Tenn. Code Ann. § 45-6-223 — TN Code / Title 45 / Chapter 6 / Section 45-6-223
Racial profiling prohibited - Violations - Penalty
Status: in_force

(a) No law enforcement officer or agency shall use any thumb or other print obtained pursuant to § 45-6-222 for the purpose of racial profiling. (b) (1) Any person residing within the jurisdiction of the law enforcement officer or agency alleged to have violated this section may petition the chancery or circuit court of the county for injunctive relief under this section. The court in which the petition is filed shall conduct a show cause hearing to determine if thumb or other prints obtained pursuant to § 45-6-222 have been used by a law enforcement officer or agency for the purpose of racial profiling. (2) If the court finds by a preponderance of evidence that a violation of this section has occurred, it shall grant an injunction prohibiting the officer or agency from obtaining thumb or other prints pursuant to § 45-6-222 for the period specified in subsection (c). (3) If the court finds by a preponderance of evidence that a violation of this section has not occurred, it shall deny the petition for an injunction. (c) (1) A law enforcement officer or agency who violates this section for the first time shall be enjoined from requesting subpoenas for the production of thumb or other prints pursuant to § 45-6-222 for a period of six (6) months. (2) A law enforcement officer or agency who violates this section for the second time shall be enjoined from requesting subpoenas for the production of thumb or other prints pursuant to § 45-6-222 for a period of one (1) year. (3) A law enforcement officer or agency who violates this section for a third or subsequent time shall be permanently enjoined from requesting subpoenas for the production of thumb or other prints pursuant to § 45-6-222 . Acts 2001, ch. 429, § 2.
(a) No law enforcement officer or agency shall use any thumb or other print obtained pursuant to § 45-6-222 for the purpose of racial profiling.
(b) (1) Any person residing within the jurisdiction of the law enforcement officer or agency alleged to have violated this section may petition the chancery or circuit court of the county for injunctive relief under this section. The court in which the petition is filed shall conduct a show cause hearing to determine if thumb or other prints obtained pursuant to § 45-6-222 have been used by a law enforcement officer or agency for the purpose of racial profiling. (2) If the court finds by a preponderance of evidence that a violation of this section has occurred, it shall grant an injunction prohibiting the officer or agency from obtaining thumb or other prints pursuant to § 45-6-222 for the period specified in subsection (c). (3) If the court finds by a preponderance of evidence that a violation of this section has not occurred, it shall deny the petition for an injunction.
(1) Any person residing within the jurisdiction of the law enforcement officer or agency alleged to have violated this section may petition the chancery or circuit court of the county for injunctive relief under this section. The court in which the petition is filed shall conduct a show cause hearing to determine if thumb or other prints obtained pursuant to § 45-6-222 have been used by a law enforcement officer or agency for the purpose of racial profiling.
(2) If the court finds by a preponderance of evidence that a violation of this section has occurred, it shall grant an injunction prohibiting the officer or agency from obtaining thumb or other prints pursuant to § 45-6-222 for the period specified in subsection (c).
(3) If the court finds by a preponderance of evidence that a violation of this section has not occurred, it shall deny the petition for an injunction.
(c) (1) A law enforcement officer or agency who violates this section for the first time shall be enjoined from requesting subpoenas for the production of thumb or other prints pursuant to § 45-6-222 for a period of six (6) months. (2) A law enforcement officer or agency who violates this section for the second time shall be enjoined from requesting subpoenas for the production of thumb or other prints pursuant to § 45-6-222 for a period of one (1) year. (3) A law enforcement officer or agency who violates this section for a third or subsequent time shall be permanently enjoined from requesting subpoenas for the production of thumb or other prints pursuant to § 45-6-222 .
(1) A law enforcement officer or agency who violates this section for the first time shall be enjoined from requesting subpoenas for the production of thumb or other prints pursuant to § 45-6-222 for a period of six (6) months.
(2) A law enforcement officer or agency who violates this section for the second time shall be enjoined from requesting subpoenas for the production of thumb or other prints pursuant to § 45-6-222 for a period of one (1) year.
(3) A law enforcement officer or agency who violates this section for a third or subsequent time shall be permanently enjoined from requesting subpoenas for the production of thumb or other prints pursuant to § 45-6-222 .
Acts 2001, ch. 429, § 2.
Tenn. Code Ann. § 45-15-121 — TN Code / Title 45 / Chapter 15 / Section 45-15-121
Licensing through multi-state automated licensing system
Status: in_force

(a) In addition to any other powers imposed upon the commissioner by law, the commissioner is authorized to require persons subject to this chapter to be licensed through a multi-state automated licensing system. Pursuant to this authority, the commissioner may: (1) Promulgate any rules reasonably necessary for participation in, transition to, or operation of, a multi-state automated licensing system; (2) Establish relationships or enter into agreements reasonably necessary for participation in, transition to, or operation of a multi-state automated licensing system. The agreements may include, but are not limited to, operating agreements, information sharing agreements, interstate cooperative agreements, and technology licensing agreements; (3) Require that applications for licensing under this chapter and renewals of such licenses be filed with a multi-state automated licensing system; (4) Require that any fees required to be paid under this chapter be paid through a multi-state automated licensing system; (5) Establish deadlines for transitioning licenses to a multi-state automated licensing system. The commissioner may deny any applications or renewal applications not filed with a multi-state automated licensing system after the deadlines have passed, notwithstanding any other deadlines established in this chapter. The commissioner shall provide reasonable notice of any transition deadlines to licensees; and (6) Take such further actions as are reasonably necessary to give effect to this section. (b) Nothing in this section authorizes the commissioner to require a person who is not subject to this chapter to submit information to, or participate in, a multi-state automated licensing system. (c) Notwithstanding any other provision of this section, the commissioner retains full authority and discretion to license persons under this chapter and to enforce this chapter, and nothing in this section reduces or derogates this authority and discretion. (d) Applicants for and holders of licenses issued under this chapter must pay all costs associated with submitting an application or transitioning a license to a multi-state automated licensing system, as well as all costs associated with maintaining and renewing any license issued by the commissioner on a multi-state automated licensing system. Added by 2017 Tenn. Acts, ch. 122,s 7, eff. 7/1/2017.
(a) In addition to any other powers imposed upon the commissioner by law, the commissioner is authorized to require persons subject to this chapter to be licensed through a multi-state automated licensing system. Pursuant to this authority, the commissioner may: (1) Promulgate any rules reasonably necessary for participation in, transition to, or operation of, a multi-state automated licensing system; (2) Establish relationships or enter into agreements reasonably necessary for participation in, transition to, or operation of a multi-state automated licensing system. The agreements may include, but are not limited to, operating agreements, information sharing agreements, interstate cooperative agreements, and technology licensing agreements; (3) Require that applications for licensing under this chapter and renewals of such licenses be filed with a multi-state automated licensing system; (4) Require that any fees required to be paid under this chapter be paid through a multi-state automated licensing system; (5) Establish deadlines for transitioning licenses to a multi-state automated licensing system. The commissioner may deny any applications or renewal applications not filed with a multi-state automated licensing system after the deadlines have passed, notwithstanding any other deadlines established in this chapter. The commissioner shall provide reasonable notice of any transition deadlines to licensees; and (6) Take such further actions as are reasonably necessary to give effect to this section.
(1) Promulgate any rules reasonably necessary for participation in, transition to, or operation of, a multi-state automated licensing system;
(2) Establish relationships or enter into agreements reasonably necessary for participation in, transition to, or operation of a multi-state automated licensing system. The agreements may include, but are not limited to, operating agreements, information sharing agreements, interstate cooperative agreements, and technology licensing agreements;
(3) Require that applications for licensing under this chapter and renewals of such licenses be filed with a multi-state automated licensing system;
(4) Require that any fees required to be paid under this chapter be paid through a multi-state automated licensing system;
(5) Establish deadlines for transitioning licenses to a multi-state automated licensing system. The commissioner may deny any applications or renewal applications not filed with a multi-state automated licensing system after the deadlines have passed, notwithstanding any other deadlines established in this chapter. The commissioner shall provide reasonable notice of any transition deadlines to licensees; and
(6) Take such further actions as are reasonably necessary to give effect to this section.
(b) Nothing in this section authorizes the commissioner to require a person who is not subject to this chapter to submit information to, or participate in, a multi-state automated licensing system.
(c) Notwithstanding any other provision of this section, the commissioner retains full authority and discretion to license persons under this chapter and to enforce this chapter, and nothing in this section reduces or derogates this authority and discretion.
(d) Applicants for and holders of licenses issued under this chapter must pay all costs associated with submitting an application or transitioning a license to a multi-state automated licensing system, as well as all costs associated with maintaining and renewing any license issued by the commissioner on a multi-state automated licensing system.
Added by 2017 Tenn. Acts, ch. 122,s 7, eff. 7/1/2017.
Tenn. Code Ann. § 45-5-612 — TN Code / Title 45 / Chapter 5 / Section 45-5-612
Out-of-state banks restricted - Compliance with Section 45-5-609 required for all banks
Status: in_force

(a) (1) The general assembly finds and declares that the ownership of industrial banks by non-Tennessee bank holding companies or other non-Tennessee corporations is not of benefit to the people and economy of this state and will result in the drain of capital from Tennessee. (2) By July 5, 1984, any industrial bank owned by a bank holding company, or other company whose principal place of business is not in Tennessee, shall be divested by the company or liquidated and dissolved under § 45-2-1501(b) , or shall be recertified by the commissioner as an industrial investment company, as defined in § 45-5-102 , with the rights and powers of an industrial investment company, and shall no longer qualify as an industrial bank nor exercise any of the rights and powers of an industrial bank. (b) No industrial bank shall be created nor any industrial loan and thrift company or industrial investment company shall be converted to an industrial bank pursuant to § 45-5-608 , or pursuant to any other provision of law unless the industrial bank, industrial loan and thrift company or industrial investment company satisfies the conditions set forth in § 45-5-609(a)(1) and (2) . (c) If an application for organization as or conversion to an industrial bank is pending or the application has been approved for certification as an industrial bank, then any applicant or industrial bank that does not meet the requirements of this section and § 45-5-609 shall be recertified by May 5, 1984, by the commissioner as an industrial investment company as defined in § 45-5-102 , with the rights and powers of an industrial investment corporation, and shall no longer qualify as an industrial bank nor exercise any of the rights and powers of an industrial bank, or shall be liquidated and dissolved under § 45-2-1501(b) . (d) Subsection (c) applies to any and all industrial banks and applications for organization as or conversion to an industrial bank including, but not limited to, applications filed and approved prior to February 23, 1984; applications filed prior to but approved after February 23, 1984, and prior to April 5, 1984; applications filed before February 23, 1984, and pending on April 5, 1984; and applications filed and pending or filed and approved after February 23, 1984, and before April 5, 1984. (e) This section shall not be construed to alter, deny, void or otherwise affect the rights and powers of either an industrial bank meeting the requirements of § 45-5-609 , or a state bank resulting from a merger provided for in § 45-5-609 . Acts 1984, ch. 513, §§ 1-5.
(a) (1) The general assembly finds and declares that the ownership of industrial banks by non-Tennessee bank holding companies or other non-Tennessee corporations is not of benefit to the people and economy of this state and will result in the drain of capital from Tennessee. (2) By July 5, 1984, any industrial bank owned by a bank holding company, or other company whose principal place of business is not in Tennessee, shall be divested by the company or liquidated and dissolved under § 45-2-1501(b) , or shall be recertified by the commissioner as an industrial investment company, as defined in § 45-5-102 , with the rights and powers of an industrial investment company, and shall no longer qualify as an industrial bank nor exercise any of the rights and powers of an industrial bank.
(1) The general assembly finds and declares that the ownership of industrial banks by non-Tennessee bank holding companies or other non-Tennessee corporations is not of benefit to the people and economy of this state and will result in the drain of capital from Tennessee.
(2) By July 5, 1984, any industrial bank owned by a bank holding company, or other company whose principal place of business is not in Tennessee, shall be divested by the company or liquidated and dissolved under § 45-2-1501(b) , or shall be recertified by the commissioner as an industrial investment company, as defined in § 45-5-102 , with the rights and powers of an industrial investment company, and shall no longer qualify as an industrial bank nor exercise any of the rights and powers of an industrial bank.
(b) No industrial bank shall be created nor any industrial loan and thrift company or industrial investment company shall be converted to an industrial bank pursuant to § 45-5-608 , or pursuant to any other provision of law unless the industrial bank, industrial loan and thrift company or industrial investment company satisfies the conditions set forth in § 45-5-609(a)(1) and (2) .
(c) If an application for organization as or conversion to an industrial bank is pending or the application has been approved for certification as an industrial bank, then any applicant or industrial bank that does not meet the requirements of this section and § 45-5-609 shall be recertified by May 5, 1984, by the commissioner as an industrial investment company as defined in § 45-5-102 , with the rights and powers of an industrial investment corporation, and shall no longer qualify as an industrial bank nor exercise any of the rights and powers of an industrial bank, or shall be liquidated and dissolved under § 45-2-1501(b) .
(d) Subsection (c) applies to any and all industrial banks and applications for organization as or conversion to an industrial bank including, but not limited to, applications filed and approved prior to February 23, 1984; applications filed prior to but approved after February 23, 1984, and prior to April 5, 1984; applications filed before February 23, 1984, and pending on April 5, 1984; and applications filed and pending or filed and approved after February 23, 1984, and before April 5, 1984.
(e) This section shall not be construed to alter, deny, void or otherwise affect the rights and powers of either an industrial bank meeting the requirements of § 45-5-609 , or a state bank resulting from a merger provided for in § 45-5-609 .
Acts 1984, ch. 513, §§ 1-5.
Tenn. Code Ann. § 45-14-105 — TN Code / Title 45 / Chapter 14 / Section 45-14-105
Commissioner - Survey of pertinent laws of other states - Investments and activities - Authorization of investments permissible for federal savings banks - Competitive equality
Status: in_force

(a) The commissioner may survey periodically the laws and regulations governing savings banks chartered under the laws of other states, and that meet the definition of a "savings bank" under § 3(g) of the Federal Deposit Insurance Act ( 12 U.S.C. § 1813(g) ), as in effect as of September 1, 1990, and, based upon the best practices of such foreign savings banks, may authorize savings banks to make investments and engage in activities not otherwise permissible under this chapter; provided, that investments and activities authorized under this section may not exceed in the aggregate an amount equal to five percent (5%) of the assets of the savings bank. (b) The commissioner may authorize savings banks to make any investment or engage in any activity that is permissible for federal savings banks, subject to the same limitations applicable to the federal savings banks, upon the commissioner's determination that, in the absence of the authorization, savings banks chartered under this chapter may be at a significant disadvantage in their ability to compete with other depository institutions. (c) Subject to reasonable regulation to preserve safety and soundness, the commissioner may authorize a state bank to make any investment or engage in any activity permissible to institutions chartered under this chapter that the commissioner determines to be necessary to preserve the competitive equality between depository institutions. Acts 1991, ch. 177, § 6; 1996, ch. 768, §§ 32, 33.
(a) The commissioner may survey periodically the laws and regulations governing savings banks chartered under the laws of other states, and that meet the definition of a "savings bank" under § 3(g) of the Federal Deposit Insurance Act ( 12 U.S.C. § 1813(g) ), as in effect as of September 1, 1990, and, based upon the best practices of such foreign savings banks, may authorize savings banks to make investments and engage in activities not otherwise permissible under this chapter; provided, that investments and activities authorized under this section may not exceed in the aggregate an amount equal to five percent (5%) of the assets of the savings bank.
(b) The commissioner may authorize savings banks to make any investment or engage in any activity that is permissible for federal savings banks, subject to the same limitations applicable to the federal savings banks, upon the commissioner's determination that, in the absence of the authorization, savings banks chartered under this chapter may be at a significant disadvantage in their ability to compete with other depository institutions.
(c) Subject to reasonable regulation to preserve safety and soundness, the commissioner may authorize a state bank to make any investment or engage in any activity permissible to institutions chartered under this chapter that the commissioner determines to be necessary to preserve the competitive equality between depository institutions.
Acts 1991, ch. 177, § 6; 1996, ch. 768, §§ 32, 33.
Tenn. Code Ann. § 45-4-202 — TN Code / Title 45 / Chapter 4 / Section 45-4-202
Board of directors - General management - Special duties
Status: in_force

The board of directors has the duty of general management of the affairs, funds and records of the corporation, and shall meet as often as may be necessary, but in no event less than monthly. Unless the bylaws shall specifically reserve any or all of the duties to members, it is the special duty of the directors to: (1) Act upon all applications for membership and on the expulsion of members; however, the board of directors may appoint a membership officer from among the members of the credit union, other than the treasurer, assistant treasurer or loan officer, who may approve applications for membership under the conditions that the board may prescribe, except that this membership officer shall submit to the board at each regular meeting a list of approved or pending applications for membership received since the previous regular meeting; (2) Inspect or cause to be inspected the securities, cash, and accounts, and to review the acts of all committees and the officers of the credit union at frequent intervals, but in no event less than annually. The board of directors shall make or cause to be made, at least annually, a thorough review or audit of the receipts, disbursements, income, assets and liabilities of the credit union for the year and shall make a full report thereon to the membership, which report shall be read or provided at the annual meeting and shall be filed and preserved with the records of the credit union. The board of directors shall determine whether to appoint a supervisory committee to carry out these duties and functions and to report its findings to the board in accordance with its directives; (3) Determine, from time to time, rates of interest that will be allowed on members' special accounts and charged on loans; (4) Determine the amount of the blanket surety bond that is required for all officials and employees, which amount shall be as follows: (A) For one (1) year from the charter date, the bond shall be not less than one thousand dollars ($1,000); (B) Thereafter, the bond shall not be less than thirty percent (30%) of the true assets of the credit union, or, if the bond contains a deductible clause: (i) The bond shall exceed the deductible amount provided in the clause by not less than thirty percent (30%) of the true assets of the credit union; (ii) The amount of the bond shall be adjusted annually subject to a maximum bond requirement in any case of one million dollars ($1,000,000), or a greater amount required by the credit union share insuror; and (iii) The blanket surety bond does not include a deductible clause without the written approval of the commissioner of financial institutions, upon terms and conditions that the commissioner may establish by rule, and unless the credit union maintains all statutory and insuror reserves, including a reserve for the deductible equal to the amount of the deductible; (5) Fix, if it deems necessary, the maximum number of shares that may be held by and the maximum amount that may be loaned to any one (1) member; (6) Declare dividends; (7) Fill vacancies on the board of directors until the election and qualification of successors; (8) Have charge of the investment of funds of the corporation, other than loans to members and to perform other duties that the members may, from time to time, authorize; (9) Review the acts of all committees and the officers and to remove by two-thirds (2/3) vote of the entire board of directors any or all members of the committees or the officers for cause, including the failure to discharge assigned responsibilities, any acts involving dishonesty or breach of trust, any act, omission or practice that constitutes a breach of fiduciary duty to the credit union or that is a violation of the credit union's bylaws, policies, or the laws or regulations of the state; and (10) On January 1, 1990, all credit committees and supervisory committees existing by virtue of prior legislation shall be dissolved. Resolutions or other actions taken by a board of directors prior to January 1, 1990, for the purpose of establishing committees or procedures consistent with its provisions and so stating, shall be valid, and shall be effective as of January 1, 1990. Acts 1923, ch. 68, § 12; Shan. Supp., § 2198a18; Code 1932, § 3845; Acts 1963, ch. 30, § 3; 1979, ch. 86, § 3; T.C.A. (orig. ed.), § 45-1813; Acts 1985, ch. 17, § 2; 1989, ch. 223, §§ 3-6; 1992, ch. 584, §§ 1, 2.
The board of directors has the duty of general management of the affairs, funds and records of the corporation, and shall meet as often as may be necessary, but in no event less than monthly. Unless the bylaws shall specifically reserve any or all of the duties to members, it is the special duty of the directors to:
(1) Act upon all applications for membership and on the expulsion of members; however, the board of directors may appoint a membership officer from among the members of the credit union, other than the treasurer, assistant treasurer or loan officer, who may approve applications for membership under the conditions that the board may prescribe, except that this membership officer shall submit to the board at each regular meeting a list of approved or pending applications for membership received since the previous regular meeting;
(2) Inspect or cause to be inspected the securities, cash, and accounts, and to review the acts of all committees and the officers of the credit union at frequent intervals, but in no event less than annually. The board of directors shall make or cause to be made, at least annually, a thorough review or audit of the receipts, disbursements, income, assets and liabilities of the credit union for the year and shall make a full report thereon to the membership, which report shall be read or provided at the annual meeting and shall be filed and preserved with the records of the credit union. The board of directors shall determine whether to appoint a supervisory committee to carry out these duties and functions and to report its findings to the board in accordance with its directives;
(3) Determine, from time to time, rates of interest that will be allowed on members' special accounts and charged on loans;
(4) Determine the amount of the blanket surety bond that is required for all officials and employees, which amount shall be as follows: (A) For one (1) year from the charter date, the bond shall be not less than one thousand dollars ($1,000); (B) Thereafter, the bond shall not be less than thirty percent (30%) of the true assets of the credit union, or, if the bond contains a deductible clause: (i) The bond shall exceed the deductible amount provided in the clause by not less than thirty percent (30%) of the true assets of the credit union; (ii) The amount of the bond shall be adjusted annually subject to a maximum bond requirement in any case of one million dollars ($1,000,000), or a greater amount required by the credit union share insuror; and (iii) The blanket surety bond does not include a deductible clause without the written approval of the commissioner of financial institutions, upon terms and conditions that the commissioner may establish by rule, and unless the credit union maintains all statutory and insuror reserves, including a reserve for the deductible equal to the amount of the deductible;
(A) For one (1) year from the charter date, the bond shall be not less than one thousand dollars ($1,000);
(B) Thereafter, the bond shall not be less than thirty percent (30%) of the true assets of the credit union, or, if the bond contains a deductible clause: (i) The bond shall exceed the deductible amount provided in the clause by not less than thirty percent (30%) of the true assets of the credit union; (ii) The amount of the bond shall be adjusted annually subject to a maximum bond requirement in any case of one million dollars ($1,000,000), or a greater amount required by the credit union share insuror; and (iii) The blanket surety bond does not include a deductible clause without the written approval of the commissioner of financial institutions, upon terms and conditions that the commissioner may establish by rule, and unless the credit union maintains all statutory and insuror reserves, including a reserve for the deductible equal to the amount of the deductible;
(i) The bond shall exceed the deductible amount provided in the clause by not less than thirty percent (30%) of the true assets of the credit union;
(ii) The amount of the bond shall be adjusted annually subject to a maximum bond requirement in any case of one million dollars ($1,000,000), or a greater amount required by the credit union share insuror; and
(iii) The blanket surety bond does not include a deductible clause without the written approval of the commissioner of financial institutions, upon terms and conditions that the commissioner may establish by rule, and unless the credit union maintains all statutory and insuror reserves, including a reserve for the deductible equal to the amount of the deductible;
(5) Fix, if it deems necessary, the maximum number of shares that may be held by and the maximum amount that may be loaned to any one (1) member;
(6) Declare dividends;
(7) Fill vacancies on the board of directors until the election and qualification of successors;
(8) Have charge of the investment of funds of the corporation, other than loans to members and to perform other duties that the members may, from time to time, authorize;
(9) Review the acts of all committees and the officers and to remove by two-thirds (2/3) vote of the entire board of directors any or all members of the committees or the officers for cause, including the failure to discharge assigned responsibilities, any acts involving dishonesty or breach of trust, any act, omission or practice that constitutes a breach of fiduciary duty to the credit union or that is a violation of the credit union's bylaws, policies, or the laws or regulations of the state; and
(10) On January 1, 1990, all credit committees and supervisory committees existing by virtue of prior legislation shall be dissolved. Resolutions or other actions taken by a board of directors prior to January 1, 1990, for the purpose of establishing committees or procedures consistent with its provisions and so stating, shall be valid, and shall be effective as of January 1, 1990.
Acts 1923, ch. 68, § 12; Shan. Supp., § 2198a18; Code 1932, § 3845; Acts 1963, ch. 30, § 3; 1979, ch. 86, § 3; T.C.A. (orig. ed.), § 45-1813; Acts 1985, ch. 17, § 2; 1989, ch. 223, §§ 3-6; 1992, ch. 584, §§ 1, 2.
Tenn. Code Ann. § 45-7-103 — TN Code / Title 45 / Chapter 7 / Section 45-7-103
Chapter definitions
Status: in_force

As used in this chapter: (1) "Acting in concert" means persons knowingly acting together with a common goal of jointly acquiring control of a licensee whether or not pursuant to an express agreement; (2) "Authorized delegate" means a person that a licensee designates to engage in money transmission on behalf of the licensee; (3) "Average daily money transmission liability" means the amount of the licensee's outstanding money transmission obligations in this state at the end of each day in a given period of time, added together, and divided by the total number of days in the given period of time. For purposes of calculating average daily money transmission liability under this chapter for any licensee required to do so, the given periods of time are the calendar quarters ending March 31, June 30, September 30, and December 31; (4) "Bank Secrecy Act" means the federal Bank Secrecy Act ( 31 U.S.C. § 5311 et seq.) and its implementing regulations; (5) "Closed loop stored value" means stored value that is redeemable by the issuer only for goods or services provided by the issuer or its affiliate or franchisees of the issuer or its affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value; (6) "Commissioner" means the commissioner of financial institutions; (7) (A) "Control" means the power to: (i) Vote, directly or indirectly, at least twenty-five percent (25%) of the outstanding voting shares or voting interests of a licensee or person in control of a licensee; (ii) Elect or appoint a majority of key individuals or executive officers, managers, directors, trustees, or other persons exercising managerial authority of a person in control of a licensee; or (iii) Exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee; (B) (i) A person is presumed to exercise a controlling influence when the person holds the power to vote, directly or indirectly, at least ten percent (10%) of the outstanding voting shares or voting interests of a licensee or person in control of a licensee; (ii) A person presumed to exercise a controlling influence as defined by this subdivision (7)(B) may rebut the presumption of control by showing that the person is a passive investor; (C) For purposes of determining the percentage of a person controlled by another person, the person's interest is aggregated with the interest of: (i) Any immediate family member, including the person's spouse, parents, children, siblings, mothers- and fathers-in-law, sons- and daughters-in-law, brothers- and sisters-in-law; and (ii) Any person who shares such person's home; (8) "Department" means the department of financial institutions; (9) "Eligible rating" means a credit rating of any of the three (3) highest rating categories provided by an eligible rating service, whereby each category may include rating category modifiers, such as "plus" or "minus" for Standard & Poor's (S&P), or the equivalent for any other eligible rating service. Long-term credit ratings are deemed eligible if the rating is equal to A- or higher by S&P, or the equivalent from any other eligible rating service. Short-term credit ratings are deemed eligible if the rating is equal to or higher than A-2 or SP-2 by S&P, or the equivalent from any other eligible rating service. In the event that ratings differ among eligible rating services, the highest rating applies when determining whether a security bears an eligible rating; (10) "Eligible rating service" means any Nationally Recognized Statistical Rating Organization (NRSRO), as defined by the United States Securities and Exchange Commission, and any other organization designated by the commissioner; (11) "Executive officer" means the applicant or licensee's president, chair of the executive committee, executive vice president, treasurer, chief financial officer, or any other person who performs similar functions; (12) "Federally insured depository financial institution" means a bank, credit union, savings and loan association, trust company, savings association, savings bank, industrial bank, or industrial loan company organized under the laws of the United States or any state of the United States and that has federally insured deposits; (13) "In this state" means: (A) For a transaction requested in person, at a physical location within this state; and (B) For a transaction requested electronically or by phone, the provider of money transmission may determine if the person requesting the transaction is "in this state" by relying on other information provided by the person regarding the location of the individual's residential address or a business entity's principal place of business or other physical address location, and any records associated with the person that the provider of money transmission may have that indicate such location, including, but not limited to, an address associated with an account; (14) "Individual" means a natural person; (15) "Key individual" means any individual ultimately responsible for establishing or directing policies and procedures of the licensee, such as an executive officer, manager, director, or trustee; (16) "Licensee" means a person licensed under this chapter; (17) "Material litigation" means litigation that, according to United States generally accepted accounting principles, is significant to a person's financial health and would be required to be disclosed in the person's annual audited financial statements, report to shareholders, or similar records; (18) "Monetary value" means a medium of exchange, whether or not redeemable in money; (19) "Money": (A) Means a medium of exchange that is authorized or adopted by the United States or issued by a foreign government; and (B) Includes a monetary unit of account established by an intergovernmental organization or by agreement between two (2) or more governments; (20) "Money transmission": (A) Means: (i) Selling or issuing payment instruments to a person located in this state; (ii) Selling or issuing stored value to a person located in this state; (iii) Receiving money for transmission from a person located in this state; or (iv) Payroll processing services; and (B) Does not mean the provision solely of telecommunications services or network access; (21) "Multistate licensing process" means any agreement entered into by this state with any other state's regulators relating to coordinated processing of applications for money transmission licenses, applications for the acquisition of control of a licensee, control determinations, or notice and information requirements for a change of key individuals; (22) "NMLS" means the Nationwide Multistate Licensing System and Registry developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators and owned and operated by the State Regulatory Registry, LLC, or any successor or affiliated entity, for the licensing and registration of persons in financial services industries; (23) (A) "Outstanding money transmission obligations," which must be established and extinguished in accordance with applicable state law, means: (i) Any payment instrument or stored value issued or sold by the licensee to a person located in the United States or reported as sold by an authorized delegate of the licensee to a person that is located in the United States that has not yet been paid or refunded by or for the licensee, or escheated in accordance with applicable abandoned property laws; or (ii) Any money received for transmission by the licensee or an authorized delegate in the United States from a person located in the United States that has not been received by the payee or refunded to the sender, or escheated in accordance with applicable abandoned property laws; (B) For purposes of this subdivision (23), "in the United States" includes, to the extent applicable, a person in any state, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or a United States military installation that is located in a foreign country; (24) "Passive investor" means a person that: (A) Does not have the power to elect a majority of key individuals or executive officers, managers, directors, trustees, or other persons exercising managerial authority of a person in control of a licensee; (B) Is not employed by and does not have any managerial duties of the licensee or person in control of a licensee; (C) Does not have the power to exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee; and (D) Attests to subdivisions (24)(A), (24)(B), and (24)(C), in a form and in a medium prescribed by the commissioner; or commits to the passivity characteristics of subdivisions (24)(A), (24)(B), and (24)(C), in a written document satisfactory to the commissioner; (25) "Payment instrument": (A) Means a written or electronic check, draft, money order, traveler's check, or other written or electronic instrument for the transmission or payment of money or monetary value, whether or not negotiable; and (B) Does not mean stored value or any instrument that: (i) Is redeemable by the issuer only for goods or services provided by the issuer or its affiliate or franchisees of the issuer or its affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value; or (ii) Is not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program; (26) "Payroll processing services": (A) Means receiving money for transmission pursuant to a contract with a person to deliver wages or salaries, make payment of payroll taxes to state and federal agencies, make payments relating to employee benefit plans, or make distributions of other authorized deductions from wages or salaries; and (B) Does not mean an employer performing payroll processing services on its own behalf or on behalf of its affiliate, or a professional employer organization registered under the Tennessee Professional Employer Organization Act, compiled in title 62, chapter 43; (27) "Person" means any individual, general partnership, limited partnership, limited liability company, corporation, trust, association, joint stock corporation, or other corporate entity identified by the commissioner; (28) "Receiving money for transmission" or "money received for transmission" means receiving money or monetary value in the United States for transmission within or outside the United States by electronic or other means; (29) "Stored value": (A) Means monetary value representing a claim against the issuer evidenced by an electronic or digital record, and that is intended and accepted for use as a means of redemption for money or monetary value, or payment for goods or services; (B) Includes, but is not limited to, "prepaid access" as defined by 31 CFR § 1010.100 ; and (C) Does not include a payment instrument or closed loop stored value, or stored value not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program; and (30) "Tangible net worth" means the aggregate assets of a licensee excluding all intangible assets, less liabilities, as determined in accordance with United States generally accepted accounting principles. Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024. Acts 1994, ch. 715, § 1; T.C.A., § 45-7-203 ; Acts 2020, ch. 730, § 1.
As used in this chapter:
(1) "Acting in concert" means persons knowingly acting together with a common goal of jointly acquiring control of a licensee whether or not pursuant to an express agreement;
(2) "Authorized delegate" means a person that a licensee designates to engage in money transmission on behalf of the licensee;
(3) "Average daily money transmission liability" means the amount of the licensee's outstanding money transmission obligations in this state at the end of each day in a given period of time, added together, and divided by the total number of days in the given period of time. For purposes of calculating average daily money transmission liability under this chapter for any licensee required to do so, the given periods of time are the calendar quarters ending March 31, June 30, September 30, and December 31;
(4) "Bank Secrecy Act" means the federal Bank Secrecy Act ( 31 U.S.C. § 5311 et seq.) and its implementing regulations;
(5) "Closed loop stored value" means stored value that is redeemable by the issuer only for goods or services provided by the issuer or its affiliate or franchisees of the issuer or its affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value;
(6) "Commissioner" means the commissioner of financial institutions;
(7) (A) "Control" means the power to: (i) Vote, directly or indirectly, at least twenty-five percent (25%) of the outstanding voting shares or voting interests of a licensee or person in control of a licensee; (ii) Elect or appoint a majority of key individuals or executive officers, managers, directors, trustees, or other persons exercising managerial authority of a person in control of a licensee; or (iii) Exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee; (B) (i) A person is presumed to exercise a controlling influence when the person holds the power to vote, directly or indirectly, at least ten percent (10%) of the outstanding voting shares or voting interests of a licensee or person in control of a licensee; (ii) A person presumed to exercise a controlling influence as defined by this subdivision (7)(B) may rebut the presumption of control by showing that the person is a passive investor; (C) For purposes of determining the percentage of a person controlled by another person, the person's interest is aggregated with the interest of: (i) Any immediate family member, including the person's spouse, parents, children, siblings, mothers- and fathers-in-law, sons- and daughters-in-law, brothers- and sisters-in-law; and (ii) Any person who shares such person's home;
(A) "Control" means the power to: (i) Vote, directly or indirectly, at least twenty-five percent (25%) of the outstanding voting shares or voting interests of a licensee or person in control of a licensee; (ii) Elect or appoint a majority of key individuals or executive officers, managers, directors, trustees, or other persons exercising managerial authority of a person in control of a licensee; or (iii) Exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee;
(i) Vote, directly or indirectly, at least twenty-five percent (25%) of the outstanding voting shares or voting interests of a licensee or person in control of a licensee;
(ii) Elect or appoint a majority of key individuals or executive officers, managers, directors, trustees, or other persons exercising managerial authority of a person in control of a licensee; or
(iii) Exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee;
(B) (i) A person is presumed to exercise a controlling influence when the person holds the power to vote, directly or indirectly, at least ten percent (10%) of the outstanding voting shares or voting interests of a licensee or person in control of a licensee; (ii) A person presumed to exercise a controlling influence as defined by this subdivision (7)(B) may rebut the presumption of control by showing that the person is a passive investor;
(i) A person is presumed to exercise a controlling influence when the person holds the power to vote, directly or indirectly, at least ten percent (10%) of the outstanding voting shares or voting interests of a licensee or person in control of a licensee;
(ii) A person presumed to exercise a controlling influence as defined by this subdivision (7)(B) may rebut the presumption of control by showing that the person is a passive investor;
(C) For purposes of determining the percentage of a person controlled by another person, the person's interest is aggregated with the interest of: (i) Any immediate family member, including the person's spouse, parents, children, siblings, mothers- and fathers-in-law, sons- and daughters-in-law, brothers- and sisters-in-law; and (ii) Any person who shares such person's home;
(i) Any immediate family member, including the person's spouse, parents, children, siblings, mothers- and fathers-in-law, sons- and daughters-in-law, brothers- and sisters-in-law; and
(ii) Any person who shares such person's home;
(8) "Department" means the department of financial institutions;
(9) "Eligible rating" means a credit rating of any of the three (3) highest rating categories provided by an eligible rating service, whereby each category may include rating category modifiers, such as "plus" or "minus" for Standard & Poor's (S&P), or the equivalent for any other eligible rating service. Long-term credit ratings are deemed eligible if the rating is equal to A- or higher by S&P, or the equivalent from any other eligible rating service. Short-term credit ratings are deemed eligible if the rating is equal to or higher than A-2 or SP-2 by S&P, or the equivalent from any other eligible rating service. In the event that ratings differ among eligible rating services, the highest rating applies when determining whether a security bears an eligible rating;
(10) "Eligible rating service" means any Nationally Recognized Statistical Rating Organization (NRSRO), as defined by the United States Securities and Exchange Commission, and any other organization designated by the commissioner;
(11) "Executive officer" means the applicant or licensee's president, chair of the executive committee, executive vice president, treasurer, chief financial officer, or any other person who performs similar functions;
(12) "Federally insured depository financial institution" means a bank, credit union, savings and loan association, trust company, savings association, savings bank, industrial bank, or industrial loan company organized under the laws of the United States or any state of the United States and that has federally insured deposits;
(13) "In this state" means: (A) For a transaction requested in person, at a physical location within this state; and (B) For a transaction requested electronically or by phone, the provider of money transmission may determine if the person requesting the transaction is "in this state" by relying on other information provided by the person regarding the location of the individual's residential address or a business entity's principal place of business or other physical address location, and any records associated with the person that the provider of money transmission may have that indicate such location, including, but not limited to, an address associated with an account;
(A) For a transaction requested in person, at a physical location within this state; and
(B) For a transaction requested electronically or by phone, the provider of money transmission may determine if the person requesting the transaction is "in this state" by relying on other information provided by the person regarding the location of the individual's residential address or a business entity's principal place of business or other physical address location, and any records associated with the person that the provider of money transmission may have that indicate such location, including, but not limited to, an address associated with an account;
(14) "Individual" means a natural person;
(15) "Key individual" means any individual ultimately responsible for establishing or directing policies and procedures of the licensee, such as an executive officer, manager, director, or trustee;
(16) "Licensee" means a person licensed under this chapter;
(17) "Material litigation" means litigation that, according to United States generally accepted accounting principles, is significant to a person's financial health and would be required to be disclosed in the person's annual audited financial statements, report to shareholders, or similar records;
(18) "Monetary value" means a medium of exchange, whether or not redeemable in money;
(19) "Money": (A) Means a medium of exchange that is authorized or adopted by the United States or issued by a foreign government; and (B) Includes a monetary unit of account established by an intergovernmental organization or by agreement between two (2) or more governments;
(A) Means a medium of exchange that is authorized or adopted by the United States or issued by a foreign government; and
(B) Includes a monetary unit of account established by an intergovernmental organization or by agreement between two (2) or more governments;
(20) "Money transmission": (A) Means: (i) Selling or issuing payment instruments to a person located in this state; (ii) Selling or issuing stored value to a person located in this state; (iii) Receiving money for transmission from a person located in this state; or (iv) Payroll processing services; and (B) Does not mean the provision solely of telecommunications services or network access;
(A) Means: (i) Selling or issuing payment instruments to a person located in this state; (ii) Selling or issuing stored value to a person located in this state; (iii) Receiving money for transmission from a person located in this state; or (iv) Payroll processing services; and
(i) Selling or issuing payment instruments to a person located in this state;
(ii) Selling or issuing stored value to a person located in this state;
(iii) Receiving money for transmission from a person located in this state; or
(iv) Payroll processing services; and
(B) Does not mean the provision solely of telecommunications services or network access;
(21) "Multistate licensing process" means any agreement entered into by this state with any other state's regulators relating to coordinated processing of applications for money transmission licenses, applications for the acquisition of control of a licensee, control determinations, or notice and information requirements for a change of key individuals;
(22) "NMLS" means the Nationwide Multistate Licensing System and Registry developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators and owned and operated by the State Regulatory Registry, LLC, or any successor or affiliated entity, for the licensing and registration of persons in financial services industries;
(23) (A) "Outstanding money transmission obligations," which must be established and extinguished in accordance with applicable state law, means: (i) Any payment instrument or stored value issued or sold by the licensee to a person located in the United States or reported as sold by an authorized delegate of the licensee to a person that is located in the United States that has not yet been paid or refunded by or for the licensee, or escheated in accordance with applicable abandoned property laws; or (ii) Any money received for transmission by the licensee or an authorized delegate in the United States from a person located in the United States that has not been received by the payee or refunded to the sender, or escheated in accordance with applicable abandoned property laws; (B) For purposes of this subdivision (23), "in the United States" includes, to the extent applicable, a person in any state, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or a United States military installation that is located in a foreign country;
(A) "Outstanding money transmission obligations," which must be established and extinguished in accordance with applicable state law, means: (i) Any payment instrument or stored value issued or sold by the licensee to a person located in the United States or reported as sold by an authorized delegate of the licensee to a person that is located in the United States that has not yet been paid or refunded by or for the licensee, or escheated in accordance with applicable abandoned property laws; or (ii) Any money received for transmission by the licensee or an authorized delegate in the United States from a person located in the United States that has not been received by the payee or refunded to the sender, or escheated in accordance with applicable abandoned property laws;
(i) Any payment instrument or stored value issued or sold by the licensee to a person located in the United States or reported as sold by an authorized delegate of the licensee to a person that is located in the United States that has not yet been paid or refunded by or for the licensee, or escheated in accordance with applicable abandoned property laws; or
(ii) Any money received for transmission by the licensee or an authorized delegate in the United States from a person located in the United States that has not been received by the payee or refunded to the sender, or escheated in accordance with applicable abandoned property laws;
(B) For purposes of this subdivision (23), "in the United States" includes, to the extent applicable, a person in any state, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or a United States military installation that is located in a foreign country;
(24) "Passive investor" means a person that: (A) Does not have the power to elect a majority of key individuals or executive officers, managers, directors, trustees, or other persons exercising managerial authority of a person in control of a licensee; (B) Is not employed by and does not have any managerial duties of the licensee or person in control of a licensee; (C) Does not have the power to exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee; and (D) Attests to subdivisions (24)(A), (24)(B), and (24)(C), in a form and in a medium prescribed by the commissioner; or commits to the passivity characteristics of subdivisions (24)(A), (24)(B), and (24)(C), in a written document satisfactory to the commissioner;
(A) Does not have the power to elect a majority of key individuals or executive officers, managers, directors, trustees, or other persons exercising managerial authority of a person in control of a licensee;
(B) Is not employed by and does not have any managerial duties of the licensee or person in control of a licensee;
(C) Does not have the power to exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee; and
(D) Attests to subdivisions (24)(A), (24)(B), and (24)(C), in a form and in a medium prescribed by the commissioner; or commits to the passivity characteristics of subdivisions (24)(A), (24)(B), and (24)(C), in a written document satisfactory to the commissioner;
(25) "Payment instrument": (A) Means a written or electronic check, draft, money order, traveler's check, or other written or electronic instrument for the transmission or payment of money or monetary value, whether or not negotiable; and (B) Does not mean stored value or any instrument that: (i) Is redeemable by the issuer only for goods or services provided by the issuer or its affiliate or franchisees of the issuer or its affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value; or (ii) Is not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program;
(A) Means a written or electronic check, draft, money order, traveler's check, or other written or electronic instrument for the transmission or payment of money or monetary value, whether or not negotiable; and
(B) Does not mean stored value or any instrument that: (i) Is redeemable by the issuer only for goods or services provided by the issuer or its affiliate or franchisees of the issuer or its affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value; or (ii) Is not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program;
(i) Is redeemable by the issuer only for goods or services provided by the issuer or its affiliate or franchisees of the issuer or its affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value; or
(ii) Is not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program;
(26) "Payroll processing services": (A) Means receiving money for transmission pursuant to a contract with a person to deliver wages or salaries, make payment of payroll taxes to state and federal agencies, make payments relating to employee benefit plans, or make distributions of other authorized deductions from wages or salaries; and (B) Does not mean an employer performing payroll processing services on its own behalf or on behalf of its affiliate, or a professional employer organization registered under the Tennessee Professional Employer Organization Act, compiled in title 62, chapter 43;
(A) Means receiving money for transmission pursuant to a contract with a person to deliver wages or salaries, make payment of payroll taxes to state and federal agencies, make payments relating to employee benefit plans, or make distributions of other authorized deductions from wages or salaries; and
(B) Does not mean an employer performing payroll processing services on its own behalf or on behalf of its affiliate, or a professional employer organization registered under the Tennessee Professional Employer Organization Act, compiled in title 62, chapter 43;
(27) "Person" means any individual, general partnership, limited partnership, limited liability company, corporation, trust, association, joint stock corporation, or other corporate entity identified by the commissioner;
(28) "Receiving money for transmission" or "money received for transmission" means receiving money or monetary value in the United States for transmission within or outside the United States by electronic or other means;
(29) "Stored value": (A) Means monetary value representing a claim against the issuer evidenced by an electronic or digital record, and that is intended and accepted for use as a means of redemption for money or monetary value, or payment for goods or services; (B) Includes, but is not limited to, "prepaid access" as defined by 31 CFR § 1010.100 ; and (C) Does not include a payment instrument or closed loop stored value, or stored value not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program; and
(A) Means monetary value representing a claim against the issuer evidenced by an electronic or digital record, and that is intended and accepted for use as a means of redemption for money or monetary value, or payment for goods or services;
(B) Includes, but is not limited to, "prepaid access" as defined by 31 CFR § 1010.100 ; and
(C) Does not include a payment instrument or closed loop stored value, or stored value not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program; and
(30) "Tangible net worth" means the aggregate assets of a licensee excluding all intangible assets, less liabilities, as determined in accordance with United States generally accepted accounting principles.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; T.C.A., § 45-7-203 ; Acts 2020, ch. 730, § 1.
Tenn. Code Ann. § 45-6-213 — TN Code / Title 45 / Chapter 6 / Section 45-6-213
Identification of pawnors - Procedure for misappropriated or stolen property
Status: in_force

(a) When any person sells property to a pawnbroker or pledges property as security for a loan, the pawnbroker shall obtain and record the information provided for in § 45-6-209(b)(6) and obtain a statement of the pledgor that the pledgor is the lawful owner of the item, as provided in § 45-6-211(d) , and have the record signed by the person from whom the pawnbroker receives the property. This record shall be made available to any law enforcement agency or officer upon request. (b) (1) To obtain possession of purchased or pledged goods held by a pawnbroker which a claimant claims to be misappropriated or stolen, the claimant shall notify the pawnbroker by certified mail, return receipt requested, or in person evidenced by signed receipt, of the claimant's claim to the purchased or pledged goods. The notice shall contain a complete and accurate description of the purchased or pledged goods and shall be accompanied by a legible copy of the applicable law enforcement agency's report on the misappropriation or theft of such property. (2) The claimant and the pawnbroker shall, in good faith, attempt to resolve the claimant's claim to the purchased or pledged goods within ten (10) days after the claimant notifies the pawnbroker pursuant to subdivision (b)(1). If, after the ten-day period, the claimant and pawnbroker do not resolve the claimant's claim, then: (A) The claimant may petition a court of competent jurisdiction to order the return of the property, naming the pawnbroker as a defendant, and must serve the pawnbroker with a copy of the petition. The pawnbroker shall hold the property described in the petition until either the pawnbroker and the claimant resolve the claim, or a court specifically orders disposition of the property. The court shall waive any filing fee for the petition to recover the property, and the sheriff shall waive the service fees; or (B) An appropriate law enforcement official may place a hold order on the property pursuant to subsection (f). (c) If, after notice and a hearing, the court finds that the property was misappropriated or stolen and orders the return of the property to the claimant: (1) The claimant may recover from the pawnbroker the cost of the action, including the claimant's reasonable attorney's fees; and (2) (A) If the conveying customer is convicted of theft or dealing in misappropriated or stolen property, the court shall order the conveying customer to repay the pawnbroker the full amount the conveying customer received from the pawnbroker for the property, plus all applicable pawn service charges; (B) As used in this subdivision (c)(2), the term "convicted of" includes a plea of nolo contendere to the charges or any agreement in which adjudication is withheld; (3) The conveying customer shall be responsible for paying all attorney fees and costs incurred by the pawnbroker in defending a replevin action or any other civil matter wherein it is found that the conveying customer has been convicted of theft or dealing in misappropriated or stolen property; and (4) Notwithstanding § 40-24-105 , all moneys paid by the conveying customer shall be distributed in accordance with § 45-6-102 . (d) If the court finds that the claimant failed to comply with the requirements in subsection (b) or otherwise finds against the claimant, the claimant is liable for the defendants' costs, including reasonable attorney's fees. (e) The sale, pledge, or delivery of tangible personal property to a pawnbroker by any person in this state is considered to be: (1) An agreement by the person who sells, pledges, or delivers the tangible personal property that the person is subject to the jurisdiction of a court of competent jurisdiction in all civil actions and proceedings arising out of the pledge or sale transaction filed by either a resident or nonresident plaintiff; (2) An appointment of the secretary of state by any nonresident of this state as that person's lawful attorney and agent upon whom may be served all process in suits pertaining to the actions and proceedings arising out of the sale, pledge, or delivery; and (3) An agreement by any nonresident that any process in any suit so served has the same legal force and validity as if personally served in this state. (f) When an appropriate law enforcement official has probable cause to believe that property in the possession of a pawnbroker is misappropriated or stolen, the official shall, upon expiration of the ten-day period required by subdivision (b)(2), place a written hold order on the property. The written hold order shall impose a holding period not to exceed ninety (90) days unless extended by court order. The appropriate law enforcement official may rescind, in writing, any hold order. An appropriate law enforcement official may place only one (1) hold order on the property. (g) Upon the expiration of the holding period, the pawnbroker shall notify, in writing, the appropriate law enforcement official by certified mail, return receipt requested, that the holding period has expired. If, on the tenth day after the written notice has been received by the appropriate law enforcement official, the pawnbroker has not received from a court an extension of the hold order on the property and the property is not the subject of a proceeding under this subsection (g), title to the property shall vest in and be deemed conveyed by operation of law to the pawnbroker, free of any liability for claims but subject to any restrictions contained in the pawn transaction contract and subject to this section. (h) A hold order must specify: (1) The name and address of the pawnbroker; (2) The name, title, and identification number of the representative of the appropriate law enforcement official or the court placing the hold order; (3) If applicable, the name and address of the appropriate law enforcement official or court to which such representative is attached and the number, if any, assigned to the claim regarding the property; (4) A complete description of the property to be held, including model number and serial number if applicable; (5) The name of the person reporting the property to be misappropriated or stolen unless otherwise prohibited by law; (6) The mailing address of the pawnbroker where the property is held; (7) The expiration date of the holding period. (i) The pawnbroker or the pawnbroker's representative must sign and date a copy of the hold order as evidence of receipt of the hold order and the beginning of the ninety-day holding period. (j) (1) Except as provided in subdivision (j)(2), a pawnbroker may not release or dispose of property subject to a hold order except pursuant to a court order, a written release from the appropriate law enforcement official, or the expiration of the holding period of the hold order. (2) While a hold order is in effect, the pawnbroker shall, upon request, release the property subject to the hold order to the custody of the appropriate law enforcement official for use in a criminal investigation. The release of the property to the custody of the appropriate law enforcement official is not considered a waiver or release of the pawnbroker's property rights or interest in the property. Upon completion of the criminal proceeding, the property must be returned to the pawnbroker unless the court orders other disposition. When such other disposition is ordered, the court shall additionally order the conveying customer to pay restitution to the pawnbroker in the amount received by the conveying customer for the property together with reasonable attorney's fees and costs. Amended by 2016 Tenn. Acts, ch. 862,Secs.s3, s4 eff. 7/1/2016. Amended by 2016 Tenn. Acts, ch. 862,s 2, eff. 7/1/2016. Acts 1988, ch. 724, § 13; 1995, ch. 186, § 10; 2012, ch. 874, § 1.
(a) When any person sells property to a pawnbroker or pledges property as security for a loan, the pawnbroker shall obtain and record the information provided for in § 45-6-209(b)(6) and obtain a statement of the pledgor that the pledgor is the lawful owner of the item, as provided in § 45-6-211(d) , and have the record signed by the person from whom the pawnbroker receives the property. This record shall be made available to any law enforcement agency or officer upon request.
(b) (1) To obtain possession of purchased or pledged goods held by a pawnbroker which a claimant claims to be misappropriated or stolen, the claimant shall notify the pawnbroker by certified mail, return receipt requested, or in person evidenced by signed receipt, of the claimant's claim to the purchased or pledged goods. The notice shall contain a complete and accurate description of the purchased or pledged goods and shall be accompanied by a legible copy of the applicable law enforcement agency's report on the misappropriation or theft of such property. (2) The claimant and the pawnbroker shall, in good faith, attempt to resolve the claimant's claim to the purchased or pledged goods within ten (10) days after the claimant notifies the pawnbroker pursuant to subdivision (b)(1). If, after the ten-day period, the claimant and pawnbroker do not resolve the claimant's claim, then: (A) The claimant may petition a court of competent jurisdiction to order the return of the property, naming the pawnbroker as a defendant, and must serve the pawnbroker with a copy of the petition. The pawnbroker shall hold the property described in the petition until either the pawnbroker and the claimant resolve the claim, or a court specifically orders disposition of the property. The court shall waive any filing fee for the petition to recover the property, and the sheriff shall waive the service fees; or (B) An appropriate law enforcement official may place a hold order on the property pursuant to subsection (f).
(1) To obtain possession of purchased or pledged goods held by a pawnbroker which a claimant claims to be misappropriated or stolen, the claimant shall notify the pawnbroker by certified mail, return receipt requested, or in person evidenced by signed receipt, of the claimant's claim to the purchased or pledged goods. The notice shall contain a complete and accurate description of the purchased or pledged goods and shall be accompanied by a legible copy of the applicable law enforcement agency's report on the misappropriation or theft of such property.
(2) The claimant and the pawnbroker shall, in good faith, attempt to resolve the claimant's claim to the purchased or pledged goods within ten (10) days after the claimant notifies the pawnbroker pursuant to subdivision (b)(1). If, after the ten-day period, the claimant and pawnbroker do not resolve the claimant's claim, then: (A) The claimant may petition a court of competent jurisdiction to order the return of the property, naming the pawnbroker as a defendant, and must serve the pawnbroker with a copy of the petition. The pawnbroker shall hold the property described in the petition until either the pawnbroker and the claimant resolve the claim, or a court specifically orders disposition of the property. The court shall waive any filing fee for the petition to recover the property, and the sheriff shall waive the service fees; or (B) An appropriate law enforcement official may place a hold order on the property pursuant to subsection (f).
(A) The claimant may petition a court of competent jurisdiction to order the return of the property, naming the pawnbroker as a defendant, and must serve the pawnbroker with a copy of the petition. The pawnbroker shall hold the property described in the petition until either the pawnbroker and the claimant resolve the claim, or a court specifically orders disposition of the property. The court shall waive any filing fee for the petition to recover the property, and the sheriff shall waive the service fees; or
(B) An appropriate law enforcement official may place a hold order on the property pursuant to subsection (f).
(c) If, after notice and a hearing, the court finds that the property was misappropriated or stolen and orders the return of the property to the claimant: (1) The claimant may recover from the pawnbroker the cost of the action, including the claimant's reasonable attorney's fees; and (2) (A) If the conveying customer is convicted of theft or dealing in misappropriated or stolen property, the court shall order the conveying customer to repay the pawnbroker the full amount the conveying customer received from the pawnbroker for the property, plus all applicable pawn service charges; (B) As used in this subdivision (c)(2), the term "convicted of" includes a plea of nolo contendere to the charges or any agreement in which adjudication is withheld; (3) The conveying customer shall be responsible for paying all attorney fees and costs incurred by the pawnbroker in defending a replevin action or any other civil matter wherein it is found that the conveying customer has been convicted of theft or dealing in misappropriated or stolen property; and (4) Notwithstanding § 40-24-105 , all moneys paid by the conveying customer shall be distributed in accordance with § 45-6-102 .
(1) The claimant may recover from the pawnbroker the cost of the action, including the claimant's reasonable attorney's fees; and
(2) (A) If the conveying customer is convicted of theft or dealing in misappropriated or stolen property, the court shall order the conveying customer to repay the pawnbroker the full amount the conveying customer received from the pawnbroker for the property, plus all applicable pawn service charges; (B) As used in this subdivision (c)(2), the term "convicted of" includes a plea of nolo contendere to the charges or any agreement in which adjudication is withheld;
(A) If the conveying customer is convicted of theft or dealing in misappropriated or stolen property, the court shall order the conveying customer to repay the pawnbroker the full amount the conveying customer received from the pawnbroker for the property, plus all applicable pawn service charges;
(B) As used in this subdivision (c)(2), the term "convicted of" includes a plea of nolo contendere to the charges or any agreement in which adjudication is withheld;
(3) The conveying customer shall be responsible for paying all attorney fees and costs incurred by the pawnbroker in defending a replevin action or any other civil matter wherein it is found that the conveying customer has been convicted of theft or dealing in misappropriated or stolen property; and
(4) Notwithstanding § 40-24-105 , all moneys paid by the conveying customer shall be distributed in accordance with § 45-6-102 .
(d) If the court finds that the claimant failed to comply with the requirements in subsection (b) or otherwise finds against the claimant, the claimant is liable for the defendants' costs, including reasonable attorney's fees.
(e) The sale, pledge, or delivery of tangible personal property to a pawnbroker by any person in this state is considered to be: (1) An agreement by the person who sells, pledges, or delivers the tangible personal property that the person is subject to the jurisdiction of a court of competent jurisdiction in all civil actions and proceedings arising out of the pledge or sale transaction filed by either a resident or nonresident plaintiff; (2) An appointment of the secretary of state by any nonresident of this state as that person's lawful attorney and agent upon whom may be served all process in suits pertaining to the actions and proceedings arising out of the sale, pledge, or delivery; and (3) An agreement by any nonresident that any process in any suit so served has the same legal force and validity as if personally served in this state.
(1) An agreement by the person who sells, pledges, or delivers the tangible personal property that the person is subject to the jurisdiction of a court of competent jurisdiction in all civil actions and proceedings arising out of the pledge or sale transaction filed by either a resident or nonresident plaintiff;
(2) An appointment of the secretary of state by any nonresident of this state as that person's lawful attorney and agent upon whom may be served all process in suits pertaining to the actions and proceedings arising out of the sale, pledge, or delivery; and
(3) An agreement by any nonresident that any process in any suit so served has the same legal force and validity as if personally served in this state.
(f) When an appropriate law enforcement official has probable cause to believe that property in the possession of a pawnbroker is misappropriated or stolen, the official shall, upon expiration of the ten-day period required by subdivision (b)(2), place a written hold order on the property. The written hold order shall impose a holding period not to exceed ninety (90) days unless extended by court order. The appropriate law enforcement official may rescind, in writing, any hold order. An appropriate law enforcement official may place only one (1) hold order on the property.
(g) Upon the expiration of the holding period, the pawnbroker shall notify, in writing, the appropriate law enforcement official by certified mail, return receipt requested, that the holding period has expired. If, on the tenth day after the written notice has been received by the appropriate law enforcement official, the pawnbroker has not received from a court an extension of the hold order on the property and the property is not the subject of a proceeding under this subsection (g), title to the property shall vest in and be deemed conveyed by operation of law to the pawnbroker, free of any liability for claims but subject to any restrictions contained in the pawn transaction contract and subject to this section.
(h) A hold order must specify: (1) The name and address of the pawnbroker; (2) The name, title, and identification number of the representative of the appropriate law enforcement official or the court placing the hold order; (3) If applicable, the name and address of the appropriate law enforcement official or court to which such representative is attached and the number, if any, assigned to the claim regarding the property; (4) A complete description of the property to be held, including model number and serial number if applicable; (5) The name of the person reporting the property to be misappropriated or stolen unless otherwise prohibited by law; (6) The mailing address of the pawnbroker where the property is held; (7) The expiration date of the holding period.
(1) The name and address of the pawnbroker;
(2) The name, title, and identification number of the representative of the appropriate law enforcement official or the court placing the hold order;
(3) If applicable, the name and address of the appropriate law enforcement official or court to which such representative is attached and the number, if any, assigned to the claim regarding the property;
(4) A complete description of the property to be held, including model number and serial number if applicable;
(5) The name of the person reporting the property to be misappropriated or stolen unless otherwise prohibited by law;
(6) The mailing address of the pawnbroker where the property is held;
(7) The expiration date of the holding period.
(i) The pawnbroker or the pawnbroker's representative must sign and date a copy of the hold order as evidence of receipt of the hold order and the beginning of the ninety-day holding period.
(j) (1) Except as provided in subdivision (j)(2), a pawnbroker may not release or dispose of property subject to a hold order except pursuant to a court order, a written release from the appropriate law enforcement official, or the expiration of the holding period of the hold order. (2) While a hold order is in effect, the pawnbroker shall, upon request, release the property subject to the hold order to the custody of the appropriate law enforcement official for use in a criminal investigation. The release of the property to the custody of the appropriate law enforcement official is not considered a waiver or release of the pawnbroker's property rights or interest in the property. Upon completion of the criminal proceeding, the property must be returned to the pawnbroker unless the court orders other disposition. When such other disposition is ordered, the court shall additionally order the conveying customer to pay restitution to the pawnbroker in the amount received by the conveying customer for the property together with reasonable attorney's fees and costs.
(1) Except as provided in subdivision (j)(2), a pawnbroker may not release or dispose of property subject to a hold order except pursuant to a court order, a written release from the appropriate law enforcement official, or the expiration of the holding period of the hold order.
(2) While a hold order is in effect, the pawnbroker shall, upon request, release the property subject to the hold order to the custody of the appropriate law enforcement official for use in a criminal investigation. The release of the property to the custody of the appropriate law enforcement official is not considered a waiver or release of the pawnbroker's property rights or interest in the property. Upon completion of the criminal proceeding, the property must be returned to the pawnbroker unless the court orders other disposition. When such other disposition is ordered, the court shall additionally order the conveying customer to pay restitution to the pawnbroker in the amount received by the conveying customer for the property together with reasonable attorney's fees and costs.
Amended by 2016 Tenn. Acts, ch. 862,Secs.s3, s4 eff. 7/1/2016.
Amended by 2016 Tenn. Acts, ch. 862,s 2, eff. 7/1/2016.
Acts 1988, ch. 724, § 13; 1995, ch. 186, § 10; 2012, ch. 874, § 1.
Tenn. Code Ann. § 45-15-108 — TN Code / Title 45 / Chapter 15 / Section 45-15-108
Rules and regulations - Compliance examinations - Preservation of books and records - Reproduction and preservation of records - Report by commissioner on rates and terms of loans
Status: in_force

(a) The commissioner may promulgate reasonable regulations, in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, for the enforcement of this chapter. A copy of any rule or regulation adopted by the commissioner shall be mailed to each license holder at least thirty (30) days before the date the rule or regulation takes effect. (b) To assure compliance with this chapter, the commissioner may examine the relevant business, books and records of any title pledge lender. The costs for an examination or investigation of licensees shall be assessed pursuant to § 45-1-118(i) . An unlicensed person subject to the licensing requirements of this chapter, who is examined or investigated in accordance with this chapter, shall pay to the commissioner the reasonable and actual expenses of the investigation or examination. (c) The commissioner, for the purpose of discovering violations of this chapter and for the purpose of determining whether persons are subject to this chapter, is authorized to examine persons licensed under this chapter and persons reasonably suspected by the commissioner of conducting business that requires a license under this chapter, including all relevant books, records and papers employed by those persons in the transaction of their business, and to summon witnesses and examine them under oath concerning matters relating to the business of those persons, or other matters that may be relevant to the discovery of violations of this chapter, including, but not limited to, the conduct of business without a license as required under this chapter. (d) All books and records required to be preserved by this chapter or any regulation of the commissioner, or required by any federal statute, regulation, or regulatory guideline, as applicable to each title pledge lender, shall be preserved and made available to the commissioner as provided in this chapter, for a period of twenty-five (25) months on all rejected applications, and for a period of twenty-four (24) months on loans paid in full. The title pledge lender may cause any or all records at any time in its custody to be reproduced or preserved, by the title pledge lender or by any other person who agrees in writing to submit its operations to the examination of the commissioner, to the extent that the operations directly affect the record-keeping, by any microphotographic process, electronic or mechanical data storage technique or any other means. A record reproduced or preserved by those processes, techniques or means shall have the same force and effect as the original record, and shall be admitted into evidence equally with the original. All records of the title pledge lending business shall be maintained separately by the title pledge lender from any other business in which the title pledge lender may engage. (e) Commencing July 1, 2005, the commissioner shall have the authority to have full access to all records of a person engaged in the business of title pledge lending, for the sole purpose of making a written report to the general assembly, no later than February 1, 2006. The scope of the report shall be within the discretion of the commissioner, but shall, at a minimum, include an analysis of the rates and terms of title pledge loans and the reasonableness and appropriateness of the rates and terms. Amended by 2014 Tenn. Acts, ch. 736,s 18, eff. 7/1/2015. Acts 1995, ch. 186, § 13; 2005, ch. 440, § 7.
(a) The commissioner may promulgate reasonable regulations, in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, for the enforcement of this chapter. A copy of any rule or regulation adopted by the commissioner shall be mailed to each license holder at least thirty (30) days before the date the rule or regulation takes effect.
(b) To assure compliance with this chapter, the commissioner may examine the relevant business, books and records of any title pledge lender. The costs for an examination or investigation of licensees shall be assessed pursuant to § 45-1-118(i) . An unlicensed person subject to the licensing requirements of this chapter, who is examined or investigated in accordance with this chapter, shall pay to the commissioner the reasonable and actual expenses of the investigation or examination.
(c) The commissioner, for the purpose of discovering violations of this chapter and for the purpose of determining whether persons are subject to this chapter, is authorized to examine persons licensed under this chapter and persons reasonably suspected by the commissioner of conducting business that requires a license under this chapter, including all relevant books, records and papers employed by those persons in the transaction of their business, and to summon witnesses and examine them under oath concerning matters relating to the business of those persons, or other matters that may be relevant to the discovery of violations of this chapter, including, but not limited to, the conduct of business without a license as required under this chapter.
(d) All books and records required to be preserved by this chapter or any regulation of the commissioner, or required by any federal statute, regulation, or regulatory guideline, as applicable to each title pledge lender, shall be preserved and made available to the commissioner as provided in this chapter, for a period of twenty-five (25) months on all rejected applications, and for a period of twenty-four (24) months on loans paid in full. The title pledge lender may cause any or all records at any time in its custody to be reproduced or preserved, by the title pledge lender or by any other person who agrees in writing to submit its operations to the examination of the commissioner, to the extent that the operations directly affect the record-keeping, by any microphotographic process, electronic or mechanical data storage technique or any other means. A record reproduced or preserved by those processes, techniques or means shall have the same force and effect as the original record, and shall be admitted into evidence equally with the original. All records of the title pledge lending business shall be maintained separately by the title pledge lender from any other business in which the title pledge lender may engage.
(e) Commencing July 1, 2005, the commissioner shall have the authority to have full access to all records of a person engaged in the business of title pledge lending, for the sole purpose of making a written report to the general assembly, no later than February 1, 2006. The scope of the report shall be within the discretion of the commissioner, but shall, at a minimum, include an analysis of the rates and terms of title pledge loans and the reasonableness and appropriateness of the rates and terms.
Amended by 2014 Tenn. Acts, ch. 736,s 18, eff. 7/1/2015.
Acts 1995, ch. 186, § 13; 2005, ch. 440, § 7.
Tenn. Code Ann. § 45-20-105 — TN Code / Title 45 / Chapter 20 / Section 45-20-105
Purchaser or assignee of loan subject to all claims and defenses of the borrower - Relief granted - Due diligence
Status: in_force

(a) Notwithstanding any other provision of law, any person who purchases or is otherwise assigned a high-cost home loan shall be subject to all claims and defenses with respect to the high-cost home loan that the borrower could assert against the lender of the high-cost home loan, unless the purchaser or assignee demonstrates, by a preponderance of the evidence, that the purchaser or assignee exercised due diligence at the time of the purchase of the high-cost home loans, or within a reasonable time thereafter, intended to prevent the purchaser or assignee from purchasing or taking assignment of a high-cost home loan that violates this chapter. (b) The relief granted in an action, pursuant to subsection (a): (1) May be asserted by the borrower acting only in an individual capacity; (2) May not exceed the sum of the amount required to reduce the borrower's liability, so that it is no longer a high-cost home loan, plus the amount required to recover costs, including reasonable attorney's fees; (3) May be asserted by the borrower of a high-cost home loan after notice of acceleration or foreclosure of the high-cost home loan, asserting a violation of § 45-20-103 in an individual action to enjoin foreclosure, or to preserve or obtain possession of the home secured by the high-cost home loan; and (4) Shall be brought within three (3) years from the date of the occurrence of the violation; provided, however, that a borrower shall not be barred from asserting a violation of § 45-20-103 in an action to collect the debt that was brought more than one (1) year from the date of the occurrence of the violation, as a matter of defense by recoupment or set-off in the action, except as otherwise provided by law. (c) This section shall not apply if a purchaser or assignee has exercised due diligence by demonstrating that the purchaser or assignee: (1) Has in place, at the time of the purchase or assignment of the loans, policies that expressly prohibit the purchase or acceptance of assignment, by the purchaser or assignee, of any high-cost home loan containing violations; (2) Requires, by the applicable purchase contract, that a seller or assignor of the loans to the purchaser or assignee represents and warrants to the purchaser or assignee, as of the applicable sale date, that either: (A) The seller or assignor will not sell or assign to the purchaser or assignee any high-cost home loan containing violations; or (B) The seller or assignor is a beneficiary of a representation and warranty from a previous seller or assignor to that effect, and, as a result of its purchase of the loans, the purchaser or assignee is a beneficiary of the representation and warranty; and (C) Exercises reasonable due diligence, at or before the time of the purchase or assignment of home loans, or within a reasonable period of time after the purchase or assignment of the home loans, that is intended by the purchaser or assignee to prevent the purchaser or assignee from purchasing or taking assignment of any high-cost home loan containing violations. (d) The reasonable due diligence requirement referred to in subdivision (c)(2)(C) may be met by employing lender's quality control sampling methodology and shall not require loan-by-loan review, for purposes of this subsection (d). Acts 2006, ch. 801, § 5.
(a) Notwithstanding any other provision of law, any person who purchases or is otherwise assigned a high-cost home loan shall be subject to all claims and defenses with respect to the high-cost home loan that the borrower could assert against the lender of the high-cost home loan, unless the purchaser or assignee demonstrates, by a preponderance of the evidence, that the purchaser or assignee exercised due diligence at the time of the purchase of the high-cost home loans, or within a reasonable time thereafter, intended to prevent the purchaser or assignee from purchasing or taking assignment of a high-cost home loan that violates this chapter.
(b) The relief granted in an action, pursuant to subsection (a): (1) May be asserted by the borrower acting only in an individual capacity; (2) May not exceed the sum of the amount required to reduce the borrower's liability, so that it is no longer a high-cost home loan, plus the amount required to recover costs, including reasonable attorney's fees; (3) May be asserted by the borrower of a high-cost home loan after notice of acceleration or foreclosure of the high-cost home loan, asserting a violation of § 45-20-103 in an individual action to enjoin foreclosure, or to preserve or obtain possession of the home secured by the high-cost home loan; and (4) Shall be brought within three (3) years from the date of the occurrence of the violation; provided, however, that a borrower shall not be barred from asserting a violation of § 45-20-103 in an action to collect the debt that was brought more than one (1) year from the date of the occurrence of the violation, as a matter of defense by recoupment or set-off in the action, except as otherwise provided by law.
(1) May be asserted by the borrower acting only in an individual capacity;
(2) May not exceed the sum of the amount required to reduce the borrower's liability, so that it is no longer a high-cost home loan, plus the amount required to recover costs, including reasonable attorney's fees;
(3) May be asserted by the borrower of a high-cost home loan after notice of acceleration or foreclosure of the high-cost home loan, asserting a violation of § 45-20-103 in an individual action to enjoin foreclosure, or to preserve or obtain possession of the home secured by the high-cost home loan; and
(4) Shall be brought within three (3) years from the date of the occurrence of the violation; provided, however, that a borrower shall not be barred from asserting a violation of § 45-20-103 in an action to collect the debt that was brought more than one (1) year from the date of the occurrence of the violation, as a matter of defense by recoupment or set-off in the action, except as otherwise provided by law.
(c) This section shall not apply if a purchaser or assignee has exercised due diligence by demonstrating that the purchaser or assignee: (1) Has in place, at the time of the purchase or assignment of the loans, policies that expressly prohibit the purchase or acceptance of assignment, by the purchaser or assignee, of any high-cost home loan containing violations; (2) Requires, by the applicable purchase contract, that a seller or assignor of the loans to the purchaser or assignee represents and warrants to the purchaser or assignee, as of the applicable sale date, that either: (A) The seller or assignor will not sell or assign to the purchaser or assignee any high-cost home loan containing violations; or (B) The seller or assignor is a beneficiary of a representation and warranty from a previous seller or assignor to that effect, and, as a result of its purchase of the loans, the purchaser or assignee is a beneficiary of the representation and warranty; and (C) Exercises reasonable due diligence, at or before the time of the purchase or assignment of home loans, or within a reasonable period of time after the purchase or assignment of the home loans, that is intended by the purchaser or assignee to prevent the purchaser or assignee from purchasing or taking assignment of any high-cost home loan containing violations.
(1) Has in place, at the time of the purchase or assignment of the loans, policies that expressly prohibit the purchase or acceptance of assignment, by the purchaser or assignee, of any high-cost home loan containing violations;
(2) Requires, by the applicable purchase contract, that a seller or assignor of the loans to the purchaser or assignee represents and warrants to the purchaser or assignee, as of the applicable sale date, that either: (A) The seller or assignor will not sell or assign to the purchaser or assignee any high-cost home loan containing violations; or (B) The seller or assignor is a beneficiary of a representation and warranty from a previous seller or assignor to that effect, and, as a result of its purchase of the loans, the purchaser or assignee is a beneficiary of the representation and warranty; and (C) Exercises reasonable due diligence, at or before the time of the purchase or assignment of home loans, or within a reasonable period of time after the purchase or assignment of the home loans, that is intended by the purchaser or assignee to prevent the purchaser or assignee from purchasing or taking assignment of any high-cost home loan containing violations.
(A) The seller or assignor will not sell or assign to the purchaser or assignee any high-cost home loan containing violations; or
(B) The seller or assignor is a beneficiary of a representation and warranty from a previous seller or assignor to that effect, and, as a result of its purchase of the loans, the purchaser or assignee is a beneficiary of the representation and warranty; and
(C) Exercises reasonable due diligence, at or before the time of the purchase or assignment of home loans, or within a reasonable period of time after the purchase or assignment of the home loans, that is intended by the purchaser or assignee to prevent the purchaser or assignee from purchasing or taking assignment of any high-cost home loan containing violations.
(d) The reasonable due diligence requirement referred to in subdivision (c)(2)(C) may be met by employing lender's quality control sampling methodology and shall not require loan-by-loan review, for purposes of this subsection (d).
Acts 2006, ch. 801, § 5.
Tenn. Code Ann. § 45-4-1109 — TN Code / Title 45 / Chapter 4 / Section 45-4-1109
Administrative fees
Status: in_force

(a) (1) A regular annual administrative fee, not to exceed one percent (1%) of the member credit union's shares, accounts and certificates, shall be levied by the corporation. The corporation may raise, lower or waive the annual administrative fee when the corporation and the commissioner of financial institutions agree that the total funds of the corporation justify or require the change. (2) At the option of the board of directors of the corporation, the corporation may exclude from its calculation of the administrative fee required by subsection (a) the shareholdings and deposits of shareholders and depositors of member credit unions that either are not protected or guaranteed by the corporation or that are in excess of the primary amount of loss to be protected or guaranteed by the corporation pursuant to § 45-4-1102(1) . (b) The corporation may return to its member credit unions or credit against future annual administrative fees that portion of annual administrative fees paid into the corporation by its members in excess of the corporation's requirements for administrative expenses, losses, loss provisions, retained earnings and reserves. The return or credit of excessive administrative fees may be made by the corporation in accordance with risk rating categories established by the board of directors, or as a proportional part of the administrative fee paid, as the board of directors may deem appropriate. (c) (1) The basis for calculating the administrative fee due the ensuing year shall be the member credit union's shares, accounts and certificates as of either: (A) December 31; or (B) The date, if different, upon which the member credit union's fiscal year ends. (2) The corporation shall determine, as to each member credit union, which of the dates specified in subdivision (c)(1) shall be used to calculate the member credit union's administrative fee. The corporation shall additionally determine the date the annual administrative fee is due and payable. Acts 1974, ch. 577, § 9; 1976, ch. 705, § 1; 1978, ch. 553, §§ 2, 4; T.C.A., § 45-1843; Acts 1981, ch. 89, § 3; 1982, ch. 603, §§ 3, 4; 1984, ch. 715, §§ 5-7; 1985, ch. 18, § 2.
(a) (1) A regular annual administrative fee, not to exceed one percent (1%) of the member credit union's shares, accounts and certificates, shall be levied by the corporation. The corporation may raise, lower or waive the annual administrative fee when the corporation and the commissioner of financial institutions agree that the total funds of the corporation justify or require the change. (2) At the option of the board of directors of the corporation, the corporation may exclude from its calculation of the administrative fee required by subsection (a) the shareholdings and deposits of shareholders and depositors of member credit unions that either are not protected or guaranteed by the corporation or that are in excess of the primary amount of loss to be protected or guaranteed by the corporation pursuant to § 45-4-1102(1) .
(1) A regular annual administrative fee, not to exceed one percent (1%) of the member credit union's shares, accounts and certificates, shall be levied by the corporation. The corporation may raise, lower or waive the annual administrative fee when the corporation and the commissioner of financial institutions agree that the total funds of the corporation justify or require the change.
(2) At the option of the board of directors of the corporation, the corporation may exclude from its calculation of the administrative fee required by subsection (a) the shareholdings and deposits of shareholders and depositors of member credit unions that either are not protected or guaranteed by the corporation or that are in excess of the primary amount of loss to be protected or guaranteed by the corporation pursuant to § 45-4-1102(1) .
(b) The corporation may return to its member credit unions or credit against future annual administrative fees that portion of annual administrative fees paid into the corporation by its members in excess of the corporation's requirements for administrative expenses, losses, loss provisions, retained earnings and reserves. The return or credit of excessive administrative fees may be made by the corporation in accordance with risk rating categories established by the board of directors, or as a proportional part of the administrative fee paid, as the board of directors may deem appropriate.
(c) (1) The basis for calculating the administrative fee due the ensuing year shall be the member credit union's shares, accounts and certificates as of either: (A) December 31; or (B) The date, if different, upon which the member credit union's fiscal year ends. (2) The corporation shall determine, as to each member credit union, which of the dates specified in subdivision (c)(1) shall be used to calculate the member credit union's administrative fee. The corporation shall additionally determine the date the annual administrative fee is due and payable.
(1) The basis for calculating the administrative fee due the ensuing year shall be the member credit union's shares, accounts and certificates as of either: (A) December 31; or (B) The date, if different, upon which the member credit union's fiscal year ends.
(A) December 31; or
(B) The date, if different, upon which the member credit union's fiscal year ends.
(2) The corporation shall determine, as to each member credit union, which of the dates specified in subdivision (c)(1) shall be used to calculate the member credit union's administrative fee. The corporation shall additionally determine the date the annual administrative fee is due and payable.
Acts 1974, ch. 577, § 9; 1976, ch. 705, § 1; 1978, ch. 553, §§ 2, 4; T.C.A., § 45-1843; Acts 1981, ch. 89, § 3; 1982, ch. 603, §§ 3, 4; 1984, ch. 715, §§ 5-7; 1985, ch. 18, § 2.
Tenn. Code Ann. § 45-2-1314 — TN Code / Title 45 / Chapter 2 / Section 45-2-1314
Share exchanges
Status: in_force

(a) A corporation may acquire all of the outstanding shares of one (1) or more classes or series of a bank, and a bank may acquire all of the outstanding shares of one (1) or more classes or a series of another bank or corporation, if the board of directors of each corporation or bank adopts and its shareholders, if required by § 48-21-104 , approve the exchange. The share exchange shall be subject to and in accordance with the Tennessee Business Corporation Act, compiled in title 48, chapter 21, except as chapter 21 of the Tennessee Business Corporation Act is inconsistent with this title. (b) Any share exchange involving a bank or a bank holding company shall be subject to any regulatory approval required by applicable law. Acts 1994, ch. 551, § 16.
(a) A corporation may acquire all of the outstanding shares of one (1) or more classes or series of a bank, and a bank may acquire all of the outstanding shares of one (1) or more classes or a series of another bank or corporation, if the board of directors of each corporation or bank adopts and its shareholders, if required by § 48-21-104 , approve the exchange. The share exchange shall be subject to and in accordance with the Tennessee Business Corporation Act, compiled in title 48, chapter 21, except as chapter 21 of the Tennessee Business Corporation Act is inconsistent with this title.
(b) Any share exchange involving a bank or a bank holding company shall be subject to any regulatory approval required by applicable law.
Acts 1994, ch. 551, § 16.
Tenn. Code Ann. § 45-2-1709 — TN Code / Title 45 / Chapter 2 / Section 45-2-1709
Unlawful use of banking terms
Status: in_force

(a) (1) (A) It is unlawful for any person, firm or corporation, other than those defined in § 45-1-103 , to use or employ in any manner the terms bank, banks, or banking in connection with the carrying on or operation of business in this state; provided, that this section shall have no application to national banking associations or existing persons whose name contains these terms. The commissioner of financial institutions may permit, upon application or by rule, the subsidiary of a bank or bank holding company to employ the terms bank, banks, or banking. (B) Notwithstanding this section, the commissioner may permit, upon application, a person, corporation, partnership or other business entity to employ the term "bank", "banks", or "banking" if the commissioner, in the commissioner's discretion, determines that the person, corporation, partnership, or business entity has not or will not mislead the public by employing the terms and the person, corporation, partnership or business does not provide financial services. Upon proper showing, the commissioner may rescind approval if the public welfare so requires. For purposes of this section, any person, corporation, partnership, or business that provides financial services shall include, but not be limited to, insurance companies and agents, money order or exchange companies, investment companies, stock brokers or dealers, mutual funds, industrial loan and thrift companies, credit unions and business and industrial development corporations (BIDCOs). (C) It is unlawful for any person, firm or corporation, other than those defined as a trust institution pursuant to § 45-1-103 , to use or employ in any manner the term "trust" in connection with the carrying on or operation of business in this state. This section shall have no application to existing persons as of July 1, 1999, whose name contains the term "trust." Notwithstanding this subdivision (a)(1)(C), the commissioner may permit the use of the term "trust" upon application if the commissioner, in the commissioner's discretion, determines that the person, corporation, partnership, or business entity will not mislead the public by employing the term, and the person, corporation, partnership, or business entity does not engage in trust activity. Upon proper showing, the commissioner may rescind approval if the commissioner determines that the public welfare so requires it. (D) It is unlawful for a person to use the trade name or trademark, or a confusingly similar trade name or trademark, of any bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary in a solicitation for the offering of services or products if such use is likely to cause confusion, mistake or deception as to the source of origin, affiliation or sponsorship of such products or services; or, to use the trade name or trademark, or confusingly similar trade name or trademark, to that of any bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary in any manner in a solicitation for the offering of services or products unless the solicitation clearly and conspicuously states the following in bold-face type on the front page of the solicitation: (i) The name, address and telephone number of the person making the solicitation; (ii) A statement that the person making the solicitation is not affiliated with the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary; and (iii) A statement that the solicitation is not authorized or sponsored by the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary. (E) It is unlawful for a person, other than the lender or a person authorized by the lender, to use a loan number, loan amount, or other specific loan information that is not publicly available in a solicitation for the purchase of services or products, unless the solicitation clearly and conspicuously states the following in bold-face type on the front page of the solicitation: (i) The name, address, and telephone number of the person making the solicitation; (ii) A statement that the person making the solicitation is not affiliated with the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary; (iii) A statement that the solicitation is not authorized or sponsored by the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary; and (iv) A statement that the loan information used was not provided by the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary. (2) A violation of subdivision (a)(1) is a Class C misdemeanor. (b) The commissioner or attorney general and reporter in the name of the state is given the power and right by bill of complaint in any court of competent jurisdiction of the parties, to seek injunctive relief to compel compliance by any offending parties with this section. Amended by 2024 Tenn. Acts, ch. 556,s 5, eff. 7/1/2024. Acts 1969, ch. 36, § 1 (3.609); 1973, ch. 294, § 6; T.C.A., § 45-1109; Acts 1989, ch. 591, § 113; 1990, ch. 759, § 1; 1993, ch. 397, § 1; 1999, ch. 112, § 17; 2003 , ch. 31, § 4; 2011 , ch. 89, §§ 2, 3.
(a) (1) (A) It is unlawful for any person, firm or corporation, other than those defined in § 45-1-103 , to use or employ in any manner the terms bank, banks, or banking in connection with the carrying on or operation of business in this state; provided, that this section shall have no application to national banking associations or existing persons whose name contains these terms. The commissioner of financial institutions may permit, upon application or by rule, the subsidiary of a bank or bank holding company to employ the terms bank, banks, or banking. (B) Notwithstanding this section, the commissioner may permit, upon application, a person, corporation, partnership or other business entity to employ the term "bank", "banks", or "banking" if the commissioner, in the commissioner's discretion, determines that the person, corporation, partnership, or business entity has not or will not mislead the public by employing the terms and the person, corporation, partnership or business does not provide financial services. Upon proper showing, the commissioner may rescind approval if the public welfare so requires. For purposes of this section, any person, corporation, partnership, or business that provides financial services shall include, but not be limited to, insurance companies and agents, money order or exchange companies, investment companies, stock brokers or dealers, mutual funds, industrial loan and thrift companies, credit unions and business and industrial development corporations (BIDCOs). (C) It is unlawful for any person, firm or corporation, other than those defined as a trust institution pursuant to § 45-1-103 , to use or employ in any manner the term "trust" in connection with the carrying on or operation of business in this state. This section shall have no application to existing persons as of July 1, 1999, whose name contains the term "trust." Notwithstanding this subdivision (a)(1)(C), the commissioner may permit the use of the term "trust" upon application if the commissioner, in the commissioner's discretion, determines that the person, corporation, partnership, or business entity will not mislead the public by employing the term, and the person, corporation, partnership, or business entity does not engage in trust activity. Upon proper showing, the commissioner may rescind approval if the commissioner determines that the public welfare so requires it. (D) It is unlawful for a person to use the trade name or trademark, or a confusingly similar trade name or trademark, of any bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary in a solicitation for the offering of services or products if such use is likely to cause confusion, mistake or deception as to the source of origin, affiliation or sponsorship of such products or services; or, to use the trade name or trademark, or confusingly similar trade name or trademark, to that of any bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary in any manner in a solicitation for the offering of services or products unless the solicitation clearly and conspicuously states the following in bold-face type on the front page of the solicitation: (i) The name, address and telephone number of the person making the solicitation; (ii) A statement that the person making the solicitation is not affiliated with the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary; and (iii) A statement that the solicitation is not authorized or sponsored by the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary. (E) It is unlawful for a person, other than the lender or a person authorized by the lender, to use a loan number, loan amount, or other specific loan information that is not publicly available in a solicitation for the purchase of services or products, unless the solicitation clearly and conspicuously states the following in bold-face type on the front page of the solicitation: (i) The name, address, and telephone number of the person making the solicitation; (ii) A statement that the person making the solicitation is not affiliated with the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary; (iii) A statement that the solicitation is not authorized or sponsored by the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary; and (iv) A statement that the loan information used was not provided by the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary. (2) A violation of subdivision (a)(1) is a Class C misdemeanor.
(1) (A) It is unlawful for any person, firm or corporation, other than those defined in § 45-1-103 , to use or employ in any manner the terms bank, banks, or banking in connection with the carrying on or operation of business in this state; provided, that this section shall have no application to national banking associations or existing persons whose name contains these terms. The commissioner of financial institutions may permit, upon application or by rule, the subsidiary of a bank or bank holding company to employ the terms bank, banks, or banking. (B) Notwithstanding this section, the commissioner may permit, upon application, a person, corporation, partnership or other business entity to employ the term "bank", "banks", or "banking" if the commissioner, in the commissioner's discretion, determines that the person, corporation, partnership, or business entity has not or will not mislead the public by employing the terms and the person, corporation, partnership or business does not provide financial services. Upon proper showing, the commissioner may rescind approval if the public welfare so requires. For purposes of this section, any person, corporation, partnership, or business that provides financial services shall include, but not be limited to, insurance companies and agents, money order or exchange companies, investment companies, stock brokers or dealers, mutual funds, industrial loan and thrift companies, credit unions and business and industrial development corporations (BIDCOs). (C) It is unlawful for any person, firm or corporation, other than those defined as a trust institution pursuant to § 45-1-103 , to use or employ in any manner the term "trust" in connection with the carrying on or operation of business in this state. This section shall have no application to existing persons as of July 1, 1999, whose name contains the term "trust." Notwithstanding this subdivision (a)(1)(C), the commissioner may permit the use of the term "trust" upon application if the commissioner, in the commissioner's discretion, determines that the person, corporation, partnership, or business entity will not mislead the public by employing the term, and the person, corporation, partnership, or business entity does not engage in trust activity. Upon proper showing, the commissioner may rescind approval if the commissioner determines that the public welfare so requires it. (D) It is unlawful for a person to use the trade name or trademark, or a confusingly similar trade name or trademark, of any bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary in a solicitation for the offering of services or products if such use is likely to cause confusion, mistake or deception as to the source of origin, affiliation or sponsorship of such products or services; or, to use the trade name or trademark, or confusingly similar trade name or trademark, to that of any bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary in any manner in a solicitation for the offering of services or products unless the solicitation clearly and conspicuously states the following in bold-face type on the front page of the solicitation: (i) The name, address and telephone number of the person making the solicitation; (ii) A statement that the person making the solicitation is not affiliated with the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary; and (iii) A statement that the solicitation is not authorized or sponsored by the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary. (E) It is unlawful for a person, other than the lender or a person authorized by the lender, to use a loan number, loan amount, or other specific loan information that is not publicly available in a solicitation for the purchase of services or products, unless the solicitation clearly and conspicuously states the following in bold-face type on the front page of the solicitation: (i) The name, address, and telephone number of the person making the solicitation; (ii) A statement that the person making the solicitation is not affiliated with the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary; (iii) A statement that the solicitation is not authorized or sponsored by the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary; and (iv) A statement that the loan information used was not provided by the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary.
(A) It is unlawful for any person, firm or corporation, other than those defined in § 45-1-103 , to use or employ in any manner the terms bank, banks, or banking in connection with the carrying on or operation of business in this state; provided, that this section shall have no application to national banking associations or existing persons whose name contains these terms. The commissioner of financial institutions may permit, upon application or by rule, the subsidiary of a bank or bank holding company to employ the terms bank, banks, or banking.
(B) Notwithstanding this section, the commissioner may permit, upon application, a person, corporation, partnership or other business entity to employ the term "bank", "banks", or "banking" if the commissioner, in the commissioner's discretion, determines that the person, corporation, partnership, or business entity has not or will not mislead the public by employing the terms and the person, corporation, partnership or business does not provide financial services. Upon proper showing, the commissioner may rescind approval if the public welfare so requires. For purposes of this section, any person, corporation, partnership, or business that provides financial services shall include, but not be limited to, insurance companies and agents, money order or exchange companies, investment companies, stock brokers or dealers, mutual funds, industrial loan and thrift companies, credit unions and business and industrial development corporations (BIDCOs).
(C) It is unlawful for any person, firm or corporation, other than those defined as a trust institution pursuant to § 45-1-103 , to use or employ in any manner the term "trust" in connection with the carrying on or operation of business in this state. This section shall have no application to existing persons as of July 1, 1999, whose name contains the term "trust." Notwithstanding this subdivision (a)(1)(C), the commissioner may permit the use of the term "trust" upon application if the commissioner, in the commissioner's discretion, determines that the person, corporation, partnership, or business entity will not mislead the public by employing the term, and the person, corporation, partnership, or business entity does not engage in trust activity. Upon proper showing, the commissioner may rescind approval if the commissioner determines that the public welfare so requires it.
(D) It is unlawful for a person to use the trade name or trademark, or a confusingly similar trade name or trademark, of any bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary in a solicitation for the offering of services or products if such use is likely to cause confusion, mistake or deception as to the source of origin, affiliation or sponsorship of such products or services; or, to use the trade name or trademark, or confusingly similar trade name or trademark, to that of any bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary in any manner in a solicitation for the offering of services or products unless the solicitation clearly and conspicuously states the following in bold-face type on the front page of the solicitation: (i) The name, address and telephone number of the person making the solicitation; (ii) A statement that the person making the solicitation is not affiliated with the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary; and (iii) A statement that the solicitation is not authorized or sponsored by the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary.
(i) The name, address and telephone number of the person making the solicitation;
(ii) A statement that the person making the solicitation is not affiliated with the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary; and
(iii) A statement that the solicitation is not authorized or sponsored by the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary.
(E) It is unlawful for a person, other than the lender or a person authorized by the lender, to use a loan number, loan amount, or other specific loan information that is not publicly available in a solicitation for the purchase of services or products, unless the solicitation clearly and conspicuously states the following in bold-face type on the front page of the solicitation: (i) The name, address, and telephone number of the person making the solicitation; (ii) A statement that the person making the solicitation is not affiliated with the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary; (iii) A statement that the solicitation is not authorized or sponsored by the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary; and (iv) A statement that the loan information used was not provided by the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary.
(i) The name, address, and telephone number of the person making the solicitation;
(ii) A statement that the person making the solicitation is not affiliated with the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary;
(iii) A statement that the solicitation is not authorized or sponsored by the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary; and
(iv) A statement that the loan information used was not provided by the bank, savings and loan association, savings bank or subsidiary or affiliate of any bank, saving and loan association, saving bank or subsidiary.
(2) A violation of subdivision (a)(1) is a Class C misdemeanor.
(b) The commissioner or attorney general and reporter in the name of the state is given the power and right by bill of complaint in any court of competent jurisdiction of the parties, to seek injunctive relief to compel compliance by any offending parties with this section.
Amended by 2024 Tenn. Acts, ch. 556,s 5, eff. 7/1/2024.
Acts 1969, ch. 36, § 1 (3.609); 1973, ch. 294, § 6; T.C.A., § 45-1109; Acts 1989, ch. 591, § 113; 1990, ch. 759, § 1; 1993, ch. 397, § 1; 1999, ch. 112, § 17; 2003 , ch. 31, § 4; 2011 , ch. 89, §§ 2, 3.
Tenn. Code Ann. § 45-6-216 — TN Code / Title 45 / Chapter 6 / Section 45-6-216
Information concerning suppliers
Status: in_force

Upon request from any law enforcement agency, whether city, county, or state, a pawnbroker shall furnish the names of all suppliers from whom the pawnbroker has purchased merchandise for resale. This information is not to be recorded nor sent to any law enforcement agency but shall be maintained at the pawnshop for a period of at least one (1) year from the date of purchase. Acts 1988, ch. 724, § 16.
Upon request from any law enforcement agency, whether city, county, or state, a pawnbroker shall furnish the names of all suppliers from whom the pawnbroker has purchased merchandise for resale. This information is not to be recorded nor sent to any law enforcement agency but shall be maintained at the pawnshop for a period of at least one (1) year from the date of purchase.
Acts 1988, ch. 724, § 16.
Tenn. Code Ann. § 45-10-103 — TN Code / Title 45 / Chapter 10 / Section 45-10-103
Permissible acts
Status: in_force

The following acts are expressly permitted by, but are not otherwise subject to, this chapter: (1) The preparation, examination, handling or maintenance of any financial records: (A) By any attorney, officer, employee or agent of a financial institution having custody of the records; or (B) By a certified public accountant engaged by the financial institution to perform an independent audit; (2) The examination of any financial records by, or the furnishing of financial records by a financial institution to, any officer, employee or agent of a supervisory agency for use solely in the exercise of the person's duties as an officer, employee or agent of the agency; (3) The publication of data furnished from financial records relating to customers where the data cannot be identified to any particular customer or account; (4) The making of reports or returns required under the tax laws and/or regulations of this state or the United States; (5) The furnishing of information permitted to be disclosed under article 3 of the Uniform Commercial Code, compiled in title 47, chapter 3, concerning the dishonor of any negotiable instrument; (6) The exchange in the regular course of business of credit information between a financial institution and other financial institutions or commercial enterprises, directly or through a credit reporting agency; (7) The furnishing of information or records deemed by a financial institution to be necessary or incidental to the performance of the duties of a federal, state or local official or agency; (8) The furnishing of information or records to a state or local official or agency in response to a subpoena lawfully issued by the official or agency. A financial institution may presume that a subpoena that appears valid on its face has been lawfully issued, if the subpoena shows on its face that it is in compliance with: (A) The notice requirements of § 45-10-106 ; (B) The delay provisions of § 45-10-117 ; or (C) An administrative subpoena issued by the department of human services pursuant to § 45-10-119 ; (9) The furnishing of information or records as a part of a financial institution's answer, or other pleading, in any action wherein the financial institution is a party, including being a garnishee; (10) The furnishing of information or records to any federal officer or agency as long as furnishing the information is not prohibited by the federal Right to Financial Privacy Act of 1978; (11) The furnishing of information or records in response to any allegation made by a customer; (12) The furnishing of information or records where deemed necessary to comply with or to preserve rights under: (A) Any statute, ordinance, or regulation; or (B) Any contract to which the customer, or any person serving as surety, guarantor, or the like, is a party; (13) The furnishing of a copy of any negotiable, nonnegotiable or nontransferable instrument to any person named therein as a remitter, party, obligor, or obligee; (14) (A) The furnishing of records concerning a loan or other obligation, and the obligor or obligors thereon, held by a financial institution to a purchaser or prospective purchaser of the obligation or a participation or interest therein; provided, that: (i) The purchaser, if a financial institution, shall hold the records subject to this chapter, to the same extent as if the obligor or obligors were customers of the purchaser; or (ii) The purchaser, if not a financial institution, shall undertake not to disclose the records to any person, except: (a) To or with the consent of the obligors or the obligor's agent; (b) Pursuant to legal process served on the purchaser; or (c) As would be permitted under this section if the purchaser were a financial institution; (B) This subdivision (14) shall not be construed to impose or create a duty of disclosure on the part of a financial institution to a purchaser; (15) (A) The furnishing by a financial institution of information or records to an affiliate of the financial institution; (B) As used in this subdivision (15), "affiliate of a financial institution" is: (i) A corporation, eighty percent (80%) of any class of voting stock of which is owned, directly or indirectly, by the financial institution or by a corporation that, directly or indirectly, also owns eighty percent (80%) of any class of voting stock of the financial institution; or (ii) A corporation that owns, directly or indirectly, eighty percent (80%) of any class of voting stock of the financial institution; (C) The affiliate to whom the records and information are furnished shall hold the records or information subject to this chapter as if the affiliate were the financial institution furnishing the records or information; (16) The furnishing by a financial institution of information or records to the extent permitted by the Gramm-Leach-Bliley Act of 1999 (Public Law 106-102); provided, the financial institution complies with the consumer disclosure requirements and opt-out provisions of the act; and (17) The furnishing by a financial institution of access to, or copies of, records that are relevant to suspected, actual, or attempted financial exploitation, as defined in § 45-2-1202 , to the Tennessee bureau of investigation, if a report is made pursuant to § 45-2-1204 . The records provided pursuant to this subdivision (17) must be limited to records relating to the most recent transaction or transactions that may comprise financial exploitation not to exceed thirty (30) calendar days prior to the first suspected financial exploitation transaction or thirty (30) calendar days after the last suspected financial exploitation transaction. Amended by 2024 Tenn. Acts, ch. 972,s 3, eff. 10/1/2024. Amended by 2020 Tenn. Acts, ch. 605, s 6, eff. 3/20/2020. Amended by 2019 Tenn. Acts, ch. 340, s 18, eff. 5/10/2019. Amended by 2017 Tenn. Acts, ch. 264, s 2, eff. 7/1/2017. Acts 1983, ch. 224, § 3; 1984, ch. 616, § 4; 1993, ch. 91, § 1; 1995, ch. 309, § 3; 2001, ch. 156, § 1.
The following acts are expressly permitted by, but are not otherwise subject to, this chapter:
(1) The preparation, examination, handling or maintenance of any financial records: (A) By any attorney, officer, employee or agent of a financial institution having custody of the records; or (B) By a certified public accountant engaged by the financial institution to perform an independent audit;
(A) By any attorney, officer, employee or agent of a financial institution having custody of the records; or
(B) By a certified public accountant engaged by the financial institution to perform an independent audit;
(2) The examination of any financial records by, or the furnishing of financial records by a financial institution to, any officer, employee or agent of a supervisory agency for use solely in the exercise of the person's duties as an officer, employee or agent of the agency;
(3) The publication of data furnished from financial records relating to customers where the data cannot be identified to any particular customer or account;
(4) The making of reports or returns required under the tax laws and/or regulations of this state or the United States;
(5) The furnishing of information permitted to be disclosed under article 3 of the Uniform Commercial Code, compiled in title 47, chapter 3, concerning the dishonor of any negotiable instrument;
(6) The exchange in the regular course of business of credit information between a financial institution and other financial institutions or commercial enterprises, directly or through a credit reporting agency;
(7) The furnishing of information or records deemed by a financial institution to be necessary or incidental to the performance of the duties of a federal, state or local official or agency;
(8) The furnishing of information or records to a state or local official or agency in response to a subpoena lawfully issued by the official or agency. A financial institution may presume that a subpoena that appears valid on its face has been lawfully issued, if the subpoena shows on its face that it is in compliance with: (A) The notice requirements of § 45-10-106 ; (B) The delay provisions of § 45-10-117 ; or (C) An administrative subpoena issued by the department of human services pursuant to § 45-10-119 ;
(A) The notice requirements of § 45-10-106 ;
(B) The delay provisions of § 45-10-117 ; or
(C) An administrative subpoena issued by the department of human services pursuant to § 45-10-119 ;
(9) The furnishing of information or records as a part of a financial institution's answer, or other pleading, in any action wherein the financial institution is a party, including being a garnishee;
(10) The furnishing of information or records to any federal officer or agency as long as furnishing the information is not prohibited by the federal Right to Financial Privacy Act of 1978;
(11) The furnishing of information or records in response to any allegation made by a customer;
(12) The furnishing of information or records where deemed necessary to comply with or to preserve rights under: (A) Any statute, ordinance, or regulation; or (B) Any contract to which the customer, or any person serving as surety, guarantor, or the like, is a party;
(A) Any statute, ordinance, or regulation; or
(B) Any contract to which the customer, or any person serving as surety, guarantor, or the like, is a party;
(13) The furnishing of a copy of any negotiable, nonnegotiable or nontransferable instrument to any person named therein as a remitter, party, obligor, or obligee;
(14) (A) The furnishing of records concerning a loan or other obligation, and the obligor or obligors thereon, held by a financial institution to a purchaser or prospective purchaser of the obligation or a participation or interest therein; provided, that: (i) The purchaser, if a financial institution, shall hold the records subject to this chapter, to the same extent as if the obligor or obligors were customers of the purchaser; or (ii) The purchaser, if not a financial institution, shall undertake not to disclose the records to any person, except: (a) To or with the consent of the obligors or the obligor's agent; (b) Pursuant to legal process served on the purchaser; or (c) As would be permitted under this section if the purchaser were a financial institution; (B) This subdivision (14) shall not be construed to impose or create a duty of disclosure on the part of a financial institution to a purchaser;
(A) The furnishing of records concerning a loan or other obligation, and the obligor or obligors thereon, held by a financial institution to a purchaser or prospective purchaser of the obligation or a participation or interest therein; provided, that: (i) The purchaser, if a financial institution, shall hold the records subject to this chapter, to the same extent as if the obligor or obligors were customers of the purchaser; or (ii) The purchaser, if not a financial institution, shall undertake not to disclose the records to any person, except: (a) To or with the consent of the obligors or the obligor's agent; (b) Pursuant to legal process served on the purchaser; or (c) As would be permitted under this section if the purchaser were a financial institution;
(i) The purchaser, if a financial institution, shall hold the records subject to this chapter, to the same extent as if the obligor or obligors were customers of the purchaser; or
(ii) The purchaser, if not a financial institution, shall undertake not to disclose the records to any person, except: (a) To or with the consent of the obligors or the obligor's agent; (b) Pursuant to legal process served on the purchaser; or (c) As would be permitted under this section if the purchaser were a financial institution;
(a) To or with the consent of the obligors or the obligor's agent;
(b) Pursuant to legal process served on the purchaser; or
(c) As would be permitted under this section if the purchaser were a financial institution;
(B) This subdivision (14) shall not be construed to impose or create a duty of disclosure on the part of a financial institution to a purchaser;
(15) (A) The furnishing by a financial institution of information or records to an affiliate of the financial institution; (B) As used in this subdivision (15), "affiliate of a financial institution" is: (i) A corporation, eighty percent (80%) of any class of voting stock of which is owned, directly or indirectly, by the financial institution or by a corporation that, directly or indirectly, also owns eighty percent (80%) of any class of voting stock of the financial institution; or (ii) A corporation that owns, directly or indirectly, eighty percent (80%) of any class of voting stock of the financial institution; (C) The affiliate to whom the records and information are furnished shall hold the records or information subject to this chapter as if the affiliate were the financial institution furnishing the records or information;
(A) The furnishing by a financial institution of information or records to an affiliate of the financial institution;
(B) As used in this subdivision (15), "affiliate of a financial institution" is: (i) A corporation, eighty percent (80%) of any class of voting stock of which is owned, directly or indirectly, by the financial institution or by a corporation that, directly or indirectly, also owns eighty percent (80%) of any class of voting stock of the financial institution; or (ii) A corporation that owns, directly or indirectly, eighty percent (80%) of any class of voting stock of the financial institution;
(i) A corporation, eighty percent (80%) of any class of voting stock of which is owned, directly or indirectly, by the financial institution or by a corporation that, directly or indirectly, also owns eighty percent (80%) of any class of voting stock of the financial institution; or
(ii) A corporation that owns, directly or indirectly, eighty percent (80%) of any class of voting stock of the financial institution;
(C) The affiliate to whom the records and information are furnished shall hold the records or information subject to this chapter as if the affiliate were the financial institution furnishing the records or information;
(16) The furnishing by a financial institution of information or records to the extent permitted by the Gramm-Leach-Bliley Act of 1999 (Public Law 106-102); provided, the financial institution complies with the consumer disclosure requirements and opt-out provisions of the act; and
(17) The furnishing by a financial institution of access to, or copies of, records that are relevant to suspected, actual, or attempted financial exploitation, as defined in § 45-2-1202 , to the Tennessee bureau of investigation, if a report is made pursuant to § 45-2-1204 . The records provided pursuant to this subdivision (17) must be limited to records relating to the most recent transaction or transactions that may comprise financial exploitation not to exceed thirty (30) calendar days prior to the first suspected financial exploitation transaction or thirty (30) calendar days after the last suspected financial exploitation transaction.
Amended by 2024 Tenn. Acts, ch. 972,s 3, eff. 10/1/2024.
Amended by 2020 Tenn. Acts, ch. 605, s 6, eff. 3/20/2020.
Amended by 2019 Tenn. Acts, ch. 340, s 18, eff. 5/10/2019.
Amended by 2017 Tenn. Acts, ch. 264, s 2, eff. 7/1/2017.
Acts 1983, ch. 224, § 3; 1984, ch. 616, § 4; 1993, ch. 91, § 1; 1995, ch. 309, § 3; 2001, ch. 156, § 1.
Tenn. Code Ann. § 45-2-1502 — TN Code / Title 45 / Chapter 2 / Section 45-2-1502
Commissioner in possession
Status: in_force

(a) The commissioner may take possession of a state bank if, after a hearing, the commissioner finds: (1) Its capital is impaired or it is otherwise in an unsound condition; (2) Its business is being conducted in an unlawful or unsound manner; (3) It is unable to continue normal operations; or (4) Its examination has been obstructed or impeded. (b) (1) The commissioner shall take possession by posting upon the premises a notice reciting that the commissioner is assuming possession pursuant to this section and the time, not earlier than the posting of the notice, when possession shall be deemed to commence. A copy of the notice shall be filed in a court of general or equity jurisdiction in the county in which the institution is located. The commissioner shall notify the federal reserve bank of the district of taking possession of any state bank that is a member of the federal reserve system, and shall notify the federal deposit insurance corporation of the taking possession of any insured bank. (2) When the commissioner has taken possession of a state bank, the commissioner shall be vested with the full and exclusive power of management and control, including the power to continue or to discontinue the business, to stop or to limit the payment of its obligations, to employ any necessary assistants, to execute any instrument in the name of the bank, to commence, defend and conduct in its name any action or proceeding in which it may be a party, to terminate the commissioner's possession by restoring the bank to its board of directors, to appoint a receiver to have all of the rights, powers, duties and obligations granted to the commissioner in possession for the purpose of liquidation or reorganization, and to reorganize or liquidate the bank in accordance with §§ 45-2-1503 and 45-2-1504 . As soon as practicable after taking possession, the commissioner shall make an inventory of the assets and file a copy of the inventory with the court in which the notice of possession was filed. (3) When the commissioner has taken possession, there shall be a postponement until six (6) months after the commencement of possession of the date upon which any period of limitation fixed by a statute or agreement would otherwise expire on a claim or right of action of the bank, or upon which an appeal must be taken or a pleading or other document must be filed by the bank in any pending action or proceeding. (c) (1) If, in the opinion of the commissioner, an emergency exists that will result in serious losses to the depositors, the commissioner may take possession of a state bank without a prior hearing. Any person aggrieved and directly affected by this action of the commissioner may have a review by certiorari as provided in title 27, chapter 9. (2) If the commissioner determines to liquidate the state bank, the commissioner shall give notice of the determination to the directors, stockholders, depositors and known creditors. Upon a determination to liquidate, the commissioner may, with ex parte approval of the court in which the notice of possession was filed, sell all or any part of the state bank's assets to another state or national bank or to the federal deposit insurance corporation. The commissioner may also, with ex parte approval of the court, borrow from the federal deposit insurance corporation any amount necessary to facilitate the assumption of deposit liabilities by a newly chartered or existing bank and may assign any part or all of the assets of the state bank as security for the loan. (3) If the commissioner determines to reorganize the state bank, after according a hearing to all interested parties, the commissioner shall enter an order proposing a reorganization plan. A copy of the plan shall be sent to each depositor and creditor who will not receive payment of a claim in full under the plan, together with notice that, unless within fifteen (15) days the plan is disapproved in writing by persons holding one-third (1/3) or more of the aggregate amount of the claims, the commissioner will proceed to effect the reorganization. A department, agency or political subdivision of this state holding a claim that will not be paid in full is authorized to participate as any other creditor. (d) No judgment, lien or attachment shall be executed upon any asset of the state bank while it is in the possession of the commissioner. Upon the election of the commissioner in connection with a liquidation or reorganization: (1) Any lien or attachment, other than an attorney's or mechanic's lien, obtained upon any asset of the state bank during the commissioner's possession or within four (4) months prior to commencement thereof shall be vacated except liens created by the commissioner while in possession; and (2) Any transfer of an asset of the state bank made after or in contemplation of its insolvency with intent to effect a preference shall be voided. (e) The commissioner may borrow money in the name of the state bank and may pledge its assets as security for the loan. (f) All necessary and reasonable expenses of the commissioner's possession of a state bank and of its reorganization or liquidation shall be defrayed from the assets thereof. Acts 1969, ch. 36, § 1 (3.502); 1973, ch. 294, § 6; T.C.A., § 45-902; Acts 1980, ch. 510, §§ 2-4; 1999, ch. 112, § 14.
(a) The commissioner may take possession of a state bank if, after a hearing, the commissioner finds: (1) Its capital is impaired or it is otherwise in an unsound condition; (2) Its business is being conducted in an unlawful or unsound manner; (3) It is unable to continue normal operations; or (4) Its examination has been obstructed or impeded.
(1) Its capital is impaired or it is otherwise in an unsound condition;
(2) Its business is being conducted in an unlawful or unsound manner;
(3) It is unable to continue normal operations; or
(4) Its examination has been obstructed or impeded.
(b) (1) The commissioner shall take possession by posting upon the premises a notice reciting that the commissioner is assuming possession pursuant to this section and the time, not earlier than the posting of the notice, when possession shall be deemed to commence. A copy of the notice shall be filed in a court of general or equity jurisdiction in the county in which the institution is located. The commissioner shall notify the federal reserve bank of the district of taking possession of any state bank that is a member of the federal reserve system, and shall notify the federal deposit insurance corporation of the taking possession of any insured bank. (2) When the commissioner has taken possession of a state bank, the commissioner shall be vested with the full and exclusive power of management and control, including the power to continue or to discontinue the business, to stop or to limit the payment of its obligations, to employ any necessary assistants, to execute any instrument in the name of the bank, to commence, defend and conduct in its name any action or proceeding in which it may be a party, to terminate the commissioner's possession by restoring the bank to its board of directors, to appoint a receiver to have all of the rights, powers, duties and obligations granted to the commissioner in possession for the purpose of liquidation or reorganization, and to reorganize or liquidate the bank in accordance with §§ 45-2-1503 and 45-2-1504 . As soon as practicable after taking possession, the commissioner shall make an inventory of the assets and file a copy of the inventory with the court in which the notice of possession was filed. (3) When the commissioner has taken possession, there shall be a postponement until six (6) months after the commencement of possession of the date upon which any period of limitation fixed by a statute or agreement would otherwise expire on a claim or right of action of the bank, or upon which an appeal must be taken or a pleading or other document must be filed by the bank in any pending action or proceeding.
(1) The commissioner shall take possession by posting upon the premises a notice reciting that the commissioner is assuming possession pursuant to this section and the time, not earlier than the posting of the notice, when possession shall be deemed to commence. A copy of the notice shall be filed in a court of general or equity jurisdiction in the county in which the institution is located. The commissioner shall notify the federal reserve bank of the district of taking possession of any state bank that is a member of the federal reserve system, and shall notify the federal deposit insurance corporation of the taking possession of any insured bank.
(2) When the commissioner has taken possession of a state bank, the commissioner shall be vested with the full and exclusive power of management and control, including the power to continue or to discontinue the business, to stop or to limit the payment of its obligations, to employ any necessary assistants, to execute any instrument in the name of the bank, to commence, defend and conduct in its name any action or proceeding in which it may be a party, to terminate the commissioner's possession by restoring the bank to its board of directors, to appoint a receiver to have all of the rights, powers, duties and obligations granted to the commissioner in possession for the purpose of liquidation or reorganization, and to reorganize or liquidate the bank in accordance with §§ 45-2-1503 and 45-2-1504 . As soon as practicable after taking possession, the commissioner shall make an inventory of the assets and file a copy of the inventory with the court in which the notice of possession was filed.
(3) When the commissioner has taken possession, there shall be a postponement until six (6) months after the commencement of possession of the date upon which any period of limitation fixed by a statute or agreement would otherwise expire on a claim or right of action of the bank, or upon which an appeal must be taken or a pleading or other document must be filed by the bank in any pending action or proceeding.
(c) (1) If, in the opinion of the commissioner, an emergency exists that will result in serious losses to the depositors, the commissioner may take possession of a state bank without a prior hearing. Any person aggrieved and directly affected by this action of the commissioner may have a review by certiorari as provided in title 27, chapter 9. (2) If the commissioner determines to liquidate the state bank, the commissioner shall give notice of the determination to the directors, stockholders, depositors and known creditors. Upon a determination to liquidate, the commissioner may, with ex parte approval of the court in which the notice of possession was filed, sell all or any part of the state bank's assets to another state or national bank or to the federal deposit insurance corporation. The commissioner may also, with ex parte approval of the court, borrow from the federal deposit insurance corporation any amount necessary to facilitate the assumption of deposit liabilities by a newly chartered or existing bank and may assign any part or all of the assets of the state bank as security for the loan. (3) If the commissioner determines to reorganize the state bank, after according a hearing to all interested parties, the commissioner shall enter an order proposing a reorganization plan. A copy of the plan shall be sent to each depositor and creditor who will not receive payment of a claim in full under the plan, together with notice that, unless within fifteen (15) days the plan is disapproved in writing by persons holding one-third (1/3) or more of the aggregate amount of the claims, the commissioner will proceed to effect the reorganization. A department, agency or political subdivision of this state holding a claim that will not be paid in full is authorized to participate as any other creditor.
(1) If, in the opinion of the commissioner, an emergency exists that will result in serious losses to the depositors, the commissioner may take possession of a state bank without a prior hearing. Any person aggrieved and directly affected by this action of the commissioner may have a review by certiorari as provided in title 27, chapter 9.
(2) If the commissioner determines to liquidate the state bank, the commissioner shall give notice of the determination to the directors, stockholders, depositors and known creditors. Upon a determination to liquidate, the commissioner may, with ex parte approval of the court in which the notice of possession was filed, sell all or any part of the state bank's assets to another state or national bank or to the federal deposit insurance corporation. The commissioner may also, with ex parte approval of the court, borrow from the federal deposit insurance corporation any amount necessary to facilitate the assumption of deposit liabilities by a newly chartered or existing bank and may assign any part or all of the assets of the state bank as security for the loan.
(3) If the commissioner determines to reorganize the state bank, after according a hearing to all interested parties, the commissioner shall enter an order proposing a reorganization plan. A copy of the plan shall be sent to each depositor and creditor who will not receive payment of a claim in full under the plan, together with notice that, unless within fifteen (15) days the plan is disapproved in writing by persons holding one-third (1/3) or more of the aggregate amount of the claims, the commissioner will proceed to effect the reorganization. A department, agency or political subdivision of this state holding a claim that will not be paid in full is authorized to participate as any other creditor.
(d) No judgment, lien or attachment shall be executed upon any asset of the state bank while it is in the possession of the commissioner. Upon the election of the commissioner in connection with a liquidation or reorganization: (1) Any lien or attachment, other than an attorney's or mechanic's lien, obtained upon any asset of the state bank during the commissioner's possession or within four (4) months prior to commencement thereof shall be vacated except liens created by the commissioner while in possession; and (2) Any transfer of an asset of the state bank made after or in contemplation of its insolvency with intent to effect a preference shall be voided.
(1) Any lien or attachment, other than an attorney's or mechanic's lien, obtained upon any asset of the state bank during the commissioner's possession or within four (4) months prior to commencement thereof shall be vacated except liens created by the commissioner while in possession; and
(2) Any transfer of an asset of the state bank made after or in contemplation of its insolvency with intent to effect a preference shall be voided.
(e) The commissioner may borrow money in the name of the state bank and may pledge its assets as security for the loan.
(f) All necessary and reasonable expenses of the commissioner's possession of a state bank and of its reorganization or liquidation shall be defrayed from the assets thereof.
Acts 1969, ch. 36, § 1 (3.502); 1973, ch. 294, § 6; T.C.A., § 45-902; Acts 1980, ch. 510, §§ 2-4; 1999, ch. 112, § 14.
Tenn. Code Ann. § 45-11-107 — TN Code / Title 45 / Chapter 11 / Section 45-11-107
Effective date of conversion - Certificate of conversion
Status: in_force

(a) The conversion shall, unless a later date is specified in the plan of conversion, become effective upon the filing with the commissioner of the executed plan of conversion, together with a copy of the resolution of the stockholders or members of the converting financial institution approving it, certified by the financial institution's president or a vice president and a cashier. (b) The commissioner shall thereupon approve the proposed charter of the resulting financial institution for filing with the secretary of state and issue to the resulting financial institution a certificate of conversion. (c) (1) The certificate of conversion shall be issued after the following conditions have been met: (A) Provisions of the plan of conversion for successors to fiduciary positions held by the converting institution have been implemented; and (B) A commitment for federal deposit insurance effective as of the proposed effective date of conversion has been received. (2) The certificate shall be conclusive evidence of the conversion and correctness of all proceedings therefor in all courts and places, and shall be recorded in the same manner as is provided for recording of a charter of the institution. Acts 1985, ch. 174, §2; 2008 , ch. 968, § 6.
(a) The conversion shall, unless a later date is specified in the plan of conversion, become effective upon the filing with the commissioner of the executed plan of conversion, together with a copy of the resolution of the stockholders or members of the converting financial institution approving it, certified by the financial institution's president or a vice president and a cashier.
(b) The commissioner shall thereupon approve the proposed charter of the resulting financial institution for filing with the secretary of state and issue to the resulting financial institution a certificate of conversion.
(c) (1) The certificate of conversion shall be issued after the following conditions have been met: (A) Provisions of the plan of conversion for successors to fiduciary positions held by the converting institution have been implemented; and (B) A commitment for federal deposit insurance effective as of the proposed effective date of conversion has been received. (2) The certificate shall be conclusive evidence of the conversion and correctness of all proceedings therefor in all courts and places, and shall be recorded in the same manner as is provided for recording of a charter of the institution.
(1) The certificate of conversion shall be issued after the following conditions have been met: (A) Provisions of the plan of conversion for successors to fiduciary positions held by the converting institution have been implemented; and (B) A commitment for federal deposit insurance effective as of the proposed effective date of conversion has been received.
(A) Provisions of the plan of conversion for successors to fiduciary positions held by the converting institution have been implemented; and
(B) A commitment for federal deposit insurance effective as of the proposed effective date of conversion has been received.
(2) The certificate shall be conclusive evidence of the conversion and correctness of all proceedings therefor in all courts and places, and shall be recorded in the same manner as is provided for recording of a charter of the institution.
Acts 1985, ch. 174, §2; 2008 , ch. 968, § 6.
Tenn. Code Ann. § 45-1-113 — TN Code / Title 45 / Chapter 1 / Section 45-1-113
Office facilities
Status: in_force

The governor shall assign to the commissioner a suitable room or rooms for conducting the business of the department, and this department shall be furnished with the necessary furniture, stationery, lights, and other proper conveniences and clerical assistants in the same manner as is furnished to other state departments. Acts 1969, ch. 36, § 1 (2.108); 1973, ch. 294, § 6; T.C.A., § 45-113.
The governor shall assign to the commissioner a suitable room or rooms for conducting the business of the department, and this department shall be furnished with the necessary furniture, stationery, lights, and other proper conveniences and clerical assistants in the same manner as is furnished to other state departments.
Acts 1969, ch. 36, § 1 (2.108); 1973, ch. 294, § 6; T.C.A., § 45-113.
Tenn. Code Ann. § 45-13-103 — TN Code / Title 45 / Chapter 13 / Section 45-13-103
Administrative authority
Status: in_force

The commissioner is granted broad administrative authority to administer, interpret and enforce this chapter and to promulgate reasonable substantive and procedural rules and regulations to carry out the purposes of this chapter. Acts 2009, ch. 499, § 8.
The commissioner is granted broad administrative authority to administer, interpret and enforce this chapter and to promulgate reasonable substantive and procedural rules and regulations to carry out the purposes of this chapter.
Acts 2009, ch. 499, § 8.
Tenn. Code Ann. § 45-4-611 — TN Code / Title 45 / Chapter 4 / Section 45-4-611
Purchase of participation interest by state-chartered credit unions
Status: in_force

Notwithstanding another law to the contrary, a credit union with a state charter may purchase a participation interest in a loan from a bank, another credit union, or another eligible organization as provided in 12 CFR 701.22 , without requiring membership of the borrower of the loan. Added by 2024 Tenn. Acts, ch. 803,s 1, eff. 7/1/2024.
Notwithstanding another law to the contrary, a credit union with a state charter may purchase a participation interest in a loan from a bank, another credit union, or another eligible organization as provided in 12 CFR 701.22 , without requiring membership of the borrower of the loan.
Added by 2024 Tenn. Acts, ch. 803,s 1, eff. 7/1/2024.
Tenn. Code Ann. § 45-2-1008 — TN Code / Title 45 / Chapter 2 / Section 45-2-1008
Transfer of fiduciary accounts - Substitute fiduciaries
Status: in_force

(a) Absent written objection from the commissioner, a bank, trust company or trust department, referred to in this section as the "transferor," may transfer one (1) or more fiduciary accounts administered by the bank, trust company or trust department to another bank, trust company or trust department, referred to in this section as the "transferee"; provided that the transferee bank has trust powers. (b) Approval of the commissioner shall be deemed granted in the absence of written objection from the commissioner within ten (10) business days after receipt by the commissioner of written notice from the transferor bank of the proposed transfer. (c) (1) Within thirty (30) days after the date of the transfer of the fiduciary accounts, the transferor shall send written notice by first class mail to the last known address (as then set forth on the records of transferor, or if not set forth, as may be determined by the transferor in the exercise of reasonable diligence) of the following persons or entities: (A) For employee benefit plans, to the plan sponsors; (B) For individual retirement accounts and retirement accounts for the self-employed, to the account owners; (C) For agency and escrow accounts, to the principals; (D) For securities for which a transferor bank serves as trustee, registrar, transfer agent or paying agent, to the issuers; (E) For revocable trusts under agreement, to the settlors; (F) For irrevocable trusts under agreement, to any co-fiduciary, to the settlor, to each current income beneficiary who is an adult, and if a current income beneficiary is a minor, to a parent of the minor with whom the minor resides or to the conservator or guardian of the minor. For purposes of this subsection (c), "current income beneficiary" means a person currently entitled to income from a trust or a person to whom the trustee, in the trustee's discretion, may currently pay principal or income; (G) For testamentary trusts, to the persons notified under subdivision (c)(1)(F); (H) For conservatorships, to any co-fiduciary, to the protected person for whom the conservatorship was created, or if the conservatorship was created for a minor, to a parent of the minor with whom the minor resides or to the guardian of the minor; (I) For guardianships, to any co-fiduciary, to the minor or legally incapacitated person for whom the guardian was appointed if the ward is at least fourteen (14) years of age; (J) For probate estates, to any co-fiduciary, to the surviving spouse, if any, and to those persons notified pursuant to subdivision (c)(1)(G); and (K) For corporate trust indentures to the issuer of the securities subject to each indenture; provided, that notwithstanding the foregoing, the transferor may, if it deems it appropriate, comply with any notice procedures contained in the trust indenture instrument with respect to succession of trustees. (2) For purposes of this section, notice shall be deemed effective when mailed by the transferor. Should the transferor learn after the expiration of thirty (30) days from the transfer that through inadvertence, error, neglect or otherwise, notice was not mailed as herein provided, delayed notice may be given in the manner set forth herein. The recipient of the notice shall then have thirty (30) days to object to the transfer as provided in subsection (d). (d) (1) Any person given notice pursuant to subsection (c) may file a written objection to the fiduciary transfer with the commissioner, stating grounds for objection, within thirty (30) days of receipt of notice of the transfer by the person notified pursuant to subsection (c). The transferor shall then have thirty (30) days to either: (A) Abandon the transfer of fiduciary accounts to which objection was given and hold the transfer for nought; or (B) Submit a written response to the commissioner addressing the objections to the transfer. The commissioner shall either approve or deny the transfer. (2) Nothing shall preclude the transferor from appointing a related bank, trust company or trust department as its agent for the performance of any and all fiduciary obligations as provided in subsection (h). (e) (1) Within a reasonable time after the date of a transfer of the fiduciary accounts in accordance with the procedures set forth in subsections (c) and (d), the transferor shall file an affidavit in the office of the chancery court of the county in which the main office of the transferor is located; and from time to time, the transferor may file a copy of the affidavit in the office of the chancery court in other counties that the transferor deems appropriate. The affidavit shall set forth the names and addresses of the transferor and transferee, identification of the fiduciary accounts transferred that the transferor deems appropriate, and other information that the transferor deems desirable. (2) In the event that notice of objection to the transfer is received by the transferor after the filing of record of the original affidavit with respect to the transfer, and in the event that pursuant to subsection (d), the transfer is abandoned, the transferor shall promptly file notice of the abandonment in the office of the appropriate chancery court. (f) If a bank, trust company or trust department completes a fiduciary transfer, the bank, trust company or trust department to which the fiduciary accounts have been transferred shall be automatically substituted as the fiduciary of all the accounts so transferred without further action and without any order or decree by any court or public officer; and without the transfer being treated or considered as a resignation by the transferor as a fiduciary; and the transferee bank, trust company or trust department shall have all the rights, duties, responsibilities, obligations and liabilities, financial or otherwise, of the transferor bank with respect to the accounts. A bank, trust company or trust department that completes a fiduciary transfer shall be relieved as fiduciary without an accounting and without any order or decree of any court or public officer, and prospectively shall have no continuing duties, responsibilities, obligations or liabilities, financial or otherwise, with respect to the accounts transferred. The transfer shall not, however, relieve the transferor bank of liability on the transferee for action or inaction prior to the transfer, nor shall it impose liability on the transferee for action or inaction of the transferor prior to the transfer. The transfer shall not constitute a relinquishment of trust powers by the transferor bank. (g) (1) A transferor bank, trust company or trust department is related to a transferee bank, trust company or trust department if: (A) The transferee controls the transferor; (B) The transferor controls the transferee; (C) The same entity controls, directly or indirectly, the transferor and the transferee; (D) A majority of the directors of the transferor are directors of the transferee; or (E) A majority of the directors of the transferee are directors of the transferor. (2) "Control" and "controls," as used in subdivision (g)(1), means the ownership of a majority of the voting shares of another bank, trust company or of the bank operating the trust department. (h) (1) Regardless of objection to any fiduciary transfer as provided in subsection (d) and the outcome of the objection, and notwithstanding any procedure under this chapter, any bank may appoint a related bank, trust company or trust department as its agent for the performance of any or all acts, obligations and responsibilities of the bank with respect to any fiduciary account. A bank, trust company or trust department may also delegate, to an unrelated party pursuant to a written agreement, any investment, management or administrative function if the bank, trust company or trust department exercises reasonable care, judgment and caution in: (A) Selecting the agent, taking into consideration the agent's financial standing and reputation; (B) Establishing the scope and other terms of any delegation; and (C) Reviewing periodically the agent's actions in order to monitor overall performance and compliance with the scope and other terms of the delegation. (2) In the event of a delegation pursuant to subdivision (h)(1), the appointing bank shall remain fully responsible and liable with respect to all actions of the related bank, trust company, trust department or unrelated party as if performed by the appointing bank itself. The agency relationship shall not: (A) Be deemed an impermissible delegation of responsibility or duty by the appointing bank; (B) Constitute a resignation or disqualification of the appointing bank as fiduciary or relinquishment of trust powers by the appointing bank; or (C) Require the consent of any person, entity, court or other governmental authority. Acts 1984, ch. 691, §§ 2-5; 1987, ch. 300, §§ 2, 3; 1995, ch. 768, § 22; 1999, ch. 112, § 8; 2010, ch. 725, § 23.
(a) Absent written objection from the commissioner, a bank, trust company or trust department, referred to in this section as the "transferor," may transfer one (1) or more fiduciary accounts administered by the bank, trust company or trust department to another bank, trust company or trust department, referred to in this section as the "transferee"; provided that the transferee bank has trust powers.
(b) Approval of the commissioner shall be deemed granted in the absence of written objection from the commissioner within ten (10) business days after receipt by the commissioner of written notice from the transferor bank of the proposed transfer.
(c) (1) Within thirty (30) days after the date of the transfer of the fiduciary accounts, the transferor shall send written notice by first class mail to the last known address (as then set forth on the records of transferor, or if not set forth, as may be determined by the transferor in the exercise of reasonable diligence) of the following persons or entities: (A) For employee benefit plans, to the plan sponsors; (B) For individual retirement accounts and retirement accounts for the self-employed, to the account owners; (C) For agency and escrow accounts, to the principals; (D) For securities for which a transferor bank serves as trustee, registrar, transfer agent or paying agent, to the issuers; (E) For revocable trusts under agreement, to the settlors; (F) For irrevocable trusts under agreement, to any co-fiduciary, to the settlor, to each current income beneficiary who is an adult, and if a current income beneficiary is a minor, to a parent of the minor with whom the minor resides or to the conservator or guardian of the minor. For purposes of this subsection (c), "current income beneficiary" means a person currently entitled to income from a trust or a person to whom the trustee, in the trustee's discretion, may currently pay principal or income; (G) For testamentary trusts, to the persons notified under subdivision (c)(1)(F); (H) For conservatorships, to any co-fiduciary, to the protected person for whom the conservatorship was created, or if the conservatorship was created for a minor, to a parent of the minor with whom the minor resides or to the guardian of the minor; (I) For guardianships, to any co-fiduciary, to the minor or legally incapacitated person for whom the guardian was appointed if the ward is at least fourteen (14) years of age; (J) For probate estates, to any co-fiduciary, to the surviving spouse, if any, and to those persons notified pursuant to subdivision (c)(1)(G); and (K) For corporate trust indentures to the issuer of the securities subject to each indenture; provided, that notwithstanding the foregoing, the transferor may, if it deems it appropriate, comply with any notice procedures contained in the trust indenture instrument with respect to succession of trustees. (2) For purposes of this section, notice shall be deemed effective when mailed by the transferor. Should the transferor learn after the expiration of thirty (30) days from the transfer that through inadvertence, error, neglect or otherwise, notice was not mailed as herein provided, delayed notice may be given in the manner set forth herein. The recipient of the notice shall then have thirty (30) days to object to the transfer as provided in subsection (d).
(1) Within thirty (30) days after the date of the transfer of the fiduciary accounts, the transferor shall send written notice by first class mail to the last known address (as then set forth on the records of transferor, or if not set forth, as may be determined by the transferor in the exercise of reasonable diligence) of the following persons or entities: (A) For employee benefit plans, to the plan sponsors; (B) For individual retirement accounts and retirement accounts for the self-employed, to the account owners; (C) For agency and escrow accounts, to the principals; (D) For securities for which a transferor bank serves as trustee, registrar, transfer agent or paying agent, to the issuers; (E) For revocable trusts under agreement, to the settlors; (F) For irrevocable trusts under agreement, to any co-fiduciary, to the settlor, to each current income beneficiary who is an adult, and if a current income beneficiary is a minor, to a parent of the minor with whom the minor resides or to the conservator or guardian of the minor. For purposes of this subsection (c), "current income beneficiary" means a person currently entitled to income from a trust or a person to whom the trustee, in the trustee's discretion, may currently pay principal or income; (G) For testamentary trusts, to the persons notified under subdivision (c)(1)(F); (H) For conservatorships, to any co-fiduciary, to the protected person for whom the conservatorship was created, or if the conservatorship was created for a minor, to a parent of the minor with whom the minor resides or to the guardian of the minor; (I) For guardianships, to any co-fiduciary, to the minor or legally incapacitated person for whom the guardian was appointed if the ward is at least fourteen (14) years of age; (J) For probate estates, to any co-fiduciary, to the surviving spouse, if any, and to those persons notified pursuant to subdivision (c)(1)(G); and (K) For corporate trust indentures to the issuer of the securities subject to each indenture; provided, that notwithstanding the foregoing, the transferor may, if it deems it appropriate, comply with any notice procedures contained in the trust indenture instrument with respect to succession of trustees.
(A) For employee benefit plans, to the plan sponsors;
(B) For individual retirement accounts and retirement accounts for the self-employed, to the account owners;
(C) For agency and escrow accounts, to the principals;
(D) For securities for which a transferor bank serves as trustee, registrar, transfer agent or paying agent, to the issuers;
(E) For revocable trusts under agreement, to the settlors;
(F) For irrevocable trusts under agreement, to any co-fiduciary, to the settlor, to each current income beneficiary who is an adult, and if a current income beneficiary is a minor, to a parent of the minor with whom the minor resides or to the conservator or guardian of the minor. For purposes of this subsection (c), "current income beneficiary" means a person currently entitled to income from a trust or a person to whom the trustee, in the trustee's discretion, may currently pay principal or income;
(G) For testamentary trusts, to the persons notified under subdivision (c)(1)(F);
(H) For conservatorships, to any co-fiduciary, to the protected person for whom the conservatorship was created, or if the conservatorship was created for a minor, to a parent of the minor with whom the minor resides or to the guardian of the minor;
(I) For guardianships, to any co-fiduciary, to the minor or legally incapacitated person for whom the guardian was appointed if the ward is at least fourteen (14) years of age;
(J) For probate estates, to any co-fiduciary, to the surviving spouse, if any, and to those persons notified pursuant to subdivision (c)(1)(G); and
(K) For corporate trust indentures to the issuer of the securities subject to each indenture; provided, that notwithstanding the foregoing, the transferor may, if it deems it appropriate, comply with any notice procedures contained in the trust indenture instrument with respect to succession of trustees.
(2) For purposes of this section, notice shall be deemed effective when mailed by the transferor. Should the transferor learn after the expiration of thirty (30) days from the transfer that through inadvertence, error, neglect or otherwise, notice was not mailed as herein provided, delayed notice may be given in the manner set forth herein. The recipient of the notice shall then have thirty (30) days to object to the transfer as provided in subsection (d).
(d) (1) Any person given notice pursuant to subsection (c) may file a written objection to the fiduciary transfer with the commissioner, stating grounds for objection, within thirty (30) days of receipt of notice of the transfer by the person notified pursuant to subsection (c). The transferor shall then have thirty (30) days to either: (A) Abandon the transfer of fiduciary accounts to which objection was given and hold the transfer for nought; or (B) Submit a written response to the commissioner addressing the objections to the transfer. The commissioner shall either approve or deny the transfer. (2) Nothing shall preclude the transferor from appointing a related bank, trust company or trust department as its agent for the performance of any and all fiduciary obligations as provided in subsection (h).
(1) Any person given notice pursuant to subsection (c) may file a written objection to the fiduciary transfer with the commissioner, stating grounds for objection, within thirty (30) days of receipt of notice of the transfer by the person notified pursuant to subsection (c). The transferor shall then have thirty (30) days to either: (A) Abandon the transfer of fiduciary accounts to which objection was given and hold the transfer for nought; or (B) Submit a written response to the commissioner addressing the objections to the transfer. The commissioner shall either approve or deny the transfer.
(A) Abandon the transfer of fiduciary accounts to which objection was given and hold the transfer for nought; or
(B) Submit a written response to the commissioner addressing the objections to the transfer. The commissioner shall either approve or deny the transfer.
(2) Nothing shall preclude the transferor from appointing a related bank, trust company or trust department as its agent for the performance of any and all fiduciary obligations as provided in subsection (h).
(e) (1) Within a reasonable time after the date of a transfer of the fiduciary accounts in accordance with the procedures set forth in subsections (c) and (d), the transferor shall file an affidavit in the office of the chancery court of the county in which the main office of the transferor is located; and from time to time, the transferor may file a copy of the affidavit in the office of the chancery court in other counties that the transferor deems appropriate. The affidavit shall set forth the names and addresses of the transferor and transferee, identification of the fiduciary accounts transferred that the transferor deems appropriate, and other information that the transferor deems desirable. (2) In the event that notice of objection to the transfer is received by the transferor after the filing of record of the original affidavit with respect to the transfer, and in the event that pursuant to subsection (d), the transfer is abandoned, the transferor shall promptly file notice of the abandonment in the office of the appropriate chancery court.
(1) Within a reasonable time after the date of a transfer of the fiduciary accounts in accordance with the procedures set forth in subsections (c) and (d), the transferor shall file an affidavit in the office of the chancery court of the county in which the main office of the transferor is located; and from time to time, the transferor may file a copy of the affidavit in the office of the chancery court in other counties that the transferor deems appropriate. The affidavit shall set forth the names and addresses of the transferor and transferee, identification of the fiduciary accounts transferred that the transferor deems appropriate, and other information that the transferor deems desirable.
(2) In the event that notice of objection to the transfer is received by the transferor after the filing of record of the original affidavit with respect to the transfer, and in the event that pursuant to subsection (d), the transfer is abandoned, the transferor shall promptly file notice of the abandonment in the office of the appropriate chancery court.
(f) If a bank, trust company or trust department completes a fiduciary transfer, the bank, trust company or trust department to which the fiduciary accounts have been transferred shall be automatically substituted as the fiduciary of all the accounts so transferred without further action and without any order or decree by any court or public officer; and without the transfer being treated or considered as a resignation by the transferor as a fiduciary; and the transferee bank, trust company or trust department shall have all the rights, duties, responsibilities, obligations and liabilities, financial or otherwise, of the transferor bank with respect to the accounts. A bank, trust company or trust department that completes a fiduciary transfer shall be relieved as fiduciary without an accounting and without any order or decree of any court or public officer, and prospectively shall have no continuing duties, responsibilities, obligations or liabilities, financial or otherwise, with respect to the accounts transferred. The transfer shall not, however, relieve the transferor bank of liability on the transferee for action or inaction prior to the transfer, nor shall it impose liability on the transferee for action or inaction of the transferor prior to the transfer. The transfer shall not constitute a relinquishment of trust powers by the transferor bank.
(g) (1) A transferor bank, trust company or trust department is related to a transferee bank, trust company or trust department if: (A) The transferee controls the transferor; (B) The transferor controls the transferee; (C) The same entity controls, directly or indirectly, the transferor and the transferee; (D) A majority of the directors of the transferor are directors of the transferee; or (E) A majority of the directors of the transferee are directors of the transferor. (2) "Control" and "controls," as used in subdivision (g)(1), means the ownership of a majority of the voting shares of another bank, trust company or of the bank operating the trust department.
(1) A transferor bank, trust company or trust department is related to a transferee bank, trust company or trust department if: (A) The transferee controls the transferor; (B) The transferor controls the transferee; (C) The same entity controls, directly or indirectly, the transferor and the transferee; (D) A majority of the directors of the transferor are directors of the transferee; or (E) A majority of the directors of the transferee are directors of the transferor.
(A) The transferee controls the transferor;
(B) The transferor controls the transferee;
(C) The same entity controls, directly or indirectly, the transferor and the transferee;
(D) A majority of the directors of the transferor are directors of the transferee; or
(E) A majority of the directors of the transferee are directors of the transferor.
(2) "Control" and "controls," as used in subdivision (g)(1), means the ownership of a majority of the voting shares of another bank, trust company or of the bank operating the trust department.
(h) (1) Regardless of objection to any fiduciary transfer as provided in subsection (d) and the outcome of the objection, and notwithstanding any procedure under this chapter, any bank may appoint a related bank, trust company or trust department as its agent for the performance of any or all acts, obligations and responsibilities of the bank with respect to any fiduciary account. A bank, trust company or trust department may also delegate, to an unrelated party pursuant to a written agreement, any investment, management or administrative function if the bank, trust company or trust department exercises reasonable care, judgment and caution in: (A) Selecting the agent, taking into consideration the agent's financial standing and reputation; (B) Establishing the scope and other terms of any delegation; and (C) Reviewing periodically the agent's actions in order to monitor overall performance and compliance with the scope and other terms of the delegation. (2) In the event of a delegation pursuant to subdivision (h)(1), the appointing bank shall remain fully responsible and liable with respect to all actions of the related bank, trust company, trust department or unrelated party as if performed by the appointing bank itself. The agency relationship shall not: (A) Be deemed an impermissible delegation of responsibility or duty by the appointing bank; (B) Constitute a resignation or disqualification of the appointing bank as fiduciary or relinquishment of trust powers by the appointing bank; or (C) Require the consent of any person, entity, court or other governmental authority.
(1) Regardless of objection to any fiduciary transfer as provided in subsection (d) and the outcome of the objection, and notwithstanding any procedure under this chapter, any bank may appoint a related bank, trust company or trust department as its agent for the performance of any or all acts, obligations and responsibilities of the bank with respect to any fiduciary account. A bank, trust company or trust department may also delegate, to an unrelated party pursuant to a written agreement, any investment, management or administrative function if the bank, trust company or trust department exercises reasonable care, judgment and caution in: (A) Selecting the agent, taking into consideration the agent's financial standing and reputation; (B) Establishing the scope and other terms of any delegation; and (C) Reviewing periodically the agent's actions in order to monitor overall performance and compliance with the scope and other terms of the delegation.
(A) Selecting the agent, taking into consideration the agent's financial standing and reputation;
(B) Establishing the scope and other terms of any delegation; and
(C) Reviewing periodically the agent's actions in order to monitor overall performance and compliance with the scope and other terms of the delegation.
(2) In the event of a delegation pursuant to subdivision (h)(1), the appointing bank shall remain fully responsible and liable with respect to all actions of the related bank, trust company, trust department or unrelated party as if performed by the appointing bank itself. The agency relationship shall not: (A) Be deemed an impermissible delegation of responsibility or duty by the appointing bank; (B) Constitute a resignation or disqualification of the appointing bank as fiduciary or relinquishment of trust powers by the appointing bank; or (C) Require the consent of any person, entity, court or other governmental authority.
(A) Be deemed an impermissible delegation of responsibility or duty by the appointing bank;
(B) Constitute a resignation or disqualification of the appointing bank as fiduciary or relinquishment of trust powers by the appointing bank; or
(C) Require the consent of any person, entity, court or other governmental authority.
Acts 1984, ch. 691, §§ 2-5; 1987, ch. 300, §§ 2, 3; 1995, ch. 768, § 22; 1999, ch. 112, § 8; 2010, ch. 725, § 23.