Tenn. Code Ann. § 45-5-207 — TN Code / Title 45 / Chapter 5 / Section 45-5-207
License requirement - Sponsorship - Registrant subject to all applicable requirements and prohibitions of chapter 13 of this title - Violations - Submission of reports to the Nationwide Mortgage Licensing System and Registry
Status: in_force

(a) Effective July 31, 2009, no registrant shall make a residential mortgage loan unless each individual that acts as a mortgage loan originator with respect to the loan has obtained a mortgage loan originator license under chapter 13, part 3 of this title, and has been sponsored by the registrant in accordance with subsection (b), except as follows: (1) A registrant authorized to make residential mortgage loans on July 30, 2009, is authorized to continue doing so after July 30, 2009; provided, that each individual who acts as a mortgage loan originator with respect to any residential mortgage loan is registered with the commissioner in affiliation with that registrant on or before July 30, 2009. The excepted authority shall only continue for so long as the mortgage loan originator registration remains effective; (2) To register a mortgage loan originator under subdivision (a)(1), the registrant must timely submit to the commissioner a nonrefundable registration fee of one hundred dollars ($100) and a completed registration form containing any information the commissioner deems necessary, including the following: (A) The name of the registrant for whom the mortgage loan originator provides origination services; (B) The mortgage loan originator's name, birth date, social security number and address; and (C) The office location where the mortgage loan originator will engage in residential mortgage loan origination services; (3) Any mortgage loan originator timely registered with a registrant shall be considered sponsored by that registrant for purposes of subsection (b) for the term of the registration and any successive licensure; (4) The registration of a mortgage loan originator under this section shall expire without further notice or process upon either of the following occurrences: (A) If the mortgage loan originator ceases providing services for the affiliated registrant at the office listed in the registration form; or (B) On December 31, 2009, unless between November 1, 2009, and December 31, 2009, the individual files an application through the Nationwide Mortgage Licensing System and Registry for a mortgage loan originator license under chapter 13, part 3 of this title, pays all licensing fees and submits fingerprints for a criminal background check. If this is timely accomplished, the registration shall remain effective until such time as the commissioner acts on the licensure application, but in no event shall the registration be valid after July 30, 2010. If the licensure application is approved, the license shall be issued for calendar year 2010; and (5) An individual registered as a mortgage loan originator under this subsection (a) shall not be in violation of any law requiring a license to act as a mortgage loan originator for any origination services performed while the registration is effective. (b) To sponsor a mortgage loan originator on or after July 31, 2009, a registrant must file the form with the commissioner as the commissioner prescribes and pay to the commissioner a nonrefundable sponsorship fee of one hundred dollars ($100), which fee may be decreased or increased by rule of the commissioner. Upon determining that the individual has obtained a license under chapter 13, part 3 of this title and is not sponsored by any other registrant, mortgage lender or mortgage loan broker, the commissioner shall authorize the sponsorship. A mortgage loan originator sponsorship terminates if the sponsoring registrant's authority to make residential mortgage loans expires or is revoked or otherwise terminates, or if the mortgage loan originator ceases providing services for the registrant. A mortgage loan originator sponsorship does not terminate if the mortgage loan originator changes from one (1) office of the sponsoring registrant to another registered office of the same company. Upon any change in the mortgage loan originator's office, the sponsoring registrant shall notify the commissioner in writing within fourteen (14) days of the change. (c) Should a mortgage loan originator sponsorship terminate, the mortgage loan originator's license shall become inactive, but shall not expire so long as the mortgage loan originator continues to meet all other requirements for licensure and renewal of licensure. An inactive license is reactivated if the mortgage loan originator obtains a new sponsorship under this section or under chapter 13, part 3 of this title. The commissioner may not approve a new sponsorship unless and until the commissioner has been notified that any prior sponsorship has terminated. (d) The sponsoring registrant shall ensure that each application for a residential mortgage loan contains the name and registration number of the registrant, as well as the name, signature and license number of the mortgage loan originator who provided origination services with respect to the loan. The registrant shall also ensure that the registrant's records pertaining to the residential mortgage loan contain the unique identifier, if different from the license number, of each mortgage loan originator that provided services with respect to the loan. (e) The sponsoring registrant is responsible for and shall supervise the acts of each sponsored mortgage loan originator. (f) A mortgage loan originator of a registrant is subject to all applicable requirements and prohibitions of chapter 13 of this title, unless otherwise stated in chapter 13 of this title. (g) A registrant that is authorized to make residential mortgage loans is subject to investigation and examination under chapter 13 of this title, to the extent that chapter 13 of this title provides the commissioner greater or different investigatory or examination power than is authorized under this chapter. (h) It is a violation of this chapter for a registrant to commit any of the acts or practices prohibited by § 45-13-401 in the making of a residential mortgage loan, as applicable. (i) A registrant that is authorized to make residential mortgage loans shall, pursuant to order or direction of the commissioner, submit reports of condition to the Nationwide Mortgage Licensing System and Registry pertaining to its residential mortgage loan business, which shall be in the form and shall contain the information that the Nationwide Mortgage Licensing System and Registry requires. Acts 2009, ch. 499, § 6.
(a) Effective July 31, 2009, no registrant shall make a residential mortgage loan unless each individual that acts as a mortgage loan originator with respect to the loan has obtained a mortgage loan originator license under chapter 13, part 3 of this title, and has been sponsored by the registrant in accordance with subsection (b), except as follows: (1) A registrant authorized to make residential mortgage loans on July 30, 2009, is authorized to continue doing so after July 30, 2009; provided, that each individual who acts as a mortgage loan originator with respect to any residential mortgage loan is registered with the commissioner in affiliation with that registrant on or before July 30, 2009. The excepted authority shall only continue for so long as the mortgage loan originator registration remains effective; (2) To register a mortgage loan originator under subdivision (a)(1), the registrant must timely submit to the commissioner a nonrefundable registration fee of one hundred dollars ($100) and a completed registration form containing any information the commissioner deems necessary, including the following: (A) The name of the registrant for whom the mortgage loan originator provides origination services; (B) The mortgage loan originator's name, birth date, social security number and address; and (C) The office location where the mortgage loan originator will engage in residential mortgage loan origination services; (3) Any mortgage loan originator timely registered with a registrant shall be considered sponsored by that registrant for purposes of subsection (b) for the term of the registration and any successive licensure; (4) The registration of a mortgage loan originator under this section shall expire without further notice or process upon either of the following occurrences: (A) If the mortgage loan originator ceases providing services for the affiliated registrant at the office listed in the registration form; or (B) On December 31, 2009, unless between November 1, 2009, and December 31, 2009, the individual files an application through the Nationwide Mortgage Licensing System and Registry for a mortgage loan originator license under chapter 13, part 3 of this title, pays all licensing fees and submits fingerprints for a criminal background check. If this is timely accomplished, the registration shall remain effective until such time as the commissioner acts on the licensure application, but in no event shall the registration be valid after July 30, 2010. If the licensure application is approved, the license shall be issued for calendar year 2010; and (5) An individual registered as a mortgage loan originator under this subsection (a) shall not be in violation of any law requiring a license to act as a mortgage loan originator for any origination services performed while the registration is effective.
(1) A registrant authorized to make residential mortgage loans on July 30, 2009, is authorized to continue doing so after July 30, 2009; provided, that each individual who acts as a mortgage loan originator with respect to any residential mortgage loan is registered with the commissioner in affiliation with that registrant on or before July 30, 2009. The excepted authority shall only continue for so long as the mortgage loan originator registration remains effective;
(2) To register a mortgage loan originator under subdivision (a)(1), the registrant must timely submit to the commissioner a nonrefundable registration fee of one hundred dollars ($100) and a completed registration form containing any information the commissioner deems necessary, including the following: (A) The name of the registrant for whom the mortgage loan originator provides origination services; (B) The mortgage loan originator's name, birth date, social security number and address; and (C) The office location where the mortgage loan originator will engage in residential mortgage loan origination services;
(A) The name of the registrant for whom the mortgage loan originator provides origination services;
(B) The mortgage loan originator's name, birth date, social security number and address; and
(C) The office location where the mortgage loan originator will engage in residential mortgage loan origination services;
(3) Any mortgage loan originator timely registered with a registrant shall be considered sponsored by that registrant for purposes of subsection (b) for the term of the registration and any successive licensure;
(4) The registration of a mortgage loan originator under this section shall expire without further notice or process upon either of the following occurrences: (A) If the mortgage loan originator ceases providing services for the affiliated registrant at the office listed in the registration form; or (B) On December 31, 2009, unless between November 1, 2009, and December 31, 2009, the individual files an application through the Nationwide Mortgage Licensing System and Registry for a mortgage loan originator license under chapter 13, part 3 of this title, pays all licensing fees and submits fingerprints for a criminal background check. If this is timely accomplished, the registration shall remain effective until such time as the commissioner acts on the licensure application, but in no event shall the registration be valid after July 30, 2010. If the licensure application is approved, the license shall be issued for calendar year 2010; and
(A) If the mortgage loan originator ceases providing services for the affiliated registrant at the office listed in the registration form; or
(B) On December 31, 2009, unless between November 1, 2009, and December 31, 2009, the individual files an application through the Nationwide Mortgage Licensing System and Registry for a mortgage loan originator license under chapter 13, part 3 of this title, pays all licensing fees and submits fingerprints for a criminal background check. If this is timely accomplished, the registration shall remain effective until such time as the commissioner acts on the licensure application, but in no event shall the registration be valid after July 30, 2010. If the licensure application is approved, the license shall be issued for calendar year 2010; and
(5) An individual registered as a mortgage loan originator under this subsection (a) shall not be in violation of any law requiring a license to act as a mortgage loan originator for any origination services performed while the registration is effective.
(b) To sponsor a mortgage loan originator on or after July 31, 2009, a registrant must file the form with the commissioner as the commissioner prescribes and pay to the commissioner a nonrefundable sponsorship fee of one hundred dollars ($100), which fee may be decreased or increased by rule of the commissioner. Upon determining that the individual has obtained a license under chapter 13, part 3 of this title and is not sponsored by any other registrant, mortgage lender or mortgage loan broker, the commissioner shall authorize the sponsorship. A mortgage loan originator sponsorship terminates if the sponsoring registrant's authority to make residential mortgage loans expires or is revoked or otherwise terminates, or if the mortgage loan originator ceases providing services for the registrant. A mortgage loan originator sponsorship does not terminate if the mortgage loan originator changes from one (1) office of the sponsoring registrant to another registered office of the same company. Upon any change in the mortgage loan originator's office, the sponsoring registrant shall notify the commissioner in writing within fourteen (14) days of the change.
(c) Should a mortgage loan originator sponsorship terminate, the mortgage loan originator's license shall become inactive, but shall not expire so long as the mortgage loan originator continues to meet all other requirements for licensure and renewal of licensure. An inactive license is reactivated if the mortgage loan originator obtains a new sponsorship under this section or under chapter 13, part 3 of this title. The commissioner may not approve a new sponsorship unless and until the commissioner has been notified that any prior sponsorship has terminated.
(d) The sponsoring registrant shall ensure that each application for a residential mortgage loan contains the name and registration number of the registrant, as well as the name, signature and license number of the mortgage loan originator who provided origination services with respect to the loan. The registrant shall also ensure that the registrant's records pertaining to the residential mortgage loan contain the unique identifier, if different from the license number, of each mortgage loan originator that provided services with respect to the loan.
(e) The sponsoring registrant is responsible for and shall supervise the acts of each sponsored mortgage loan originator.
(f) A mortgage loan originator of a registrant is subject to all applicable requirements and prohibitions of chapter 13 of this title, unless otherwise stated in chapter 13 of this title.
(g) A registrant that is authorized to make residential mortgage loans is subject to investigation and examination under chapter 13 of this title, to the extent that chapter 13 of this title provides the commissioner greater or different investigatory or examination power than is authorized under this chapter.
(h) It is a violation of this chapter for a registrant to commit any of the acts or practices prohibited by § 45-13-401 in the making of a residential mortgage loan, as applicable.
(i) A registrant that is authorized to make residential mortgage loans shall, pursuant to order or direction of the commissioner, submit reports of condition to the Nationwide Mortgage Licensing System and Registry pertaining to its residential mortgage loan business, which shall be in the form and shall contain the information that the Nationwide Mortgage Licensing System and Registry requires.
Acts 2009, ch. 499, § 6.
Tenn. Code Ann. § 45-6-217 — TN Code / Title 45 / Chapter 6 / Section 45-6-217
Sign over entrance
Status: in_force

Every licensee under this part shall cause the name of the pawnbroker, firm or corporation, with the words, "Licensed Pawnbroker" to be printed or painted, in large, legible characters, and placed over the outside of the door or entrance of the shop, office, or place of business. Acts 1988, ch, 724, § 17.
Every licensee under this part shall cause the name of the pawnbroker, firm or corporation, with the words, "Licensed Pawnbroker" to be printed or painted, in large, legible characters, and placed over the outside of the door or entrance of the shop, office, or place of business.
Acts 1988, ch, 724, § 17.
Tenn. Code Ann. § 45-7-140 — TN Code / Title 45 / Chapter 7 / Section 45-7-140
Suspension and revocation of authorized delegates
Status: in_force

(a) The commissioner may issue an order suspending or barring the authorized delegate from continuing to be or becoming an authorized delegate of any licensee during the period for which the order is in effect, if, after notice and an opportunity for a hearing, the commissioner finds that any authorized delegate of a licensee or any director, officer, employee, or controlling person of the authorized delegate has: (1) Violated this chapter or any rule or order issued under this chapter; (2) Engaged or participated in any unsafe or unsound act with respect to the business of selling or issuing payment instruments of the licensee or the business of money transmission; (3) Refused to permit the commissioner to make any examination authorized by this chapter; (4) Engaged in fraud, intentional misrepresentation, or gross negligence; (5) Been convicted of a violation of a state or federal anti-money laundering statute; or (6) Made or caused to be made in any application or report filed with the commissioner or any proceeding before the commissioner, any statement that was at the time and in the circumstances under which it was made, false or misleading with respect to any material fact, or has omitted to state in the application or report any material fact that is required to be stated in the application or report. (b) Upon issuance of the order, the licensee shall terminate its relationship with the authorized delegate according to the terms of the order. (c) An authorized delegate to whom an order is issued under this section may apply to the commissioner to modify or rescind the order. The commissioner shall not grant the application unless the commissioner finds that it is in the public interest to do so and that it is reasonable to believe that the person will comply with all applicable provisions of this chapter and any rule or order issued under this title, if and when the person is permitted to resume being an authorized delegate of a licensee. Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
(a) The commissioner may issue an order suspending or barring the authorized delegate from continuing to be or becoming an authorized delegate of any licensee during the period for which the order is in effect, if, after notice and an opportunity for a hearing, the commissioner finds that any authorized delegate of a licensee or any director, officer, employee, or controlling person of the authorized delegate has: (1) Violated this chapter or any rule or order issued under this chapter; (2) Engaged or participated in any unsafe or unsound act with respect to the business of selling or issuing payment instruments of the licensee or the business of money transmission; (3) Refused to permit the commissioner to make any examination authorized by this chapter; (4) Engaged in fraud, intentional misrepresentation, or gross negligence; (5) Been convicted of a violation of a state or federal anti-money laundering statute; or (6) Made or caused to be made in any application or report filed with the commissioner or any proceeding before the commissioner, any statement that was at the time and in the circumstances under which it was made, false or misleading with respect to any material fact, or has omitted to state in the application or report any material fact that is required to be stated in the application or report.
(1) Violated this chapter or any rule or order issued under this chapter;
(2) Engaged or participated in any unsafe or unsound act with respect to the business of selling or issuing payment instruments of the licensee or the business of money transmission;
(3) Refused to permit the commissioner to make any examination authorized by this chapter;
(4) Engaged in fraud, intentional misrepresentation, or gross negligence;
(5) Been convicted of a violation of a state or federal anti-money laundering statute; or
(6) Made or caused to be made in any application or report filed with the commissioner or any proceeding before the commissioner, any statement that was at the time and in the circumstances under which it was made, false or misleading with respect to any material fact, or has omitted to state in the application or report any material fact that is required to be stated in the application or report.
(b) Upon issuance of the order, the licensee shall terminate its relationship with the authorized delegate according to the terms of the order.
(c) An authorized delegate to whom an order is issued under this section may apply to the commissioner to modify or rescind the order. The commissioner shall not grant the application unless the commissioner finds that it is in the public interest to do so and that it is reasonable to believe that the person will comply with all applicable provisions of this chapter and any rule or order issued under this title, if and when the person is permitted to resume being an authorized delegate of a licensee.
Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Tenn. Code Ann. § 45-13-106 — TN Code / Title 45 / Chapter 13 / Section 45-13-106
Certificates of registration and registration certificates
Status: in_force

(a) Any certificate of registration or registration certificate issued by the commissioner under the former provisions of this chapter and outstanding on July 31, 2009, is not renewable, but shall remain valid until and expire on December 31, 2009, unless such authority is extended as provided in subsection (b) or subsection (c), as applicable. Any mortgage lender, mortgage loan broker or mortgage loan servicer holding a certificate of registration shall be considered to hold a license and shall be subject to this chapter as a licensee, except that such persons shall not be required to comply with any of the requirements pertaining to eligibility for a license that were not applicable to their qualification for a certificate, until such time as they are issued a license under this chapter. Any mortgage loan originator holding a valid registration certificate shall be subject to the prohibitions and enforcement mechanisms of this chapter, as well as to investigation and examination under this chapter, including the fingerprint background check provisions under § 45-13-302(f) . (b) A mortgage lender, mortgage loan broker or mortgage loan servicer holding a valid certificate of registration may extend the authority of their certificate; provided, that they have transitioned to the Nationwide Mortgage Licensing System and Registry by any deadline established by the commissioner, by filing on or before December 31, 2009, a licensure renewal application under § 45-13-203(c) , including the requisite surety bond and renewal fee [now "supervision fee". See Compiler's Notes]. If the renewal application is complete and timely filed, the person shall be authorized to continue to act as a mortgage lender, mortgage loan broker or mortgage loan servicer until such time as the commissioner has acted on the person's renewal application. If the renewal application is not complete and timely filed, the person's certificate of registration shall expire without further notice or process on December 31, 2009. If the application for a license is approved, the license shall be issued for calendar year 2010. (c) A mortgage loan originator holding a valid registration certificate may extend the authority of the certificate past December 31, 2009, by filing between November 1, 2009, and December 31, 2009, an application for a license under part 3 of this chapter through the Nationwide Mortgage Licensing System and Registry, paying all licensing fees and submitting fingerprints for a criminal background check. If the filing of the application, payment of licensing fees and submission of fingerprints is timely accomplished, the registration certificate shall remain valid until such time as the commissioner has acted on the licensure application, but in no event shall the certificate be valid after July 30, 2010. If the licensure application is approved, the license shall be issued for calendar year 2010. Any mortgage loan originator timely filing a licensure application under this subsection (c) shall be considered to be sponsored for purposes of part 3 of this chapter by the mortgage lender or mortgage loan broker named in the registration certificate upon any successive licensure. If a mortgage loan originator does not timely comply with the licensure application requirements of this subsection (c), the registration certificate shall expire without further notice or process on December 31, 2009. A mortgage loan originator holding a valid registration certificate under this subsection (c) shall not be in violation of the licensing requirements under part 3 of this chapter for origination services performed for or on behalf of the mortgage lender or mortgage loan broker named in the certificate; provided, however, that the registration certificate shall expire without further notice or process if the mortgage loan originator provides origination services for a person other than the one named in the registration certificate. Acts 2009, ch. 499, § 8.
(a) Any certificate of registration or registration certificate issued by the commissioner under the former provisions of this chapter and outstanding on July 31, 2009, is not renewable, but shall remain valid until and expire on December 31, 2009, unless such authority is extended as provided in subsection (b) or subsection (c), as applicable. Any mortgage lender, mortgage loan broker or mortgage loan servicer holding a certificate of registration shall be considered to hold a license and shall be subject to this chapter as a licensee, except that such persons shall not be required to comply with any of the requirements pertaining to eligibility for a license that were not applicable to their qualification for a certificate, until such time as they are issued a license under this chapter. Any mortgage loan originator holding a valid registration certificate shall be subject to the prohibitions and enforcement mechanisms of this chapter, as well as to investigation and examination under this chapter, including the fingerprint background check provisions under § 45-13-302(f) .
(b) A mortgage lender, mortgage loan broker or mortgage loan servicer holding a valid certificate of registration may extend the authority of their certificate; provided, that they have transitioned to the Nationwide Mortgage Licensing System and Registry by any deadline established by the commissioner, by filing on or before December 31, 2009, a licensure renewal application under § 45-13-203(c) , including the requisite surety bond and renewal fee [now "supervision fee". See Compiler's Notes]. If the renewal application is complete and timely filed, the person shall be authorized to continue to act as a mortgage lender, mortgage loan broker or mortgage loan servicer until such time as the commissioner has acted on the person's renewal application. If the renewal application is not complete and timely filed, the person's certificate of registration shall expire without further notice or process on December 31, 2009. If the application for a license is approved, the license shall be issued for calendar year 2010.
(c) A mortgage loan originator holding a valid registration certificate may extend the authority of the certificate past December 31, 2009, by filing between November 1, 2009, and December 31, 2009, an application for a license under part 3 of this chapter through the Nationwide Mortgage Licensing System and Registry, paying all licensing fees and submitting fingerprints for a criminal background check. If the filing of the application, payment of licensing fees and submission of fingerprints is timely accomplished, the registration certificate shall remain valid until such time as the commissioner has acted on the licensure application, but in no event shall the certificate be valid after July 30, 2010. If the licensure application is approved, the license shall be issued for calendar year 2010. Any mortgage loan originator timely filing a licensure application under this subsection (c) shall be considered to be sponsored for purposes of part 3 of this chapter by the mortgage lender or mortgage loan broker named in the registration certificate upon any successive licensure. If a mortgage loan originator does not timely comply with the licensure application requirements of this subsection (c), the registration certificate shall expire without further notice or process on December 31, 2009. A mortgage loan originator holding a valid registration certificate under this subsection (c) shall not be in violation of the licensing requirements under part 3 of this chapter for origination services performed for or on behalf of the mortgage lender or mortgage loan broker named in the certificate; provided, however, that the registration certificate shall expire without further notice or process if the mortgage loan originator provides origination services for a person other than the one named in the registration certificate.
Acts 2009, ch. 499, § 8.
Tenn. Code Ann. § 45-15-114 — TN Code / Title 45 / Chapter 15 / Section 45-15-114
Twenty-day holding period - Procedure for redemption or failure to redeem - Loss of agreement by pledgor
Status: in_force

(a) Upon expiration of a property pledge agreement and the final renewal of the agreement, if any, the title pledge lender shall retain possession of the titled personal property and the certificate of title for at least twenty (20) days. If the pledgor fails to redeem the titled personal property and the certificate of title before the lapse of the twenty-day holding period, the pledgor shall thereby forfeit all right, title and interest in and to the titled personal property to the title pledge lender, who shall thereby acquire an absolute right of title to the titled personal property, and the title pledge lender shall have the right and authority to sell or dispose of the unredeemed pledged property. (b) (1) The title pledge lender has, upon default by the pledgor of any obligation pursuant to the title pledge agreement, the right to take possession of the titled personal property. In taking possession, the title pledge lender or the lender's agent may proceed without judicial process if this can be done without breach of the peace; or, if necessary, may proceed by action to obtain judicial process. After taking possession of the titled personal property, the title pledge lender shall retain possession of the titled personal property and the certificate of title for a twenty-day holding period. There shall be no further interest or other fees charged to the pledgor from the commencement of the twenty-day holding period. (2) If, during the twenty-day holding period, the pledgor pays the repossession charge, and redeems the titled personal property and certificate of title, by paying all outstanding principal, interest and fees authorized by this chapter owed by the pledgor to the title pledge lender, the pledgor shall be given possession of the titled personal property and the certificate of title without further charge. (3) If the pledgor fails to redeem the titled personal property and certificate of title during the twenty-day holding period, then the title pledge lender shall have a period of sixty (60) days in which to sell the titled personal property in a commercially reasonable manner. For purposes of this section, "commercially reasonable" is a sale that would be commercially reasonable under title 47, chapter 9, part 6. The proceeds of the commercially reasonable sale shall be applied to the principal, interest and all fees authorized by this chapter owed by the pledgor to the title pledge lender, including the actual direct costs of the sale. Any surplus from the sale of the titled personal property shall be remitted to the pledgor after the sale, and shall not be retained by the title pledge lender. The commissioner shall prescribe by rule the manner in which the title pledge lender shall remit any surplus to the pledgor. (c) If the pledgor loses the title pledge agreement or property pledge agreement or other evidence of the transaction, the pledgor shall not thereby forfeit the right to redeem the pledged property, but may promptly, before the lapse of the redemption date, make affidavit for the loss, describing the pledged property, which affidavit shall, in all respects, replace and be substituted for the lost evidence of the pledge transaction. Acts 1995, ch. 186, § 13; 2005, ch. 440, § 11.
(a) Upon expiration of a property pledge agreement and the final renewal of the agreement, if any, the title pledge lender shall retain possession of the titled personal property and the certificate of title for at least twenty (20) days. If the pledgor fails to redeem the titled personal property and the certificate of title before the lapse of the twenty-day holding period, the pledgor shall thereby forfeit all right, title and interest in and to the titled personal property to the title pledge lender, who shall thereby acquire an absolute right of title to the titled personal property, and the title pledge lender shall have the right and authority to sell or dispose of the unredeemed pledged property.
(b) (1) The title pledge lender has, upon default by the pledgor of any obligation pursuant to the title pledge agreement, the right to take possession of the titled personal property. In taking possession, the title pledge lender or the lender's agent may proceed without judicial process if this can be done without breach of the peace; or, if necessary, may proceed by action to obtain judicial process. After taking possession of the titled personal property, the title pledge lender shall retain possession of the titled personal property and the certificate of title for a twenty-day holding period. There shall be no further interest or other fees charged to the pledgor from the commencement of the twenty-day holding period. (2) If, during the twenty-day holding period, the pledgor pays the repossession charge, and redeems the titled personal property and certificate of title, by paying all outstanding principal, interest and fees authorized by this chapter owed by the pledgor to the title pledge lender, the pledgor shall be given possession of the titled personal property and the certificate of title without further charge. (3) If the pledgor fails to redeem the titled personal property and certificate of title during the twenty-day holding period, then the title pledge lender shall have a period of sixty (60) days in which to sell the titled personal property in a commercially reasonable manner. For purposes of this section, "commercially reasonable" is a sale that would be commercially reasonable under title 47, chapter 9, part 6. The proceeds of the commercially reasonable sale shall be applied to the principal, interest and all fees authorized by this chapter owed by the pledgor to the title pledge lender, including the actual direct costs of the sale. Any surplus from the sale of the titled personal property shall be remitted to the pledgor after the sale, and shall not be retained by the title pledge lender. The commissioner shall prescribe by rule the manner in which the title pledge lender shall remit any surplus to the pledgor.
(1) The title pledge lender has, upon default by the pledgor of any obligation pursuant to the title pledge agreement, the right to take possession of the titled personal property. In taking possession, the title pledge lender or the lender's agent may proceed without judicial process if this can be done without breach of the peace; or, if necessary, may proceed by action to obtain judicial process. After taking possession of the titled personal property, the title pledge lender shall retain possession of the titled personal property and the certificate of title for a twenty-day holding period. There shall be no further interest or other fees charged to the pledgor from the commencement of the twenty-day holding period.
(2) If, during the twenty-day holding period, the pledgor pays the repossession charge, and redeems the titled personal property and certificate of title, by paying all outstanding principal, interest and fees authorized by this chapter owed by the pledgor to the title pledge lender, the pledgor shall be given possession of the titled personal property and the certificate of title without further charge.
(3) If the pledgor fails to redeem the titled personal property and certificate of title during the twenty-day holding period, then the title pledge lender shall have a period of sixty (60) days in which to sell the titled personal property in a commercially reasonable manner. For purposes of this section, "commercially reasonable" is a sale that would be commercially reasonable under title 47, chapter 9, part 6. The proceeds of the commercially reasonable sale shall be applied to the principal, interest and all fees authorized by this chapter owed by the pledgor to the title pledge lender, including the actual direct costs of the sale. Any surplus from the sale of the titled personal property shall be remitted to the pledgor after the sale, and shall not be retained by the title pledge lender. The commissioner shall prescribe by rule the manner in which the title pledge lender shall remit any surplus to the pledgor.
(c) If the pledgor loses the title pledge agreement or property pledge agreement or other evidence of the transaction, the pledgor shall not thereby forfeit the right to redeem the pledged property, but may promptly, before the lapse of the redemption date, make affidavit for the loss, describing the pledged property, which affidavit shall, in all respects, replace and be substituted for the lost evidence of the pledge transaction.
Acts 1995, ch. 186, § 13; 2005, ch. 440, § 11.
Tenn. Code Ann. § 45-2-905 — TN Code / Title 45 / Chapter 2 / Section 45-2-905
Death of persons having access
Status: in_force

(a) No lessor shall rent any safe deposit box without first requiring all persons entitled to access to the safe deposit box to agree in writing to notify the lessor of the death of a sole or last surviving lessee of the safe deposit box, and all persons having the right of access to the safe deposit box, upon the death of the other person having the right of access to the safe deposit box, before seeking access, shall notify the lessor of the death of the lessee, and the lessor may rely conclusively upon the absence of notification in allowing a person with a right of access to enter the box. (b) Access to a safe deposit box shall be in accordance with the agreement between a lessor and lessee or lessees. The death of a person authorized access to a safe deposit box by the agreement shall not terminate the access of others so authorized in all cases where there is a surviving lessee, whether the surviving lessee is an individual, trust, corporation or other entity, unless further access is restricted by the agreement or by court order. (c) Upon the death of the sole or last surviving lessee of a safe deposit box, access is authorized as follows: (1) The duly qualified executor or administrator of the lessee may have access to and remove contents from the safe deposit box, without inventory unless an inventory is required by the lessor or by court order; (2) In order to search for and remove any written instrument purporting to be the lessee's last will and testament, or any writing relating to a burial plot or burial instructions, or any writing purporting to be an insurance policy on the life of the lessee, a lessor shall permit a person named in a court order for that purpose, or if no order has been served upon the lessor, the lessee's spouse, parent, adult sibling or adult descendant, or a person named as executor in a copy of the lessee's purported will provided to the lessor, or any person with a right of access to the safe deposit box immediately prior to the death of the lessee, to open the safe deposit box with an officer or employee of the lessor and remove the documents. A record of items removed from the box by the person authorized entry shall be made by the lessor and the other person. If a purported will is found that does not name as executor the person conducting the will search with the lessor's representative, the lessor may make a copy thereof and mail or deliver it to the executor named therein, or to the court having jurisdiction of the decedent's estate according to the decedent's domicile as declared in the instrument; and (3) If an executor or administrator of the lessee's estate has not requested access to the contents within sixty (60) days following the lessee's death, the lessor may then permit access by the surviving spouse or any next-of-kin of the lessee for the purposes of inventory and the removal of contents. Prior to removal, an officer or employee of the lessor and the surviving spouse or next-of-kin of the lessee shall inventory the contents of the box and prepare a record thereof to be retained by the lessor. (d) Upon the death of the sole or last surviving lessee, the lessor shall notify the department of revenue of the death of the lessee and the existence of a safe deposit box within thirty (30) days of the time the lessor has actual knowledge of the lessee's death; provided, this requirement does not apply when the lessee died after December 31, 2015. The lessor shall retain records made pursuant to subsection (c) for a period of three (3) years after entry. Chapter 10 of this title notwithstanding, the lessor shall provide copies of the record to the department upon its request, to the executor or administrator of the decedent upon request, and to any party designated by court order, and the lessor may elect to provide copies to any person authorized access to the box at the time of the decedent's death, or to any person having a degree of kinship to the decedent equal to that of the next-of-kin who received contents following the death of the decedent. (e) A lessor shall not be liable to any person for the removal or loss of any contents from a safe deposit box during a period of access by an executor or administrator of a deceased lessee, or by any other person or persons authorized access to open and examine contents, whether the property removed or lost is that of the decedent's estate, a surviving lessee, or any other person, and the lessor is entitled to its expenses in defending against such a claim of liability. (f) To the extent that there is a conflict between this section and § 67-8-417 or § 67-8-418 , this section shall control. Amended by 2023 Tenn. Acts, ch. 28, s 1, eff. 3/10/2023. Acts 1969, ch. 36, § 1 (3.224); 1974, ch. 597, §§ 1, 2; T.C.A., § 45-419; Acts 1984, ch. 624, § 2; 1993, ch. 107, §§ 1, 2; 1998, ch. 1085, § 1.
(a) No lessor shall rent any safe deposit box without first requiring all persons entitled to access to the safe deposit box to agree in writing to notify the lessor of the death of a sole or last surviving lessee of the safe deposit box, and all persons having the right of access to the safe deposit box, upon the death of the other person having the right of access to the safe deposit box, before seeking access, shall notify the lessor of the death of the lessee, and the lessor may rely conclusively upon the absence of notification in allowing a person with a right of access to enter the box.
(b) Access to a safe deposit box shall be in accordance with the agreement between a lessor and lessee or lessees. The death of a person authorized access to a safe deposit box by the agreement shall not terminate the access of others so authorized in all cases where there is a surviving lessee, whether the surviving lessee is an individual, trust, corporation or other entity, unless further access is restricted by the agreement or by court order.
(c) Upon the death of the sole or last surviving lessee of a safe deposit box, access is authorized as follows: (1) The duly qualified executor or administrator of the lessee may have access to and remove contents from the safe deposit box, without inventory unless an inventory is required by the lessor or by court order; (2) In order to search for and remove any written instrument purporting to be the lessee's last will and testament, or any writing relating to a burial plot or burial instructions, or any writing purporting to be an insurance policy on the life of the lessee, a lessor shall permit a person named in a court order for that purpose, or if no order has been served upon the lessor, the lessee's spouse, parent, adult sibling or adult descendant, or a person named as executor in a copy of the lessee's purported will provided to the lessor, or any person with a right of access to the safe deposit box immediately prior to the death of the lessee, to open the safe deposit box with an officer or employee of the lessor and remove the documents. A record of items removed from the box by the person authorized entry shall be made by the lessor and the other person. If a purported will is found that does not name as executor the person conducting the will search with the lessor's representative, the lessor may make a copy thereof and mail or deliver it to the executor named therein, or to the court having jurisdiction of the decedent's estate according to the decedent's domicile as declared in the instrument; and (3) If an executor or administrator of the lessee's estate has not requested access to the contents within sixty (60) days following the lessee's death, the lessor may then permit access by the surviving spouse or any next-of-kin of the lessee for the purposes of inventory and the removal of contents. Prior to removal, an officer or employee of the lessor and the surviving spouse or next-of-kin of the lessee shall inventory the contents of the box and prepare a record thereof to be retained by the lessor.
(1) The duly qualified executor or administrator of the lessee may have access to and remove contents from the safe deposit box, without inventory unless an inventory is required by the lessor or by court order;
(2) In order to search for and remove any written instrument purporting to be the lessee's last will and testament, or any writing relating to a burial plot or burial instructions, or any writing purporting to be an insurance policy on the life of the lessee, a lessor shall permit a person named in a court order for that purpose, or if no order has been served upon the lessor, the lessee's spouse, parent, adult sibling or adult descendant, or a person named as executor in a copy of the lessee's purported will provided to the lessor, or any person with a right of access to the safe deposit box immediately prior to the death of the lessee, to open the safe deposit box with an officer or employee of the lessor and remove the documents. A record of items removed from the box by the person authorized entry shall be made by the lessor and the other person. If a purported will is found that does not name as executor the person conducting the will search with the lessor's representative, the lessor may make a copy thereof and mail or deliver it to the executor named therein, or to the court having jurisdiction of the decedent's estate according to the decedent's domicile as declared in the instrument; and
(3) If an executor or administrator of the lessee's estate has not requested access to the contents within sixty (60) days following the lessee's death, the lessor may then permit access by the surviving spouse or any next-of-kin of the lessee for the purposes of inventory and the removal of contents. Prior to removal, an officer or employee of the lessor and the surviving spouse or next-of-kin of the lessee shall inventory the contents of the box and prepare a record thereof to be retained by the lessor.
(d) Upon the death of the sole or last surviving lessee, the lessor shall notify the department of revenue of the death of the lessee and the existence of a safe deposit box within thirty (30) days of the time the lessor has actual knowledge of the lessee's death; provided, this requirement does not apply when the lessee died after December 31, 2015. The lessor shall retain records made pursuant to subsection (c) for a period of three (3) years after entry. Chapter 10 of this title notwithstanding, the lessor shall provide copies of the record to the department upon its request, to the executor or administrator of the decedent upon request, and to any party designated by court order, and the lessor may elect to provide copies to any person authorized access to the box at the time of the decedent's death, or to any person having a degree of kinship to the decedent equal to that of the next-of-kin who received contents following the death of the decedent.
(e) A lessor shall not be liable to any person for the removal or loss of any contents from a safe deposit box during a period of access by an executor or administrator of a deceased lessee, or by any other person or persons authorized access to open and examine contents, whether the property removed or lost is that of the decedent's estate, a surviving lessee, or any other person, and the lessor is entitled to its expenses in defending against such a claim of liability.
(f) To the extent that there is a conflict between this section and § 67-8-417 or § 67-8-418 , this section shall control.
Amended by 2023 Tenn. Acts, ch. 28, s 1, eff. 3/10/2023.
Acts 1969, ch. 36, § 1 (3.224); 1974, ch. 597, §§ 1, 2; T.C.A., § 45-419; Acts 1984, ch. 624, § 2; 1993, ch. 107, §§ 1, 2; 1998, ch. 1085, § 1.
Tenn. Code Ann. § 45-3-705 — TN Code / Title 45 / Chapter 3 / Section 45-3-705
Installment loans and loans for purchase of mobile homes - Interest and charges - Statement of transaction
Status: in_force

As to home improvement installment loans or loans for the purchase of mobile homes or other installment loans that associations now or hereafter have the power to make, with repayment in equal, or substantially equal, monthly or other periodic installments over the term of the loan subdivisions (1)-(3) shall apply: (1) Interest computed on the principal amount of the loan for the entire term of the loan at a rate not to exceed six percent (6%) per annum may be either deducted in advance or added to the principal; or in the alternative, interest may be determined and charged in accordance with the actuarial method; provided, that in any event, that the maximum effective rate of interest on the loan shall not exceed eighteen percent (18%) per annum; and provided further, that if the unpaid balance of the loan is either paid or renewed prior to its maturity date, the borrower or other person paying or renewing the loan shall be refunded or credited with unearned interest in an amount that represents at least as great a proportion of the original charge as the sum of the periodical time balances after the date of prepayment bears to the sum of all the periodical time balances under the schedule of payments in the original installment loan; provided, that associations shall not be required to refund or credit any unearned interest where it would result in less than the minimum charge provided in subdivision (2)(E) nor to make a refund or credit where the amount thereof would be less than one dollar ($1.00) for each loan; (2) When interest is charged as provided in subdivision (1), associations shall not make additional charges, either directly or indirectly, except for the following, which charges when so made and collected shall not be deemed interest for any purpose of law: (A) Delinquency charges not to exceed five percent (5%) of any one (1) installment more than fifteen (15) days in arrears; (B) Premiums for insurance required or obtained as security for or by reason of the installment loan; (C) Fees and taxes paid to public officials for filing, recording or releasing any instrument or lien; (D) Reasonable expenses of investigating title or titles to real property securing the loans, if any, including the cost of title insurance and costs of closing the loan; (E) Reimbursement of necessary expenses incurred in securing and collecting the loan, not to exceed four percent (4%) of the gross amount of the loan. The cost of legal process or proceedings and reasonable attorneys' fees may be charges in addition to the above; provided, that any association may make a minimum charge on each loan for interest and charges made pursuant to this subdivision (2)(E) of ten dollars ($10.00) per loan or one dollar ($1.00) per monthly installment, whichever is greater; (3) When an installment loan is made and interest is charged as provided in subdivision (1), any association shall, at the time of closing the loan, provide the borrower with a written statement of the transaction or a copy of the note containing the following information: (A) The original principal amount of the loan; (B) The insurance premium for each type of coverage provided; (C) The amount of fees and taxes paid or to be paid public officials, if any; (D) The total amount of interest and all charges made at or prior to closing pursuant to subdivision (2)(E) and the approximate rate expressed in dollars per one hundred dollars ($100) per year; (E) Other charges, if any; (F) The amount of unpaid balance; and (G) The number, amount and due dates of installment payments scheduled to repay the indebtedness. Acts 1968, ch. 590, §§ 1, 2; 1969, ch. 227, § 1; 1974, ch. 698, § 5; T.C.A., § 45-1413; Acts 1978, ch. 708, § 6.01; 1979, ch. 206, § 1; T.C.A., §§ 45-1437, 45-3-513; Acts 1981, ch. 210, §§ 1-3.
As to home improvement installment loans or loans for the purchase of mobile homes or other installment loans that associations now or hereafter have the power to make, with repayment in equal, or substantially equal, monthly or other periodic installments over the term of the loan subdivisions (1)-(3) shall apply:
(1) Interest computed on the principal amount of the loan for the entire term of the loan at a rate not to exceed six percent (6%) per annum may be either deducted in advance or added to the principal; or in the alternative, interest may be determined and charged in accordance with the actuarial method; provided, that in any event, that the maximum effective rate of interest on the loan shall not exceed eighteen percent (18%) per annum; and provided further, that if the unpaid balance of the loan is either paid or renewed prior to its maturity date, the borrower or other person paying or renewing the loan shall be refunded or credited with unearned interest in an amount that represents at least as great a proportion of the original charge as the sum of the periodical time balances after the date of prepayment bears to the sum of all the periodical time balances under the schedule of payments in the original installment loan; provided, that associations shall not be required to refund or credit any unearned interest where it would result in less than the minimum charge provided in subdivision (2)(E) nor to make a refund or credit where the amount thereof would be less than one dollar ($1.00) for each loan;
(2) When interest is charged as provided in subdivision (1), associations shall not make additional charges, either directly or indirectly, except for the following, which charges when so made and collected shall not be deemed interest for any purpose of law: (A) Delinquency charges not to exceed five percent (5%) of any one (1) installment more than fifteen (15) days in arrears; (B) Premiums for insurance required or obtained as security for or by reason of the installment loan; (C) Fees and taxes paid to public officials for filing, recording or releasing any instrument or lien; (D) Reasonable expenses of investigating title or titles to real property securing the loans, if any, including the cost of title insurance and costs of closing the loan; (E) Reimbursement of necessary expenses incurred in securing and collecting the loan, not to exceed four percent (4%) of the gross amount of the loan. The cost of legal process or proceedings and reasonable attorneys' fees may be charges in addition to the above; provided, that any association may make a minimum charge on each loan for interest and charges made pursuant to this subdivision (2)(E) of ten dollars ($10.00) per loan or one dollar ($1.00) per monthly installment, whichever is greater;
(A) Delinquency charges not to exceed five percent (5%) of any one (1) installment more than fifteen (15) days in arrears;
(B) Premiums for insurance required or obtained as security for or by reason of the installment loan;
(C) Fees and taxes paid to public officials for filing, recording or releasing any instrument or lien;
(D) Reasonable expenses of investigating title or titles to real property securing the loans, if any, including the cost of title insurance and costs of closing the loan;
(E) Reimbursement of necessary expenses incurred in securing and collecting the loan, not to exceed four percent (4%) of the gross amount of the loan. The cost of legal process or proceedings and reasonable attorneys' fees may be charges in addition to the above; provided, that any association may make a minimum charge on each loan for interest and charges made pursuant to this subdivision (2)(E) of ten dollars ($10.00) per loan or one dollar ($1.00) per monthly installment, whichever is greater;
(3) When an installment loan is made and interest is charged as provided in subdivision (1), any association shall, at the time of closing the loan, provide the borrower with a written statement of the transaction or a copy of the note containing the following information: (A) The original principal amount of the loan; (B) The insurance premium for each type of coverage provided; (C) The amount of fees and taxes paid or to be paid public officials, if any; (D) The total amount of interest and all charges made at or prior to closing pursuant to subdivision (2)(E) and the approximate rate expressed in dollars per one hundred dollars ($100) per year; (E) Other charges, if any; (F) The amount of unpaid balance; and (G) The number, amount and due dates of installment payments scheduled to repay the indebtedness.
(A) The original principal amount of the loan;
(B) The insurance premium for each type of coverage provided;
(C) The amount of fees and taxes paid or to be paid public officials, if any;
(D) The total amount of interest and all charges made at or prior to closing pursuant to subdivision (2)(E) and the approximate rate expressed in dollars per one hundred dollars ($100) per year;
(E) Other charges, if any;
(F) The amount of unpaid balance; and
(G) The number, amount and due dates of installment payments scheduled to repay the indebtedness.
Acts 1968, ch. 590, §§ 1, 2; 1969, ch. 227, § 1; 1974, ch. 698, § 5; T.C.A., § 45-1413; Acts 1978, ch. 708, § 6.01; 1979, ch. 206, § 1; T.C.A., §§ 45-1437, 45-3-513; Acts 1981, ch. 210, §§ 1-3.
Tenn. Code Ann. § 45-4-1213 — TN Code / Title 45 / Chapter 4 / Section 45-4-1213
Exemption from annual meetings and reserves
Status: in_force

The corporation shall be exempt from the requirements applicable to noncorporate credit unions relating to the date of its annual meetings and reserves. Acts 1983, ch. 94, § 4.
The corporation shall be exempt from the requirements applicable to noncorporate credit unions relating to the date of its annual meetings and reserves.
Acts 1983, ch. 94, § 4.
Tenn. Code Ann. § 45-2-1102 — TN Code / Title 45 / Chapter 2 / Section 45-2-1102
Limit of loans to any one borrower - Classified loans
Status: in_force

(a) (1) Except as provided in this section, no state bank shall be allowed to lend to any one (1) person, firm or corporation (including loans to a firm or loans to the several members thereof) more than fifteen percent (15%) of its capital, surplus and undivided profits. However, the loans may be in excess of that percent, but not above twenty-five percent (25%) except as provided in subsection (b), if each specific loan in excess of fifteen percent (15%) is first submitted to and approved in advance in writing by the board of directors or by the finance committee of the bank and a record is kept of the written approval. (2) No loan limit shall be applicable to any state bank in any situation or circumstance in which no loan limit is applicable to national banks. (3) No loan limit shall be applicable to the extent that the loan or extension of credit is secured by a segregated deposit account in the lending bank. (b) (1) Obligations of any person in the form of notes or drafts secured by shipping documents, warehouse receipts or other documents transferring or securing title covering readily marketable nonperishable staples shall be subject to a limitation equal to the percent of the sum of the lending bank's capital, surplus, and undivided profits shown in column A below, when the market value of the staples securing the obligations is not at any time less than the percent of the face amount of the obligation shown in column B below: Column A Column B 25% 115% 30% 120% 35% 125% 40% 130% 45% 135% 50% 140% (2) The exceptions listed in subdivision (b)(1) do not apply to obligations of any one (1) person, copartnership, association or corporation arising from the same staples, for more than ten (10) months. (c) (1) Notwithstanding any other provision of law, a state bank or bank holding company may not sell a classified loan or participation in a classified loan to, or purchase the loan or participation from, another financial institution without obtaining the prior approval of the commissioner. (2) For purposes of subdivision (c)(1): (A) "Classified loan" means a loan that is designated "substandard," "doubtful," or "loss" in the most recent state or federal report of examination; and (B) "Financial institution" means a bank, savings bank, savings and loan association or any subsidiary of those entities, industrial loan and thrift company, credit union, mortgage broker, mortgage banker, or leasing company accepting deposits, making or arranging loans and making or arranging leases. (d) (1) The loan limit applicable to any one (1) person under this section shall take into consideration credit exposure arising from derivative transactions between the state bank and the person. (2) For purposes of subdivision (d)(1), "derivative transaction" includes any transaction that is a contract, agreement, swap, warrant, note, or option that is based, in whole or in part, on the value of, any interest in, or any quantitative measure or the occurrence of any event relating to, one (1) or more commodities, securities, currencies, interest or other rates, indices, or other assets. Acts 1969, ch. 36, § 1 (3.241); T.C.A., § 45-429; Acts 1983, ch. 69, § 1; 1984, ch. 573, § 1; 1985, ch. 226, § 1; 2001, ch. 54, §§ 17, 18; 2012, ch. 634, § 1.
(a) (1) Except as provided in this section, no state bank shall be allowed to lend to any one (1) person, firm or corporation (including loans to a firm or loans to the several members thereof) more than fifteen percent (15%) of its capital, surplus and undivided profits. However, the loans may be in excess of that percent, but not above twenty-five percent (25%) except as provided in subsection (b), if each specific loan in excess of fifteen percent (15%) is first submitted to and approved in advance in writing by the board of directors or by the finance committee of the bank and a record is kept of the written approval. (2) No loan limit shall be applicable to any state bank in any situation or circumstance in which no loan limit is applicable to national banks. (3) No loan limit shall be applicable to the extent that the loan or extension of credit is secured by a segregated deposit account in the lending bank.
(1) Except as provided in this section, no state bank shall be allowed to lend to any one (1) person, firm or corporation (including loans to a firm or loans to the several members thereof) more than fifteen percent (15%) of its capital, surplus and undivided profits. However, the loans may be in excess of that percent, but not above twenty-five percent (25%) except as provided in subsection (b), if each specific loan in excess of fifteen percent (15%) is first submitted to and approved in advance in writing by the board of directors or by the finance committee of the bank and a record is kept of the written approval.
(2) No loan limit shall be applicable to any state bank in any situation or circumstance in which no loan limit is applicable to national banks.
(3) No loan limit shall be applicable to the extent that the loan or extension of credit is secured by a segregated deposit account in the lending bank.
(b) (1) Obligations of any person in the form of notes or drafts secured by shipping documents, warehouse receipts or other documents transferring or securing title covering readily marketable nonperishable staples shall be subject to a limitation equal to the percent of the sum of the lending bank's capital, surplus, and undivided profits shown in column A below, when the market value of the staples securing the obligations is not at any time less than the percent of the face amount of the obligation shown in column B below: Column A Column B 25% 115% 30% 120% 35% 125% 40% 130% 45% 135% 50% 140% (2) The exceptions listed in subdivision (b)(1) do not apply to obligations of any one (1) person, copartnership, association or corporation arising from the same staples, for more than ten (10) months.
(1) Obligations of any person in the form of notes or drafts secured by shipping documents, warehouse receipts or other documents transferring or securing title covering readily marketable nonperishable staples shall be subject to a limitation equal to the percent of the sum of the lending bank's capital, surplus, and undivided profits shown in column A below, when the market value of the staples securing the obligations is not at any time less than the percent of the face amount of the obligation shown in column B below: Column A Column B 25% 115% 30% 120% 35% 125% 40% 130% 45% 135% 50% 140%
Column A Column B 25% 115% 30% 120% 35% 125% 40% 130% 45% 135% 50% 140%
Column A
Column B
25%
115%
30%
120%
35%
125%
40%
130%
45%
135%
50%
140%
(2) The exceptions listed in subdivision (b)(1) do not apply to obligations of any one (1) person, copartnership, association or corporation arising from the same staples, for more than ten (10) months.
(c) (1) Notwithstanding any other provision of law, a state bank or bank holding company may not sell a classified loan or participation in a classified loan to, or purchase the loan or participation from, another financial institution without obtaining the prior approval of the commissioner. (2) For purposes of subdivision (c)(1): (A) "Classified loan" means a loan that is designated "substandard," "doubtful," or "loss" in the most recent state or federal report of examination; and (B) "Financial institution" means a bank, savings bank, savings and loan association or any subsidiary of those entities, industrial loan and thrift company, credit union, mortgage broker, mortgage banker, or leasing company accepting deposits, making or arranging loans and making or arranging leases.
(1) Notwithstanding any other provision of law, a state bank or bank holding company may not sell a classified loan or participation in a classified loan to, or purchase the loan or participation from, another financial institution without obtaining the prior approval of the commissioner.
(2) For purposes of subdivision (c)(1): (A) "Classified loan" means a loan that is designated "substandard," "doubtful," or "loss" in the most recent state or federal report of examination; and (B) "Financial institution" means a bank, savings bank, savings and loan association or any subsidiary of those entities, industrial loan and thrift company, credit union, mortgage broker, mortgage banker, or leasing company accepting deposits, making or arranging loans and making or arranging leases.
(A) "Classified loan" means a loan that is designated "substandard," "doubtful," or "loss" in the most recent state or federal report of examination; and
(B) "Financial institution" means a bank, savings bank, savings and loan association or any subsidiary of those entities, industrial loan and thrift company, credit union, mortgage broker, mortgage banker, or leasing company accepting deposits, making or arranging loans and making or arranging leases.
(d) (1) The loan limit applicable to any one (1) person under this section shall take into consideration credit exposure arising from derivative transactions between the state bank and the person. (2) For purposes of subdivision (d)(1), "derivative transaction" includes any transaction that is a contract, agreement, swap, warrant, note, or option that is based, in whole or in part, on the value of, any interest in, or any quantitative measure or the occurrence of any event relating to, one (1) or more commodities, securities, currencies, interest or other rates, indices, or other assets.
(1) The loan limit applicable to any one (1) person under this section shall take into consideration credit exposure arising from derivative transactions between the state bank and the person.
(2) For purposes of subdivision (d)(1), "derivative transaction" includes any transaction that is a contract, agreement, swap, warrant, note, or option that is based, in whole or in part, on the value of, any interest in, or any quantitative measure or the occurrence of any event relating to, one (1) or more commodities, securities, currencies, interest or other rates, indices, or other assets.
Acts 1969, ch. 36, § 1 (3.241); T.C.A., § 45-429; Acts 1983, ch. 69, § 1; 1984, ch. 573, § 1; 1985, ch. 226, § 1; 2001, ch. 54, §§ 17, 18; 2012, ch. 634, § 1.
Tenn. Code Ann. § 45-12-119 — TN Code / Title 45 / Chapter 12 / Section 45-12-119
Consent orders-Emergency actions by commissioner
Status: in_force

(a) The commissioner may enter into a consent order at any time with any person to resolve any matter arising under this chapter. A consent order shall be signed by the person to whom it is issued, or a duly authorized representative, and shall indicate agreement to the terms contained in the order. A consent order need not constitute an admission by any person that any provision of this chapter, or any rule or order promulgated or issued under this chapter has been violated, nor need it constitute a finding by the commissioner that the person has violated this chapter, or any rule or order promulgated or issued under this chapter. (b) Notwithstanding the issuance of a consent order, the commissioner may seek civil or criminal penalties concerning matters encompassed by the consent order. (c) In cases involving extraordinary circumstances requiring immediate action, the commissioner may take any enforcement action authorized by this chapter without providing the opportunity for a prior hearing, but shall promptly afford a subsequent hearing upon an application to rescind the action taken that is filed with the commissioner within twenty (20) days after receipt of the notice of the commissioner's emergency action. Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
(a) The commissioner may enter into a consent order at any time with any person to resolve any matter arising under this chapter. A consent order shall be signed by the person to whom it is issued, or a duly authorized representative, and shall indicate agreement to the terms contained in the order. A consent order need not constitute an admission by any person that any provision of this chapter, or any rule or order promulgated or issued under this chapter has been violated, nor need it constitute a finding by the commissioner that the person has violated this chapter, or any rule or order promulgated or issued under this chapter.
(b) Notwithstanding the issuance of a consent order, the commissioner may seek civil or criminal penalties concerning matters encompassed by the consent order.
(c) In cases involving extraordinary circumstances requiring immediate action, the commissioner may take any enforcement action authorized by this chapter without providing the opportunity for a prior hearing, but shall promptly afford a subsequent hearing upon an application to rescind the action taken that is filed with the commissioner within twenty (20) days after receipt of the notice of the commissioner's emergency action.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
Tenn. Code Ann. § 45-4-902 — TN Code / Title 45 / Chapter 4 / Section 45-4-902
Liquidation
Status: in_force

(a) A credit union under order to liquidate or in the course of dissolution or liquidation shall continue in existence for the purpose of discharging its debts, collecting and distributing its assets, and doing all acts required in order to wind up its business, and may sue and be sued for the purpose of enforcing the debts and obligations until its affairs are fully adjusted. The board of directors of the credit union, or, in the case of involuntary dissolution or liquidation by order of the commissioner, the liquidating agent, shall use the assets of the credit union to pay: (1) All expenses incidental to liquidation, including, but not limited to, any surety bond that may be required; (2) Any liability due nonmembers; and (3) Redemption of shares, share accounts, and members' special accounts. Assets then remaining shall be distributed to the members proportionately to the purchase price of shares held by each member as of the date dissolution was voted, or the date of order of liquidation or suspension by the commissioner, as the case may be. (b) As soon as the board or the liquidating agent determines that all assets from which there is a reasonable expectancy of realization have been liquidated and distributed as set forth in this section, it shall execute a certificate of dissolution and forward the same to the commissioner, who shall review the details of the liquidation and, if approving it, shall issue a certificate of approval and return the certificate to the board or liquidating agent, who shall then file it with the secretary of state and thereafter with the office of the register of deeds of the county in which the credit union has its principal place of business. (c) If a credit union has filed a certificate of dissolution or has indicated an intention to file the certificate, and the directors and officers of the credit union, in the opinion of the commissioner, are not conducting the liquidation proceedings in an expeditious, orderly, and efficient manner or in the best interests of its members, the commissioner may terminate the liquidation proceedings, take possession of the business and property of the credit union, and, for the purpose of carrying out the liquidation, may appoint, or cause to be appointed, a liquidating agent. The liquidating agent shall furnish bond for the faithful discharge of duties in an amount to be approved by the commissioner. (d) The liquidating agent may, under rules and regulations that the supervisor prescribes: (1) Receive and take possession of the books, records, assets, and property of every description of the credit union in liquidation; sell, enforce collection of, and liquidate the assets and property; compound all bad or doubtful debts; sue in the name of the credit union in liquidation; and defend actions brought against the liquidating agent in that capacity or against the credit union; (2) Receive, examine, and pass upon all claims against the credit union in liquidation, including claims of members; (3) Make distribution and payment to creditors and members as their interests appear; (4) Execute documents and papers and do other acts that the liquidating agent deems necessary or desirable to discharge duties; and (5) The expenses incurred by the liquidating agent in the liquidation of the credit union include the compensation of the liquidating agent and any other necessary or proper expenses connected therewith, all of which shall be paid in order of priority out of the property of the credit union in the hands of the liquidating agent. The expenses of liquidation, including the compensation of the liquidating agent, are subject to approval by the commissioner unless the agent is appointed by the court. Acts 1923, ch. 68, § 23; Shan. Supp., § 2198a30; Code 1932, § 3857; Acts 1973, ch. 294, § 6; 1974, ch. 557, § 3; T.C.A. (orig. ed.), § 45-1828; Acts 1986, ch. 558, § 5.
(a) A credit union under order to liquidate or in the course of dissolution or liquidation shall continue in existence for the purpose of discharging its debts, collecting and distributing its assets, and doing all acts required in order to wind up its business, and may sue and be sued for the purpose of enforcing the debts and obligations until its affairs are fully adjusted. The board of directors of the credit union, or, in the case of involuntary dissolution or liquidation by order of the commissioner, the liquidating agent, shall use the assets of the credit union to pay: (1) All expenses incidental to liquidation, including, but not limited to, any surety bond that may be required; (2) Any liability due nonmembers; and (3) Redemption of shares, share accounts, and members' special accounts. Assets then remaining shall be distributed to the members proportionately to the purchase price of shares held by each member as of the date dissolution was voted, or the date of order of liquidation or suspension by the commissioner, as the case may be.
(1) All expenses incidental to liquidation, including, but not limited to, any surety bond that may be required;
(2) Any liability due nonmembers; and
(3) Redemption of shares, share accounts, and members' special accounts. Assets then remaining shall be distributed to the members proportionately to the purchase price of shares held by each member as of the date dissolution was voted, or the date of order of liquidation or suspension by the commissioner, as the case may be.
Assets then remaining shall be distributed to the members proportionately to the purchase price of shares held by each member as of the date dissolution was voted, or the date of order of liquidation or suspension by the commissioner, as the case may be.
(b) As soon as the board or the liquidating agent determines that all assets from which there is a reasonable expectancy of realization have been liquidated and distributed as set forth in this section, it shall execute a certificate of dissolution and forward the same to the commissioner, who shall review the details of the liquidation and, if approving it, shall issue a certificate of approval and return the certificate to the board or liquidating agent, who shall then file it with the secretary of state and thereafter with the office of the register of deeds of the county in which the credit union has its principal place of business.
(c) If a credit union has filed a certificate of dissolution or has indicated an intention to file the certificate, and the directors and officers of the credit union, in the opinion of the commissioner, are not conducting the liquidation proceedings in an expeditious, orderly, and efficient manner or in the best interests of its members, the commissioner may terminate the liquidation proceedings, take possession of the business and property of the credit union, and, for the purpose of carrying out the liquidation, may appoint, or cause to be appointed, a liquidating agent. The liquidating agent shall furnish bond for the faithful discharge of duties in an amount to be approved by the commissioner.
(d) The liquidating agent may, under rules and regulations that the supervisor prescribes: (1) Receive and take possession of the books, records, assets, and property of every description of the credit union in liquidation; sell, enforce collection of, and liquidate the assets and property; compound all bad or doubtful debts; sue in the name of the credit union in liquidation; and defend actions brought against the liquidating agent in that capacity or against the credit union; (2) Receive, examine, and pass upon all claims against the credit union in liquidation, including claims of members; (3) Make distribution and payment to creditors and members as their interests appear; (4) Execute documents and papers and do other acts that the liquidating agent deems necessary or desirable to discharge duties; and (5) The expenses incurred by the liquidating agent in the liquidation of the credit union include the compensation of the liquidating agent and any other necessary or proper expenses connected therewith, all of which shall be paid in order of priority out of the property of the credit union in the hands of the liquidating agent. The expenses of liquidation, including the compensation of the liquidating agent, are subject to approval by the commissioner unless the agent is appointed by the court.
(1) Receive and take possession of the books, records, assets, and property of every description of the credit union in liquidation; sell, enforce collection of, and liquidate the assets and property; compound all bad or doubtful debts; sue in the name of the credit union in liquidation; and defend actions brought against the liquidating agent in that capacity or against the credit union;
(2) Receive, examine, and pass upon all claims against the credit union in liquidation, including claims of members;
(3) Make distribution and payment to creditors and members as their interests appear;
(4) Execute documents and papers and do other acts that the liquidating agent deems necessary or desirable to discharge duties; and
(5) The expenses incurred by the liquidating agent in the liquidation of the credit union include the compensation of the liquidating agent and any other necessary or proper expenses connected therewith, all of which shall be paid in order of priority out of the property of the credit union in the hands of the liquidating agent. The expenses of liquidation, including the compensation of the liquidating agent, are subject to approval by the commissioner unless the agent is appointed by the court.
Acts 1923, ch. 68, § 23; Shan. Supp., § 2198a30; Code 1932, § 3857; Acts 1973, ch. 294, § 6; 1974, ch. 557, § 3; T.C.A. (orig. ed.), § 45-1828; Acts 1986, ch. 558, § 5.
Tenn. Code Ann. § 45-17-108 — TN Code / Title 45 / Chapter 17 / Section 45-17-108
Nontransferability - Change in control of license
Status: in_force

(a) A license issued pursuant to this chapter is not transferable or assignable. (b) The prior written approval of the commissioner is required for the continued operation of a deferred presentment services business whenever a change in control of a licensee is proposed. "Control," in the case of a corporation, means direct or indirect ownership, or the right to control, twenty-five percent (25%) or more of the voting shares of the corporation, or the ability of a person to elect a majority of the directors or otherwise effect a change in policy. "Control," in the case of any other entity, means the ability to change the principals of the organization, whether active or passive. The commissioner may require information deemed necessary to determine whether a new application is required. Costs incurred by the commissioner in investigating a change of control request shall be paid by the person requesting approval, subject to the limitations set forth in § 45-17-111 . (c) A licensee shall notify the department five (5) days before any change in the licensee's principal place of business, branch office or name. Acts 1997 , ch. 255, § 9; 1999, ch. 14, §1; 2012 , ch. 679, § 3.
(a) A license issued pursuant to this chapter is not transferable or assignable.
(b) The prior written approval of the commissioner is required for the continued operation of a deferred presentment services business whenever a change in control of a licensee is proposed. "Control," in the case of a corporation, means direct or indirect ownership, or the right to control, twenty-five percent (25%) or more of the voting shares of the corporation, or the ability of a person to elect a majority of the directors or otherwise effect a change in policy. "Control," in the case of any other entity, means the ability to change the principals of the organization, whether active or passive. The commissioner may require information deemed necessary to determine whether a new application is required. Costs incurred by the commissioner in investigating a change of control request shall be paid by the person requesting approval, subject to the limitations set forth in § 45-17-111 .
(c) A licensee shall notify the department five (5) days before any change in the licensee's principal place of business, branch office or name.
Acts 1997 , ch. 255, § 9; 1999, ch. 14, §1; 2012 , ch. 679, § 3.
Tenn. Code Ann. § 45-1-105 — TN Code / Title 45 / Chapter 1 / Section 45-1-105
Commissioner, deputy and assistant commissioners - Qualifications - Vacancy
Status: in_force

(a) (1) The department will have as its chief executive officer a commissioner who will be appointed by the governor as commissioner of financial institutions, and who shall have the same official status as all other commissioners. The commissioner shall hold office for the term of office of the governor except the commissioner may be removed from office by the governor for cause. (2) The commissioner shall be a person of good character with at least five (5) years of experience in the theory and practice of bank management, three (3) years of which must have been in a full-time management or regulatory capacity. No person under thirty (30) years of age is eligible for appointment as commissioner. (b) (1) With the consent of the governor, the commissioner has the power to appoint a deputy commissioner and one (1) assistant commissioner for each division within the department who shall serve at the will of the commissioner. (2) The deputy commissioner and assistant commissioners shall be persons of good character and have a minimum of three (3) years experience in the theory and practice of banking, or in the function and operation of credit unions in the case of the assistant commissioner for the credit union division, or in the function and operation of a financial institution in the case of the assistant commissioner for the compliance division, all of which must have been in a full-time management or regulatory capacity. For the purpose of this subsection (b), "financial institution" means any institution subject to the commissioner's jurisdiction and includes similar entities regulated by any other state or federal regulatory agency. (3) If the office of the commissioner is vacant, or if the commissioner is absent and unable to act, the governor may designate the deputy commissioner to be acting commissioner. If both the office of the commissioner and the office of the deputy commissioner are vacant or both are unable to act, the governor may designate one (1) of the assistant commissioners as acting commissioner. Acts 1913, ch. 20, § 1; Shan., § 3273a14; Code 1932, § 5940; T.C.A. (orig. ed.), § 45-102; Acts 1973, ch. 294, §§ 10, 13; modified; T.C.A., §§ 45-106, 45-125; Acts 1983, ch. 274, § 4; 1993, ch. 22, §§ 2, 3; 2004, ch. 747, § 17.
(a) (1) The department will have as its chief executive officer a commissioner who will be appointed by the governor as commissioner of financial institutions, and who shall have the same official status as all other commissioners. The commissioner shall hold office for the term of office of the governor except the commissioner may be removed from office by the governor for cause. (2) The commissioner shall be a person of good character with at least five (5) years of experience in the theory and practice of bank management, three (3) years of which must have been in a full-time management or regulatory capacity. No person under thirty (30) years of age is eligible for appointment as commissioner.
(1) The department will have as its chief executive officer a commissioner who will be appointed by the governor as commissioner of financial institutions, and who shall have the same official status as all other commissioners. The commissioner shall hold office for the term of office of the governor except the commissioner may be removed from office by the governor for cause.
(2) The commissioner shall be a person of good character with at least five (5) years of experience in the theory and practice of bank management, three (3) years of which must have been in a full-time management or regulatory capacity. No person under thirty (30) years of age is eligible for appointment as commissioner.
(b) (1) With the consent of the governor, the commissioner has the power to appoint a deputy commissioner and one (1) assistant commissioner for each division within the department who shall serve at the will of the commissioner. (2) The deputy commissioner and assistant commissioners shall be persons of good character and have a minimum of three (3) years experience in the theory and practice of banking, or in the function and operation of credit unions in the case of the assistant commissioner for the credit union division, or in the function and operation of a financial institution in the case of the assistant commissioner for the compliance division, all of which must have been in a full-time management or regulatory capacity. For the purpose of this subsection (b), "financial institution" means any institution subject to the commissioner's jurisdiction and includes similar entities regulated by any other state or federal regulatory agency. (3) If the office of the commissioner is vacant, or if the commissioner is absent and unable to act, the governor may designate the deputy commissioner to be acting commissioner. If both the office of the commissioner and the office of the deputy commissioner are vacant or both are unable to act, the governor may designate one (1) of the assistant commissioners as acting commissioner.
(1) With the consent of the governor, the commissioner has the power to appoint a deputy commissioner and one (1) assistant commissioner for each division within the department who shall serve at the will of the commissioner.
(2) The deputy commissioner and assistant commissioners shall be persons of good character and have a minimum of three (3) years experience in the theory and practice of banking, or in the function and operation of credit unions in the case of the assistant commissioner for the credit union division, or in the function and operation of a financial institution in the case of the assistant commissioner for the compliance division, all of which must have been in a full-time management or regulatory capacity. For the purpose of this subsection (b), "financial institution" means any institution subject to the commissioner's jurisdiction and includes similar entities regulated by any other state or federal regulatory agency.
(3) If the office of the commissioner is vacant, or if the commissioner is absent and unable to act, the governor may designate the deputy commissioner to be acting commissioner. If both the office of the commissioner and the office of the deputy commissioner are vacant or both are unable to act, the governor may designate one (1) of the assistant commissioners as acting commissioner.
Acts 1913, ch. 20, § 1; Shan., § 3273a14; Code 1932, § 5940; T.C.A. (orig. ed.), § 45-102; Acts 1973, ch. 294, §§ 10, 13; modified; T.C.A., §§ 45-106, 45-125; Acts 1983, ch. 274, § 4; 1993, ch. 22, §§ 2, 3; 2004, ch. 747, § 17.
Tenn. Code Ann. § 45-2-607 — TN Code / Title 45 / Chapter 2 / Section 45-2-607
Investments
Status: in_force

(a) Investments by state banks shall be limited to: (1) Obligations that satisfy the requirements of this chapter and chapter 1 of this title for loans; (2) Obligations of the United States, a state of the United States or the Dominion of Canada; (3) Obligations of the International Bank for Reconstruction and Redevelopment or the African Development Bank; (4) Obligations of a territory of the United States, a province of the Dominion of Canada, a subdivision or instrumentality of a state or territory of the United States, an authority organized under state law, an interstate compact or by substantially identical legislation adopted by two (2) or more states; (5) Obligations of a corporation chartered by the United States or a state thereof doing business in the United States; (6) The stock of one (1) or more banks or corporations chartered or incorporated under the laws of the United States, or of any state of the United States, and principally engaged in international or foreign banking, or banking in a dependency or insular possession of the United States, either directly or through the agency, ownership or control of local institutions in foreign countries, or in the dependencies or insular possessions, including the stock of one (1) or more banks or corporations chartered or incorporated under § 25a of the Federal Reserve Act, as approved December 24, 1919. Any state bank shall have the power to acquire and hold directly or indirectly stock or other evidences of ownership in one (1) or more banks organized under the law of a foreign country or dependency or insular possession of the United States and not engaged directly or indirectly in any activity in the United States, except that which is incidental to the international and foreign business of the foreign bank and to make loans or extension of credit to or for the account of the bank. Investments in the stock of banks or corporations under this subdivision (a)(6) shall not exceed in the aggregate ten percent (10%) of the state bank's paid-in capital stock and surplus; (7) The capital stock of joint stock land banks for carrying on the business of lending money on farm mortgage security created and organized under the act of congress of the United States, approved July 17, 1916, and known as the Federal Farm Loan Act. Any bank, firm, person, or corporation doing a banking business may invest its funds and accumulations in stocks, notes, bonds, debentures, or other obligations issued under the act of congress of the United States entitled the Federal Home Loan Bank Act approved July 22, 1932, and in notes, bonds, debentures, or other obligations issued under title IV of the act of congress of the United States entitled the National Housing Act, approved June 27, 1934; (8) Stock, debentures, and other obligations of national mortgage associations or similar institutions now or hereafter organized under title III of the National Housing Act, to the same extent as national banks are now or hereafter permitted to invest in the stock and/or obligations; (9) Real property to the extent that the total depreciated value thereof does not exceed the capital and surplus of the bank; (10) Personal property acquired for lease to customers; (11) The stock of any other bank located in this state; provided, that the investment in the stock of all the banks shall not exceed ten percent (10%) of the capital, surplus, and undivided profits of the investing bank; and provided further, that if the stock is voting stock, the investment shall not exceed five percent (5%) of the total of the voting stock. The investment shall be made only upon thirty (30) days' prior written notice to the commissioner of financial institutions, and any investment that is consummated without giving notice shall be void. The commissioner shall have the right to disapprove the investment if the commissioner finds that the investment does not conform with the standards set forth in §§ 45-1-102 and 45-1-107 , and gives written notice detailing the reasons for disapproval on or before the end of the thirty-day period. If the commissioner disapproves the transaction, the bank shall have a right to a hearing before the commissioner under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. This investment shall be in addition to the right of any bank to invest in the stock of a banker's bank otherwise permitted under this section; (12) Adjustable rate preferred stock of any publicly held corporation created or existing under the laws of the United States or any state, district, or territory of the United States that is rated in one (1) of the four (4) highest investment grades by one (1) or more recognized investment rating services approved by the commissioner for rating the investments. The bank's investment in adjustable rate preferred stock shall be permitted to the same extent the investments are permitted to national banks domiciled in Tennessee, subject to regulation by the commissioner for the purpose of maintaining the state bank's safety and soundness; (13) (A) Shares or certificates in any open-end management investment company that is registered with the securities and exchange commission under the Investment Company Act of 1940, and the portfolio of which is restricted by the management company's investment policy, changeable only if authorized by shareholder vote, solely to any investments in which a bank by law or regulation may invest; (B) The bank's investment in the shares or certificates of the open-end investment companies shall be permitted to the same extent the investments are permitted to national banks domiciled in Tennessee, subject to limiting regulations promulgated by the commissioner pursuant to the Uniform Administrative Procedures Act, for the purpose of safety and soundness; (14) Other investments that are authorized national banks or member banks of the federal reserve system; (15) Subject to regulations promulgated by the commissioner for the purpose of maintaining the state bank's safety and soundness, a bank may invest in a Tennessee business and industrial development corporation (BIDCO) as provided in § 45-8-203 ; provided, that the investment in the stock of the BIDCO shall not exceed ten percent (10%) of the capital, surplus, and undivided profits of the investing bank. The investment shall be made only upon thirty (30) days' prior written notice to the commissioner and an investment that is consummated without giving notice shall be void. The commissioner shall have the right to disapprove the investment if the commissioner finds that the investment does not conform to the standards set forth in §§ 45-1-102 and 45-1-107 and gives written notice detailing the reasons for the disapproval on or before the end of the thirty-day period. If the commissioner disapproves the transaction, the bank shall have a right to a hearing under the Uniform Administrative Procedures Act. This investment shall be in addition to the right of any bank to invest in the stock of a bankers' bank, otherwise permitted under this section and in the stock of any other bank located in Tennessee, otherwise permitted by this section; and (16) Stock, debentures, and other obligations of community development corporations subject to the rules the commissioner may prescribe. (b) Any investment in property that is not authorized by subsection (a) may be acquired by any state bank to satisfy or protect a loan previously made in good faith and in the ordinary course of business. Property acquired in satisfaction of a loan shall be held subject to the following limitations: (1) All property except real property shall be sold within twelve (12) months or such additional period as the commissioner may allow; and (2) (A) Except as provided in subdivision (b)(2)(B), real property shall be sold within ten (10) years; (B) If the bank holds the real property for a period longer than five (5) years, then after an initial five-year period, the bank, in reporting its financial status to the department, shall write off twenty percent (20%) of the appraised value of the real property each subsequent year it is held until the real property is either sold or the ten-year period has elapsed. Upon application of the bank, the commissioner may, in extraordinary circumstances, adjust or waive the percentage a bank shall write off the real property each year, may extend the period in which the real property may be held beyond ten (10) years, or any combination of the foregoing. If the commissioner reduces, waives, or adjusts the amount of write-off, the real property may not be carried at more than the appraised value of the property; (C) Real property which has been written off but not disposed of shall be maintained on the bank's books at some nominal value; (D) If the bank's board of directors deems the real property owned to be a prudent investment for income or appreciation for the bank, the board may take action to maintain the real property on the bank's books as an investment, pursuant to subdivision (a)(9); (E) Not more than one hundred twenty (120) days before or thirty (30) days after the date the parcel is acquired by the bank as real property owned, or from the date on which the bank legally acquires the real property for investment purposes, the bank shall obtain from an independent, qualified appraiser an appraisal of the parcel; provided, however, that: (i) For parcels whose book value is five hundred thousand dollars ($500,000) or less, the bank may obtain an evaluation in lieu of an appraisal; and (ii) For parcels whose book value is two hundred fifty thousand dollars ($250,000) or less, no appraisal or evaluation shall be required; and (F) Within twelve (12) months from the date the bank acquires the real property, and every twelve (12) months thereafter for as long as the bank owns the real property, the bank shall obtain another appraisal or evaluation, whichever is appropriate as provided for in subdivision (b)(2)(E). (c) As used in this section, "investment" means the purchase of any interest in any property of any nature principally for the purpose of deriving profit from changes in the value of the property or from dividends, interest or rent thereon, as distinguished from the purpose of using the property in the conduct of the business of a bank. Notwithstanding the foregoing, the investment by a bank or trust company in one (1) or more subsidiaries, or the underwriting of or dealing in certificates of deposit, bankers' acceptances or those securities that are permissible investments for a bank under subdivisions (a)(1)-(14), shall not constitute an investment within the meaning of this section. (d) (1) In addition to the other provisions of this section, upon thirty (30) days' prior written notice to the commissioner, providing such detail as the commissioner may require, a bank may invest, in the aggregate, up to seventy-five percent (75%) of its unimpaired capital, surplus and undivided profits in the stock or purchase the assets of other corporations, firms, partnerships or companies, including limited liability corporations and limited liability partnerships, which are or will be: (A) Primarily engaging in activities permissible for federally chartered financial institutions, their authorized subsidiaries or bank holding companies under applicable laws, rules, regulations or orders; (B) Primarily engaging in activities of a financial nature, including, but not limited to, the transmission or processing of information, data or payments relating to the activities, all forms of securities activities not otherwise authorized, together with other activities that the commissioner shall determine and that may be permissible for other bank and non-bank financial institutions chartered by Tennessee or other states by regulation or order; or (C) Engaging in any other activities approved by the commissioner. (2) Unless denied by the commissioner within thirty (30) days following receipt of the written notice or upon approval prior to the expiration of the thirty (30) days, a bank may complete its investment in the stock or purchase the assets of the other corporation, firm, partnership or company, or commence a new activity through an existing subsidiary. The commissioner may extend the thirty-day period for approval or denial, for an additional thirty-day period, by notifying the applicant if the commissioner determines that the proposed investment or activity raises issues that require additional information or additional time for analysis. (3) The commissioner shall monitor the impact of activities and investments of banks approved under this section on the safety and soundness of the banks. Any stocks owned or hereafter acquired in excess of the limitations herein imposed shall be disposed of at public or private sale within six (6) months after the date of acquiring the stocks, and if not so disposed of, they shall be charged to profit and loss account, and no longer carried on the books as an asset. The limit of time in which the stocks shall be disposed of or charged off the books of the bank may be extended by the commissioner if, in the commissioner's judgment, it is for the best interest of the bank that the extension be granted. (4) The commissioner may, as a condition of approving an investment under this section, impose limits on the loans that each bank can make to the corporation, firm or partnership. (5) The commissioner shall maintain a public file, available for inspection at the department's offices, which shall contain a summary or synopsis of any application submitted under this subsection (d). The summary shall include only the name of the institution applying, the proposed activity and the decision of the commissioner. (6) Any state or national bank or subsidiary that engages in an activity that subjects it to licensure and/or regulation under other than title 45, chapter 2, shall be subject to licensure and/or regulation on a basis that does not discriminate by the appropriate regulatory agency that licenses and/or regulates non-banks that engage in the same activity. Amended by 2024 Tenn. Acts, ch. 556,s 4, eff. 7/1/2024. Amended by 2024 Tenn. Acts, ch. 556,s 3, eff. 7/1/2024. Amended by 2021 Tenn. Acts, ch. 78, s 1, eff. 3/31/2021. Amended by 2013 Tenn. Acts, ch. 233, s 1, eff. 4/19/2013. Acts 1969, ch. 36, § 1 (3.242); 1973, ch. 294, § 6; T.C.A., § 45-436; Acts 1983, ch. 74, § 6; impl. am. Acts 1983, ch. 216, §§ 1-9; 1986, ch. 602, § 1; 1987, ch. 86, §§ 1, 2; 1988, ch. 819, § 1; 1989, ch. 124, § 25; 1989, ch. 150, § 1; 1989, ch. 168, § 2; 1994, ch. 551, §§ 11, 12; 1996, ch. 768, § 19.
(a) Investments by state banks shall be limited to: (1) Obligations that satisfy the requirements of this chapter and chapter 1 of this title for loans; (2) Obligations of the United States, a state of the United States or the Dominion of Canada; (3) Obligations of the International Bank for Reconstruction and Redevelopment or the African Development Bank; (4) Obligations of a territory of the United States, a province of the Dominion of Canada, a subdivision or instrumentality of a state or territory of the United States, an authority organized under state law, an interstate compact or by substantially identical legislation adopted by two (2) or more states; (5) Obligations of a corporation chartered by the United States or a state thereof doing business in the United States; (6) The stock of one (1) or more banks or corporations chartered or incorporated under the laws of the United States, or of any state of the United States, and principally engaged in international or foreign banking, or banking in a dependency or insular possession of the United States, either directly or through the agency, ownership or control of local institutions in foreign countries, or in the dependencies or insular possessions, including the stock of one (1) or more banks or corporations chartered or incorporated under § 25a of the Federal Reserve Act, as approved December 24, 1919. Any state bank shall have the power to acquire and hold directly or indirectly stock or other evidences of ownership in one (1) or more banks organized under the law of a foreign country or dependency or insular possession of the United States and not engaged directly or indirectly in any activity in the United States, except that which is incidental to the international and foreign business of the foreign bank and to make loans or extension of credit to or for the account of the bank. Investments in the stock of banks or corporations under this subdivision (a)(6) shall not exceed in the aggregate ten percent (10%) of the state bank's paid-in capital stock and surplus; (7) The capital stock of joint stock land banks for carrying on the business of lending money on farm mortgage security created and organized under the act of congress of the United States, approved July 17, 1916, and known as the Federal Farm Loan Act. Any bank, firm, person, or corporation doing a banking business may invest its funds and accumulations in stocks, notes, bonds, debentures, or other obligations issued under the act of congress of the United States entitled the Federal Home Loan Bank Act approved July 22, 1932, and in notes, bonds, debentures, or other obligations issued under title IV of the act of congress of the United States entitled the National Housing Act, approved June 27, 1934; (8) Stock, debentures, and other obligations of national mortgage associations or similar institutions now or hereafter organized under title III of the National Housing Act, to the same extent as national banks are now or hereafter permitted to invest in the stock and/or obligations; (9) Real property to the extent that the total depreciated value thereof does not exceed the capital and surplus of the bank; (10) Personal property acquired for lease to customers; (11) The stock of any other bank located in this state; provided, that the investment in the stock of all the banks shall not exceed ten percent (10%) of the capital, surplus, and undivided profits of the investing bank; and provided further, that if the stock is voting stock, the investment shall not exceed five percent (5%) of the total of the voting stock. The investment shall be made only upon thirty (30) days' prior written notice to the commissioner of financial institutions, and any investment that is consummated without giving notice shall be void. The commissioner shall have the right to disapprove the investment if the commissioner finds that the investment does not conform with the standards set forth in §§ 45-1-102 and 45-1-107 , and gives written notice detailing the reasons for disapproval on or before the end of the thirty-day period. If the commissioner disapproves the transaction, the bank shall have a right to a hearing before the commissioner under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. This investment shall be in addition to the right of any bank to invest in the stock of a banker's bank otherwise permitted under this section; (12) Adjustable rate preferred stock of any publicly held corporation created or existing under the laws of the United States or any state, district, or territory of the United States that is rated in one (1) of the four (4) highest investment grades by one (1) or more recognized investment rating services approved by the commissioner for rating the investments. The bank's investment in adjustable rate preferred stock shall be permitted to the same extent the investments are permitted to national banks domiciled in Tennessee, subject to regulation by the commissioner for the purpose of maintaining the state bank's safety and soundness; (13) (A) Shares or certificates in any open-end management investment company that is registered with the securities and exchange commission under the Investment Company Act of 1940, and the portfolio of which is restricted by the management company's investment policy, changeable only if authorized by shareholder vote, solely to any investments in which a bank by law or regulation may invest; (B) The bank's investment in the shares or certificates of the open-end investment companies shall be permitted to the same extent the investments are permitted to national banks domiciled in Tennessee, subject to limiting regulations promulgated by the commissioner pursuant to the Uniform Administrative Procedures Act, for the purpose of safety and soundness; (14) Other investments that are authorized national banks or member banks of the federal reserve system; (15) Subject to regulations promulgated by the commissioner for the purpose of maintaining the state bank's safety and soundness, a bank may invest in a Tennessee business and industrial development corporation (BIDCO) as provided in § 45-8-203 ; provided, that the investment in the stock of the BIDCO shall not exceed ten percent (10%) of the capital, surplus, and undivided profits of the investing bank. The investment shall be made only upon thirty (30) days' prior written notice to the commissioner and an investment that is consummated without giving notice shall be void. The commissioner shall have the right to disapprove the investment if the commissioner finds that the investment does not conform to the standards set forth in §§ 45-1-102 and 45-1-107 and gives written notice detailing the reasons for the disapproval on or before the end of the thirty-day period. If the commissioner disapproves the transaction, the bank shall have a right to a hearing under the Uniform Administrative Procedures Act. This investment shall be in addition to the right of any bank to invest in the stock of a bankers' bank, otherwise permitted under this section and in the stock of any other bank located in Tennessee, otherwise permitted by this section; and (16) Stock, debentures, and other obligations of community development corporations subject to the rules the commissioner may prescribe.
(1) Obligations that satisfy the requirements of this chapter and chapter 1 of this title for loans;
(2) Obligations of the United States, a state of the United States or the Dominion of Canada;
(3) Obligations of the International Bank for Reconstruction and Redevelopment or the African Development Bank;
(4) Obligations of a territory of the United States, a province of the Dominion of Canada, a subdivision or instrumentality of a state or territory of the United States, an authority organized under state law, an interstate compact or by substantially identical legislation adopted by two (2) or more states;
(5) Obligations of a corporation chartered by the United States or a state thereof doing business in the United States;
(6) The stock of one (1) or more banks or corporations chartered or incorporated under the laws of the United States, or of any state of the United States, and principally engaged in international or foreign banking, or banking in a dependency or insular possession of the United States, either directly or through the agency, ownership or control of local institutions in foreign countries, or in the dependencies or insular possessions, including the stock of one (1) or more banks or corporations chartered or incorporated under § 25a of the Federal Reserve Act, as approved December 24, 1919. Any state bank shall have the power to acquire and hold directly or indirectly stock or other evidences of ownership in one (1) or more banks organized under the law of a foreign country or dependency or insular possession of the United States and not engaged directly or indirectly in any activity in the United States, except that which is incidental to the international and foreign business of the foreign bank and to make loans or extension of credit to or for the account of the bank. Investments in the stock of banks or corporations under this subdivision (a)(6) shall not exceed in the aggregate ten percent (10%) of the state bank's paid-in capital stock and surplus;
(7) The capital stock of joint stock land banks for carrying on the business of lending money on farm mortgage security created and organized under the act of congress of the United States, approved July 17, 1916, and known as the Federal Farm Loan Act. Any bank, firm, person, or corporation doing a banking business may invest its funds and accumulations in stocks, notes, bonds, debentures, or other obligations issued under the act of congress of the United States entitled the Federal Home Loan Bank Act approved July 22, 1932, and in notes, bonds, debentures, or other obligations issued under title IV of the act of congress of the United States entitled the National Housing Act, approved June 27, 1934;
(8) Stock, debentures, and other obligations of national mortgage associations or similar institutions now or hereafter organized under title III of the National Housing Act, to the same extent as national banks are now or hereafter permitted to invest in the stock and/or obligations;
(9) Real property to the extent that the total depreciated value thereof does not exceed the capital and surplus of the bank;
(10) Personal property acquired for lease to customers;
(11) The stock of any other bank located in this state; provided, that the investment in the stock of all the banks shall not exceed ten percent (10%) of the capital, surplus, and undivided profits of the investing bank; and provided further, that if the stock is voting stock, the investment shall not exceed five percent (5%) of the total of the voting stock. The investment shall be made only upon thirty (30) days' prior written notice to the commissioner of financial institutions, and any investment that is consummated without giving notice shall be void. The commissioner shall have the right to disapprove the investment if the commissioner finds that the investment does not conform with the standards set forth in §§ 45-1-102 and 45-1-107 , and gives written notice detailing the reasons for disapproval on or before the end of the thirty-day period. If the commissioner disapproves the transaction, the bank shall have a right to a hearing before the commissioner under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. This investment shall be in addition to the right of any bank to invest in the stock of a banker's bank otherwise permitted under this section;
(12) Adjustable rate preferred stock of any publicly held corporation created or existing under the laws of the United States or any state, district, or territory of the United States that is rated in one (1) of the four (4) highest investment grades by one (1) or more recognized investment rating services approved by the commissioner for rating the investments. The bank's investment in adjustable rate preferred stock shall be permitted to the same extent the investments are permitted to national banks domiciled in Tennessee, subject to regulation by the commissioner for the purpose of maintaining the state bank's safety and soundness;
(13) (A) Shares or certificates in any open-end management investment company that is registered with the securities and exchange commission under the Investment Company Act of 1940, and the portfolio of which is restricted by the management company's investment policy, changeable only if authorized by shareholder vote, solely to any investments in which a bank by law or regulation may invest; (B) The bank's investment in the shares or certificates of the open-end investment companies shall be permitted to the same extent the investments are permitted to national banks domiciled in Tennessee, subject to limiting regulations promulgated by the commissioner pursuant to the Uniform Administrative Procedures Act, for the purpose of safety and soundness;
(A) Shares or certificates in any open-end management investment company that is registered with the securities and exchange commission under the Investment Company Act of 1940, and the portfolio of which is restricted by the management company's investment policy, changeable only if authorized by shareholder vote, solely to any investments in which a bank by law or regulation may invest;
(B) The bank's investment in the shares or certificates of the open-end investment companies shall be permitted to the same extent the investments are permitted to national banks domiciled in Tennessee, subject to limiting regulations promulgated by the commissioner pursuant to the Uniform Administrative Procedures Act, for the purpose of safety and soundness;
(14) Other investments that are authorized national banks or member banks of the federal reserve system;
(15) Subject to regulations promulgated by the commissioner for the purpose of maintaining the state bank's safety and soundness, a bank may invest in a Tennessee business and industrial development corporation (BIDCO) as provided in § 45-8-203 ; provided, that the investment in the stock of the BIDCO shall not exceed ten percent (10%) of the capital, surplus, and undivided profits of the investing bank. The investment shall be made only upon thirty (30) days' prior written notice to the commissioner and an investment that is consummated without giving notice shall be void. The commissioner shall have the right to disapprove the investment if the commissioner finds that the investment does not conform to the standards set forth in §§ 45-1-102 and 45-1-107 and gives written notice detailing the reasons for the disapproval on or before the end of the thirty-day period. If the commissioner disapproves the transaction, the bank shall have a right to a hearing under the Uniform Administrative Procedures Act. This investment shall be in addition to the right of any bank to invest in the stock of a bankers' bank, otherwise permitted under this section and in the stock of any other bank located in Tennessee, otherwise permitted by this section; and
(16) Stock, debentures, and other obligations of community development corporations subject to the rules the commissioner may prescribe.
(b) Any investment in property that is not authorized by subsection (a) may be acquired by any state bank to satisfy or protect a loan previously made in good faith and in the ordinary course of business. Property acquired in satisfaction of a loan shall be held subject to the following limitations: (1) All property except real property shall be sold within twelve (12) months or such additional period as the commissioner may allow; and (2) (A) Except as provided in subdivision (b)(2)(B), real property shall be sold within ten (10) years; (B) If the bank holds the real property for a period longer than five (5) years, then after an initial five-year period, the bank, in reporting its financial status to the department, shall write off twenty percent (20%) of the appraised value of the real property each subsequent year it is held until the real property is either sold or the ten-year period has elapsed. Upon application of the bank, the commissioner may, in extraordinary circumstances, adjust or waive the percentage a bank shall write off the real property each year, may extend the period in which the real property may be held beyond ten (10) years, or any combination of the foregoing. If the commissioner reduces, waives, or adjusts the amount of write-off, the real property may not be carried at more than the appraised value of the property; (C) Real property which has been written off but not disposed of shall be maintained on the bank's books at some nominal value; (D) If the bank's board of directors deems the real property owned to be a prudent investment for income or appreciation for the bank, the board may take action to maintain the real property on the bank's books as an investment, pursuant to subdivision (a)(9); (E) Not more than one hundred twenty (120) days before or thirty (30) days after the date the parcel is acquired by the bank as real property owned, or from the date on which the bank legally acquires the real property for investment purposes, the bank shall obtain from an independent, qualified appraiser an appraisal of the parcel; provided, however, that: (i) For parcels whose book value is five hundred thousand dollars ($500,000) or less, the bank may obtain an evaluation in lieu of an appraisal; and (ii) For parcels whose book value is two hundred fifty thousand dollars ($250,000) or less, no appraisal or evaluation shall be required; and (F) Within twelve (12) months from the date the bank acquires the real property, and every twelve (12) months thereafter for as long as the bank owns the real property, the bank shall obtain another appraisal or evaluation, whichever is appropriate as provided for in subdivision (b)(2)(E).
(1) All property except real property shall be sold within twelve (12) months or such additional period as the commissioner may allow; and
(2) (A) Except as provided in subdivision (b)(2)(B), real property shall be sold within ten (10) years; (B) If the bank holds the real property for a period longer than five (5) years, then after an initial five-year period, the bank, in reporting its financial status to the department, shall write off twenty percent (20%) of the appraised value of the real property each subsequent year it is held until the real property is either sold or the ten-year period has elapsed. Upon application of the bank, the commissioner may, in extraordinary circumstances, adjust or waive the percentage a bank shall write off the real property each year, may extend the period in which the real property may be held beyond ten (10) years, or any combination of the foregoing. If the commissioner reduces, waives, or adjusts the amount of write-off, the real property may not be carried at more than the appraised value of the property; (C) Real property which has been written off but not disposed of shall be maintained on the bank's books at some nominal value; (D) If the bank's board of directors deems the real property owned to be a prudent investment for income or appreciation for the bank, the board may take action to maintain the real property on the bank's books as an investment, pursuant to subdivision (a)(9); (E) Not more than one hundred twenty (120) days before or thirty (30) days after the date the parcel is acquired by the bank as real property owned, or from the date on which the bank legally acquires the real property for investment purposes, the bank shall obtain from an independent, qualified appraiser an appraisal of the parcel; provided, however, that: (i) For parcels whose book value is five hundred thousand dollars ($500,000) or less, the bank may obtain an evaluation in lieu of an appraisal; and (ii) For parcels whose book value is two hundred fifty thousand dollars ($250,000) or less, no appraisal or evaluation shall be required; and (F) Within twelve (12) months from the date the bank acquires the real property, and every twelve (12) months thereafter for as long as the bank owns the real property, the bank shall obtain another appraisal or evaluation, whichever is appropriate as provided for in subdivision (b)(2)(E).
(A) Except as provided in subdivision (b)(2)(B), real property shall be sold within ten (10) years;
(B) If the bank holds the real property for a period longer than five (5) years, then after an initial five-year period, the bank, in reporting its financial status to the department, shall write off twenty percent (20%) of the appraised value of the real property each subsequent year it is held until the real property is either sold or the ten-year period has elapsed. Upon application of the bank, the commissioner may, in extraordinary circumstances, adjust or waive the percentage a bank shall write off the real property each year, may extend the period in which the real property may be held beyond ten (10) years, or any combination of the foregoing. If the commissioner reduces, waives, or adjusts the amount of write-off, the real property may not be carried at more than the appraised value of the property;
(C) Real property which has been written off but not disposed of shall be maintained on the bank's books at some nominal value;
(D) If the bank's board of directors deems the real property owned to be a prudent investment for income or appreciation for the bank, the board may take action to maintain the real property on the bank's books as an investment, pursuant to subdivision (a)(9);
(E) Not more than one hundred twenty (120) days before or thirty (30) days after the date the parcel is acquired by the bank as real property owned, or from the date on which the bank legally acquires the real property for investment purposes, the bank shall obtain from an independent, qualified appraiser an appraisal of the parcel; provided, however, that: (i) For parcels whose book value is five hundred thousand dollars ($500,000) or less, the bank may obtain an evaluation in lieu of an appraisal; and (ii) For parcels whose book value is two hundred fifty thousand dollars ($250,000) or less, no appraisal or evaluation shall be required; and
(i) For parcels whose book value is five hundred thousand dollars ($500,000) or less, the bank may obtain an evaluation in lieu of an appraisal; and
(ii) For parcels whose book value is two hundred fifty thousand dollars ($250,000) or less, no appraisal or evaluation shall be required; and
(F) Within twelve (12) months from the date the bank acquires the real property, and every twelve (12) months thereafter for as long as the bank owns the real property, the bank shall obtain another appraisal or evaluation, whichever is appropriate as provided for in subdivision (b)(2)(E).
(c) As used in this section, "investment" means the purchase of any interest in any property of any nature principally for the purpose of deriving profit from changes in the value of the property or from dividends, interest or rent thereon, as distinguished from the purpose of using the property in the conduct of the business of a bank. Notwithstanding the foregoing, the investment by a bank or trust company in one (1) or more subsidiaries, or the underwriting of or dealing in certificates of deposit, bankers' acceptances or those securities that are permissible investments for a bank under subdivisions (a)(1)-(14), shall not constitute an investment within the meaning of this section.
(d) (1) In addition to the other provisions of this section, upon thirty (30) days' prior written notice to the commissioner, providing such detail as the commissioner may require, a bank may invest, in the aggregate, up to seventy-five percent (75%) of its unimpaired capital, surplus and undivided profits in the stock or purchase the assets of other corporations, firms, partnerships or companies, including limited liability corporations and limited liability partnerships, which are or will be: (A) Primarily engaging in activities permissible for federally chartered financial institutions, their authorized subsidiaries or bank holding companies under applicable laws, rules, regulations or orders; (B) Primarily engaging in activities of a financial nature, including, but not limited to, the transmission or processing of information, data or payments relating to the activities, all forms of securities activities not otherwise authorized, together with other activities that the commissioner shall determine and that may be permissible for other bank and non-bank financial institutions chartered by Tennessee or other states by regulation or order; or (C) Engaging in any other activities approved by the commissioner. (2) Unless denied by the commissioner within thirty (30) days following receipt of the written notice or upon approval prior to the expiration of the thirty (30) days, a bank may complete its investment in the stock or purchase the assets of the other corporation, firm, partnership or company, or commence a new activity through an existing subsidiary. The commissioner may extend the thirty-day period for approval or denial, for an additional thirty-day period, by notifying the applicant if the commissioner determines that the proposed investment or activity raises issues that require additional information or additional time for analysis. (3) The commissioner shall monitor the impact of activities and investments of banks approved under this section on the safety and soundness of the banks. Any stocks owned or hereafter acquired in excess of the limitations herein imposed shall be disposed of at public or private sale within six (6) months after the date of acquiring the stocks, and if not so disposed of, they shall be charged to profit and loss account, and no longer carried on the books as an asset. The limit of time in which the stocks shall be disposed of or charged off the books of the bank may be extended by the commissioner if, in the commissioner's judgment, it is for the best interest of the bank that the extension be granted. (4) The commissioner may, as a condition of approving an investment under this section, impose limits on the loans that each bank can make to the corporation, firm or partnership. (5) The commissioner shall maintain a public file, available for inspection at the department's offices, which shall contain a summary or synopsis of any application submitted under this subsection (d). The summary shall include only the name of the institution applying, the proposed activity and the decision of the commissioner. (6) Any state or national bank or subsidiary that engages in an activity that subjects it to licensure and/or regulation under other than title 45, chapter 2, shall be subject to licensure and/or regulation on a basis that does not discriminate by the appropriate regulatory agency that licenses and/or regulates non-banks that engage in the same activity.
(1) In addition to the other provisions of this section, upon thirty (30) days' prior written notice to the commissioner, providing such detail as the commissioner may require, a bank may invest, in the aggregate, up to seventy-five percent (75%) of its unimpaired capital, surplus and undivided profits in the stock or purchase the assets of other corporations, firms, partnerships or companies, including limited liability corporations and limited liability partnerships, which are or will be: (A) Primarily engaging in activities permissible for federally chartered financial institutions, their authorized subsidiaries or bank holding companies under applicable laws, rules, regulations or orders; (B) Primarily engaging in activities of a financial nature, including, but not limited to, the transmission or processing of information, data or payments relating to the activities, all forms of securities activities not otherwise authorized, together with other activities that the commissioner shall determine and that may be permissible for other bank and non-bank financial institutions chartered by Tennessee or other states by regulation or order; or (C) Engaging in any other activities approved by the commissioner.
(A) Primarily engaging in activities permissible for federally chartered financial institutions, their authorized subsidiaries or bank holding companies under applicable laws, rules, regulations or orders;
(B) Primarily engaging in activities of a financial nature, including, but not limited to, the transmission or processing of information, data or payments relating to the activities, all forms of securities activities not otherwise authorized, together with other activities that the commissioner shall determine and that may be permissible for other bank and non-bank financial institutions chartered by Tennessee or other states by regulation or order; or
(C) Engaging in any other activities approved by the commissioner.
(2) Unless denied by the commissioner within thirty (30) days following receipt of the written notice or upon approval prior to the expiration of the thirty (30) days, a bank may complete its investment in the stock or purchase the assets of the other corporation, firm, partnership or company, or commence a new activity through an existing subsidiary. The commissioner may extend the thirty-day period for approval or denial, for an additional thirty-day period, by notifying the applicant if the commissioner determines that the proposed investment or activity raises issues that require additional information or additional time for analysis.
(3) The commissioner shall monitor the impact of activities and investments of banks approved under this section on the safety and soundness of the banks. Any stocks owned or hereafter acquired in excess of the limitations herein imposed shall be disposed of at public or private sale within six (6) months after the date of acquiring the stocks, and if not so disposed of, they shall be charged to profit and loss account, and no longer carried on the books as an asset. The limit of time in which the stocks shall be disposed of or charged off the books of the bank may be extended by the commissioner if, in the commissioner's judgment, it is for the best interest of the bank that the extension be granted.
(4) The commissioner may, as a condition of approving an investment under this section, impose limits on the loans that each bank can make to the corporation, firm or partnership.
(5) The commissioner shall maintain a public file, available for inspection at the department's offices, which shall contain a summary or synopsis of any application submitted under this subsection (d). The summary shall include only the name of the institution applying, the proposed activity and the decision of the commissioner.
(6) Any state or national bank or subsidiary that engages in an activity that subjects it to licensure and/or regulation under other than title 45, chapter 2, shall be subject to licensure and/or regulation on a basis that does not discriminate by the appropriate regulatory agency that licenses and/or regulates non-banks that engage in the same activity.
Amended by 2024 Tenn. Acts, ch. 556,s 4, eff. 7/1/2024.
Amended by 2024 Tenn. Acts, ch. 556,s 3, eff. 7/1/2024.
Amended by 2021 Tenn. Acts, ch. 78, s 1, eff. 3/31/2021.
Amended by 2013 Tenn. Acts, ch. 233, s 1, eff. 4/19/2013.
Acts 1969, ch. 36, § 1 (3.242); 1973, ch. 294, § 6; T.C.A., § 45-436; Acts 1983, ch. 74, § 6; impl. am. Acts 1983, ch. 216, §§ 1-9; 1986, ch. 602, § 1; 1987, ch. 86, §§ 1, 2; 1988, ch. 819, § 1; 1989, ch. 124, § 25; 1989, ch. 150, § 1; 1989, ch. 168, § 2; 1994, ch. 551, §§ 11, 12; 1996, ch. 768, § 19.
Tenn. Code Ann. § 45-1-202 — TN Code / Title 45 / Chapter 1 / Section 45-1-202
Commissioner authorized to mediate or arbitrate
Status: in_force

The commissioner has the discretion to mediate or arbitrate a complaint against a state bank made by a customer of the bank. Acts 1981, ch. 25, § 2; T.C.A., § 45-1-302 .
The commissioner has the discretion to mediate or arbitrate a complaint against a state bank made by a customer of the bank.
Acts 1981, ch. 25, § 2; T.C.A., § 45-1-302 .
Tenn. Code Ann. § 45-8-210 — TN Code / Title 45 / Chapter 8 / Section 45-8-210
Licensee - Business and powers
Status: in_force

(a) The business of a licensee shall be the business of providing financing assistance and management assistance to business firms. A licensee shall not engage in a business other than the business of providing financing assistance and management assistance to business firms. (b) The powers of a licensee include, but are not limited to, all of the following: (1) To borrow money and otherwise incur indebtedness for purposes authorized herein, including issuance of corporate bonds, debentures, notes, or other evidence of indebtedness; (2) (A) A licensee may determine the form and the terms and conditions for financing assistance provided by that licensee to a business firm including, but not limited to: (i) Forms such as loans; (ii) Purchase of debt instruments; (iii) Straight equity investments such as purchase of common stock or preferred stock; (iv) Debt with equity features such as warrants to purchase stock, convertible debentures, or receipt of a percent of net income or sales; (v) Royalty based financing; (vi) guaranteeing of debt; or (vii) Leasing of property; (B) A licensee may purchase securities of a business firm either directly or indirectly through an underwriter; and (C) A licensee may participate in any government program for which the licensee is eligible and that has as one (1) of its functions the provision or facilitation of financing assistance or management assistance to business firms; (3) Management assistance provided by a licensee to a business firm may encompass both management or technical advice and management or technical services; (4) Financing assistance or management assistance provided by a licensee to a business firm shall be for the business purposes of that business firm; (5) A licensee may exercise the incidental powers that are necessary or convenient to carry on the business of, or are reasonably related to the business of, providing financing assistance and management assistance to business firms; (6) (A) In connection with an extension of credit by a licensee, a licensee may charge or receive interest at any rate that does not exceed the maximum rate that may be charged or received by any other lender in Tennessee, that is chartered or licensed by the state of Tennessee or any agency or instrumentality of the state of Tennessee, or charged or received by a small business investment company licensed by the small business administration, subject only to those terms and conditions stipulated in this part; (B) As used in subdivision (b)(6)(A), "interest" does not include anything of value that is contingent on performance or value of the borrower, including, but not limited to, a percentage of net income of the borrower, royalties, stock in the borrower, warrants to purchase stock in the borrower and convertibility of debentures; and (7) In connection with funding its operations, a licensee may sell small business loans, other securities and related collateral to special purpose corporations, including subsidiaries of the licensee, grantor or other trusts or similar entities that purchase the loans and resell or pledge the loans to third parties in connection with securitizations and similar transactions, and the entities may collect principal, interest, and fees with respect to loans originated by a licensee without being required to be licensed under this part. (c) (1) A licensee shall transact its business in a prudent business manner and shall maintain itself in a viable condition. (2) In determining whether a licensee is transacting business in a prudent business manner, the commissioner shall not consider the risk of the financing assistance provided by the licensee to a business firm, unless the commissioner determines that the risk is so great compared with the realistically expected return as to demonstrate mismanagement of the licensee. (3) Subsection (a) shall not limit the authority of the commissioner to do any of the following: (A) Determine that a licensee's financing assistance to a single business firm or a group of affiliated business firms is in violation of this subsection (c) if the amount of financing assistance is unduly large in relation to the total assets or the total shareholders' equity of the licensee; (B) Require that a licensee maintain a reserve in the amount of anticipated losses unless the loans have been marked to market value pursuant to applicable accounting standards; or (C) Require that a licensee have in effect a written financing assistance policy, approved by its board of directors, including credit evaluation criteria and other matters. The commissioner shall not require that a licensee adopt a financing assistance policy that contains standards that prevent the licensee from exercising needed flexibility in evaluating and structuring financing assistance to business firms on a deal-by-deal basis. Acts 1989, ch. 124, § 10; 1997, ch. 131, §§ 3-5.
(a) The business of a licensee shall be the business of providing financing assistance and management assistance to business firms. A licensee shall not engage in a business other than the business of providing financing assistance and management assistance to business firms.
(b) The powers of a licensee include, but are not limited to, all of the following: (1) To borrow money and otherwise incur indebtedness for purposes authorized herein, including issuance of corporate bonds, debentures, notes, or other evidence of indebtedness; (2) (A) A licensee may determine the form and the terms and conditions for financing assistance provided by that licensee to a business firm including, but not limited to: (i) Forms such as loans; (ii) Purchase of debt instruments; (iii) Straight equity investments such as purchase of common stock or preferred stock; (iv) Debt with equity features such as warrants to purchase stock, convertible debentures, or receipt of a percent of net income or sales; (v) Royalty based financing; (vi) guaranteeing of debt; or (vii) Leasing of property; (B) A licensee may purchase securities of a business firm either directly or indirectly through an underwriter; and (C) A licensee may participate in any government program for which the licensee is eligible and that has as one (1) of its functions the provision or facilitation of financing assistance or management assistance to business firms; (3) Management assistance provided by a licensee to a business firm may encompass both management or technical advice and management or technical services; (4) Financing assistance or management assistance provided by a licensee to a business firm shall be for the business purposes of that business firm; (5) A licensee may exercise the incidental powers that are necessary or convenient to carry on the business of, or are reasonably related to the business of, providing financing assistance and management assistance to business firms; (6) (A) In connection with an extension of credit by a licensee, a licensee may charge or receive interest at any rate that does not exceed the maximum rate that may be charged or received by any other lender in Tennessee, that is chartered or licensed by the state of Tennessee or any agency or instrumentality of the state of Tennessee, or charged or received by a small business investment company licensed by the small business administration, subject only to those terms and conditions stipulated in this part; (B) As used in subdivision (b)(6)(A), "interest" does not include anything of value that is contingent on performance or value of the borrower, including, but not limited to, a percentage of net income of the borrower, royalties, stock in the borrower, warrants to purchase stock in the borrower and convertibility of debentures; and (7) In connection with funding its operations, a licensee may sell small business loans, other securities and related collateral to special purpose corporations, including subsidiaries of the licensee, grantor or other trusts or similar entities that purchase the loans and resell or pledge the loans to third parties in connection with securitizations and similar transactions, and the entities may collect principal, interest, and fees with respect to loans originated by a licensee without being required to be licensed under this part.
(1) To borrow money and otherwise incur indebtedness for purposes authorized herein, including issuance of corporate bonds, debentures, notes, or other evidence of indebtedness;
(2) (A) A licensee may determine the form and the terms and conditions for financing assistance provided by that licensee to a business firm including, but not limited to: (i) Forms such as loans; (ii) Purchase of debt instruments; (iii) Straight equity investments such as purchase of common stock or preferred stock; (iv) Debt with equity features such as warrants to purchase stock, convertible debentures, or receipt of a percent of net income or sales; (v) Royalty based financing; (vi) guaranteeing of debt; or (vii) Leasing of property; (B) A licensee may purchase securities of a business firm either directly or indirectly through an underwriter; and (C) A licensee may participate in any government program for which the licensee is eligible and that has as one (1) of its functions the provision or facilitation of financing assistance or management assistance to business firms;
(A) A licensee may determine the form and the terms and conditions for financing assistance provided by that licensee to a business firm including, but not limited to: (i) Forms such as loans; (ii) Purchase of debt instruments; (iii) Straight equity investments such as purchase of common stock or preferred stock; (iv) Debt with equity features such as warrants to purchase stock, convertible debentures, or receipt of a percent of net income or sales; (v) Royalty based financing; (vi) guaranteeing of debt; or (vii) Leasing of property;
(i) Forms such as loans;
(ii) Purchase of debt instruments;
(iii) Straight equity investments such as purchase of common stock or preferred stock;
(iv) Debt with equity features such as warrants to purchase stock, convertible debentures, or receipt of a percent of net income or sales;
(v) Royalty based financing;
(vi) guaranteeing of debt; or
(vii) Leasing of property;
(B) A licensee may purchase securities of a business firm either directly or indirectly through an underwriter; and
(C) A licensee may participate in any government program for which the licensee is eligible and that has as one (1) of its functions the provision or facilitation of financing assistance or management assistance to business firms;
(3) Management assistance provided by a licensee to a business firm may encompass both management or technical advice and management or technical services;
(4) Financing assistance or management assistance provided by a licensee to a business firm shall be for the business purposes of that business firm;
(5) A licensee may exercise the incidental powers that are necessary or convenient to carry on the business of, or are reasonably related to the business of, providing financing assistance and management assistance to business firms;
(6) (A) In connection with an extension of credit by a licensee, a licensee may charge or receive interest at any rate that does not exceed the maximum rate that may be charged or received by any other lender in Tennessee, that is chartered or licensed by the state of Tennessee or any agency or instrumentality of the state of Tennessee, or charged or received by a small business investment company licensed by the small business administration, subject only to those terms and conditions stipulated in this part; (B) As used in subdivision (b)(6)(A), "interest" does not include anything of value that is contingent on performance or value of the borrower, including, but not limited to, a percentage of net income of the borrower, royalties, stock in the borrower, warrants to purchase stock in the borrower and convertibility of debentures; and
(A) In connection with an extension of credit by a licensee, a licensee may charge or receive interest at any rate that does not exceed the maximum rate that may be charged or received by any other lender in Tennessee, that is chartered or licensed by the state of Tennessee or any agency or instrumentality of the state of Tennessee, or charged or received by a small business investment company licensed by the small business administration, subject only to those terms and conditions stipulated in this part;
(B) As used in subdivision (b)(6)(A), "interest" does not include anything of value that is contingent on performance or value of the borrower, including, but not limited to, a percentage of net income of the borrower, royalties, stock in the borrower, warrants to purchase stock in the borrower and convertibility of debentures; and
(7) In connection with funding its operations, a licensee may sell small business loans, other securities and related collateral to special purpose corporations, including subsidiaries of the licensee, grantor or other trusts or similar entities that purchase the loans and resell or pledge the loans to third parties in connection with securitizations and similar transactions, and the entities may collect principal, interest, and fees with respect to loans originated by a licensee without being required to be licensed under this part.
(c) (1) A licensee shall transact its business in a prudent business manner and shall maintain itself in a viable condition. (2) In determining whether a licensee is transacting business in a prudent business manner, the commissioner shall not consider the risk of the financing assistance provided by the licensee to a business firm, unless the commissioner determines that the risk is so great compared with the realistically expected return as to demonstrate mismanagement of the licensee. (3) Subsection (a) shall not limit the authority of the commissioner to do any of the following: (A) Determine that a licensee's financing assistance to a single business firm or a group of affiliated business firms is in violation of this subsection (c) if the amount of financing assistance is unduly large in relation to the total assets or the total shareholders' equity of the licensee; (B) Require that a licensee maintain a reserve in the amount of anticipated losses unless the loans have been marked to market value pursuant to applicable accounting standards; or (C) Require that a licensee have in effect a written financing assistance policy, approved by its board of directors, including credit evaluation criteria and other matters. The commissioner shall not require that a licensee adopt a financing assistance policy that contains standards that prevent the licensee from exercising needed flexibility in evaluating and structuring financing assistance to business firms on a deal-by-deal basis.
(1) A licensee shall transact its business in a prudent business manner and shall maintain itself in a viable condition.
(2) In determining whether a licensee is transacting business in a prudent business manner, the commissioner shall not consider the risk of the financing assistance provided by the licensee to a business firm, unless the commissioner determines that the risk is so great compared with the realistically expected return as to demonstrate mismanagement of the licensee.
(3) Subsection (a) shall not limit the authority of the commissioner to do any of the following: (A) Determine that a licensee's financing assistance to a single business firm or a group of affiliated business firms is in violation of this subsection (c) if the amount of financing assistance is unduly large in relation to the total assets or the total shareholders' equity of the licensee; (B) Require that a licensee maintain a reserve in the amount of anticipated losses unless the loans have been marked to market value pursuant to applicable accounting standards; or (C) Require that a licensee have in effect a written financing assistance policy, approved by its board of directors, including credit evaluation criteria and other matters. The commissioner shall not require that a licensee adopt a financing assistance policy that contains standards that prevent the licensee from exercising needed flexibility in evaluating and structuring financing assistance to business firms on a deal-by-deal basis.
(A) Determine that a licensee's financing assistance to a single business firm or a group of affiliated business firms is in violation of this subsection (c) if the amount of financing assistance is unduly large in relation to the total assets or the total shareholders' equity of the licensee;
(B) Require that a licensee maintain a reserve in the amount of anticipated losses unless the loans have been marked to market value pursuant to applicable accounting standards; or
(C) Require that a licensee have in effect a written financing assistance policy, approved by its board of directors, including credit evaluation criteria and other matters. The commissioner shall not require that a licensee adopt a financing assistance policy that contains standards that prevent the licensee from exercising needed flexibility in evaluating and structuring financing assistance to business firms on a deal-by-deal basis.
Acts 1989, ch. 124, § 10; 1997, ch. 131, §§ 3-5.
Tenn. Code Ann. § 45-15-110 — TN Code / Title 45 / Chapter 15 / Section 45-15-110
Record of transactions required - Required information printed on agreement - Execution of agreement - Liens
Status: in_force

(a) Every title pledge lender shall keep a consecutively numbered record of each and every title pledge agreement or property pledge agreement executed by the title pledge lender and pledgor. The record, as well as the title pledge agreement or property pledge agreement itself, shall include the following information: (1) The make, model, and year of the titled personal property; (2) The vehicle identification number, or other comparable identification number, along with the license plate number, if applicable, of the titled personal property; (3) The name, residential address, date of birth, and physical description of the pledgor; (4) The date the title pledge agreement or the property pledge agreement is executed by the title pledge lender and the pledgor; (5) The identification number of the photo identification and the type of identification, including the issuing agency, accepted from the pledgor; and (6) The maturity date of the title pledge agreement or property pledge agreement, which shall be thirty (30) days after the title pledge agreement or property pledge agreement is executed by the title pledge lender and the pledgor. (b) The following information shall also be printed on the title pledge agreement or property pledge agreement: (1) The name and physical address of the title pledge office; (2) In not less than 14-point bold type, the name and address of the department of financial institutions, as well as a telephone number to which consumers may address complaints; (3) The following statement in not less than 14-point bold type: (A) THIS LOAN IS NOT INTENDED TO MEET LONG-TERM FINANCIAL NEEDS. (B) YOU SHOULD USE THIS LOAN ONLY TO MEET SHORT-TERM CASH NEEDS. (C) YOU WILL BE REQUIRED TO PAY ADDITIONAL INTEREST AND FEES IF YOU RENEW THIS LOAN RATHER THAN PAY THE DEBT IN FULL WHEN DUE. (D) THIS LOAN IS A HIGHER INTEREST LOAN. YOU SHOULD CONSIDER WHAT OTHER LOWER COST LOANS MAY BE AVAILABLE TO YOU. (E) YOU ARE PLACING AT RISK YOUR CONTINUED OWNERSHIP OF THE PERSONAL PROPERTY THAT YOU ARE PLEDGING FOR THIS LOAN, INCLUDING YOUR MOTOR VEHICLE, IF THAT IS THE PROPERTY PLEDGED. (F) IF YOU FAIL TO REPAY THE FULL AMOUNT OF THIS LOAN ON OR BEFORE THE END OF THE MATURITY DATE OR RENEWAL OF THE LOAN, THE TITLE PLEDGE LENDER MAY TAKE POSSESSION OF THE PROPERTY PLEDGED AND SELL THE PROPERTY IN THE MANNER PROVIDED BY LAW. (G) IF YOU ENTER INTO A TITLE PLEDGE AGREEMENT OR PROPERTY PLEDGE AGREEMENT, YOU HAVE A LEGAL RIGHT OF RESCISSION. THIS MEANS YOU MAY CANCEL YOUR CONTRACT AT NO COST TO YOU BY RETURNING THE MONEY YOU BORROWED BY THE NEXT BUSINESS DAY AFTER THE DATE OF YOUR LOAN. (H) IF THE TITLE PLEDGE AGREEMENT OR PROPERTY PLEDGE AGREEMENT IS LOST, DESTROYED OR STOLEN, YOU SHOULD IMMEDIATELY SO ADVISE THE TITLE PLEDGE LENDER IN WRITING; and (4) The statement that "The pledgor represents and warrants, to the best of the pledgor's knowledge, that the titled personal property is not stolen and has no liens or encumbrances against it, the pledgor has the right to enter into this transaction and the pledgor will not apply for a duplicate certificate of title while the title pledge agreement or property pledge agreement is in effect." (c) The pledgor shall sign the title pledge agreement or property pledge agreement and shall be provided with a copy of the agreement. The title pledge agreement or property pledge agreement shall also be signed by the title pledge lender, or the lender's employee or agent. If the pledgor has been issued a social security number, the title pledge lender shall keep on file the social security number of the pledgor. The social security number shall not be printed on the title pledge agreement or property pledge agreement, in order to protect the privacy of the pledgor. (d) The title pledge lender shall be required to record the lender's security interest in the titled personal property by noting a lien on the certificate of title for all title pledge transactions, but shall not be required to note liens for property pledge transactions in which the title pledge lender retains possession of both the titled personal property and the certificate of title during the entire term of the transaction. Acts 1995, ch. 186, § 13; 2005, ch. 440, § 9.
(a) Every title pledge lender shall keep a consecutively numbered record of each and every title pledge agreement or property pledge agreement executed by the title pledge lender and pledgor. The record, as well as the title pledge agreement or property pledge agreement itself, shall include the following information: (1) The make, model, and year of the titled personal property; (2) The vehicle identification number, or other comparable identification number, along with the license plate number, if applicable, of the titled personal property; (3) The name, residential address, date of birth, and physical description of the pledgor; (4) The date the title pledge agreement or the property pledge agreement is executed by the title pledge lender and the pledgor; (5) The identification number of the photo identification and the type of identification, including the issuing agency, accepted from the pledgor; and (6) The maturity date of the title pledge agreement or property pledge agreement, which shall be thirty (30) days after the title pledge agreement or property pledge agreement is executed by the title pledge lender and the pledgor.
(1) The make, model, and year of the titled personal property;
(2) The vehicle identification number, or other comparable identification number, along with the license plate number, if applicable, of the titled personal property;
(3) The name, residential address, date of birth, and physical description of the pledgor;
(4) The date the title pledge agreement or the property pledge agreement is executed by the title pledge lender and the pledgor;
(5) The identification number of the photo identification and the type of identification, including the issuing agency, accepted from the pledgor; and
(6) The maturity date of the title pledge agreement or property pledge agreement, which shall be thirty (30) days after the title pledge agreement or property pledge agreement is executed by the title pledge lender and the pledgor.
(b) The following information shall also be printed on the title pledge agreement or property pledge agreement: (1) The name and physical address of the title pledge office; (2) In not less than 14-point bold type, the name and address of the department of financial institutions, as well as a telephone number to which consumers may address complaints; (3) The following statement in not less than 14-point bold type: (A) THIS LOAN IS NOT INTENDED TO MEET LONG-TERM FINANCIAL NEEDS. (B) YOU SHOULD USE THIS LOAN ONLY TO MEET SHORT-TERM CASH NEEDS. (C) YOU WILL BE REQUIRED TO PAY ADDITIONAL INTEREST AND FEES IF YOU RENEW THIS LOAN RATHER THAN PAY THE DEBT IN FULL WHEN DUE. (D) THIS LOAN IS A HIGHER INTEREST LOAN. YOU SHOULD CONSIDER WHAT OTHER LOWER COST LOANS MAY BE AVAILABLE TO YOU. (E) YOU ARE PLACING AT RISK YOUR CONTINUED OWNERSHIP OF THE PERSONAL PROPERTY THAT YOU ARE PLEDGING FOR THIS LOAN, INCLUDING YOUR MOTOR VEHICLE, IF THAT IS THE PROPERTY PLEDGED. (F) IF YOU FAIL TO REPAY THE FULL AMOUNT OF THIS LOAN ON OR BEFORE THE END OF THE MATURITY DATE OR RENEWAL OF THE LOAN, THE TITLE PLEDGE LENDER MAY TAKE POSSESSION OF THE PROPERTY PLEDGED AND SELL THE PROPERTY IN THE MANNER PROVIDED BY LAW. (G) IF YOU ENTER INTO A TITLE PLEDGE AGREEMENT OR PROPERTY PLEDGE AGREEMENT, YOU HAVE A LEGAL RIGHT OF RESCISSION. THIS MEANS YOU MAY CANCEL YOUR CONTRACT AT NO COST TO YOU BY RETURNING THE MONEY YOU BORROWED BY THE NEXT BUSINESS DAY AFTER THE DATE OF YOUR LOAN. (H) IF THE TITLE PLEDGE AGREEMENT OR PROPERTY PLEDGE AGREEMENT IS LOST, DESTROYED OR STOLEN, YOU SHOULD IMMEDIATELY SO ADVISE THE TITLE PLEDGE LENDER IN WRITING; and (4) The statement that "The pledgor represents and warrants, to the best of the pledgor's knowledge, that the titled personal property is not stolen and has no liens or encumbrances against it, the pledgor has the right to enter into this transaction and the pledgor will not apply for a duplicate certificate of title while the title pledge agreement or property pledge agreement is in effect."
(1) The name and physical address of the title pledge office;
(2) In not less than 14-point bold type, the name and address of the department of financial institutions, as well as a telephone number to which consumers may address complaints;
(3) The following statement in not less than 14-point bold type: (A) THIS LOAN IS NOT INTENDED TO MEET LONG-TERM FINANCIAL NEEDS. (B) YOU SHOULD USE THIS LOAN ONLY TO MEET SHORT-TERM CASH NEEDS. (C) YOU WILL BE REQUIRED TO PAY ADDITIONAL INTEREST AND FEES IF YOU RENEW THIS LOAN RATHER THAN PAY THE DEBT IN FULL WHEN DUE. (D) THIS LOAN IS A HIGHER INTEREST LOAN. YOU SHOULD CONSIDER WHAT OTHER LOWER COST LOANS MAY BE AVAILABLE TO YOU. (E) YOU ARE PLACING AT RISK YOUR CONTINUED OWNERSHIP OF THE PERSONAL PROPERTY THAT YOU ARE PLEDGING FOR THIS LOAN, INCLUDING YOUR MOTOR VEHICLE, IF THAT IS THE PROPERTY PLEDGED. (F) IF YOU FAIL TO REPAY THE FULL AMOUNT OF THIS LOAN ON OR BEFORE THE END OF THE MATURITY DATE OR RENEWAL OF THE LOAN, THE TITLE PLEDGE LENDER MAY TAKE POSSESSION OF THE PROPERTY PLEDGED AND SELL THE PROPERTY IN THE MANNER PROVIDED BY LAW. (G) IF YOU ENTER INTO A TITLE PLEDGE AGREEMENT OR PROPERTY PLEDGE AGREEMENT, YOU HAVE A LEGAL RIGHT OF RESCISSION. THIS MEANS YOU MAY CANCEL YOUR CONTRACT AT NO COST TO YOU BY RETURNING THE MONEY YOU BORROWED BY THE NEXT BUSINESS DAY AFTER THE DATE OF YOUR LOAN. (H) IF THE TITLE PLEDGE AGREEMENT OR PROPERTY PLEDGE AGREEMENT IS LOST, DESTROYED OR STOLEN, YOU SHOULD IMMEDIATELY SO ADVISE THE TITLE PLEDGE LENDER IN WRITING; and
(A) THIS LOAN IS NOT INTENDED TO MEET LONG-TERM FINANCIAL NEEDS.
(B) YOU SHOULD USE THIS LOAN ONLY TO MEET SHORT-TERM CASH NEEDS.
(C) YOU WILL BE REQUIRED TO PAY ADDITIONAL INTEREST AND FEES IF YOU RENEW THIS LOAN RATHER THAN PAY THE DEBT IN FULL WHEN DUE.
(D) THIS LOAN IS A HIGHER INTEREST LOAN. YOU SHOULD CONSIDER WHAT OTHER LOWER COST LOANS MAY BE AVAILABLE TO YOU.
(E) YOU ARE PLACING AT RISK YOUR CONTINUED OWNERSHIP OF THE PERSONAL PROPERTY THAT YOU ARE PLEDGING FOR THIS LOAN, INCLUDING YOUR MOTOR VEHICLE, IF THAT IS THE PROPERTY PLEDGED.
(F) IF YOU FAIL TO REPAY THE FULL AMOUNT OF THIS LOAN ON OR BEFORE THE END OF THE MATURITY DATE OR RENEWAL OF THE LOAN, THE TITLE PLEDGE LENDER MAY TAKE POSSESSION OF THE PROPERTY PLEDGED AND SELL THE PROPERTY IN THE MANNER PROVIDED BY LAW.
(G) IF YOU ENTER INTO A TITLE PLEDGE AGREEMENT OR PROPERTY PLEDGE AGREEMENT, YOU HAVE A LEGAL RIGHT OF RESCISSION. THIS MEANS YOU MAY CANCEL YOUR CONTRACT AT NO COST TO YOU BY RETURNING THE MONEY YOU BORROWED BY THE NEXT BUSINESS DAY AFTER THE DATE OF YOUR LOAN.
(H) IF THE TITLE PLEDGE AGREEMENT OR PROPERTY PLEDGE AGREEMENT IS LOST, DESTROYED OR STOLEN, YOU SHOULD IMMEDIATELY SO ADVISE THE TITLE PLEDGE LENDER IN WRITING; and
(4) The statement that "The pledgor represents and warrants, to the best of the pledgor's knowledge, that the titled personal property is not stolen and has no liens or encumbrances against it, the pledgor has the right to enter into this transaction and the pledgor will not apply for a duplicate certificate of title while the title pledge agreement or property pledge agreement is in effect."
(c) The pledgor shall sign the title pledge agreement or property pledge agreement and shall be provided with a copy of the agreement. The title pledge agreement or property pledge agreement shall also be signed by the title pledge lender, or the lender's employee or agent. If the pledgor has been issued a social security number, the title pledge lender shall keep on file the social security number of the pledgor. The social security number shall not be printed on the title pledge agreement or property pledge agreement, in order to protect the privacy of the pledgor.
(d) The title pledge lender shall be required to record the lender's security interest in the titled personal property by noting a lien on the certificate of title for all title pledge transactions, but shall not be required to note liens for property pledge transactions in which the title pledge lender retains possession of both the titled personal property and the certificate of title during the entire term of the transaction.
Acts 1995, ch. 186, § 13; 2005, ch. 440, § 9.
Tenn. Code Ann. § 45-3-1502 — TN Code / Title 45 / Chapter 3 / Section 45-3-1502
Part definitions
Status: in_force

As used in this part, unless the context otherwise requires: (1) "Commissioner" means the commissioner of financial institutions; (2) "Principal place of business" of a mutual savings and loan holding company means the state in which the total deposits of all offices of all subsidiaries are the largest as shown by the most recent reports of condition filed with state or federal regulatory authorities; (3) "Savings and loan mutual holding company" means any company that, directly or indirectly, or acting in concert with one (1) or more other persons or through one (1) or more subsidiaries, owns, controls, or holds with power to vote, or holds proxies representing more than twenty-five percent (25%) of the voting shares or rights of any association or savings bank or savings and loan holding company or controls in any manner, whether by holding of proxies or otherwise, the election of a majority of the directors of the institution. Notwithstanding the foregoing, no holding company shall be deemed to have control of or over a savings institution or holding company: (A) By virtue of its ownership or control of shares in a fiduciary capacity arising in the ordinary course of its business; (B) By virtue of its ownership or control of shares acquired by it in connection with its underwriting of securities that are held only for a period of time that will permit the sale of the shares upon a reasonable basis; (C) By virtue of its holding any shares as collateral taken in the ordinary course of securing a debt or other obligation; (D) By virtue of its ownership or control of shares acquired in the ordinary course of collecting a debt or other obligation previously contracted in good faith, until five (5) years after the date acquired; or (E) By virtue of its voting rights with respect to shares of any savings institution or holding company acquired in the course of a proxy solicitation in the case of a company formed and operated for the sole purpose of participating in a proxy solicitation; (4) "Subsidiary," whether of an individual or a company, means any company that is controlled by the person or by a company that is a subsidiary of the person by virtue of this part; and (5) "Tennessee mutual holding company" means a savings and loan holding company whose principal place of business is in Tennessee and that is not controlled, directly or indirectly, by another savings and loan holding company whose principal place of business is outside Tennessee. Acts 1989, ch. 354, § 2.
As used in this part, unless the context otherwise requires:
(1) "Commissioner" means the commissioner of financial institutions;
(2) "Principal place of business" of a mutual savings and loan holding company means the state in which the total deposits of all offices of all subsidiaries are the largest as shown by the most recent reports of condition filed with state or federal regulatory authorities;
(3) "Savings and loan mutual holding company" means any company that, directly or indirectly, or acting in concert with one (1) or more other persons or through one (1) or more subsidiaries, owns, controls, or holds with power to vote, or holds proxies representing more than twenty-five percent (25%) of the voting shares or rights of any association or savings bank or savings and loan holding company or controls in any manner, whether by holding of proxies or otherwise, the election of a majority of the directors of the institution. Notwithstanding the foregoing, no holding company shall be deemed to have control of or over a savings institution or holding company: (A) By virtue of its ownership or control of shares in a fiduciary capacity arising in the ordinary course of its business; (B) By virtue of its ownership or control of shares acquired by it in connection with its underwriting of securities that are held only for a period of time that will permit the sale of the shares upon a reasonable basis; (C) By virtue of its holding any shares as collateral taken in the ordinary course of securing a debt or other obligation; (D) By virtue of its ownership or control of shares acquired in the ordinary course of collecting a debt or other obligation previously contracted in good faith, until five (5) years after the date acquired; or (E) By virtue of its voting rights with respect to shares of any savings institution or holding company acquired in the course of a proxy solicitation in the case of a company formed and operated for the sole purpose of participating in a proxy solicitation;
(A) By virtue of its ownership or control of shares in a fiduciary capacity arising in the ordinary course of its business;
(B) By virtue of its ownership or control of shares acquired by it in connection with its underwriting of securities that are held only for a period of time that will permit the sale of the shares upon a reasonable basis;
(C) By virtue of its holding any shares as collateral taken in the ordinary course of securing a debt or other obligation;
(D) By virtue of its ownership or control of shares acquired in the ordinary course of collecting a debt or other obligation previously contracted in good faith, until five (5) years after the date acquired; or
(E) By virtue of its voting rights with respect to shares of any savings institution or holding company acquired in the course of a proxy solicitation in the case of a company formed and operated for the sole purpose of participating in a proxy solicitation;
(4) "Subsidiary," whether of an individual or a company, means any company that is controlled by the person or by a company that is a subsidiary of the person by virtue of this part; and
(5) "Tennessee mutual holding company" means a savings and loan holding company whose principal place of business is in Tennessee and that is not controlled, directly or indirectly, by another savings and loan holding company whose principal place of business is outside Tennessee.
Acts 1989, ch. 354, § 2.
Tenn. Code Ann. § 45-1-129 — TN Code / Title 45 / Chapter 1 / Section 45-1-129
Electronic applications
Status: in_force

All applications required to be submitted to the commissioner under chapters 2, 3 and 14 of this title or any regulations promulgated under these chapters, may be submitted by electronic communications, including, but not limited to, facsimile transmissions and electronic mail. Applications submitted in this manner shall be deemed complete for purposes of processing as of the date the electronic submission is received by the commissioner, as long as any filing fees or original documents required to be submitted with the application are received by the commissioner within three (3) business days of the electronic communication. If the application is incomplete, the commissioner may request additional information and the time for processing shall date from the receipt of the information. Acts 1996, ch. 768, § 4.
All applications required to be submitted to the commissioner under chapters 2, 3 and 14 of this title or any regulations promulgated under these chapters, may be submitted by electronic communications, including, but not limited to, facsimile transmissions and electronic mail. Applications submitted in this manner shall be deemed complete for purposes of processing as of the date the electronic submission is received by the commissioner, as long as any filing fees or original documents required to be submitted with the application are received by the commissioner within three (3) business days of the electronic communication. If the application is incomplete, the commissioner may request additional information and the time for processing shall date from the receipt of the information.
Acts 1996, ch. 768, § 4.
Tenn. Code Ann. § 45-18-119 — TN Code / Title 45 / Chapter 18 / Section 45-18-119
Criminal penalties
Status: in_force

(a) Any person who knowingly and willfully violates any provision of this chapter or any order or rule pursuant thereto for which a penalty is not specifically provided commits a Class C misdemeanor. Each day the violation occurs is a separate offense. (b) Any person who knowingly and willfully makes a material, false statement in any document filed or required to be filed under this chapter with the intent to deceive the recipient of the document commits a Class E felony. (c) Any person who knowingly and willfully fails to file a document required to be filed under this chapter commits a Class E felony. (d) Any person who carries on an unauthorized check cashing business commits a Class E felony. (e) Any person who obstructs or endeavors to obstruct a lawful examination of a licensee commits a Class E felony. (f) It is the duty of the commissioner to submit to the appropriate district attorney general for the respective counties of the state any criminal violation of this chapter known by the commissioner to have occurred in the county. The commissioner shall also report the violation to the appropriate division of the Tennessee bureau of investigation. The commissioner may provide the information to the attorney general and reporter or the appropriate federal authorities, or both, as the commissioner deems proper. Confidential information that is communicated by the commissioner pursuant to this section remains confidential in the hands of the agency to which the information is reported, and does not become a matter of public record by virtue of this communication. (g) In addition to the criminal penalty provided for in this section, the commissioner may also commence an action to enjoin the operation of the business through a cease and desist order. Acts 1997, ch. 309, § 19.
(a) Any person who knowingly and willfully violates any provision of this chapter or any order or rule pursuant thereto for which a penalty is not specifically provided commits a Class C misdemeanor. Each day the violation occurs is a separate offense.
(b) Any person who knowingly and willfully makes a material, false statement in any document filed or required to be filed under this chapter with the intent to deceive the recipient of the document commits a Class E felony.
(c) Any person who knowingly and willfully fails to file a document required to be filed under this chapter commits a Class E felony.
(d) Any person who carries on an unauthorized check cashing business commits a Class E felony.
(e) Any person who obstructs or endeavors to obstruct a lawful examination of a licensee commits a Class E felony.
(f) It is the duty of the commissioner to submit to the appropriate district attorney general for the respective counties of the state any criminal violation of this chapter known by the commissioner to have occurred in the county. The commissioner shall also report the violation to the appropriate division of the Tennessee bureau of investigation. The commissioner may provide the information to the attorney general and reporter or the appropriate federal authorities, or both, as the commissioner deems proper. Confidential information that is communicated by the commissioner pursuant to this section remains confidential in the hands of the agency to which the information is reported, and does not become a matter of public record by virtue of this communication.
(g) In addition to the criminal penalty provided for in this section, the commissioner may also commence an action to enjoin the operation of the business through a cease and desist order.
Acts 1997, ch. 309, § 19.
Tenn. Code Ann. § 45-2-613 — TN Code / Title 45 / Chapter 2 / Section 45-2-613
Exchange charges
Status: in_force

(a) Banks, both state and national, have the right to make an exchange charge for the handling of cash items, and when the cash items are presented to the payer bank for payment through or by any bank, banker, trust company, federal reserve bank, post office, express company, collection agency, or by any other agency whatever, the amount of the charge shall not exceed one-tenth of one percent (.1%) of the total amount of the cash item, so presented and paid at one (1) time, and the minimum charge shall be ten cents (10¢); provided, that the charge shall not be made on checks or drafts given or drawn in settlement of obligations due the state or any subdivision of the state, or of the United States, and that the charge may not be made by banks for the collection of checks deposited with the banks, when the check is drawn on any other bank in the same municipality, city, town or village; and provided further, that nothing in this section shall be deemed mandatory upon the banks to charge exchange on checks or drafts payable to a person in this state, and drawn on a bank, trust company, or persons within or without this state, but it shall be optional with the banks whether they shall so charge exchange. (b) No officer shall protest for nonpayment the cash item when the nonpayment is solely on account of the failure or refusal of any of the agencies to pay the exchange, and there shall be no right of action, either at law or in equity, against any bank in this state for a refusal to pay the cash item when the refusal is based alone on the ground of the nonpayment of the exchange. (c) If, by any law, rule, regulation or court decision, the national banks in this state are not permitted to charge and collect the exchange, subsections (a) and (b) shall remain in full force and effect as to all other banks in this state; and in the event of the holding by the courts, or the refusal of any national bank in this state to comply with the sections, it shall be optional with state banks located in the same municipality with national banks or state banks that are members of the federal reserve system as to whether the charge shall be made. Acts 1969, ch. 36, § 1 (3.248); T.C.A., § 45-442.
(a) Banks, both state and national, have the right to make an exchange charge for the handling of cash items, and when the cash items are presented to the payer bank for payment through or by any bank, banker, trust company, federal reserve bank, post office, express company, collection agency, or by any other agency whatever, the amount of the charge shall not exceed one-tenth of one percent (.1%) of the total amount of the cash item, so presented and paid at one (1) time, and the minimum charge shall be ten cents (10¢); provided, that the charge shall not be made on checks or drafts given or drawn in settlement of obligations due the state or any subdivision of the state, or of the United States, and that the charge may not be made by banks for the collection of checks deposited with the banks, when the check is drawn on any other bank in the same municipality, city, town or village; and provided further, that nothing in this section shall be deemed mandatory upon the banks to charge exchange on checks or drafts payable to a person in this state, and drawn on a bank, trust company, or persons within or without this state, but it shall be optional with the banks whether they shall so charge exchange.
(b) No officer shall protest for nonpayment the cash item when the nonpayment is solely on account of the failure or refusal of any of the agencies to pay the exchange, and there shall be no right of action, either at law or in equity, against any bank in this state for a refusal to pay the cash item when the refusal is based alone on the ground of the nonpayment of the exchange.
(c) If, by any law, rule, regulation or court decision, the national banks in this state are not permitted to charge and collect the exchange, subsections (a) and (b) shall remain in full force and effect as to all other banks in this state; and in the event of the holding by the courts, or the refusal of any national bank in this state to comply with the sections, it shall be optional with state banks located in the same municipality with national banks or state banks that are members of the federal reserve system as to whether the charge shall be made.
Acts 1969, ch. 36, § 1 (3.248); T.C.A., § 45-442.
Tenn. Code Ann. § 45-14-113 — TN Code / Title 45 / Chapter 14 / Section 45-14-113
Commissioner - Regulations
Status: in_force

(a) The commissioner has the power to establish regulations to: (1) Carry out the legislative purposes of this chapter; (2) Provide for the safe and sound operation of state-chartered savings banks; and (3) Establish from time to time reasonable fees for various applications made to the commissioner. (b) This chapter shall take effect whether or not the commissioner has promulgated regulations to carry out various provisions of the chapter. In the absence of regulations promulgated under this chapter, regulations promulgated under the commissioner's authority granted by this title shall be deemed effective for savings banks until and unless regulations are promulgated specifically under this chapter. Acts 1991, ch. 177, § 14.
(a) The commissioner has the power to establish regulations to: (1) Carry out the legislative purposes of this chapter; (2) Provide for the safe and sound operation of state-chartered savings banks; and (3) Establish from time to time reasonable fees for various applications made to the commissioner.
(1) Carry out the legislative purposes of this chapter;
(2) Provide for the safe and sound operation of state-chartered savings banks; and
(3) Establish from time to time reasonable fees for various applications made to the commissioner.
(b) This chapter shall take effect whether or not the commissioner has promulgated regulations to carry out various provisions of the chapter. In the absence of regulations promulgated under this chapter, regulations promulgated under the commissioner's authority granted by this title shall be deemed effective for savings banks until and unless regulations are promulgated specifically under this chapter.
Acts 1991, ch. 177, § 14.
Tenn. Code Ann. § 45-13-104 — TN Code / Title 45 / Chapter 13 / Section 45-13-104
Provisions remedial
Status: in_force

This chapter is declared to be remedial in nature, and this chapter shall be liberally construed to effectuate the purpose of this chapter. Acts 2009, ch. 499, § 8.
This chapter is declared to be remedial in nature, and this chapter shall be liberally construed to effectuate the purpose of this chapter.
Acts 2009, ch. 499, § 8.