to fraud controls; or (4) For the purpose of merchant category exclusions offered by a financial institution for the purpose of expenditure control or corporate card control.
(1) If necessary to comply with applicable state or federal law;
(2) If requested by the customer;
(3) If necessary due to fraud controls; or
(4) For the purpose of merchant category exclusions offered by a financial institution for the purpose of expenditure control or corporate card control.
(d) This section does not limit the authority of a financial institution to negotiate with responsible parties or otherwise impair a financial institution's actions related to any of the following: (1) Dispute processing; (2) Fraud risk, credit management, or other controls in the ordinary course of business operations; (3) Protecting against illegal activities, breach, or cyber risks; or (4) Restricting the use or availability of a firearms code in this state.
(1) Dispute processing;
(2) Fraud risk, credit management, or other controls in the ordinary course of business operations;
(3) Protecting against illegal activities, breach, or cyber risks; or
(4) Restricting the use or availability of a firearms code in this state.
Added by 2024 Tenn. Acts, ch. 773,s 1, eff. 7/1/2024.
Tenn. Code Ann. § 45-15-103 — TN Code / Title 45 / Chapter 15 / Section 45-15-103
Chapter definitions
Status: in_force

As used in this chapter, unless the context otherwise requires: (1) "Commissioner" means the commissioner of financial institutions or the commissioner's designated representative; (2) "Control" means possession, direct or indirect, of the power to direct or cause the direction of management and policies of a person, whether through the ownership of voting securities by contract or otherwise; provided, that no individual shall be deemed to control a person solely on account of being a director, officer, or employee of the person. For purposes of this subdivision (2), a person who, directly or indirectly, owns, controls, holds the power to vote, or holds proxies representing twenty-five percent (25%) or more of the then outstanding voting securities issued by another person, is presumed to control the other person. For purposes of this subdivision (2), the commissioner may determine whether a person, in fact, controls another person; (3) "Controlling person" means any person in control of a title pledge lender; (4) "Department" means the department of financial institutions; (5) "Month" means thirty (30) days; (6) "Person" means an individual, any sole proprietorship, general partnership, corporation or limited liability company duly qualified to do business in Tennessee; (7) "Pledged property" means any titled personal property or personal property certificate of title that is deposited with a title pledge lender in the course of the title pledge lender's business and is the subject of a title pledge agreement or property pledge agreement; (8) "Pledgor" means the individual or individuals obligated to repay the loan; (9) "Property pledge agreement" means any written bailment or similar agreement whereby a title pledge lender agrees to make a loan of money to a pledgor, and the pledgor agrees to the title pledge lender's taking physical possession of unencumbered titled personal property owned by the pledgor, and taking possession of the personal property certificate of title. The pledgor shall have the exclusive right to redeem the titled personal property by repaying the loan of money in full, and by complying with the property pledge agreement. When the titled personal property is redeemed, the title pledge lender shall return the titled personal property and the certificate of title to the pledgor. The property pledge agreement shall provide that, upon failure by the pledgor to redeem the titled personal property at the end of the original thirty-day agreement period, or the end of any subsequent thirty-day renewal or renewals of the agreement period, the title pledge lender shall be allowed to sell or otherwise dispose of the titled personal property; (10) "Title pledge agreement" means a thirty-day written agreement whereby a title pledge lender agrees to make a loan of money to a pledgor, and the pledgor agrees to give the title pledge lender a security interest in unencumbered titled personal property owned by the pledgor. The pledgor shall agree to the title pledge lender's keeping possession of the certificate of title. The pledgor shall have the exclusive right to redeem the certificate of title by repaying the loan of money in full and by complying with the title pledge agreement. When the certificate of title is redeemed, the title pledge lender shall release the security interest in the titled personal property, and return the personal property certificate of title to the pledgor. The title pledge agreement shall provide that, upon failure by the pledgor to redeem the certificate of title at the end of the original thirty-day agreement period, or at the end of any thirty-day renewal or renewals of the agreement period, the title pledge lender shall be allowed to take possession of the titled personal property. The title pledge lender shall retain physical possession of the certificate of title for the entire length of the title pledge agreement, but shall not be required to retain physical possession of the titled personal property at any time. A title pledge lender may only hold unencumbered certificates of title for pledge; (11) "Title pledge lender" means any person engaged in the business of making title pledge agreements or property pledge agreements with pledgors; (12) "Title pledge office" means the location at which, or premises in which, a title pledge lender regularly conducts business; and (13) "Titled personal property" means any personal property, the ownership of which is evidenced and delineated by a state-issued certificate of title. Acts 1995, ch. 186, § 13; 2005, ch. 440, § 2.
As used in this chapter, unless the context otherwise requires:
(1) "Commissioner" means the commissioner of financial institutions or the commissioner's designated representative;
(2) "Control" means possession, direct or indirect, of the power to direct or cause the direction of management and policies of a person, whether through the ownership of voting securities by contract or otherwise; provided, that no individual shall be deemed to control a person solely on account of being a director, officer, or employee of the person. For purposes of this subdivision (2), a person who, directly or indirectly, owns, controls, holds the power to vote, or holds proxies representing twenty-five percent (25%) or more of the then outstanding voting securities issued by another person, is presumed to control the other person. For purposes of this subdivision (2), the commissioner may determine whether a person, in fact, controls another person;
(3) "Controlling person" means any person in control of a title pledge lender;
(4) "Department" means the department of financial institutions;
(5) "Month" means thirty (30) days;
(6) "Person" means an individual, any sole proprietorship, general partnership, corporation or limited liability company duly qualified to do business in Tennessee;
(7) "Pledged property" means any titled personal property or personal property certificate of title that is deposited with a title pledge lender in the course of the title pledge lender's business and is the subject of a title pledge agreement or property pledge agreement;
(8) "Pledgor" means the individual or individuals obligated to repay the loan;
(9) "Property pledge agreement" means any written bailment or similar agreement whereby a title pledge lender agrees to make a loan of money to a pledgor, and the pledgor agrees to the title pledge lender's taking physical possession of unencumbered titled personal property owned by the pledgor, and taking possession of the personal property certificate of title. The pledgor shall have the exclusive right to redeem the titled personal property by repaying the loan of money in full, and by complying with the property pledge agreement. When the titled personal property is redeemed, the title pledge lender shall return the titled personal property and the certificate of title to the pledgor. The property pledge agreement shall provide that, upon failure by the pledgor to redeem the titled personal property at the end of the original thirty-day agreement period, or the end of any subsequent thirty-day renewal or renewals of the agreement period, the title pledge lender shall be allowed to sell or otherwise dispose of the titled personal property;
(10) "Title pledge agreement" means a thirty-day written agreement whereby a title pledge lender agrees to make a loan of money to a pledgor, and the pledgor agrees to give the title pledge lender a security interest in unencumbered titled personal property owned by the pledgor. The pledgor shall agree to the title pledge lender's keeping possession of the certificate of title. The pledgor shall have the exclusive right to redeem the certificate of title by repaying the loan of money in full and by complying with the title pledge agreement. When the certificate of title is redeemed, the title pledge lender shall release the security interest in the titled personal property, and return the personal property certificate of title to the pledgor. The title pledge agreement shall provide that, upon failure by the pledgor to redeem the certificate of title at the end of the original thirty-day agreement period, or at the end of any thirty-day renewal or renewals of the agreement period, the title pledge lender shall be allowed to take possession of the titled personal property. The title pledge lender shall retain physical possession of the certificate of title for the entire length of the title pledge agreement, but shall not be required to retain physical possession of the titled personal property at any time. A title pledge lender may only hold unencumbered certificates of title for pledge;
(11) "Title pledge lender" means any person engaged in the business of making title pledge agreements or property pledge agreements with pledgors;
(12) "Title pledge office" means the location at which, or premises in which, a title pledge lender regularly conducts business; and
(13) "Titled personal property" means any personal property, the ownership of which is evidenced and delineated by a state-issued certificate of title.
Acts 1995, ch. 186, § 13; 2005, ch. 440, § 2.
Tenn. Code Ann. § 45-8-202 — TN Code / Title 45 / Chapter 8 / Section 45-8-202
Purpose - Construction
Status: in_force

(a) It is determined and declared as a matter of legislative finding by the general assembly that: (1) The availability of financial and management assistance is an important resource to small and medium size businesses to locate, remain and expand in the state, which, in time, will result in increased employment opportunities in the state; (2) There is a need for financial and management resource alternatives to small and medium size businesses in the state due to a lack of bank financing in situations, including, but not limited to, start-ups, under-collateralization, management problems, and above-average risk projects; (3) Many small and medium size businesses, although in a growth mode, do not meet the investment criteria of venture capital firms; and (4) In order to increase employment opportunities and commercial transactions in the state, there is a need to encourage the development of resources directed at small and medium size businesses, which will help the businesses locate, remain and expand in the state. (b) It is further determined and declared that the purposes of this part shall be to: (1) Promote economic development by encouraging the formation of private financial institutions known as BIDCOs to help meet the financing assistance and management assistance needs of growth-oriented small and medium size businesses in the state; and (2) Provide for the licensing and regulation of BIDCOs to prevent fraud, conflict of interest, and mismanagement, in order to encourage: (A) Private equity investments in BIDCOs; and (B) Pension funds, insurance companies, foundations, utilities and other institutions to lend funds to BIDCOs. (c) This part shall be liberally construed to accomplish its purpose. Acts 1989, ch. 124, § 2.
(a) It is determined and declared as a matter of legislative finding by the general assembly that: (1) The availability of financial and management assistance is an important resource to small and medium size businesses to locate, remain and expand in the state, which, in time, will result in increased employment opportunities in the state; (2) There is a need for financial and management resource alternatives to small and medium size businesses in the state due to a lack of bank financing in situations, including, but not limited to, start-ups, under-collateralization, management problems, and above-average risk projects; (3) Many small and medium size businesses, although in a growth mode, do not meet the investment criteria of venture capital firms; and (4) In order to increase employment opportunities and commercial transactions in the state, there is a need to encourage the development of resources directed at small and medium size businesses, which will help the businesses locate, remain and expand in the state.
(1) The availability of financial and management assistance is an important resource to small and medium size businesses to locate, remain and expand in the state, which, in time, will result in increased employment opportunities in the state;
(2) There is a need for financial and management resource alternatives to small and medium size businesses in the state due to a lack of bank financing in situations, including, but not limited to, start-ups, under-collateralization, management problems, and above-average risk projects;
(3) Many small and medium size businesses, although in a growth mode, do not meet the investment criteria of venture capital firms; and
(4) In order to increase employment opportunities and commercial transactions in the state, there is a need to encourage the development of resources directed at small and medium size businesses, which will help the businesses locate, remain and expand in the state.
(b) It is further determined and declared that the purposes of this part shall be to: (1) Promote economic development by encouraging the formation of private financial institutions known as BIDCOs to help meet the financing assistance and management assistance needs of growth-oriented small and medium size businesses in the state; and (2) Provide for the licensing and regulation of BIDCOs to prevent fraud, conflict of interest, and mismanagement, in order to encourage: (A) Private equity investments in BIDCOs; and (B) Pension funds, insurance companies, foundations, utilities and other institutions to lend funds to BIDCOs.
(1) Promote economic development by encouraging the formation of private financial institutions known as BIDCOs to help meet the financing assistance and management assistance needs of growth-oriented small and medium size businesses in the state; and
(2) Provide for the licensing and regulation of BIDCOs to prevent fraud, conflict of interest, and mismanagement, in order to encourage: (A) Private equity investments in BIDCOs; and (B) Pension funds, insurance companies, foundations, utilities and other institutions to lend funds to BIDCOs.
(A) Private equity investments in BIDCOs; and
(B) Pension funds, insurance companies, foundations, utilities and other institutions to lend funds to BIDCOs.
(c) This part shall be liberally construed to accomplish its purpose.
Acts 1989, ch. 124, § 2.
Tenn. Code Ann. § 45-3-112 — TN Code / Title 45 / Chapter 3 / Section 45-3-112
Capital stock associations - Paid-in surplus
Status: in_force

(a) In addition to the minimum capital required by this chapter for a capital stock association to commence business, the subscribers to the capital stock of the association shall pay an additional amount for their stock equal to not less than fifty percent (50%) of the par or stated value of the stock subscribed, which additional amount shall be credited to the paid-in surplus account and may be used for organization and operating expenses, including interest to the holders of deposit accounts. The minimum capital and surplus may be used for the reserves required by this chapter and as permitted by the commissioner. (b) The capital, paid-in surplus, retained earnings, and other net worth accounts of an association, or any combination of the net worth accounts, may, by action of the association and subject to approval of the commissioner, be specifically earmarked as an insurance reserve account to be used solely for absorbing losses. Acts 1978, ch. 708, § 1.12; T.C.A., § 45-1312.
(a) In addition to the minimum capital required by this chapter for a capital stock association to commence business, the subscribers to the capital stock of the association shall pay an additional amount for their stock equal to not less than fifty percent (50%) of the par or stated value of the stock subscribed, which additional amount shall be credited to the paid-in surplus account and may be used for organization and operating expenses, including interest to the holders of deposit accounts. The minimum capital and surplus may be used for the reserves required by this chapter and as permitted by the commissioner.
(b) The capital, paid-in surplus, retained earnings, and other net worth accounts of an association, or any combination of the net worth accounts, may, by action of the association and subject to approval of the commissioner, be specifically earmarked as an insurance reserve account to be used solely for absorbing losses.
Acts 1978, ch. 708, § 1.12; T.C.A., § 45-1312.
Tenn. Code Ann. § 45-2-605 — TN Code / Title 45 / Chapter 2 / Section 45-2-605
Transmitting money - Dealing in foreign exchange
Status: in_force

(a) A bank may accept money for transmission and may transmit money. (b) A bank may buy and sell foreign exchange to the extent necessary to meet the needs of customers. Acts 1969, ch. 36, § 1 (3.210); T.C.A., § 45-413.
(a) A bank may accept money for transmission and may transmit money.
(b) A bank may buy and sell foreign exchange to the extent necessary to meet the needs of customers.
Acts 1969, ch. 36, § 1 (3.210); T.C.A., § 45-413.
Tenn. Code Ann. § 45-2-1701 — TN Code / Title 45 / Chapter 2 / Section 45-2-1701
Unauthorized conduct of banking or fiduciary activity - Violation a criminal offense
Status: in_force

(a) It is unlawful for any person not so authorized to carry on a banking business under this chapter and chapter 1 of this title, falsely and with intent to defraud, to act as a bank, or to represent that the person is or is acting for a bank, or to use an artificial or corporate name that is the name of a bank. The right to receive money on deposit and the right to pay out money on checks are declared to be the exclusive privileges of the banking business. (b) No trust company hereafter may be incorporated or be qualified to act as a fiduciary unless it is incorporated under this chapter and chapter 1 of this title, or the laws governing national banking associations. The foregoing, however, shall not be deemed to restrict the activity of a foreign bank or trust company acting as a trustee under § 35-50-107 ; nor shall it be deemed to restrict the fiduciary activity of any other class of regulated financial institutions that may now have, or hereafter acquire, fiduciary powers; provided, that nothing herein shall be construed to increase the powers of other classes of regulated financial institutions. (c) A violation of this section is a Class C misdemeanor. Acts 1969, ch. 36, § 1 (3.601); T.C.A., § 45-1101; Acts 1980, ch. 620, § 4; 1989, ch. 591, § 113.
(a) It is unlawful for any person not so authorized to carry on a banking business under this chapter and chapter 1 of this title, falsely and with intent to defraud, to act as a bank, or to represent that the person is or is acting for a bank, or to use an artificial or corporate name that is the name of a bank. The right to receive money on deposit and the right to pay out money on checks are declared to be the exclusive privileges of the banking business.
(b) No trust company hereafter may be incorporated or be qualified to act as a fiduciary unless it is incorporated under this chapter and chapter 1 of this title, or the laws governing national banking associations. The foregoing, however, shall not be deemed to restrict the activity of a foreign bank or trust company acting as a trustee under § 35-50-107 ; nor shall it be deemed to restrict the fiduciary activity of any other class of regulated financial institutions that may now have, or hereafter acquire, fiduciary powers; provided, that nothing herein shall be construed to increase the powers of other classes of regulated financial institutions.
(c) A violation of this section is a Class C misdemeanor.
Acts 1969, ch. 36, § 1 (3.601); T.C.A., § 45-1101; Acts 1980, ch. 620, § 4; 1989, ch. 591, § 113.
Tenn. Code Ann. § 45-5-604 — TN Code / Title 45 / Chapter 5 / Section 45-5-604
Insurance of thrift certificates
Status: in_force

For the purpose of providing for the insurance of thrift certificates, chapter 2, part 8 of this title shall be fully applicable to qualified industrial banks and to thrift certificates issued by them, and for that purpose, the word "bank" as used in that part includes "industrial bank" and the word "deposit" as used in that part includes "thrift certificate." Acts 1983, ch. 274, § 20.
For the purpose of providing for the insurance of thrift certificates, chapter 2, part 8 of this title shall be fully applicable to qualified industrial banks and to thrift certificates issued by them, and for that purpose, the word "bank" as used in that part includes "industrial bank" and the word "deposit" as used in that part includes "thrift certificate."
Acts 1983, ch. 274, § 20.
Tenn. Code Ann. § 45-2-1703 — TN Code / Title 45 / Chapter 2 / Section 45-2-1703
Unlawful service as officer or director - Exceptions at commissioner's discretion
Status: in_force

(a) It is unlawful for any person to serve as an officer or director of a bank who: (1) Has been convicted of an offense constituting, in the jurisdiction in which the judgment was rendered, a felony involving a violation of banking laws, fraud, embezzlement, or breach of trust; (2) Would be disqualified by federal law from serving as a director or officer of a federally chartered bank; or (3) Is indebted to the bank for more than thirty (30) days upon judgment that has become final. (b) Notwithstanding subsection (a), the commissioner shall have the discretion to approve the application of any person to become a director or officer of a bank chartered under Tennessee law, if the commissioner finds the person has demonstrated fitness to participate in the conduct of the affairs of the bank through evidence of the person's rehabilitation, including, but not limited to, the person's reputation since the person's conviction, the person's age at the time of conviction, and the time that has elapsed since the conviction and other factors as the commissioner determines. Acts 1969, ch. 36, § 1 (3.603); T.C.A., § 45-1103; Acts 2006, ch. 660, § 5.
(a) It is unlawful for any person to serve as an officer or director of a bank who: (1) Has been convicted of an offense constituting, in the jurisdiction in which the judgment was rendered, a felony involving a violation of banking laws, fraud, embezzlement, or breach of trust; (2) Would be disqualified by federal law from serving as a director or officer of a federally chartered bank; or (3) Is indebted to the bank for more than thirty (30) days upon judgment that has become final.
(1) Has been convicted of an offense constituting, in the jurisdiction in which the judgment was rendered, a felony involving a violation of banking laws, fraud, embezzlement, or breach of trust;
(2) Would be disqualified by federal law from serving as a director or officer of a federally chartered bank; or
(3) Is indebted to the bank for more than thirty (30) days upon judgment that has become final.
(b) Notwithstanding subsection (a), the commissioner shall have the discretion to approve the application of any person to become a director or officer of a bank chartered under Tennessee law, if the commissioner finds the person has demonstrated fitness to participate in the conduct of the affairs of the bank through evidence of the person's rehabilitation, including, but not limited to, the person's reputation since the person's conviction, the person's age at the time of conviction, and the time that has elapsed since the conviction and other factors as the commissioner determines.
Acts 1969, ch. 36, § 1 (3.603); T.C.A., § 45-1103; Acts 2006, ch. 660, § 5.
Tenn. Code Ann. § 45-7-123 — TN Code / Title 45 / Chapter 7 / Section 45-7-123
Reports of certain events
Status: in_force

(a) A licensee shall file a report with the commissioner, describing the event and its expected impact on the licensee's activities in the state, within three (3) days after the occurrence of any of the following events: (1) The filing of a petition by or against the licensee under the United States Bankruptcy Code ( 11 U.S.C. §§ 101 - 110 ), as amended or recodified from time to time, for bankruptcy or reorganization; (2) The filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or the making of a general assignment for the benefit of its creditors; (3) The commencement of a proceeding to revoke or suspend its license in a state or country in which the licensee engages in business or is licensed; (4) A charge or conviction of the licensee or of a key individual or person in control of the licensee for a felony; (5) A charge or conviction of an authorized delegate for a felony; (6) The occurrence of any computer security incident; or (7) Other events the commissioner may determine. (b) Each authorized delegate shall report to the licensee the theft or loss of payment instruments valued at five thousand dollars ($5,000) or more within twenty-four (24) hours from the time the authorized delegate knew or should have known of the theft or loss. Upon the receipt of the report, the licensee shall immediately provide the information to the commissioner. (c) As used in this section, "computer security incident" means any event that results in actual harm to the confidentiality, integrity, or availability of an information system or the information that the system processes, stores, or transmits and that has disrupted or degraded, or is reasonably likely to disrupt or degrade, a licensee's: (1) Ability to carry out operations, activities, or processes, or to deliver products and services to a material portion of its customer base, in the ordinary course of business; (2) Business lines, including associated operations, services, functions, and support, that upon failure would result in a material loss of revenue, profit, or franchise value; or (3) Operations, including associated services, functions, and support, as applicable, the failure or discontinuance of which would pose a threat to the financial stability of the United States. Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024. Acts 1994, ch. 715, § 1; T.C.A., § 45-7-223 .
(a) A licensee shall file a report with the commissioner, describing the event and its expected impact on the licensee's activities in the state, within three (3) days after the occurrence of any of the following events: (1) The filing of a petition by or against the licensee under the United States Bankruptcy Code ( 11 U.S.C. §§ 101 - 110 ), as amended or recodified from time to time, for bankruptcy or reorganization; (2) The filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or the making of a general assignment for the benefit of its creditors; (3) The commencement of a proceeding to revoke or suspend its license in a state or country in which the licensee engages in business or is licensed; (4) A charge or conviction of the licensee or of a key individual or person in control of the licensee for a felony; (5) A charge or conviction of an authorized delegate for a felony; (6) The occurrence of any computer security incident; or (7) Other events the commissioner may determine.
(1) The filing of a petition by or against the licensee under the United States Bankruptcy Code ( 11 U.S.C. §§ 101 - 110 ), as amended or recodified from time to time, for bankruptcy or reorganization;
(2) The filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or the making of a general assignment for the benefit of its creditors;
(3) The commencement of a proceeding to revoke or suspend its license in a state or country in which the licensee engages in business or is licensed;
(4) A charge or conviction of the licensee or of a key individual or person in control of the licensee for a felony;
(5) A charge or conviction of an authorized delegate for a felony;
(6) The occurrence of any computer security incident; or
(7) Other events the commissioner may determine.
(b) Each authorized delegate shall report to the licensee the theft or loss of payment instruments valued at five thousand dollars ($5,000) or more within twenty-four (24) hours from the time the authorized delegate knew or should have known of the theft or loss. Upon the receipt of the report, the licensee shall immediately provide the information to the commissioner.
(c) As used in this section, "computer security incident" means any event that results in actual harm to the confidentiality, integrity, or availability of an information system or the information that the system processes, stores, or transmits and that has disrupted or degraded, or is reasonably likely to disrupt or degrade, a licensee's: (1) Ability to carry out operations, activities, or processes, or to deliver products and services to a material portion of its customer base, in the ordinary course of business; (2) Business lines, including associated operations, services, functions, and support, that upon failure would result in a material loss of revenue, profit, or franchise value; or (3) Operations, including associated services, functions, and support, as applicable, the failure or discontinuance of which would pose a threat to the financial stability of the United States.
(1) Ability to carry out operations, activities, or processes, or to deliver products and services to a material portion of its customer base, in the ordinary course of business;
(2) Business lines, including associated operations, services, functions, and support, that upon failure would result in a material loss of revenue, profit, or franchise value; or
(3) Operations, including associated services, functions, and support, as applicable, the failure or discontinuance of which would pose a threat to the financial stability of the United States.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; T.C.A., § 45-7-223 .
Tenn. Code Ann. § 45-13-204 — TN Code / Title 45 / Chapter 13 / Section 45-13-204
Surety bond required
Status: in_force

(a) At the time of filing an application for a license under § 45-13-201(a) , the applicant shall also file with the commissioner a surety bond payable to the state, in a form to be approved by the commissioner, for the benefit of any person injured by the wrongful act, default, fraud or misrepresentation of the licensee. The bond must be issued by a bonding company qualified to do business in this state. (b) For mortgage loan servicers, the surety bond shall be maintained in the amount of two hundred thousand dollars ($200,000). (c) For mortgage lenders and mortgage loan brokers, the surety bond shall provide coverage for each mortgage loan originator in an amount in accordance with subsection (d); provided, however, that for the first calendar year of licensing in this state, or for calendar years 2009 and 2010, or both, as applicable, the surety bond for mortgage lenders shall be in the amount of two hundred thousand dollars ($200,000), and the surety bond for mortgage loan brokers shall be in the amount of ninety thousand dollars ($90,000). (d) The penal sum of the surety bond of any mortgage lender or mortgage loan broker shall be maintained in an amount that reflects the dollar amount of loans originated, as determined by the commissioner. (e) The bond shall be maintained for not less than twenty-four (24) months following the expiration, revocation, suspension or surrender of the license. (f) Immediately upon recovery upon any action on the bond, the licensee shall file a new bond to fulfill the requirements of this section. Acts 2009, ch. 499, § 8.
(a) At the time of filing an application for a license under § 45-13-201(a) , the applicant shall also file with the commissioner a surety bond payable to the state, in a form to be approved by the commissioner, for the benefit of any person injured by the wrongful act, default, fraud or misrepresentation of the licensee. The bond must be issued by a bonding company qualified to do business in this state.
(b) For mortgage loan servicers, the surety bond shall be maintained in the amount of two hundred thousand dollars ($200,000).
(c) For mortgage lenders and mortgage loan brokers, the surety bond shall provide coverage for each mortgage loan originator in an amount in accordance with subsection (d); provided, however, that for the first calendar year of licensing in this state, or for calendar years 2009 and 2010, or both, as applicable, the surety bond for mortgage lenders shall be in the amount of two hundred thousand dollars ($200,000), and the surety bond for mortgage loan brokers shall be in the amount of ninety thousand dollars ($90,000).
(d) The penal sum of the surety bond of any mortgage lender or mortgage loan broker shall be maintained in an amount that reflects the dollar amount of loans originated, as determined by the commissioner.
(e) The bond shall be maintained for not less than twenty-four (24) months following the expiration, revocation, suspension or surrender of the license.
(f) Immediately upon recovery upon any action on the bond, the licensee shall file a new bond to fulfill the requirements of this section.
Acts 2009, ch. 499, § 8.
Tenn. Code Ann. § 45-13-210 — TN Code / Title 45 / Chapter 13 / Section 45-13-210
Change of control
Status: in_force

(a) A change in control of a person licensed as a mortgage lender, mortgage loan broker, and/or mortgage loan servicer under this chapter shall require thirty (30) days' prior written notice to the commissioner. In the case of a publicly traded corporation, notification shall be made in writing within thirty (30) days of a change or acquisition of control of a licensee. (b) Upon notification of a change in control, the commissioner may require information deemed necessary to determine whether an application for a license is required. The commissioner may waive the filing of an application if, in the commissioner's discretion, the change in control does not pose any risk to the interests of the public. (c) Whenever control is acquired or exercised in violation of this section, the license shall be deemed revoked as of the date of the unlawful acquisition of control. The licensee, or its controlling person, shall surrender the license to the commissioner on demand. Acts 2009, ch. 499, § 8.
(a) A change in control of a person licensed as a mortgage lender, mortgage loan broker, and/or mortgage loan servicer under this chapter shall require thirty (30) days' prior written notice to the commissioner. In the case of a publicly traded corporation, notification shall be made in writing within thirty (30) days of a change or acquisition of control of a licensee.
(b) Upon notification of a change in control, the commissioner may require information deemed necessary to determine whether an application for a license is required. The commissioner may waive the filing of an application if, in the commissioner's discretion, the change in control does not pose any risk to the interests of the public.
(c) Whenever control is acquired or exercised in violation of this section, the license shall be deemed revoked as of the date of the unlawful acquisition of control. The licensee, or its controlling person, shall surrender the license to the commissioner on demand.
Acts 2009, ch. 499, § 8.
Tenn. Code Ann. § 45-3-207 — TN Code / Title 45 / Chapter 3 / Section 45-3-207
Completion of organization
Status: in_force

Upon filing by the secretary of state, the directors elected during the period of interim organization shall proceed to: (1) Approve and adopt the charter and bylaws; (2) Elect officers pursuant to the bylaws; (3) Take action necessary to effect the insurance of the deposit accounts of the association; and (4) Take other action that may be necessary to complete the organization. Acts 1978, ch. 708, § 1.21; T.C.A., § 45-1321.
Upon filing by the secretary of state, the directors elected during the period of interim organization shall proceed to:
(1) Approve and adopt the charter and bylaws;
(2) Elect officers pursuant to the bylaws;
(3) Take action necessary to effect the insurance of the deposit accounts of the association; and
(4) Take other action that may be necessary to complete the organization.
Acts 1978, ch. 708, § 1.21; T.C.A., § 45-1321.
Tenn. Code Ann. § 45-12-109 — TN Code / Title 45 / Chapter 12 / Section 45-12-109
Expiration of license - Renewal - Fees - Biennial license arrangement - Criminal history records check
Status: in_force

(a) Licenses issued pursuant to this chapter shall expire on December 31. Each license may be renewed for the ensuing twelve-month period upon application by the license holder showing continued compliance with the requirements of § 45-12-104 and the payment to the commissioner annually, between November 1 and December 31, of a license renewal fee of five hundred dollars ($500). If a supervision fee is established pursuant to § 45-1-118 , the commissioner shall require licensees under this chapter to, instead, pay the nonrefundable supervision fee in place of the license renewal fee. (b) A licensee making timely and complete application for renewal of its license shall be permitted to continue to operate under its existing license until its application is approved or denied. (c) The commissioner may establish a biennial license arrangement for the filing of the application for license renewal, but in no case shall the license fee or supervision fee, if established pursuant to § 45-1-118 , be payable for more than one (1) year at a time. (d) (1) In connection with an application for license renewal, the commissioner may require a licensee to consent to a criminal history records check and to provide with the application fingerprints in a form acceptable to the commissioner. The commissioner may require such consent and fingerprints from an individual who is a director, officer, or ten percent (10%) or more shareholder of the licensee, or who owns or controls the licensee, as well as from any other individual associated with the licensee as is reasonably necessary to meet the purposes of this chapter. Failure to provide the consent and fingerprints within thirty (30) days of the commissioner's request shall constitute grounds for the commissioner to deny the application for license renewal. (2) A criminal history records check conducted pursuant to this subsection (d) shall be conducted by the Tennessee bureau of investigation, the federal bureau of investigation, or both, and the results of the criminal history records check shall be forwarded to the commissioner. All costs incurred in conducting the criminal history records check shall be paid by the licensee, in addition to other fees required by this chapter. Amended by 2015 Tenn. Acts, ch. 438,s 1, eff. 5/18/2015. Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
(a) Licenses issued pursuant to this chapter shall expire on December 31. Each license may be renewed for the ensuing twelve-month period upon application by the license holder showing continued compliance with the requirements of § 45-12-104 and the payment to the commissioner annually, between November 1 and December 31, of a license renewal fee of five hundred dollars ($500). If a supervision fee is established pursuant to § 45-1-118 , the commissioner shall require licensees under this chapter to, instead, pay the nonrefundable supervision fee in place of the license renewal fee.
(b) A licensee making timely and complete application for renewal of its license shall be permitted to continue to operate under its existing license until its application is approved or denied.
(c) The commissioner may establish a biennial license arrangement for the filing of the application for license renewal, but in no case shall the license fee or supervision fee, if established pursuant to § 45-1-118 , be payable for more than one (1) year at a time.
(d) (1) In connection with an application for license renewal, the commissioner may require a licensee to consent to a criminal history records check and to provide with the application fingerprints in a form acceptable to the commissioner. The commissioner may require such consent and fingerprints from an individual who is a director, officer, or ten percent (10%) or more shareholder of the licensee, or who owns or controls the licensee, as well as from any other individual associated with the licensee as is reasonably necessary to meet the purposes of this chapter. Failure to provide the consent and fingerprints within thirty (30) days of the commissioner's request shall constitute grounds for the commissioner to deny the application for license renewal. (2) A criminal history records check conducted pursuant to this subsection (d) shall be conducted by the Tennessee bureau of investigation, the federal bureau of investigation, or both, and the results of the criminal history records check shall be forwarded to the commissioner. All costs incurred in conducting the criminal history records check shall be paid by the licensee, in addition to other fees required by this chapter.
(1) In connection with an application for license renewal, the commissioner may require a licensee to consent to a criminal history records check and to provide with the application fingerprints in a form acceptable to the commissioner. The commissioner may require such consent and fingerprints from an individual who is a director, officer, or ten percent (10%) or more shareholder of the licensee, or who owns or controls the licensee, as well as from any other individual associated with the licensee as is reasonably necessary to meet the purposes of this chapter. Failure to provide the consent and fingerprints within thirty (30) days of the commissioner's request shall constitute grounds for the commissioner to deny the application for license renewal.
(2) A criminal history records check conducted pursuant to this subsection (d) shall be conducted by the Tennessee bureau of investigation, the federal bureau of investigation, or both, and the results of the criminal history records check shall be forwarded to the commissioner. All costs incurred in conducting the criminal history records check shall be paid by the licensee, in addition to other fees required by this chapter.
Amended by 2015 Tenn. Acts, ch. 438,s 1, eff. 5/18/2015.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
Tenn. Code Ann. § 45-15-102 — TN Code / Title 45 / Chapter 15 / Section 45-15-102
Purpose
Status: in_force

The making of title pledge loans vitally affects the general economy of this state and the public interest and welfare of its citizens. It is the policy of this state and the purpose of this chapter to: (1) Ensure a sound system of making title pledge loans through statewide licensing of title pledge lenders by the department of financial institutions; (2) Establish licensing requirements; (3) Provide for the examination and regulation of title pledge lenders by the department of financial institutions; and (4) Ensure financial responsibility to the public. Acts 1995, ch. 186, § 13; 2005, ch. 440, § 1.
The making of title pledge loans vitally affects the general economy of this state and the public interest and welfare of its citizens. It is the policy of this state and the purpose of this chapter to:
(1) Ensure a sound system of making title pledge loans through statewide licensing of title pledge lenders by the department of financial institutions;
(2) Establish licensing requirements;
(3) Provide for the examination and regulation of title pledge lenders by the department of financial institutions; and
(4) Ensure financial responsibility to the public.
Acts 1995, ch. 186, § 13; 2005, ch. 440, § 1.
Tenn. Code Ann. § 45-8-224 — TN Code / Title 45 / Chapter 8 / Section 45-8-224
Report of criminal violations
Status: in_force

It is the duty of the BIDCO to submit to the commissioner a report of any apparent criminal violation known by it to have occurred. The commissioner shall submit to the district attorneys general of the respective judicial districts reports of apparent violations of laws. The commissioner shall also report the violation to the appropriate division of the Tennessee bureau of investigation. Acts 1989, ch. 124, § 24.
It is the duty of the BIDCO to submit to the commissioner a report of any apparent criminal violation known by it to have occurred. The commissioner shall submit to the district attorneys general of the respective judicial districts reports of apparent violations of laws. The commissioner shall also report the violation to the appropriate division of the Tennessee bureau of investigation.
Acts 1989, ch. 124, § 24.
Tenn. Code Ann. § 45-2-903 — TN Code / Title 45 / Chapter 2 / Section 45-2-903
Access by fiduciaries
Status: in_force

(a) Where a safe deposit box is made available by a lessor to one (1) or more fiduciaries, the lessor may, except as otherwise expressly provided in the lease or the writings pursuant to which the fiduciaries are acting, allow access thereto to any one (1) or more of the fiduciaries or to any agent authorized in writing by any one (1) or more of the fiduciaries. (b) The lessee, the lessee's estate or any successor fiduciary is bound by any dealings between the agent and the lessor pursuant to a power granting the agent access to a safe deposit box until the lessor has written notice of revocation of that power. Acts 1969, ch. 36, § 1 (3.222); T.C.A., § 45-417.
(a) Where a safe deposit box is made available by a lessor to one (1) or more fiduciaries, the lessor may, except as otherwise expressly provided in the lease or the writings pursuant to which the fiduciaries are acting, allow access thereto to any one (1) or more of the fiduciaries or to any agent authorized in writing by any one (1) or more of the fiduciaries.
(b) The lessee, the lessee's estate or any successor fiduciary is bound by any dealings between the agent and the lessor pursuant to a power granting the agent access to a safe deposit box until the lessor has written notice of revocation of that power.
Acts 1969, ch. 36, § 1 (3.222); T.C.A., § 45-417.
Tenn. Code Ann. § 45-2-1002 — TN Code / Title 45 / Chapter 2 / Section 45-2-1002
Fiduciary powers
Status: in_force

(a) Unless otherwise expressly provided by statute, a bank acting as a fiduciary shall have, alone or with others, all of the rights, powers, privileges and immunities, and be subject to the same liabilities and duties as an individual fiduciary under like circumstances. The fiduciary powers include, but are not limited to, the power to act as: (1) Fiduciary as defined in § 35-2-102 ; (2) Custodian of property; (3) Agent or attorney-in-fact; (4) Registrar or transfer agent of securities; (5) Fiscal agent or any political entity, public body, corporation, unincorporated association or individual; (6) Investment advisor; (7) Insurer of titles to, mortgages on, and other interests in any real estate; and (8) Guarantor of the payment of bonds owned by other persons. (b) A bank acting as fiduciary shall have the same investment powers as an individual fiduciary under like circumstances and other investment powers that are provided by law. In exercising the powers, a bank shall, unless otherwise authorized by law or by the instrument creating the relationship, exercise the judgment and care, under the circumstances then prevailing, or as related to the specific purposes for which the fiduciary relationship was created, that persons of prudence, discretion, and intelligence exercise in the management of their own affairs under like circumstances. Within the limitation of the foregoing standard, a bank, as fiduciary, is authorized to acquire and retain interests in every kind of property, real, personal or mixed, and every kind of investment, specifically including, but not by way of limitation, bonds, debentures, and other corporate and governmental obligations, insurance policies, stocks, rights, warrants, and securities of any open or closed-end management fund that persons of prudence, discretion, and intelligence acquire for their own account; and within the limitations of the same foregoing standard, the bank may retain property properly acquired, without limitation as to time and without regard to its suitability for original purchase. (c) A bank, acting as fiduciary in any capacity for which an annual or periodic court accounting is required, shall not be required to exhibit to the court or the clerk thereof the originals or copies of receipts and cancelled checks for disbursements or distributions made by the fiduciary to support the accounting; provided, that the accounting consists of the bank's computer prepared statements showing all income and principal transactions for the accounting period, but the court may require that receipts and cancelled checks be exhibited for the final distribution of assets on termination or transfer of the account to a successor. Acts 1969, ch. 36, § 1 (3.231); T.C.A., § 45-423; Acts 1987, ch. 300, § 1.
(a) Unless otherwise expressly provided by statute, a bank acting as a fiduciary shall have, alone or with others, all of the rights, powers, privileges and immunities, and be subject to the same liabilities and duties as an individual fiduciary under like circumstances. The fiduciary powers include, but are not limited to, the power to act as: (1) Fiduciary as defined in § 35-2-102 ; (2) Custodian of property; (3) Agent or attorney-in-fact; (4) Registrar or transfer agent of securities; (5) Fiscal agent or any political entity, public body, corporation, unincorporated association or individual; (6) Investment advisor; (7) Insurer of titles to, mortgages on, and other interests in any real estate; and (8) Guarantor of the payment of bonds owned by other persons.
(1) Fiduciary as defined in § 35-2-102 ;
(2) Custodian of property;
(3) Agent or attorney-in-fact;
(4) Registrar or transfer agent of securities;
(5) Fiscal agent or any political entity, public body, corporation, unincorporated association or individual;
(6) Investment advisor;
(7) Insurer of titles to, mortgages on, and other interests in any real estate; and
(8) Guarantor of the payment of bonds owned by other persons.
(b) A bank acting as fiduciary shall have the same investment powers as an individual fiduciary under like circumstances and other investment powers that are provided by law. In exercising the powers, a bank shall, unless otherwise authorized by law or by the instrument creating the relationship, exercise the judgment and care, under the circumstances then prevailing, or as related to the specific purposes for which the fiduciary relationship was created, that persons of prudence, discretion, and intelligence exercise in the management of their own affairs under like circumstances. Within the limitation of the foregoing standard, a bank, as fiduciary, is authorized to acquire and retain interests in every kind of property, real, personal or mixed, and every kind of investment, specifically including, but not by way of limitation, bonds, debentures, and other corporate and governmental obligations, insurance policies, stocks, rights, warrants, and securities of any open or closed-end management fund that persons of prudence, discretion, and intelligence acquire for their own account; and within the limitations of the same foregoing standard, the bank may retain property properly acquired, without limitation as to time and without regard to its suitability for original purchase.
(c) A bank, acting as fiduciary in any capacity for which an annual or periodic court accounting is required, shall not be required to exhibit to the court or the clerk thereof the originals or copies of receipts and cancelled checks for disbursements or distributions made by the fiduciary to support the accounting; provided, that the accounting consists of the bank's computer prepared statements showing all income and principal transactions for the accounting period, but the court may require that receipts and cancelled checks be exhibited for the final distribution of assets on termination or transfer of the account to a successor.
Acts 1969, ch. 36, § 1 (3.231); T.C.A., § 45-423; Acts 1987, ch. 300, § 1.
Tenn. Code Ann. § 45-3-901 — TN Code / Title 45 / Chapter 3 / Section 45-3-901
Applicable taxes and exemptions
Status: in_force

Associations shall be subject to the franchise and excise taxes as set forth in title 67, chapter 4, parts 8 and 9 respectively, and the taxes shall be in lieu of and substitution for any and all other taxes previously levied against or on the associations; except ad valorem taxes upon real estate and tangible personal property owned by the associations and, for taxable periods beginning on and after midnight June 30, 1977, the franchise and excise taxes as set forth in title 67, chapter 4, parts 8 and 9 respectively. Members' savings accounts shall not be treated as capital stock in the franchise tax base set forth in title 67, chapter 4, part 9. The exemption from other taxes shall include taxes upon or for the use of the capital, notes, reserves, surplus, loans, accounts, and other income and profits of the associations, including income tax upon members, shareholders or account-holders, who receive dividends from the associations, and all privilege taxes of every kind imposed by the state of Tennessee. Nothing in this section shall be construed as relieving state associations of the expense of examinations as provided by § 45-3-1003(f) . Acts 1939, ch. 60, § 4; C. Supp. 1950, § 3898.61 (Williams, § 3918.12); Acts 1977, ch. 85, § 4; impl. am. Acts 1978, ch. 708, §§ 1.23, 3.12; T.C.A. (orig. ed.), § 45-1504; Acts 1984, ch. 558, § 2; T.C.A., § 45-3-904 .
Associations shall be subject to the franchise and excise taxes as set forth in title 67, chapter 4, parts 8 and 9 respectively, and the taxes shall be in lieu of and substitution for any and all other taxes previously levied against or on the associations; except ad valorem taxes upon real estate and tangible personal property owned by the associations and, for taxable periods beginning on and after midnight June 30, 1977, the franchise and excise taxes as set forth in title 67, chapter 4, parts 8 and 9 respectively. Members' savings accounts shall not be treated as capital stock in the franchise tax base set forth in title 67, chapter 4, part 9. The exemption from other taxes shall include taxes upon or for the use of the capital, notes, reserves, surplus, loans, accounts, and other income and profits of the associations, including income tax upon members, shareholders or account-holders, who receive dividends from the associations, and all privilege taxes of every kind imposed by the state of Tennessee. Nothing in this section shall be construed as relieving state associations of the expense of examinations as provided by § 45-3-1003(f) .
Acts 1939, ch. 60, § 4; C. Supp. 1950, § 3898.61 (Williams, § 3918.12); Acts 1977, ch. 85, § 4; impl. am. Acts 1978, ch. 708, §§ 1.23, 3.12; T.C.A. (orig. ed.), § 45-1504; Acts 1984, ch. 558, § 2; T.C.A., § 45-3-904 .
Tenn. Code Ann. § 45-2-216 — TN Code / Title 45 / Chapter 2 / Section 45-2-216
Forfeiture of charter for failure to obtain certificate of authority or to commence business - Restitution of improper expenditures
Status: in_force

If no application for a certificate of authority is filed within six (6) months following the grant of a charter or any additional period allowed by the commissioner, or if a certificate of authority has been finally denied, or if the bank fails to commence business within six (6) months after the issuance of a certificate of authority or any additional period allowed by the commissioner, the charter shall be forfeited, and the bank shall be liquidated in accordance with the orders of the commissioner. If an improper expenditure has been made, the commissioner may order the persons who were incorporators or directors at the time to restore the sum by equal contributions. Acts 1969, ch. 36, § 1 (3.312); 1973, ch. 294, § 6; T.C.A., § 45-216.
If no application for a certificate of authority is filed within six (6) months following the grant of a charter or any additional period allowed by the commissioner, or if a certificate of authority has been finally denied, or if the bank fails to commence business within six (6) months after the issuance of a certificate of authority or any additional period allowed by the commissioner, the charter shall be forfeited, and the bank shall be liquidated in accordance with the orders of the commissioner. If an improper expenditure has been made, the commissioner may order the persons who were incorporators or directors at the time to restore the sum by equal contributions.
Acts 1969, ch. 36, § 1 (3.312); 1973, ch. 294, § 6; T.C.A., § 45-216.