Tenn. Code Ann. § 45-2-402 — TN Code / Title 45 / Chapter 2 / Section 45-2-402
Directors - Meetings and duties - Examinations and reviews - Fiduciary powers
Status: in_force

(a) The board of directors shall meet at least quarterly. The commissioner, one-third (1/3) of the directors, or any two (2) executive officers may call a special meeting. A majority of the board shall constitute a quorum. The board shall keep minutes of each meeting, including a record of attendance and of all votes cast by each director. (b) The board, or an executive committee appointed by the board, shall review periodically, in a manner satisfactory to the commissioner, the lending and investment transactions occurring since the last review. (c) The board shall cause a review, at least once in each calendar year at intervals of not more than fifteen (15) months, of all the affairs of the state bank, including the character and value of investments, loans, the efficiency of operating procedures, and any other matters as the commissioner may prescribe, with the review discussed and recorded in the minutes. Compliance with the external auditing requirements of the federal regulatory agencies shall be deemed as compliance with this subsection (c). However, the commissioner may require, at the commissioner's discretion, any state bank to obtain a financial statement audit or balance sheet audit should conditions warrant that action. (d) A state bank authorized to exercise trust powers shall not accept or voluntarily relinquish a fiduciary account without the approval or ratification of the board or of a committee of officers or directors designated by the board to perform this function, but the board or the committee may prescribe general rules governing acceptance or relinquishment of fiduciary accounts, and action taken by an officer in accordance with these rules is sufficient approval. Any committee so designated shall keep minutes of its meetings and report at each meeting of the board all action taken since the previous meeting of the board. The board shall designate one (1) or more committees to supervise the investment of fiduciary funds. The investment shall not be made, retained or disposed of without the approval of a committee. At least once in every calendar year, at intervals of not more than fifteen (15) months, the committee shall review all the assets of each fiduciary account and shall determine their current value, safety and suitability and whether the investments should be modified or retained. The committee shall keep minutes of its meetings and shall report at each meeting of the board its conclusions on all questions considered and all action taken since the previous meeting of the board. (e) The board of a state trust company is responsible for the proper exercise of fiduciary powers by the state trust company and each matter pertinent to the exercise of fiduciary powers, including, but not limited to: (1) The determination of policies; (2) The investment and disposition of property held in a fiduciary capacity; and (3) The direction and review of the actions of each officer, employee, and committee used by the state trust company in the exercise of its fiduciary powers. Acts 1969, ch. 36, § 1 (3.316); 1973, ch. 294, § 6; T.C.A., § 45-227; Acts 1999, ch. 112, § 6; 2001, ch. 54, § 12.
(a) The board of directors shall meet at least quarterly. The commissioner, one-third (1/3) of the directors, or any two (2) executive officers may call a special meeting. A majority of the board shall constitute a quorum. The board shall keep minutes of each meeting, including a record of attendance and of all votes cast by each director.
(b) The board, or an executive committee appointed by the board, shall review periodically, in a manner satisfactory to the commissioner, the lending and investment transactions occurring since the last review.
(c) The board shall cause a review, at least once in each calendar year at intervals of not more than fifteen (15) months, of all the affairs of the state bank, including the character and value of investments, loans, the efficiency of operating procedures, and any other matters as the commissioner may prescribe, with the review discussed and recorded in the minutes. Compliance with the external auditing requirements of the federal regulatory agencies shall be deemed as compliance with this subsection (c). However, the commissioner may require, at the commissioner's discretion, any state bank to obtain a financial statement audit or balance sheet audit should conditions warrant that action.
(d) A state bank authorized to exercise trust powers shall not accept or voluntarily relinquish a fiduciary account without the approval or ratification of the board or of a committee of officers or directors designated by the board to perform this function, but the board or the committee may prescribe general rules governing acceptance or relinquishment of fiduciary accounts, and action taken by an officer in accordance with these rules is sufficient approval. Any committee so designated shall keep minutes of its meetings and report at each meeting of the board all action taken since the previous meeting of the board. The board shall designate one (1) or more committees to supervise the investment of fiduciary funds. The investment shall not be made, retained or disposed of without the approval of a committee. At least once in every calendar year, at intervals of not more than fifteen (15) months, the committee shall review all the assets of each fiduciary account and shall determine their current value, safety and suitability and whether the investments should be modified or retained. The committee shall keep minutes of its meetings and shall report at each meeting of the board its conclusions on all questions considered and all action taken since the previous meeting of the board.
(e) The board of a state trust company is responsible for the proper exercise of fiduciary powers by the state trust company and each matter pertinent to the exercise of fiduciary powers, including, but not limited to: (1) The determination of policies; (2) The investment and disposition of property held in a fiduciary capacity; and (3) The direction and review of the actions of each officer, employee, and committee used by the state trust company in the exercise of its fiduciary powers.
(1) The determination of policies;
(2) The investment and disposition of property held in a fiduciary capacity; and
(3) The direction and review of the actions of each officer, employee, and committee used by the state trust company in the exercise of its fiduciary powers.
Acts 1969, ch. 36, § 1 (3.316); 1973, ch. 294, § 6; T.C.A., § 45-227; Acts 1999, ch. 112, § 6; 2001, ch. 54, § 12.
Tenn. Code Ann. § 45-5-105 — TN Code / Title 45 / Chapter 5 / Section 45-5-105
Persons registered under former law
Status: in_force

Any person holding a certificate of registration under this chapter as of May 16, 1983, shall be deemed, as of that date, to be registered as an industrial loan and thrift company hereunder, without the necessity of reapplying or paying any additional fees. Acts 1979, ch. 204, § 24; T.C.A., § 45-2024; Acts 1983, ch. 274, § 11.
Any person holding a certificate of registration under this chapter as of May 16, 1983, shall be deemed, as of that date, to be registered as an industrial loan and thrift company hereunder, without the necessity of reapplying or paying any additional fees.
Acts 1979, ch. 204, § 24; T.C.A., § 45-2024; Acts 1983, ch. 274, § 11.
Tenn. Code Ann. § 45-10-108 — TN Code / Title 45 / Chapter 10 / Section 45-10-108
Bond
Status: in_force

On motion of any affected party, and for good cause shown, the court may require the person requesting the production of any records of a financial institution in a civil action to execute a bond, with sufficient surety, in an amount deemed sufficient by the court. Acts 1983, ch. 224, § 8.
On motion of any affected party, and for good cause shown, the court may require the person requesting the production of any records of a financial institution in a civil action to execute a bond, with sufficient surety, in an amount deemed sufficient by the court.
Acts 1983, ch. 224, § 8.
Tenn. Code Ann. § 45-4-404 — TN Code / Title 45 / Chapter 4 / Section 45-4-404
Accounts in two or more names
Status: in_force

Investment or other deposit accounts maintained in any credit union in the names of two (2) or more persons shall be governed by § 45-2-703 . Acts 1970, ch. 409, § 4; T.C.A., § 45-1834; Acts 1988, ch. 926, § 9.
Investment or other deposit accounts maintained in any credit union in the names of two (2) or more persons shall be governed by § 45-2-703 .
Acts 1970, ch. 409, § 4; T.C.A., § 45-1834; Acts 1988, ch. 926, § 9.
Tenn. Code Ann. § 45-4-1203 — TN Code / Title 45 / Chapter 4 / Section 45-4-1203
Powers
Status: in_force

The corporation may: (1) Enter into contracts of any nature; (2) Sue and be sued; (3) Adopt, use and display a corporate seal; (4) Receive the payment from its members for members' shares, members' deposits, special accounts and certificates; (5) Make loans to credit unions, associations of credit unions, and corporations, organizations, or agencies owned or operated by a credit union or credit unions; (6) Receive money or other property from credit unions, associations of credit unions, and corporations, organizations, or agencies owned or operated by a credit union or credit unions; (7) Invest its funds, not otherwise required for lending to its members, in the following manner: (A) In any legally chartered bank or trust company supervised by a state or federal bank regulatory agency; (B) In any state or federal savings and loan association or corporation; (C) In any agency or association organized either as a stock company, mutual association, or membership corporation; provided, that the membership or stockholders, as the case may be, of the agency or association are restricted to credit unions, or organizations of credit unions; and provided further, that the purposes for which the agency or association is organized are designed to service or otherwise assist credit union operations; (D) In obligations of or securities fully guaranteed as to principal and interest for the government of the United States or of the state of Tennessee; (E) In any bonds or other obligations issued by the Tennessee valley authority pursuant to the Tennessee Valley Authority Act of 1933 ( 16 U.S.C. §§ 831 - 831dd ); (F) In investments authorized under § 35-3-120 , and in any investment that is lawful for federal credit unions chartered under U.S.C., title 12; (G) In obligations permitted for state banks under § 45-2-607(a)(4) and (a)(5) ; and (H) In other investments not specifically enumerated in this subdivision (7) that may be permitted by rule or regulation of the commissioner; (8) Borrow money from any source upon terms and conditions that the directors determine. The corporation shall not be subject to the limitations of § 45-4-502(a) ; (9) Purchase in its own name, hold and convey property of any nature; (10) Receive by assignment or purchase, from its member credit unions, any property of any nature owned by those member credit unions; (11) Sell, assign, mortgage, encumber or transfer property of any nature; (12) Adopt and amend bylaws for carrying out the purposes of this section; (13) Extend to each member credit union discounts, advancements and accommodations that may be safe and reasonably made with due regard for the claims and demands of other member credit unions and the maintenance of sound credit conditions. It may further prescribe standards for defining the conditions under which discounts, advancements and accommodations may be extended to member credit unions; (14) Manage and operate other credit unions; and (15) Undertake other activities, not inconsistent with this part, that the bylaws may provide. Acts 1981, ch. 76, § 3; 1984, ch. 714, § 3; 1986, ch. 558, § 5; 1995, ch. 23, § 1.
The corporation may:
(1) Enter into contracts of any nature;
(2) Sue and be sued;
(3) Adopt, use and display a corporate seal;
(4) Receive the payment from its members for members' shares, members' deposits, special accounts and certificates;
(5) Make loans to credit unions, associations of credit unions, and corporations, organizations, or agencies owned or operated by a credit union or credit unions;
(6) Receive money or other property from credit unions, associations of credit unions, and corporations, organizations, or agencies owned or operated by a credit union or credit unions;
(7) Invest its funds, not otherwise required for lending to its members, in the following manner: (A) In any legally chartered bank or trust company supervised by a state or federal bank regulatory agency; (B) In any state or federal savings and loan association or corporation; (C) In any agency or association organized either as a stock company, mutual association, or membership corporation; provided, that the membership or stockholders, as the case may be, of the agency or association are restricted to credit unions, or organizations of credit unions; and provided further, that the purposes for which the agency or association is organized are designed to service or otherwise assist credit union operations; (D) In obligations of or securities fully guaranteed as to principal and interest for the government of the United States or of the state of Tennessee; (E) In any bonds or other obligations issued by the Tennessee valley authority pursuant to the Tennessee Valley Authority Act of 1933 ( 16 U.S.C. §§ 831 - 831dd ); (F) In investments authorized under § 35-3-120 , and in any investment that is lawful for federal credit unions chartered under U.S.C., title 12; (G) In obligations permitted for state banks under § 45-2-607(a)(4) and (a)(5) ; and (H) In other investments not specifically enumerated in this subdivision (7) that may be permitted by rule or regulation of the commissioner;
(A) In any legally chartered bank or trust company supervised by a state or federal bank regulatory agency;
(B) In any state or federal savings and loan association or corporation;
(C) In any agency or association organized either as a stock company, mutual association, or membership corporation; provided, that the membership or stockholders, as the case may be, of the agency or association are restricted to credit unions, or organizations of credit unions; and provided further, that the purposes for which the agency or association is organized are designed to service or otherwise assist credit union operations;
(D) In obligations of or securities fully guaranteed as to principal and interest for the government of the United States or of the state of Tennessee;
(E) In any bonds or other obligations issued by the Tennessee valley authority pursuant to the Tennessee Valley Authority Act of 1933 ( 16 U.S.C. §§ 831 - 831dd );
(F) In investments authorized under § 35-3-120 , and in any investment that is lawful for federal credit unions chartered under U.S.C., title 12;
(G) In obligations permitted for state banks under § 45-2-607(a)(4) and (a)(5) ; and
(H) In other investments not specifically enumerated in this subdivision (7) that may be permitted by rule or regulation of the commissioner;
(8) Borrow money from any source upon terms and conditions that the directors determine. The corporation shall not be subject to the limitations of § 45-4-502(a) ;
(9) Purchase in its own name, hold and convey property of any nature;
(10) Receive by assignment or purchase, from its member credit unions, any property of any nature owned by those member credit unions;
(11) Sell, assign, mortgage, encumber or transfer property of any nature;
(12) Adopt and amend bylaws for carrying out the purposes of this section;
(13) Extend to each member credit union discounts, advancements and accommodations that may be safe and reasonably made with due regard for the claims and demands of other member credit unions and the maintenance of sound credit conditions. It may further prescribe standards for defining the conditions under which discounts, advancements and accommodations may be extended to member credit unions;
(14) Manage and operate other credit unions; and
(15) Undertake other activities, not inconsistent with this part, that the bylaws may provide.
Acts 1981, ch. 76, § 3; 1984, ch. 714, § 3; 1986, ch. 558, § 5; 1995, ch. 23, § 1.
Tenn. Code Ann. § 45-3-1401 — TN Code / Title 45 / Chapter 3 / Section 45-3-1401
Short title
Status: in_force

This part shall be known and may be cited as the "Tennessee Reciprocal Savings Institution Act." Acts 1985, ch. 268, § 1; 1990, ch. 650, § 1.
This part shall be known and may be cited as the "Tennessee Reciprocal Savings Institution Act."
Acts 1985, ch. 268, § 1; 1990, ch. 650, § 1.
Tenn. Code Ann. § 45-4-608 — TN Code / Title 45 / Chapter 4 / Section 45-4-608
Loans to directors and committee members
Status: in_force

Subject to the limitations on loans contained in § 45-4-203 and as specified in written loan policies established by the board of directors, a director or member of the credit or supervisory committee shall be allowed to borrow from the corporation. Acts 1923, ch. 68, § 19; Shan. Supp., § 2198a26; Code 1932, § 3853; Acts 1937, ch. 264, § 9; C. Supp. 1950, § 3853; Acts 1963, ch. 30, § 5; 1970, ch. 409, § 3; 1975, ch. 225, § 1; 1978, ch. 552, § 4; 1979, ch. 86, § 8; T.C.A. (orig. ed.), § 45-1821; Acts 1982, ch. 722, § 4.
Subject to the limitations on loans contained in § 45-4-203 and as specified in written loan policies established by the board of directors, a director or member of the credit or supervisory committee shall be allowed to borrow from the corporation.
Acts 1923, ch. 68, § 19; Shan. Supp., § 2198a26; Code 1932, § 3853; Acts 1937, ch. 264, § 9; C. Supp. 1950, § 3853; Acts 1963, ch. 30, § 5; 1970, ch. 409, § 3; 1975, ch. 225, § 1; 1978, ch. 552, § 4; 1979, ch. 86, § 8; T.C.A. (orig. ed.), § 45-1821; Acts 1982, ch. 722, § 4.
Tenn. Code Ann. § 45-5-304 — TN Code / Title 45 / Chapter 5 / Section 45-5-304
Investment certificates
Status: in_force

(a) A registrant shall not issue investment certificates until: (1) The registrant has qualified as an industrial investment company and furnishes evidence to the commissioner that it meets the capital requirements specified in § 45-5-603 ; (2) The registrant gives notice to the commissioner that the registrant intends to issue investment certificates, which notice shall specify the number and total dollar amount of certificates to be offered and the terms of the offering; (3) The registrant files the forms, documents, and receipts to be used by the registrant with the commissioner; and (4) The registrant furnishes proof that the offering and sale of the investment certificates is covered by an effective registration under the Tennessee Securities Act, compiled in title 48, chapter 1, part 1, or that the securities division of the department of commerce and insurance has reviewed the proposed offering and determined that it is exempt from registration. (b) A registrant may use the forms, documents and receipts that have been filed with the commissioner until the commissioner gives the registrant notice that they do not meet the requirements of this chapter or that the registrant has not complied with other applicable laws. (c) Each investment certificate shall have printed thereon in at least ten-point bold-face type the following: "not federally insured." (d) Except with the prior written approval of the commissioner, a registrant shall use the proceeds from the issuance and sale of investment certificates only in the conduct of its business. (e) A registrant shall not use the terms "banking hours," "banking room," or other similar banking terms in connection with advertising the issuance and sale of investment certificates. Each piece of the advertisement shall bear the full name of the registrant. Acts 1979, ch. 204, § 15; T.C.A., § 45-2015; Acts 1983, ch. 274, § 18.
(a) A registrant shall not issue investment certificates until: (1) The registrant has qualified as an industrial investment company and furnishes evidence to the commissioner that it meets the capital requirements specified in § 45-5-603 ; (2) The registrant gives notice to the commissioner that the registrant intends to issue investment certificates, which notice shall specify the number and total dollar amount of certificates to be offered and the terms of the offering; (3) The registrant files the forms, documents, and receipts to be used by the registrant with the commissioner; and (4) The registrant furnishes proof that the offering and sale of the investment certificates is covered by an effective registration under the Tennessee Securities Act, compiled in title 48, chapter 1, part 1, or that the securities division of the department of commerce and insurance has reviewed the proposed offering and determined that it is exempt from registration.
(1) The registrant has qualified as an industrial investment company and furnishes evidence to the commissioner that it meets the capital requirements specified in § 45-5-603 ;
(2) The registrant gives notice to the commissioner that the registrant intends to issue investment certificates, which notice shall specify the number and total dollar amount of certificates to be offered and the terms of the offering;
(3) The registrant files the forms, documents, and receipts to be used by the registrant with the commissioner; and
(4) The registrant furnishes proof that the offering and sale of the investment certificates is covered by an effective registration under the Tennessee Securities Act, compiled in title 48, chapter 1, part 1, or that the securities division of the department of commerce and insurance has reviewed the proposed offering and determined that it is exempt from registration.
(b) A registrant may use the forms, documents and receipts that have been filed with the commissioner until the commissioner gives the registrant notice that they do not meet the requirements of this chapter or that the registrant has not complied with other applicable laws.
(c) Each investment certificate shall have printed thereon in at least ten-point bold-face type the following: "not federally insured."
(d) Except with the prior written approval of the commissioner, a registrant shall use the proceeds from the issuance and sale of investment certificates only in the conduct of its business.
(e) A registrant shall not use the terms "banking hours," "banking room," or other similar banking terms in connection with advertising the issuance and sale of investment certificates. Each piece of the advertisement shall bear the full name of the registrant.
Acts 1979, ch. 204, § 15; T.C.A., § 45-2015; Acts 1983, ch. 274, § 18.
Tenn. Code Ann. § 45-3-202 — TN Code / Title 45 / Chapter 3 / Section 45-3-202
Commissioner's approval of application for certificate of authority - Hearing
Status: in_force

(a) Upon receipt of an application for authority to organize an association, including all supporting data, the commissioner shall promptly give written notice to at least one (1) of the incorporators of the proposed association designated to receive notices, and the incorporators shall cause the notice to be published in a newspaper of general circulation in the county where the home office of the proposed association is to be located. The notice shall state the name of the proposed association, where the incorporators propose to establish the home office of the association, and that the association shall have an opportunity to request a hearing on the application. If so requested, the hearing shall not be held within ten (10) days nor more than thirty (30) days after the publication of the notice. Any interested person may appear at the hearing in person or by agent or attorney, and orally or in writing show cause, upon any relevant ground, why the application should be approved or denied; provided, that any person objecting to the application shall reduce the substance of the objection to writing and file the same with the commissioner and give notice of the objection to the applicant at least five (5) days prior to the date of the hearing. The hearing shall be conducted in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. (b) The commissioner shall not approve any application before affirmatively finding from all the information furnished with the application, the evidence produced at the hearing, and the commissioner's official records, that the prerequisites of this chapter have been complied with and that as to: (1) Management. The character, responsibility, and general fitness of the persons named in the application are such as to command confidence and warrant belief that the business of the proposed association will be honestly and efficiently conducted in accordance with the purposes of this chapter, and that the proposed association will have qualified full-time management; (2) Public Need. There is public need for the proposed association in the county stated in the application; (3) Capital Structure. The proposed capital structure meets the requirements of this chapter; (4) Undue Harm. The operation of the proposed association will not unduly harm any properly conducted federal or state association existing in the county or in a contiguous county in which the home office of the proposed association is to be located; (5) Name. The name of the proposed association is not the same as, or deceptively similar to, the name of any other association in the state, and this chapter has been complied with with respect to the use of a name by the proposed association; and (6) Insurance. A commitment for insurance of deposit accounts has been obtained by the proposed association that meets the requirements of this chapter. (c) If the commissioner so finds, the commissioner shall state approval and findings in writing and shall promptly mail one (1) copy of the proposed application and the attached findings to at least one (1) of the incorporators by registered or certified mail. In addition, the incorporators shall cause notice of approval to be promptly published in a newspaper of general circulation in the county where the home office of the proposed association is to be located. Acts 1978, ch. 708, § 1.16; T.C.A., § 45-1316.
(a) Upon receipt of an application for authority to organize an association, including all supporting data, the commissioner shall promptly give written notice to at least one (1) of the incorporators of the proposed association designated to receive notices, and the incorporators shall cause the notice to be published in a newspaper of general circulation in the county where the home office of the proposed association is to be located. The notice shall state the name of the proposed association, where the incorporators propose to establish the home office of the association, and that the association shall have an opportunity to request a hearing on the application. If so requested, the hearing shall not be held within ten (10) days nor more than thirty (30) days after the publication of the notice. Any interested person may appear at the hearing in person or by agent or attorney, and orally or in writing show cause, upon any relevant ground, why the application should be approved or denied; provided, that any person objecting to the application shall reduce the substance of the objection to writing and file the same with the commissioner and give notice of the objection to the applicant at least five (5) days prior to the date of the hearing. The hearing shall be conducted in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(b) The commissioner shall not approve any application before affirmatively finding from all the information furnished with the application, the evidence produced at the hearing, and the commissioner's official records, that the prerequisites of this chapter have been complied with and that as to: (1) Management. The character, responsibility, and general fitness of the persons named in the application are such as to command confidence and warrant belief that the business of the proposed association will be honestly and efficiently conducted in accordance with the purposes of this chapter, and that the proposed association will have qualified full-time management; (2) Public Need. There is public need for the proposed association in the county stated in the application; (3) Capital Structure. The proposed capital structure meets the requirements of this chapter; (4) Undue Harm. The operation of the proposed association will not unduly harm any properly conducted federal or state association existing in the county or in a contiguous county in which the home office of the proposed association is to be located; (5) Name. The name of the proposed association is not the same as, or deceptively similar to, the name of any other association in the state, and this chapter has been complied with with respect to the use of a name by the proposed association; and (6) Insurance. A commitment for insurance of deposit accounts has been obtained by the proposed association that meets the requirements of this chapter.
(1) Management. The character, responsibility, and general fitness of the persons named in the application are such as to command confidence and warrant belief that the business of the proposed association will be honestly and efficiently conducted in accordance with the purposes of this chapter, and that the proposed association will have qualified full-time management;
(2) Public Need. There is public need for the proposed association in the county stated in the application;
(3) Capital Structure. The proposed capital structure meets the requirements of this chapter;
(4) Undue Harm. The operation of the proposed association will not unduly harm any properly conducted federal or state association existing in the county or in a contiguous county in which the home office of the proposed association is to be located;
(5) Name. The name of the proposed association is not the same as, or deceptively similar to, the name of any other association in the state, and this chapter has been complied with with respect to the use of a name by the proposed association; and
(6) Insurance. A commitment for insurance of deposit accounts has been obtained by the proposed association that meets the requirements of this chapter.
(c) If the commissioner so finds, the commissioner shall state approval and findings in writing and shall promptly mail one (1) copy of the proposed application and the attached findings to at least one (1) of the incorporators by registered or certified mail. In addition, the incorporators shall cause notice of approval to be promptly published in a newspaper of general circulation in the county where the home office of the proposed association is to be located.
Acts 1978, ch. 708, § 1.16; T.C.A., § 45-1316.
Tenn. Code Ann. § 45-4-403 — TN Code / Title 45 / Chapter 4 / Section 45-4-403
Transfer of shares
Status: in_force

Fully paid-up shares of a credit union may be transferred to any person upon election to membership, upon terms that the bylaws may provide. Acts 1923, ch. 68, § 15; Shan. Supp., § 2168a22; Code 1932, § 3849; C. Supp. 1950, § 3849; Acts 1979, ch. 86, § 7; T.C.A. (orig. ed.), § 45-1819.
Fully paid-up shares of a credit union may be transferred to any person upon election to membership, upon terms that the bylaws may provide.
Acts 1923, ch. 68, § 15; Shan. Supp., § 2168a22; Code 1932, § 3849; C. Supp. 1950, § 3849; Acts 1979, ch. 86, § 7; T.C.A. (orig. ed.), § 45-1819.
Tenn. Code Ann. § 45-7-118 — TN Code / Title 45 / Chapter 7 / Section 45-7-118
Acquisition of control
Status: in_force

(a) Any person, or group of persons acting in concert, seeking to acquire control of a licensee shall obtain the written approval of the commissioner prior to acquiring control. An individual is not deemed to acquire control of a licensee and is not subject to these acquisition of control provisions when that individual becomes a key individual in the ordinary course of business. (b) A person, or group of persons acting in concert, seeking to acquire control of a licensee shall, in cooperation with the licensee, submit an application to acquire control, in a form and in a medium prescribed by the commissioner. (c) Upon request, the commissioner may permit a licensee or the person, or group of persons acting in concert, to submit some or all information required by the commissioner pursuant to subsection (b) without using NMLS. (d) The application required by subsection (b) must include information required by § 45-7-114 for any new key individuals that have not previously completed the requirements of § 45-7-114 for a licensee. (e) (1) When an application for acquisition of control under this section appears to the commissioner to include all the items and to address all the matters that are required, the commissioner shall determine whether the application is complete under this section, and: (A) Within sixty (60) days of concluding an application is complete, the commissioner may either approve or deny the application; or (B) If the application is not approved or denied within sixty (60) days after the date that the commissioner determined the application to be complete: (i) The application is approved; and (ii) The person, or group of persons acting in concert, are not prohibited from acquiring control. (2) The commissioner may for good cause extend the application period. (f) A determination by the commissioner that an application is complete under this section means only that the application, on its face, appears to include all of the items and address all of the matters that are required, and the determination is neither an assessment of the substance of the application nor of the sufficiency of the information provided. (g) When an application is filed and considered complete under this section, the commissioner shall investigate the financial condition and responsibility, financial and business experience, character, and general fitness of the person, or group of persons acting in concert, seeking to acquire control. The commissioner shall approve an acquisition of control pursuant to this section if the commissioner finds that the following conditions have been fulfilled: (1) The requirements of subsections (b) and (d) have been met, as applicable; and (2) The financial condition and responsibility, financial and business experience, competence, character, and general fitness of the person, or group of persons acting in concert, seeking to acquire control, and the competence, experience, character, and general fitness of the key individuals and persons that would be in control of the licensee after the acquisition of control indicate that it is in the interest of the public to permit the person, or group of persons acting in concert, to control the licensee. (h) The commissioner shall notify the licensee in writing of a denial of an application under this section, stating the basis for denial. If the commissioner denies an application, the licensee may make a written request to the commissioner for a hearing on the question of whether the application should be approved. Any hearing requested under this subsection (h) must be conducted in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5; provided, that the licensee has requested the hearing in writing within thirty (30) days of the date of the commissioner's denial. At the hearing, the licensee must prove by a preponderance of the evidence that the applicant is entitled to a license. (i) The requirements of subsections (a) and (b) do not apply to the following: (1) A person that acts as a proxy for the sole purpose of voting at a designated meeting of the shareholders or holders of voting shares or voting interests of a licensee or a person in control of a licensee; (2) A person that acquires control of a licensee by devise or descent; (3) A person that acquires control of a licensee as a personal representative, custodian, guardian, conservator, or trustee, or as an officer appointed by a court of competent jurisdiction or by operation of law; (4) A person that is exempt under § 45-7-104(6) ; (5) A person that the commissioner determines is not subject to subsections (a) and (b) based on the public interest; (6) A public offering of securities of a licensee or a person in control of a licensee; or (7) An internal reorganization of a person in control of the licensee where the ultimate person in control of the licensee remains the same. (j) Persons exempt under subdivisions (i)(2), (3), (4), (6), or (7) in cooperation with the licensee shall notify the commissioner within fifteen (15) days after the acquisition of control. (k) (1) The requirements of subsections (a) and (b) do not apply to a person that has complied with and received approval to engage in money transmission under this chapter or was identified as a person in control in a prior application filed with and approved by the commissioner; provided, that: (A) The person has not had a license revoked or suspended, or controlled a licensee that has had a license revoked or suspended while the person was in control of the licensee in the previous five (5) years; (B) If the person is a licensee, the person is well-managed and has received at least a satisfactory rating for compliance at its most recent examination by this state, if such rating was given; (C) The licensee to be acquired is projected to meet the requirements of §§ 45-7-135 , 45-7-136 , and 45-7-137 after the acquisition of control is completed, and if the person acquiring control is a licensee, that licensee is also projected to meet the requirements of §§ 45-7-135 , 45-7-136 , and 45-7-137 after the acquisition of control is completed; (D) The licensee to be acquired will not implement any material changes to its business plan because of the acquisition of control, and if the person acquiring control is a licensee, that licensee also will not implement any material changes to its business plan because of the acquisition of control; and (E) The person provides notice of the acquisition in cooperation with the licensee and attests to subdivisions (k)(1)(A)-(D) in a form and in a medium prescribed by the commissioner. (2) If the notice is not disapproved within thirty (30) days after the date on which the notice and attestation were determined by the commissioner to be complete, then the notice is deemed approved. Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024. Acts 1994, ch. 715, § 1; T.C.A., § 45-7-218 .
(a) Any person, or group of persons acting in concert, seeking to acquire control of a licensee shall obtain the written approval of the commissioner prior to acquiring control. An individual is not deemed to acquire control of a licensee and is not subject to these acquisition of control provisions when that individual becomes a key individual in the ordinary course of business.
(b) A person, or group of persons acting in concert, seeking to acquire control of a licensee shall, in cooperation with the licensee, submit an application to acquire control, in a form and in a medium prescribed by the commissioner.
(c) Upon request, the commissioner may permit a licensee or the person, or group of persons acting in concert, to submit some or all information required by the commissioner pursuant to subsection (b) without using NMLS.
(d) The application required by subsection (b) must include information required by § 45-7-114 for any new key individuals that have not previously completed the requirements of § 45-7-114 for a licensee.
(e) (1) When an application for acquisition of control under this section appears to the commissioner to include all the items and to address all the matters that are required, the commissioner shall determine whether the application is complete under this section, and: (A) Within sixty (60) days of concluding an application is complete, the commissioner may either approve or deny the application; or (B) If the application is not approved or denied within sixty (60) days after the date that the commissioner determined the application to be complete: (i) The application is approved; and (ii) The person, or group of persons acting in concert, are not prohibited from acquiring control. (2) The commissioner may for good cause extend the application period.
(1) When an application for acquisition of control under this section appears to the commissioner to include all the items and to address all the matters that are required, the commissioner shall determine whether the application is complete under this section, and: (A) Within sixty (60) days of concluding an application is complete, the commissioner may either approve or deny the application; or (B) If the application is not approved or denied within sixty (60) days after the date that the commissioner determined the application to be complete: (i) The application is approved; and (ii) The person, or group of persons acting in concert, are not prohibited from acquiring control.
(A) Within sixty (60) days of concluding an application is complete, the commissioner may either approve or deny the application; or
(B) If the application is not approved or denied within sixty (60) days after the date that the commissioner determined the application to be complete: (i) The application is approved; and (ii) The person, or group of persons acting in concert, are not prohibited from acquiring control.
(i) The application is approved; and
(ii) The person, or group of persons acting in concert, are not prohibited from acquiring control.
(2) The commissioner may for good cause extend the application period.
(f) A determination by the commissioner that an application is complete under this section means only that the application, on its face, appears to include all of the items and address all of the matters that are required, and the determination is neither an assessment of the substance of the application nor of the sufficiency of the information provided.
(g) When an application is filed and considered complete under this section, the commissioner shall investigate the financial condition and responsibility, financial and business experience, character, and general fitness of the person, or group of persons acting in concert, seeking to acquire control. The commissioner shall approve an acquisition of control pursuant to this section if the commissioner finds that the following conditions have been fulfilled: (1) The requirements of subsections (b) and (d) have been met, as applicable; and (2) The financial condition and responsibility, financial and business experience, competence, character, and general fitness of the person, or group of persons acting in concert, seeking to acquire control, and the competence, experience, character, and general fitness of the key individuals and persons that would be in control of the licensee after the acquisition of control indicate that it is in the interest of the public to permit the person, or group of persons acting in concert, to control the licensee.
(1) The requirements of subsections (b) and (d) have been met, as applicable; and
(2) The financial condition and responsibility, financial and business experience, competence, character, and general fitness of the person, or group of persons acting in concert, seeking to acquire control, and the competence, experience, character, and general fitness of the key individuals and persons that would be in control of the licensee after the acquisition of control indicate that it is in the interest of the public to permit the person, or group of persons acting in concert, to control the licensee.
(h) The commissioner shall notify the licensee in writing of a denial of an application under this section, stating the basis for denial. If the commissioner denies an application, the licensee may make a written request to the commissioner for a hearing on the question of whether the application should be approved. Any hearing requested under this subsection (h) must be conducted in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5; provided, that the licensee has requested the hearing in writing within thirty (30) days of the date of the commissioner's denial. At the hearing, the licensee must prove by a preponderance of the evidence that the applicant is entitled to a license.
(i) The requirements of subsections (a) and (b) do not apply to the following: (1) A person that acts as a proxy for the sole purpose of voting at a designated meeting of the shareholders or holders of voting shares or voting interests of a licensee or a person in control of a licensee; (2) A person that acquires control of a licensee by devise or descent; (3) A person that acquires control of a licensee as a personal representative, custodian, guardian, conservator, or trustee, or as an officer appointed by a court of competent jurisdiction or by operation of law; (4) A person that is exempt under § 45-7-104(6) ; (5) A person that the commissioner determines is not subject to subsections (a) and (b) based on the public interest; (6) A public offering of securities of a licensee or a person in control of a licensee; or (7) An internal reorganization of a person in control of the licensee where the ultimate person in control of the licensee remains the same.
(1) A person that acts as a proxy for the sole purpose of voting at a designated meeting of the shareholders or holders of voting shares or voting interests of a licensee or a person in control of a licensee;
(2) A person that acquires control of a licensee by devise or descent;
(3) A person that acquires control of a licensee as a personal representative, custodian, guardian, conservator, or trustee, or as an officer appointed by a court of competent jurisdiction or by operation of law;
(4) A person that is exempt under § 45-7-104(6) ;
(5) A person that the commissioner determines is not subject to subsections (a) and (b) based on the public interest;
(6) A public offering of securities of a licensee or a person in control of a licensee; or
(7) An internal reorganization of a person in control of the licensee where the ultimate person in control of the licensee remains the same.
(j) Persons exempt under subdivisions (i)(2), (3), (4), (6), or (7) in cooperation with the licensee shall notify the commissioner within fifteen (15) days after the acquisition of control.
(k) (1) The requirements of subsections (a) and (b) do not apply to a person that has complied with and received approval to engage in money transmission under this chapter or was identified as a person in control in a prior application filed with and approved by the commissioner; provided, that: (A) The person has not had a license revoked or suspended, or controlled a licensee that has had a license revoked or suspended while the person was in control of the licensee in the previous five (5) years; (B) If the person is a licensee, the person is well-managed and has received at least a satisfactory rating for compliance at its most recent examination by this state, if such rating was given; (C) The licensee to be acquired is projected to meet the requirements of §§ 45-7-135 , 45-7-136 , and 45-7-137 after the acquisition of control is completed, and if the person acquiring control is a licensee, that licensee is also projected to meet the requirements of §§ 45-7-135 , 45-7-136 , and 45-7-137 after the acquisition of control is completed; (D) The licensee to be acquired will not implement any material changes to its business plan because of the acquisition of control, and if the person acquiring control is a licensee, that licensee also will not implement any material changes to its business plan because of the acquisition of control; and (E) The person provides notice of the acquisition in cooperation with the licensee and attests to subdivisions (k)(1)(A)-(D) in a form and in a medium prescribed by the commissioner. (2) If the notice is not disapproved within thirty (30) days after the date on which the notice and attestation were determined by the commissioner to be complete, then the notice is deemed approved.
(1) The requirements of subsections (a) and (b) do not apply to a person that has complied with and received approval to engage in money transmission under this chapter or was identified as a person in control in a prior application filed with and approved by the commissioner; provided, that: (A) The person has not had a license revoked or suspended, or controlled a licensee that has had a license revoked or suspended while the person was in control of the licensee in the previous five (5) years; (B) If the person is a licensee, the person is well-managed and has received at least a satisfactory rating for compliance at its most recent examination by this state, if such rating was given; (C) The licensee to be acquired is projected to meet the requirements of §§ 45-7-135 , 45-7-136 , and 45-7-137 after the acquisition of control is completed, and if the person acquiring control is a licensee, that licensee is also projected to meet the requirements of §§ 45-7-135 , 45-7-136 , and 45-7-137 after the acquisition of control is completed; (D) The licensee to be acquired will not implement any material changes to its business plan because of the acquisition of control, and if the person acquiring control is a licensee, that licensee also will not implement any material changes to its business plan because of the acquisition of control; and (E) The person provides notice of the acquisition in cooperation with the licensee and attests to subdivisions (k)(1)(A)-(D) in a form and in a medium prescribed by the commissioner.
(A) The person has not had a license revoked or suspended, or controlled a licensee that has had a license revoked or suspended while the person was in control of the licensee in the previous five (5) years;
(B) If the person is a licensee, the person is well-managed and has received at least a satisfactory rating for compliance at its most recent examination by this state, if such rating was given;
(C) The licensee to be acquired is projected to meet the requirements of §§ 45-7-135 , 45-7-136 , and 45-7-137 after the acquisition of control is completed, and if the person acquiring control is a licensee, that licensee is also projected to meet the requirements of §§ 45-7-135 , 45-7-136 , and 45-7-137 after the acquisition of control is completed;
(D) The licensee to be acquired will not implement any material changes to its business plan because of the acquisition of control, and if the person acquiring control is a licensee, that licensee also will not implement any material changes to its business plan because of the acquisition of control; and
(E) The person provides notice of the acquisition in cooperation with the licensee and attests to subdivisions (k)(1)(A)-(D) in a form and in a medium prescribed by the commissioner.
(2) If the notice is not disapproved within thirty (30) days after the date on which the notice and attestation were determined by the commissioner to be complete, then the notice is deemed approved.
Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Acts 1994, ch. 715, § 1; T.C.A., § 45-7-218 .
Tenn. Code Ann. § 45-2-1901 — TN Code / Title 45 / Chapter 2 / Section 45-2-1901
Part definitions
Status: in_force

As used in this part, unless the context otherwise requires: (1) "Control" has the meaning set forth in 12 U.S.C. § 1841(a)(2) ; (2) "Credit card state bank" means a state bank chartered under the laws of Tennessee and whose principal office is in this state and the activities of which are limited to those permitted under § 45-2-1902 ; (3) (A) "Domestic holding company" means a company or other affiliate, that either: (i) Controls a domestic or foreign lender and has its principal place of business in this state; or (ii) [Deleted effective July 1, 2020.] (B) [Deleted effective July 1, 2020.] (C) Effective July 1, 2020, subdivisions (3)(A)(ii) and (3)(B) are hereby deleted. Also effective July 1, 2020, the language ", itself or through its parent company, subsidiary, or other affiliate," in subdivision (3)(A) is hereby deleted. However, any company that organized pursuant to subdivision (3)(A)(ii) or (3)(B), and this part prior to July 1, 2020, and that continues to own or control a credit card state bank after July 1, 2020, shall retain authority to own or control a credit card state bank under the terms and conditions provided in this part; (4) "Domestic lender" means any bank, savings and loan association, savings bank, or credit union organized and supervised under the laws of this state or the United States, that has its principal place of business in this state or any other business organization that is authorized by law to accept deposits and make loans and has its principal place of business in this state; (5) "Foreign lender" means any bank, savings and loan association, savings bank, credit union, organized or chartered under the laws of the United States, or any state other than this state, or the District of Columbia, that has its principal place of business outside this state, or any other business organization that is authorized by law to accept deposits and make commercial loans and has its principal place of business outside this state; (6) "Holding company" means any company that controls a domestic or foreign lender; and (7) "Qualifying organization" means a corporation, partnership, or other entity that at all times maintains an office in this state, at which it employs at least one hundred (100) persons residing in this state, and that is directly engaged in providing the following services, either for the qualifying organization or on behalf of other domestic or foreign lenders or credit card state banks: (A) The distribution of credit cards or other devices designed and effective to access credit card accounts; (B) The preparation of periodic statements of amounts due under credit card accounts; (C) The receipt from credit card holders of amounts paid on or with respect to the accounts; and (D) The maintenance of financial records reflecting the status of the accounts from time to time. "Qualifying organization" also includes any domestic bank or credit card bank satisfying the employment and activities requirements set forth in this subdivision (7)(D). Acts 1993, ch. 447, § 4; 2007 ch. 6, §§ 1, 4; 2012, ch. 646, § 1; 2015, ch. 230, §§ 1, 2; 2018, ch. 550, § 1.
As used in this part, unless the context otherwise requires:
(1) "Control" has the meaning set forth in 12 U.S.C. § 1841(a)(2) ;
(2) "Credit card state bank" means a state bank chartered under the laws of Tennessee and whose principal office is in this state and the activities of which are limited to those permitted under § 45-2-1902 ;
(3) (A) "Domestic holding company" means a company or other affiliate, that either: (i) Controls a domestic or foreign lender and has its principal place of business in this state; or (ii) [Deleted effective July 1, 2020.] (B) [Deleted effective July 1, 2020.] (C) Effective July 1, 2020, subdivisions (3)(A)(ii) and (3)(B) are hereby deleted. Also effective July 1, 2020, the language ", itself or through its parent company, subsidiary, or other affiliate," in subdivision (3)(A) is hereby deleted. However, any company that organized pursuant to subdivision (3)(A)(ii) or (3)(B), and this part prior to July 1, 2020, and that continues to own or control a credit card state bank after July 1, 2020, shall retain authority to own or control a credit card state bank under the terms and conditions provided in this part;
(A) "Domestic holding company" means a company or other affiliate, that either: (i) Controls a domestic or foreign lender and has its principal place of business in this state; or (ii) [Deleted effective July 1, 2020.]
(i) Controls a domestic or foreign lender and has its principal place of business in this state; or
(ii) [Deleted effective July 1, 2020.]
(B) [Deleted effective July 1, 2020.]
(C) Effective July 1, 2020, subdivisions (3)(A)(ii) and (3)(B) are hereby deleted. Also effective July 1, 2020, the language ", itself or through its parent company, subsidiary, or other affiliate," in subdivision (3)(A) is hereby deleted. However, any company that organized pursuant to subdivision (3)(A)(ii) or (3)(B), and this part prior to July 1, 2020, and that continues to own or control a credit card state bank after July 1, 2020, shall retain authority to own or control a credit card state bank under the terms and conditions provided in this part;
(4) "Domestic lender" means any bank, savings and loan association, savings bank, or credit union organized and supervised under the laws of this state or the United States, that has its principal place of business in this state or any other business organization that is authorized by law to accept deposits and make loans and has its principal place of business in this state;
(5) "Foreign lender" means any bank, savings and loan association, savings bank, credit union, organized or chartered under the laws of the United States, or any state other than this state, or the District of Columbia, that has its principal place of business outside this state, or any other business organization that is authorized by law to accept deposits and make commercial loans and has its principal place of business outside this state;
(6) "Holding company" means any company that controls a domestic or foreign lender; and
(7) "Qualifying organization" means a corporation, partnership, or other entity that at all times maintains an office in this state, at which it employs at least one hundred (100) persons residing in this state, and that is directly engaged in providing the following services, either for the qualifying organization or on behalf of other domestic or foreign lenders or credit card state banks: (A) The distribution of credit cards or other devices designed and effective to access credit card accounts; (B) The preparation of periodic statements of amounts due under credit card accounts; (C) The receipt from credit card holders of amounts paid on or with respect to the accounts; and (D) The maintenance of financial records reflecting the status of the accounts from time to time. "Qualifying organization" also includes any domestic bank or credit card bank satisfying the employment and activities requirements set forth in this subdivision (7)(D).
(A) The distribution of credit cards or other devices designed and effective to access credit card accounts;
(B) The preparation of periodic statements of amounts due under credit card accounts;
(C) The receipt from credit card holders of amounts paid on or with respect to the accounts; and
(D) The maintenance of financial records reflecting the status of the accounts from time to time. "Qualifying organization" also includes any domestic bank or credit card bank satisfying the employment and activities requirements set forth in this subdivision (7)(D).
Acts 1993, ch. 447, § 4; 2007 ch. 6, §§ 1, 4; 2012, ch. 646, § 1; 2015, ch. 230, §§ 1, 2; 2018, ch. 550, § 1.
Tenn. Code Ann. § 45-18-103 — TN Code / Title 45 / Chapter 18 / Section 45-18-103
Application
Status: in_force

This chapter does not apply to: (1) Any bank, trust company, credit union, building and loan association, savings bank or mutual bank organized under the laws of any state or the United States; (2) Persons who offer a check cashing service without receiving, directly or indirectly, any consideration or fee; and (3) Persons engaged in the cashing of payment instruments that is incidental to the retail sale of goods or services, whose compensation for cashing payment instruments at each site does not exceed five percent (5%) of the gross receipts from the retail sale of goods or services by the person during the person's most recently completed fiscal year. Acts 1997 , ch. 309, §3; 2007 , ch. 80, § 1.
This chapter does not apply to:
(1) Any bank, trust company, credit union, building and loan association, savings bank or mutual bank organized under the laws of any state or the United States;
(2) Persons who offer a check cashing service without receiving, directly or indirectly, any consideration or fee; and
(3) Persons engaged in the cashing of payment instruments that is incidental to the retail sale of goods or services, whose compensation for cashing payment instruments at each site does not exceed five percent (5%) of the gross receipts from the retail sale of goods or services by the person during the person's most recently completed fiscal year.
Acts 1997 , ch. 309, §3; 2007 , ch. 80, § 1.
Tenn. Code Ann. § 45-5-202 — TN Code / Title 45 / Chapter 5 / Section 45-5-202
Procedures for registration
Status: in_force

(a) In order to obtain a certificate of registration, a person must file an application with the commissioner on forms approved and furnished by the commissioner, giving the information that the commissioner may reasonably require in order to determine the qualifications of the applicant, including, but not limited to, identification of all persons owning an interest in the applicant and addresses of any affiliated lenders in this state. (b) Upon the filing of an application and payment by the applicant of a nonrefundable supervision fee, as provided in § 45-1-118(i) , the commissioner shall investigate the facts concerning the application and the information contained in the application. If the commissioner finds that the applicant meets the qualifications specified in this chapter for registration, the commissioner shall approve the application. (c) At the time of the filing of an application for a certificate of registration, each applicant that makes or proposes to make residential mortgage loans shall file with the commissioner a surety bond payable to the state, in a form to be approved by the commissioner, for the benefit of any person injured by the wrongful act, default, fraud or misrepresentation of the registrant. The surety bond shall provide coverage for each mortgage loan originator in an amount that reflects the dollar amount of residential mortgage loans originated by the registrant, as determined by the commissioner; provided, that, for the first period of registration during which the company makes or proposes to make residential mortgage loans, or for the 2009-2010 registration period, or both, as applicable, the surety bond shall be in the amount of two hundred thousand dollars ($200,000). Only one (1) bond is required for the registrant, regardless of the number of offices. Immediately upon recovery upon any action on the bond, the registrant shall file a new bond. The bond shall be maintained by the registrant for not less than twenty-four (24) months following the expiration, revocation, suspension or surrender of the certificate of registration. A registrant that has obtained registration under subsection (d) shall first comply with the surety bond requirements of this subsection (c) prior to making or proposing to make a residential mortgage loan. A registrant authorized to make residential mortgage loans on July 1, 2009, and holding a letter of credit, as opposed to a surety bond, shall be required to comply with the surety bond requirements of this subsection (c) in order to renew the registrant's registration in 2010. (d) All other applicants shall, at the time of the filing of an application for a certificate of registration, file with the commissioner a surety bond payable to the state or a letter of credit, in each case in a form to be approved by the commissioner, for the benefit of any person injured by the wrongful act, default, fraud or misrepresentation of the registrant or the registrant's employees, or both, in the amount of fifty thousand dollars ($50,000). Only one (1) bond or letter of credit is required, regardless of the number of offices of the registrant. The bond or letter of credit shall be maintained by the registrant for not less than twenty-four (24) months following the expiration, revocation, suspension or surrender of the certificate of registration. (e) As a condition of registration for applicants that propose to make residential mortgage loans, or as a condition of a registrant later obtaining such authority, the commissioner may adopt rules to require that certain individuals associated with the applicant or registrant successfully complete testing or educational courses, or both, approved by the commissioner. The rules may extend to any individual who is an officer, partner, managing member or controlling person, or to any other individual associated with the applicant or registrant as is reasonably necessary to meet the purposes of this chapter. (f) The commissioner may require education and testing providers of any of the educational courses or tests required under this chapter to file information regarding the contents and materials of the proposed courses or tests with the commissioner for review and approval. The commissioner may set fees for the initial and continuing review of courses and tests. (g) The commissioner is authorized to require an applicant for a certificate of registration to consent to a criminal history records check and to provide with the application fingerprints in a form acceptable to the commissioner. The commissioner may require such consent and fingerprints from any individual who is an officer, partner, managing member or ultimate equitable owner of ten percent (10%) or more of the applicant, as well as from any other individual associated with the applicant as is reasonably necessary to meet the purposes of this chapter. Refusal of any person to consent to a criminal history records check or to provide fingerprints as allowed by this section constitutes grounds for the commissioner to deny registration to the applicant. (h) (1) Any criminal history records check conducted under subsection (g) shall be conducted by the Tennessee bureau of investigation or the federal bureau of investigation, or both, and the results of the criminal history records check shall be forwarded to the commissioner. All costs incurred in conducting the criminal history records check shall be paid by the applicant, in addition to any other fees required by this chapter. (2) Notwithstanding any other provision in this chapter, the commissioner shall not use a multi-state automated licensing system to share federal bureau of investigation criminal history background information of any individual other than mortgage loan originators, unless authorized to do so by the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 ( 12 U.S.C. §§ 5101 - 5116 ), as amended, or other federal law. Amended by 2016 Tenn. Acts, ch. 745, s 1, eff. 4/7/2016. Amended by 2014 Tenn. Acts, ch. 736, s 3, eff. 7/1/2015. Amended by 2014 Tenn. Acts, ch. 736, s 2, eff. 7/1/2015. Acts 1979, ch. 204, § 5; T.C.A., § 45-2005; Acts 2001, ch. 165, §§ 3, 4; 2009 , ch. 499, §§ 3, 4.
(a) In order to obtain a certificate of registration, a person must file an application with the commissioner on forms approved and furnished by the commissioner, giving the information that the commissioner may reasonably require in order to determine the qualifications of the applicant, including, but not limited to, identification of all persons owning an interest in the applicant and addresses of any affiliated lenders in this state.
(b) Upon the filing of an application and payment by the applicant of a nonrefundable supervision fee, as provided in § 45-1-118(i) , the commissioner shall investigate the facts concerning the application and the information contained in the application. If the commissioner finds that the applicant meets the qualifications specified in this chapter for registration, the commissioner shall approve the application.
(c) At the time of the filing of an application for a certificate of registration, each applicant that makes or proposes to make residential mortgage loans shall file with the commissioner a surety bond payable to the state, in a form to be approved by the commissioner, for the benefit of any person injured by the wrongful act, default, fraud or misrepresentation of the registrant. The surety bond shall provide coverage for each mortgage loan originator in an amount that reflects the dollar amount of residential mortgage loans originated by the registrant, as determined by the commissioner; provided, that, for the first period of registration during which the company makes or proposes to make residential mortgage loans, or for the 2009-2010 registration period, or both, as applicable, the surety bond shall be in the amount of two hundred thousand dollars ($200,000). Only one (1) bond is required for the registrant, regardless of the number of offices. Immediately upon recovery upon any action on the bond, the registrant shall file a new bond. The bond shall be maintained by the registrant for not less than twenty-four (24) months following the expiration, revocation, suspension or surrender of the certificate of registration. A registrant that has obtained registration under subsection (d) shall first comply with the surety bond requirements of this subsection (c) prior to making or proposing to make a residential mortgage loan. A registrant authorized to make residential mortgage loans on July 1, 2009, and holding a letter of credit, as opposed to a surety bond, shall be required to comply with the surety bond requirements of this subsection (c) in order to renew the registrant's registration in 2010.
(d) All other applicants shall, at the time of the filing of an application for a certificate of registration, file with the commissioner a surety bond payable to the state or a letter of credit, in each case in a form to be approved by the commissioner, for the benefit of any person injured by the wrongful act, default, fraud or misrepresentation of the registrant or the registrant's employees, or both, in the amount of fifty thousand dollars ($50,000). Only one (1) bond or letter of credit is required, regardless of the number of offices of the registrant. The bond or letter of credit shall be maintained by the registrant for not less than twenty-four (24) months following the expiration, revocation, suspension or surrender of the certificate of registration.
(e) As a condition of registration for applicants that propose to make residential mortgage loans, or as a condition of a registrant later obtaining such authority, the commissioner may adopt rules to require that certain individuals associated with the applicant or registrant successfully complete testing or educational courses, or both, approved by the commissioner. The rules may extend to any individual who is an officer, partner, managing member or controlling person, or to any other individual associated with the applicant or registrant as is reasonably necessary to meet the purposes of this chapter.
(f) The commissioner may require education and testing providers of any of the educational courses or tests required under this chapter to file information regarding the contents and materials of the proposed courses or tests with the commissioner for review and approval. The commissioner may set fees for the initial and continuing review of courses and tests.
(g) The commissioner is authorized to require an applicant for a certificate of registration to consent to a criminal history records check and to provide with the application fingerprints in a form acceptable to the commissioner. The commissioner may require such consent and fingerprints from any individual who is an officer, partner, managing member or ultimate equitable owner of ten percent (10%) or more of the applicant, as well as from any other individual associated with the applicant as is reasonably necessary to meet the purposes of this chapter. Refusal of any person to consent to a criminal history records check or to provide fingerprints as allowed by this section constitutes grounds for the commissioner to deny registration to the applicant.
(h) (1) Any criminal history records check conducted under subsection (g) shall be conducted by the Tennessee bureau of investigation or the federal bureau of investigation, or both, and the results of the criminal history records check shall be forwarded to the commissioner. All costs incurred in conducting the criminal history records check shall be paid by the applicant, in addition to any other fees required by this chapter. (2) Notwithstanding any other provision in this chapter, the commissioner shall not use a multi-state automated licensing system to share federal bureau of investigation criminal history background information of any individual other than mortgage loan originators, unless authorized to do so by the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 ( 12 U.S.C. §§ 5101 - 5116 ), as amended, or other federal law.
(1) Any criminal history records check conducted under subsection (g) shall be conducted by the Tennessee bureau of investigation or the federal bureau of investigation, or both, and the results of the criminal history records check shall be forwarded to the commissioner. All costs incurred in conducting the criminal history records check shall be paid by the applicant, in addition to any other fees required by this chapter.
(2) Notwithstanding any other provision in this chapter, the commissioner shall not use a multi-state automated licensing system to share federal bureau of investigation criminal history background information of any individual other than mortgage loan originators, unless authorized to do so by the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 ( 12 U.S.C. §§ 5101 - 5116 ), as amended, or other federal law.
Amended by 2016 Tenn. Acts, ch. 745, s 1, eff. 4/7/2016.
Amended by 2014 Tenn. Acts, ch. 736, s 3, eff. 7/1/2015.
Amended by 2014 Tenn. Acts, ch. 736, s 2, eff. 7/1/2015.
Acts 1979, ch. 204, § 5; T.C.A., § 45-2005; Acts 2001, ch. 165, §§ 3, 4; 2009 , ch. 499, §§ 3, 4.
Tenn. Code Ann. § 45-2-1401 — TN Code / Title 45 / Chapter 2 / Section 45-2-1401
Short title
Status: in_force

This part shall be known and may be cited as the "Bank Structure Act." Acts 1974, ch. 469, § 1; T.C.A., § 45-619; Acts 1995, ch. 165, § 2.
This part shall be known and may be cited as the "Bank Structure Act."
Acts 1974, ch. 469, § 1; T.C.A., § 45-619; Acts 1995, ch. 165, § 2.
Tenn. Code Ann. § 45-3-404 — TN Code / Title 45 / Chapter 3 / Section 45-3-404
Computation of net income
Status: in_force

Every association shall close its books on the last business day of its fiscal year, and at other times that its charter or bylaws provide, or as the commissioner requires, for the purpose of determining the gross income of the association for its fiscal year or for the period since the date of the last closing of its books, and from which shall be deducted the expenses of operating the association for that period, the balance remaining being the net income for the period. Acts 1978, ch. 708, § 2.33; T.C.A., § 45-1433.
Every association shall close its books on the last business day of its fiscal year, and at other times that its charter or bylaws provide, or as the commissioner requires, for the purpose of determining the gross income of the association for its fiscal year or for the period since the date of the last closing of its books, and from which shall be deducted the expenses of operating the association for that period, the balance remaining being the net income for the period.
Acts 1978, ch. 708, § 2.33; T.C.A., § 45-1433.
Tenn. Code Ann. § 45-11-102 — TN Code / Title 45 / Chapter 11 / Section 45-11-102
Chapter definitions
Status: in_force

As used in this chapter, unless the context otherwise requires: (1) "Capital stock financial institution" means a financial institution, the ownership of which rests in the holders of shares of capital stock, who may receive dividends on their shares, and who have the sole right to vote on matters affecting the financial institution; (2) "Converting institution" means a financial institution converting to another type of financial institution; (3) "Financial institution" means a savings and loan association, bank, savings bank, credit union, or trust company organized under the laws of any state or organized under the laws of the United States; (4) "Mutual financial institution" means an association or savings bank or credit union, the ownership of which rests in members who receive interest on their deposit accounts, and who have the sole right to vote on all matters affecting the financial institution; and (5) "Resulting financial institution" means the financial institution resulting from a conversion and having its principal place of business in this state. Amended by 2018 Tenn. Acts, ch. 741, Secs.s 1, s 2eff. 4/18/2018. Acts 1985, ch. 174, § 2; 1991, ch. 33, §§1, 2; 2008 , ch. 968, §§ 1, 2.
As used in this chapter, unless the context otherwise requires:
(1) "Capital stock financial institution" means a financial institution, the ownership of which rests in the holders of shares of capital stock, who may receive dividends on their shares, and who have the sole right to vote on matters affecting the financial institution;
(2) "Converting institution" means a financial institution converting to another type of financial institution;
(3) "Financial institution" means a savings and loan association, bank, savings bank, credit union, or trust company organized under the laws of any state or organized under the laws of the United States;
(4) "Mutual financial institution" means an association or savings bank or credit union, the ownership of which rests in members who receive interest on their deposit accounts, and who have the sole right to vote on all matters affecting the financial institution; and
(5) "Resulting financial institution" means the financial institution resulting from a conversion and having its principal place of business in this state.
Amended by 2018 Tenn. Acts, ch. 741, Secs.s 1, s 2eff. 4/18/2018.
Acts 1985, ch. 174, § 2; 1991, ch. 33, §§1, 2; 2008 , ch. 968, §§ 1, 2.
Tenn. Code Ann. § 45-3-508 — TN Code / Title 45 / Chapter 3 / Section 45-3-508
Accounts in two or more names
Status: in_force

Deposit accounts and certificates of deposit maintained in any association in the names of two (2) or more persons shall be governed by § 45-2-703 . Acts 1978, ch. 708, § 2.08; T.C.A., § 45-1408; Acts 1988, ch. 926, § 7.
Deposit accounts and certificates of deposit maintained in any association in the names of two (2) or more persons shall be governed by § 45-2-703 .
Acts 1978, ch. 708, § 2.08; T.C.A., § 45-1408; Acts 1988, ch. 926, § 7.
Tenn. Code Ann. § 45-2-2204 — TN Code / Title 45 / Chapter 2 / Section 45-2-2204
Attorney general and reporter - violation investigation - Penalties - Defenses - Procedure to petition for investigation
Status: in_force

(a) The attorney general and reporter shall investigate allegations that an individual or entity, including a government entity, has violated § 45-2-2203 and, upon finding a violation, provide written notice to the individual or entity believed to have committed the violation. The individual or entity shall cease the violation within thirty (30) days after receiving such notice. (b) (1) If an individual or entity does not cease the violation within thirty (30) days after receiving notice pursuant to subsection (a), then the attorney general and reporter shall file an action against that individual or entity to seek an injunction in a court of competent jurisdiction. (2) If the court finds that the individual or entity violated § 45-2-2203 and has not ceased the activity constituting the violation, the court shall enjoin the individual or entity from continuing such activity and may award any other relief that the court deems appropriate. (3) If an individual or entity knowingly fails to comply with an injunction issued under subdivision (b)(2) after thirty (30) days of being served with the injunction, the attorney general and reporter, upon petition to the court, shall seek to impose on that individual or entity a civil fine in an amount not to exceed ten thousand dollars ($10,000) for each violation committed after the expiration of the thirty-day period. In assessing such fine, the court shall consider as factors the financial resources of the violator, the harm or risk of harm to the rights under the Second Amendment to the United States Constitution and the Constitution of Tennessee, Article I, § 26, resulting from the violation. (4) An order assessing a civil fine under subdivision (b)(3) must be stayed pending appeal of the order. (c) The remedies set forth in this section are the exclusive remedies for a violation of § 45-2-2203 . (d) It is a defense to a proceeding initiated pursuant to this section that a firearms code was required to be disclosed or assigned by law. (e) A firearms retailer physically located in this state whose business was the subject of a violation of this part, or a customer who has transacted business at such firearms retailer, may petition the attorney general and reporter to investigate an alleged violation of this part. If the attorney general and reporter declines to investigate, then the firearms retailer or customer may pursue an injunction in the chancery court of the judicial district where the alleged violation occurred. If the chancery court finds that an individual or entity is responsible for a violation of this part, then the court shall enjoin the aforementioned individual or entity from continuing the conduct found to be in violation of this part. Added by 2024 Tenn. Acts, ch. 773,s 1, eff. 7/1/2024.
(a) The attorney general and reporter shall investigate allegations that an individual or entity, including a government entity, has violated § 45-2-2203 and, upon finding a violation, provide written notice to the individual or entity believed to have committed the violation. The individual or entity shall cease the violation within thirty (30) days after receiving such notice.
(b) (1) If an individual or entity does not cease the violation within thirty (30) days after receiving notice pursuant to subsection (a), then the attorney general and reporter shall file an action against that individual or entity to seek an injunction in a court of competent jurisdiction. (2) If the court finds that the individual or entity violated § 45-2-2203 and has not ceased the activity constituting the violation, the court shall enjoin the individual or entity from continuing such activity and may award any other relief that the court deems appropriate. (3) If an individual or entity knowingly fails to comply with an injunction issued under subdivision (b)(2) after thirty (30) days of being served with the injunction, the attorney general and reporter, upon petition to the court, shall seek to impose on that individual or entity a civil fine in an amount not to exceed ten thousand dollars ($10,000) for each violation committed after the expiration of the thirty-day period. In assessing such fine, the court shall consider as factors the financial resources of the violator, the harm or risk of harm to the rights under the Second Amendment to the United States Constitution and the Constitution of Tennessee, Article I, § 26, resulting from the violation. (4) An order assessing a civil fine under subdivision (b)(3) must be stayed pending appeal of the order.
(1) If an individual or entity does not cease the violation within thirty (30) days after receiving notice pursuant to subsection (a), then the attorney general and reporter shall file an action against that individual or entity to seek an injunction in a court of competent jurisdiction.
(2) If the court finds that the individual or entity violated § 45-2-2203 and has not ceased the activity constituting the violation, the court shall enjoin the individual or entity from continuing such activity and may award any other relief that the court deems appropriate.
(3) If an individual or entity knowingly fails to comply with an injunction issued under subdivision (b)(2) after thirty (30) days of being served with the injunction, the attorney general and reporter, upon petition to the court, shall seek to impose on that individual or entity a civil fine in an amount not to exceed ten thousand dollars ($10,000) for each violation committed after the expiration of the thirty-day period. In assessing such fine, the court shall consider as factors the financial resources of the violator, the harm or risk of harm to the rights under the Second Amendment to the United States Constitution and the Constitution of Tennessee, Article I, § 26, resulting from the violation.
(4) An order assessing a civil fine under subdivision (b)(3) must be stayed pending appeal of the order.
(c) The remedies set forth in this section are the exclusive remedies for a violation of § 45-2-2203 .
(d) It is a defense to a proceeding initiated pursuant to this section that a firearms code was required to be disclosed or assigned by law.
(e) A firearms retailer physically located in this state whose business was the subject of a violation of this part, or a customer who has transacted business at such firearms retailer, may petition the attorney general and reporter to investigate an alleged violation of this part. If the attorney general and reporter declines to investigate, then the firearms retailer or customer may pursue an injunction in the chancery court of the judicial district where the alleged violation occurred. If the chancery court finds that an individual or entity is responsible for a violation of this part, then the court shall enjoin the aforementioned individual or entity from continuing the conduct found to be in violation of this part.
Added by 2024 Tenn. Acts, ch. 773,s 1, eff. 7/1/2024.
Tenn. Code Ann. § 45-2-1903 — TN Code / Title 45 / Chapter 2 / Section 45-2-1903
Part definitions - Credit card accounts
Status: in_force

(a) For purposes of this part, unless the context otherwise requires: (1) "Bank" means a credit card state bank established and operated in accordance with § 45-2-1902 or a domestic lender; (2) "Credit card account" or "credit card plan" means any account that can be accessed by a credit card, including a debit card with a credit feature, whereby the cardholder may obtain loans from time to time either by credit card cash advance or by the purchase or satisfaction by the bank of obligations of the cardholder incurred pursuant to a credit card. "Cardholder" includes borrowers and other primary obligors on loans. With regard to a state credit card bank electing to make loans pursuant to § 45-2-1902(d)(5) , and with regard to a domestic lender electing to make loans pursuant to §§ 45-2-1901 - 45-2-1908, "credit card account" or "credit card plan" also includes loans; and (3) "Loan" means any extension of credit, including, but not limited to, credit extended under plans or in transactions for which no credit card is issued, whether by way of installment, single payment, add-on, discount factoring, or otherwise for personal, consumer, agricultural or commercial purposes. (b) A bank may extend credit under this part through a credit card account. (c) This part governs the entire credit card account and all transactions thereunder, including transactions made by check or by another access device or instrument not constituting a credit card. Regardless of the cardholder's place of residence, a credit card account authorized by this part shall be governed solely by federal law and the law of this state, except to the extent the agreement relating to the account provides otherwise. Any other law of this state, including any statute, regulation, or common law, that limits the authority provided by this part or the rate or amount of interest, discount, points, finance charges, time-price differential, service charges or other fees and charges that may be charged, taken, collected, received, or reserved, shall not apply to extensions of credit under a credit card plan that is subject to this part. Acts 1993, ch. 447, § 6; 1999, ch. 168, §§ 3, 4; 2001, ch. 54, § 34.
(a) For purposes of this part, unless the context otherwise requires: (1) "Bank" means a credit card state bank established and operated in accordance with § 45-2-1902 or a domestic lender; (2) "Credit card account" or "credit card plan" means any account that can be accessed by a credit card, including a debit card with a credit feature, whereby the cardholder may obtain loans from time to time either by credit card cash advance or by the purchase or satisfaction by the bank of obligations of the cardholder incurred pursuant to a credit card. "Cardholder" includes borrowers and other primary obligors on loans. With regard to a state credit card bank electing to make loans pursuant to § 45-2-1902(d)(5) , and with regard to a domestic lender electing to make loans pursuant to §§ 45-2-1901 - 45-2-1908, "credit card account" or "credit card plan" also includes loans; and (3) "Loan" means any extension of credit, including, but not limited to, credit extended under plans or in transactions for which no credit card is issued, whether by way of installment, single payment, add-on, discount factoring, or otherwise for personal, consumer, agricultural or commercial purposes.
(1) "Bank" means a credit card state bank established and operated in accordance with § 45-2-1902 or a domestic lender;
(2) "Credit card account" or "credit card plan" means any account that can be accessed by a credit card, including a debit card with a credit feature, whereby the cardholder may obtain loans from time to time either by credit card cash advance or by the purchase or satisfaction by the bank of obligations of the cardholder incurred pursuant to a credit card. "Cardholder" includes borrowers and other primary obligors on loans. With regard to a state credit card bank electing to make loans pursuant to § 45-2-1902(d)(5) , and with regard to a domestic lender electing to make loans pursuant to §§ 45-2-1901 - 45-2-1908, "credit card account" or "credit card plan" also includes loans; and
(3) "Loan" means any extension of credit, including, but not limited to, credit extended under plans or in transactions for which no credit card is issued, whether by way of installment, single payment, add-on, discount factoring, or otherwise for personal, consumer, agricultural or commercial purposes.
(b) A bank may extend credit under this part through a credit card account.
(c) This part governs the entire credit card account and all transactions thereunder, including transactions made by check or by another access device or instrument not constituting a credit card. Regardless of the cardholder's place of residence, a credit card account authorized by this part shall be governed solely by federal law and the law of this state, except to the extent the agreement relating to the account provides otherwise. Any other law of this state, including any statute, regulation, or common law, that limits the authority provided by this part or the rate or amount of interest, discount, points, finance charges, time-price differential, service charges or other fees and charges that may be charged, taken, collected, received, or reserved, shall not apply to extensions of credit under a credit card plan that is subject to this part.
Acts 1993, ch. 447, § 6; 1999, ch. 168, §§ 3, 4; 2001, ch. 54, § 34.
Tenn. Code Ann. § 45-1-102 — TN Code / Title 45 / Chapter 1 / Section 45-1-102
Purpose - Standards for exercise of authority by commissioner - Rules of construction
Status: in_force

(a) It is the underlying purpose of this chapter and chapter 2 of this title to provide the citizens of Tennessee with a sound system of state chartered banks by providing for and encouraging the development of the banks while restricting their activities to the extent necessary to safeguard the interests of depositors. (b) This underlying purpose includes, but is not limited to, providing for: (1) The sound conduct of the business of banks subject to this chapter and chapter 2 of this title; (2) The conservation of their assets; (3) The maintenance of adequate reserves against deposits; (4) The opportunity for banks subject to this chapter and chapter 2 of this title to compete with other businesses including, but not limited to, other financial organizations existing under the laws of this and other states, the United States and foreign countries; (5) The opportunity for banks to serve the citizens of this state by improving and expanding their services and facilities and the opportunity for banks to participate in and promote the economic progress of Tennessee and the United States; (6) The opportunity for the management of banks to exercise business judgment in conducting the affairs of their institutions; and (7) Modernization and simplification of the law governing banking by providing that banks subject to this chapter and chapter 2 of this title shall have all the rights and powers granted corporations for profit by the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27, except for the rights and powers withheld by those chapters or by rule or regulation of the commissioner of financial institutions. (c) It is not a purpose of this chapter and chapter 2 of this title to restrict the activities of banks for the purpose of protecting any person, as hereinafter defined, from competition from banks, and this chapter and chapter 2 of this title do not confer any right or cause of action upon any competitor. (d) The purposes of this chapter and chapter 2 of this title shall constitute standards to be observed by the commissioner of financial institutions in the commissioner's exercise of authority under this chapter and chapter 2 of this title, and shall constitute rules of construction in all matters of construction and application of those chapters. Acts 1969, ch. 36, § 1 (1.102); 1973, ch. 294, §6; T.C.A., §45-102; Acts 1994, ch. 551, § 19.
(a) It is the underlying purpose of this chapter and chapter 2 of this title to provide the citizens of Tennessee with a sound system of state chartered banks by providing for and encouraging the development of the banks while restricting their activities to the extent necessary to safeguard the interests of depositors.
(b) This underlying purpose includes, but is not limited to, providing for: (1) The sound conduct of the business of banks subject to this chapter and chapter 2 of this title; (2) The conservation of their assets; (3) The maintenance of adequate reserves against deposits; (4) The opportunity for banks subject to this chapter and chapter 2 of this title to compete with other businesses including, but not limited to, other financial organizations existing under the laws of this and other states, the United States and foreign countries; (5) The opportunity for banks to serve the citizens of this state by improving and expanding their services and facilities and the opportunity for banks to participate in and promote the economic progress of Tennessee and the United States; (6) The opportunity for the management of banks to exercise business judgment in conducting the affairs of their institutions; and (7) Modernization and simplification of the law governing banking by providing that banks subject to this chapter and chapter 2 of this title shall have all the rights and powers granted corporations for profit by the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27, except for the rights and powers withheld by those chapters or by rule or regulation of the commissioner of financial institutions.
(1) The sound conduct of the business of banks subject to this chapter and chapter 2 of this title;
(2) The conservation of their assets;
(3) The maintenance of adequate reserves against deposits;
(4) The opportunity for banks subject to this chapter and chapter 2 of this title to compete with other businesses including, but not limited to, other financial organizations existing under the laws of this and other states, the United States and foreign countries;
(5) The opportunity for banks to serve the citizens of this state by improving and expanding their services and facilities and the opportunity for banks to participate in and promote the economic progress of Tennessee and the United States;
(6) The opportunity for the management of banks to exercise business judgment in conducting the affairs of their institutions; and
(7) Modernization and simplification of the law governing banking by providing that banks subject to this chapter and chapter 2 of this title shall have all the rights and powers granted corporations for profit by the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27, except for the rights and powers withheld by those chapters or by rule or regulation of the commissioner of financial institutions.
(c) It is not a purpose of this chapter and chapter 2 of this title to restrict the activities of banks for the purpose of protecting any person, as hereinafter defined, from competition from banks, and this chapter and chapter 2 of this title do not confer any right or cause of action upon any competitor.
(d) The purposes of this chapter and chapter 2 of this title shall constitute standards to be observed by the commissioner of financial institutions in the commissioner's exercise of authority under this chapter and chapter 2 of this title, and shall constitute rules of construction in all matters of construction and application of those chapters.
Acts 1969, ch. 36, § 1 (1.102); 1973, ch. 294, §6; T.C.A., §45-102; Acts 1994, ch. 551, § 19.
Tenn. Code Ann. § 45-6-222 — TN Code / Title 45 / Chapter 6 / Section 45-6-222
Procedure for subpoena for production of fingerprint
Status: in_force

(a) The following procedure shall be employed when a law enforcement officer, as defined in § 39-11-106 , seeks to obtain a subpoena for the production of a thumbprint taken and maintained pursuant to § 45-6-209(b)(7) for the purpose of establishing, investigating or gathering evidence for the prosecution of a criminal offense. (b) If the officer has reason to believe that a criminal offense has been committed or is being committed and that requiring the production of a thumbprint in the possession of a pawnbroker is necessary to establish who committed or is committing the offense or to aid in the investigation and prosecution of the person or persons believed to have committed or believed to be committing the offense, the officer shall prepare an affidavit in accordance with subsection (c). (c) An affidavit in support of a request to compel the production of a thumbprint from a pawnbroker shall state with particularity the following: (1) A statement that a specific criminal offense has been committed or is being committed and the nature of the offense; (2) The articulable reasons why the law enforcement officer believes the production of the thumbprint requested will materially assist in the investigation of the specific offense committed or being committed; (3) The name and address of the pawnbroker maintaining the thumbprint; and (4) The nexus between the thumbprint requested and the criminal offense committed or being committed. (d) (1) Upon preparing the affidavit, the law enforcement officer shall submit it to a magistrate, as defined in §§ 40-5-101 and 40-5-102 . The magistrate shall examine the affidavit and may examine the affiants under oath. The magistrate may grant the request for a subpoena to produce the thumbprint requested if the magistrate finds that the affiants have presented a reasonable basis for believing that: (A) A specific criminal offense has been committed or is being committed; (B) Production of the requested thumbprint will materially assist law enforcement in the establishment or investigation of such offense; (C) There exists a clear and logical nexus between the thumbprint requested and the offense committed or being committed; and (D) The scope of the request is not unreasonably broad or the thumbprint unduly burdensome to produce. (2) If the magistrate finds that all of the criteria set out in subdivision (d)(1) do not exist as to the thumbprint requested, the magistrate shall deny the request for subpoena. (e) The affidavit filed in support of any request for the issuance of a subpoena pursuant to this section shall be filed with and maintained by the magistrate's office. If a subpoena is issued as the result of the affidavit, the affidavit shall be kept under seal by the magistrate until a copy is requested by the district attorney general, criminal charges are filed in the case, or the affidavit is ordered released by a court of record for good cause. (f) A subpoena granted pursuant to this section by a magistrate of a court of record shall issue to any part of the state and shall command the pawnbroker to whom it is directed to produce any thumbprint that is specified in the subpoena to the law enforcement officer and at a reasonable time and place designated in the subpoena. A subpoena granted pursuant to this section by any other magistrate shall in all respects be like a subpoena granted by the magistrate of a court of record but shall issue only within the county in which the magistrate has jurisdiction. The magistrate shall prepare or cause to be prepared the subpoena and it shall describe the specific thumbprint requested and set forth the date and manner it is to be delivered to the officer. (g) If the subpoena is issued by a magistrate of a court of record, it may be served by the officer in any county of the state by personal service, certified mail, return receipt requested, or by any other means with the consent of the person named in the subpoena. If the subpoena is issued by any other magistrate it shall be served by an officer with jurisdiction in the county of the issuing magistrate but may be served by personal service, certified mail, return receipt requested, or by any other means with the consent of the person named in the subpoena. The officer shall maintain a copy of the subpoena and endorse thereon the date and manner of service as proof thereof. (h) No pawnbroker shall be excused from complying with a subpoena for the production of a thumbprint maintained by the pawnbroker issued pursuant to this section on the ground that production of the requested thumbprint may tend to incriminate the pawnbroker. Any pawnbroker claiming a privilege against self incrimination must assert the claim before the magistrate issuing the subpoena promptly and before the time designated for compliance therewith. If the district attorney general thereafter certifies to the magistrate that the interests of justice demand the production of the thumbprint for which the claim of privilege is asserted, then the magistrate shall order the production of the thumbprint and the pawnbroker shall not be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter or thing concerning the requested thumbprint the pawnbroker was compelled to produce. (i) No subpoena for the production of a thumbprint as authorized by this section shall be directed to, or served upon, any defendant, or defendant's counsel, in a criminal action in this state, any person who is suspected of committing a criminal offense or any person who is the subject of a criminal investigation. (j) If any pawnbroker, without cause, refuses to produce the requested thumbprint within the time and manner designated for compliance by the issuing magistrate, the district attorney general shall seek a writ of attachment from the issuing magistrate to seize the pawnbroker within the state and that pawnbroker may be held in civil contempt and committed to jail therein to remain without bail until willing to comply with the subpoena as the law directs. Acts 2001, ch. 429, § 2; 2005, ch. 225, §§ 1 - 7.
(a) The following procedure shall be employed when a law enforcement officer, as defined in § 39-11-106 , seeks to obtain a subpoena for the production of a thumbprint taken and maintained pursuant to § 45-6-209(b)(7) for the purpose of establishing, investigating or gathering evidence for the prosecution of a criminal offense.
(b) If the officer has reason to believe that a criminal offense has been committed or is being committed and that requiring the production of a thumbprint in the possession of a pawnbroker is necessary to establish who committed or is committing the offense or to aid in the investigation and prosecution of the person or persons believed to have committed or believed to be committing the offense, the officer shall prepare an affidavit in accordance with subsection (c).
(c) An affidavit in support of a request to compel the production of a thumbprint from a pawnbroker shall state with particularity the following: (1) A statement that a specific criminal offense has been committed or is being committed and the nature of the offense; (2) The articulable reasons why the law enforcement officer believes the production of the thumbprint requested will materially assist in the investigation of the specific offense committed or being committed; (3) The name and address of the pawnbroker maintaining the thumbprint; and (4) The nexus between the thumbprint requested and the criminal offense committed or being committed.
(1) A statement that a specific criminal offense has been committed or is being committed and the nature of the offense;
(2) The articulable reasons why the law enforcement officer believes the production of the thumbprint requested will materially assist in the investigation of the specific offense committed or being committed;
(3) The name and address of the pawnbroker maintaining the thumbprint; and
(4) The nexus between the thumbprint requested and the criminal offense committed or being committed.
(d) (1) Upon preparing the affidavit, the law enforcement officer shall submit it to a magistrate, as defined in §§ 40-5-101 and 40-5-102 . The magistrate shall examine the affidavit and may examine the affiants under oath. The magistrate may grant the request for a subpoena to produce the thumbprint requested if the magistrate finds that the affiants have presented a reasonable basis for believing that: (A) A specific criminal offense has been committed or is being committed; (B) Production of the requested thumbprint will materially assist law enforcement in the establishment or investigation of such offense; (C) There exists a clear and logical nexus between the thumbprint requested and the offense committed or being committed; and (D) The scope of the request is not unreasonably broad or the thumbprint unduly burdensome to produce. (2) If the magistrate finds that all of the criteria set out in subdivision (d)(1) do not exist as to the thumbprint requested, the magistrate shall deny the request for subpoena.
(1) Upon preparing the affidavit, the law enforcement officer shall submit it to a magistrate, as defined in §§ 40-5-101 and 40-5-102 . The magistrate shall examine the affidavit and may examine the affiants under oath. The magistrate may grant the request for a subpoena to produce the thumbprint requested if the magistrate finds that the affiants have presented a reasonable basis for believing that: (A) A specific criminal offense has been committed or is being committed; (B) Production of the requested thumbprint will materially assist law enforcement in the establishment or investigation of such offense; (C) There exists a clear and logical nexus between the thumbprint requested and the offense committed or being committed; and (D) The scope of the request is not unreasonably broad or the thumbprint unduly burdensome to produce.
(A) A specific criminal offense has been committed or is being committed;
(B) Production of the requested thumbprint will materially assist law enforcement in the establishment or investigation of such offense;
(C) There exists a clear and logical nexus between the thumbprint requested and the offense committed or being committed; and
(D) The scope of the request is not unreasonably broad or the thumbprint unduly burdensome to produce.
(2) If the magistrate finds that all of the criteria set out in subdivision (d)(1) do not exist as to the thumbprint requested, the magistrate shall deny the request for subpoena.
(e) The affidavit filed in support of any request for the issuance of a subpoena pursuant to this section shall be filed with and maintained by the magistrate's office. If a subpoena is issued as the result of the affidavit, the affidavit shall be kept under seal by the magistrate until a copy is requested by the district attorney general, criminal charges are filed in the case, or the affidavit is ordered released by a court of record for good cause.
(f) A subpoena granted pursuant to this section by a magistrate of a court of record shall issue to any part of the state and shall command the pawnbroker to whom it is directed to produce any thumbprint that is specified in the subpoena to the law enforcement officer and at a reasonable time and place designated in the subpoena. A subpoena granted pursuant to this section by any other magistrate shall in all respects be like a subpoena granted by the magistrate of a court of record but shall issue only within the county in which the magistrate has jurisdiction. The magistrate shall prepare or cause to be prepared the subpoena and it shall describe the specific thumbprint requested and set forth the date and manner it is to be delivered to the officer.
(g) If the subpoena is issued by a magistrate of a court of record, it may be served by the officer in any county of the state by personal service, certified mail, return receipt requested, or by any other means with the consent of the person named in the subpoena. If the subpoena is issued by any other magistrate it shall be served by an officer with jurisdiction in the county of the issuing magistrate but may be served by personal service, certified mail, return receipt requested, or by any other means with the consent of the person named in the subpoena. The officer shall maintain a copy of the subpoena and endorse thereon the date and manner of service as proof thereof.
(h) No pawnbroker shall be excused from complying with a subpoena for the production of a thumbprint maintained by the pawnbroker issued pursuant to this section on the ground that production of the requested thumbprint may tend to incriminate the pawnbroker. Any pawnbroker claiming a privilege against self incrimination must assert the claim before the magistrate issuing the subpoena promptly and before the time designated for compliance therewith. If the district attorney general thereafter certifies to the magistrate that the interests of justice demand the production of the thumbprint for which the claim of privilege is asserted, then the magistrate shall order the production of the thumbprint and the pawnbroker shall not be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter or thing concerning the requested thumbprint the pawnbroker was compelled to produce.
(i) No subpoena for the production of a thumbprint as authorized by this section shall be directed to, or served upon, any defendant, or defendant's counsel, in a criminal action in this state, any person who is suspected of committing a criminal offense or any person who is the subject of a criminal investigation.
(j) If any pawnbroker, without cause, refuses to produce the requested thumbprint within the time and manner designated for compliance by the issuing magistrate, the district attorney general shall seek a writ of attachment from the issuing magistrate to seize the pawnbroker within the state and that pawnbroker may be held in civil contempt and committed to jail therein to remain without bail until willing to comply with the subpoena as the law directs.
Acts 2001, ch. 429, § 2; 2005, ch. 225, §§ 1 - 7.
Tenn. Code Ann. § 45-17-104 — TN Code / Title 45 / Chapter 17 / Section 45-17-104
Qualifications for license
Status: in_force

(a) To qualify for a license, an applicant shall satisfy the following requirements: (1) The applicant shall have a minimum net worth determined in accordance with generally accepted accounting principles of at least twenty-five thousand dollars ($25,000) available for the operation of each location; and (2) The financial responsibility, financial condition, business experience, character, and general fitness of the applicant shall reasonably warrant the belief that the applicant's business will be conducted lawfully and fairly. In determining whether this qualification has been met, and for the purpose of investigating compliance with this chapter, the commissioner may review and approve: (A) The relevant business records and the capital adequacy of the applicant; (B) The competence, experience, integrity and financial ability of any person who is a director, officer, or ten percent (10%) or more shareholder of the applicant or owns or controls the applicant; and (C) Any record, on the part of the applicant, or any person referred to in subdivision (a)(2)(B), of any criminal activity, any fraud or other act of personal dishonesty, any act, omission or practice that constitutes a breach of a fiduciary duty or any suspension, removal or administrative action by any agency or department of the United States or any state, from participation in the conduct of any business. (b) The requirements set forth in subdivisions (a)(1) and (2) are continuing in nature. Acts 1997 , ch. 255, § 5; 1999, ch. 14, §1; 2012 , ch. 679, § 1.
(a) To qualify for a license, an applicant shall satisfy the following requirements: (1) The applicant shall have a minimum net worth determined in accordance with generally accepted accounting principles of at least twenty-five thousand dollars ($25,000) available for the operation of each location; and (2) The financial responsibility, financial condition, business experience, character, and general fitness of the applicant shall reasonably warrant the belief that the applicant's business will be conducted lawfully and fairly. In determining whether this qualification has been met, and for the purpose of investigating compliance with this chapter, the commissioner may review and approve: (A) The relevant business records and the capital adequacy of the applicant; (B) The competence, experience, integrity and financial ability of any person who is a director, officer, or ten percent (10%) or more shareholder of the applicant or owns or controls the applicant; and (C) Any record, on the part of the applicant, or any person referred to in subdivision (a)(2)(B), of any criminal activity, any fraud or other act of personal dishonesty, any act, omission or practice that constitutes a breach of a fiduciary duty or any suspension, removal or administrative action by any agency or department of the United States or any state, from participation in the conduct of any business.
(1) The applicant shall have a minimum net worth determined in accordance with generally accepted accounting principles of at least twenty-five thousand dollars ($25,000) available for the operation of each location; and
(2) The financial responsibility, financial condition, business experience, character, and general fitness of the applicant shall reasonably warrant the belief that the applicant's business will be conducted lawfully and fairly. In determining whether this qualification has been met, and for the purpose of investigating compliance with this chapter, the commissioner may review and approve: (A) The relevant business records and the capital adequacy of the applicant; (B) The competence, experience, integrity and financial ability of any person who is a director, officer, or ten percent (10%) or more shareholder of the applicant or owns or controls the applicant; and (C) Any record, on the part of the applicant, or any person referred to in subdivision (a)(2)(B), of any criminal activity, any fraud or other act of personal dishonesty, any act, omission or practice that constitutes a breach of a fiduciary duty or any suspension, removal or administrative action by any agency or department of the United States or any state, from participation in the conduct of any business.
(A) The relevant business records and the capital adequacy of the applicant;
(B) The competence, experience, integrity and financial ability of any person who is a director, officer, or ten percent (10%) or more shareholder of the applicant or owns or controls the applicant; and
(C) Any record, on the part of the applicant, or any person referred to in subdivision (a)(2)(B), of any criminal activity, any fraud or other act of personal dishonesty, any act, omission or practice that constitutes a breach of a fiduciary duty or any suspension, removal or administrative action by any agency or department of the United States or any state, from participation in the conduct of any business.
(b) The requirements set forth in subdivisions (a)(1) and (2) are continuing in nature.
Acts 1997 , ch. 255, § 5; 1999, ch. 14, §1; 2012 , ch. 679, § 1.
Tenn. Code Ann. § 45-6-203 — TN Code / Title 45 / Chapter 6 / Section 45-6-203
Part definitions
Status: in_force

As used in this part, unless the context otherwise requires: (1) "Dealer and trader" means a person who holds a current certificate of registration with the department of revenue pursuant to title 67, chapter 6, part 6; (2) "Maturity date of pawn transaction" means the date the pawn transaction is due to be paid, which date shall not be less than thirty (30) days after the date of the pawn transaction; (3) "Net assets" means the book value of the current assets of a person or pawnbroker less its applicable liabilities as stated in this subdivision (3); (A) "Applicable liabilities" includes trade or other accounts payable; accrued sales, income, or other taxes; accrued expenses and notes or other payables that are unsecured or secured in whole or in part by current assets. "Applicable liabilities" does not include liabilities secured by assets other than current assets; (B) "Current assets" includes the investments made in cash, bank deposits, merchandise inventory, and loans due from customers excluding the pawnshop charge. "Current assets" do not include the investments made in fixed assets of real estate, furniture, fixtures, or equipment, investments made in stocks, bonds, or other securities or investments made in prepaid expenses or other general intangibles; and (C) "Net assets" must be represented by a capital investment unencumbered by any liens or other encumbrances to be subject to the claims of general creditors. If the pawnshop is a corporation, the capital investment consists of common or preferred shares and capital or earned surplus, as those terms are defined by the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27, as amended; if it is any other form of business entity, the capital investment consists of a substantial equivalent of that of a corporation and is determined by generally accepted accounting principles; (4) (A) "Pawn" or "pawn transaction" means either of the following transactions: (i) "Buy-sell" agreement means any agreement whereby a pawnbroker agrees to hold a property (pledged goods) for a specified period of time not to be less than sixty (60) days to allow the seller the exclusive right to repurchase the property. A buy-sell agreement is not a loan of money, but shall still meet all recording procedures to law enforcement officers as with a pawn transaction; or (ii) "Loan of money" transaction means any loan on the security of pledged goods and being a written bailment of pledged goods as a security lien for the loan, for the cash advanced, interest and fees authorized by Acts 1995, ch. 186, redeemable on certain terms and with the implied power of sale on default; (B) For purposes of all state and federal bankruptcy laws, a pledgor's interest in the pledgor's pledged goods during the pendency of a pawn transaction shall be deemed to be that of a right of redemption only; (5) "Pawnbroker" means any person, partnership or corporation engaged in the business of lending money on the security of pledged goods; or engaged in the business of purchasing tangible personal property on condition that it may be redeemed and repurchased by the seller for a fixed price within a fixed period of time; or engaged in the business of advancing money to a customer in consideration for the customer surrendering possession of tangible personal property on an agreement by which the property may be returned to the customer's possession on repayment of the money advanced; and engaged in the business of selling new and used tangible personal property, whether unredeemed tangible personal property resulting from a pawn transaction, or acquired by a purchase of tangible personal property not acquired in a pawn transaction or purchased merchandise for resale from dealers and traders; (6) "Pawnshop" means the location at which or premises in which a pawnbroker regularly conducts business; (7) "Person" means any individual, corporation, joint venture, association or any other legal entity however organized; (8) "Pledged goods" means tangible personal property, other than choses in action, securities, printed evidences of indebtedness or title documents, which tangible personal property is purchased by, deposited with, or otherwise actually delivered into the possession of a pawnbroker in connection with a pawn transaction, and includes "pawn" or "pledged property" or similar words; and (9) "Pledgor" means the pawn loan customer of the pawnbroker, entering into a pawn transaction with the pawnbroker. Acts 1988, ch. 724, §3; 1994, ch. 539, §1; 1995, ch. 186, §§ 1,2.
As used in this part, unless the context otherwise requires:
(1) "Dealer and trader" means a person who holds a current certificate of registration with the department of revenue pursuant to title 67, chapter 6, part 6;
(2) "Maturity date of pawn transaction" means the date the pawn transaction is due to be paid, which date shall not be less than thirty (30) days after the date of the pawn transaction;
(3) "Net assets" means the book value of the current assets of a person or pawnbroker less its applicable liabilities as stated in this subdivision (3); (A) "Applicable liabilities" includes trade or other accounts payable; accrued sales, income, or other taxes; accrued expenses and notes or other payables that are unsecured or secured in whole or in part by current assets. "Applicable liabilities" does not include liabilities secured by assets other than current assets; (B) "Current assets" includes the investments made in cash, bank deposits, merchandise inventory, and loans due from customers excluding the pawnshop charge. "Current assets" do not include the investments made in fixed assets of real estate, furniture, fixtures, or equipment, investments made in stocks, bonds, or other securities or investments made in prepaid expenses or other general intangibles; and (C) "Net assets" must be represented by a capital investment unencumbered by any liens or other encumbrances to be subject to the claims of general creditors. If the pawnshop is a corporation, the capital investment consists of common or preferred shares and capital or earned surplus, as those terms are defined by the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27, as amended; if it is any other form of business entity, the capital investment consists of a substantial equivalent of that of a corporation and is determined by generally accepted accounting principles;
(A) "Applicable liabilities" includes trade or other accounts payable; accrued sales, income, or other taxes; accrued expenses and notes or other payables that are unsecured or secured in whole or in part by current assets. "Applicable liabilities" does not include liabilities secured by assets other than current assets;
(B) "Current assets" includes the investments made in cash, bank deposits, merchandise inventory, and loans due from customers excluding the pawnshop charge. "Current assets" do not include the investments made in fixed assets of real estate, furniture, fixtures, or equipment, investments made in stocks, bonds, or other securities or investments made in prepaid expenses or other general intangibles; and
(C) "Net assets" must be represented by a capital investment unencumbered by any liens or other encumbrances to be subject to the claims of general creditors. If the pawnshop is a corporation, the capital investment consists of common or preferred shares and capital or earned surplus, as those terms are defined by the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27, as amended; if it is any other form of business entity, the capital investment consists of a substantial equivalent of that of a corporation and is determined by generally accepted accounting principles;
(4) (A) "Pawn" or "pawn transaction" means either of the following transactions: (i) "Buy-sell" agreement means any agreement whereby a pawnbroker agrees to hold a property (pledged goods) for a specified period of time not to be less than sixty (60) days to allow the seller the exclusive right to repurchase the property. A buy-sell agreement is not a loan of money, but shall still meet all recording procedures to law enforcement officers as with a pawn transaction; or (ii) "Loan of money" transaction means any loan on the security of pledged goods and being a written bailment of pledged goods as a security lien for the loan, for the cash advanced, interest and fees authorized by Acts 1995, ch. 186, redeemable on certain terms and with the implied power of sale on default; (B) For purposes of all state and federal bankruptcy laws, a pledgor's interest in the pledgor's pledged goods during the pendency of a pawn transaction shall be deemed to be that of a right of redemption only;
(A) "Pawn" or "pawn transaction" means either of the following transactions: (i) "Buy-sell" agreement means any agreement whereby a pawnbroker agrees to hold a property (pledged goods) for a specified period of time not to be less than sixty (60) days to allow the seller the exclusive right to repurchase the property. A buy-sell agreement is not a loan of money, but shall still meet all recording procedures to law enforcement officers as with a pawn transaction; or (ii) "Loan of money" transaction means any loan on the security of pledged goods and being a written bailment of pledged goods as a security lien for the loan, for the cash advanced, interest and fees authorized by Acts 1995, ch. 186, redeemable on certain terms and with the implied power of sale on default;
(i) "Buy-sell" agreement means any agreement whereby a pawnbroker agrees to hold a property (pledged goods) for a specified period of time not to be less than sixty (60) days to allow the seller the exclusive right to repurchase the property. A buy-sell agreement is not a loan of money, but shall still meet all recording procedures to law enforcement officers as with a pawn transaction; or
(ii) "Loan of money" transaction means any loan on the security of pledged goods and being a written bailment of pledged goods as a security lien for the loan, for the cash advanced, interest and fees authorized by Acts 1995, ch. 186, redeemable on certain terms and with the implied power of sale on default;
(B) For purposes of all state and federal bankruptcy laws, a pledgor's interest in the pledgor's pledged goods during the pendency of a pawn transaction shall be deemed to be that of a right of redemption only;
(5) "Pawnbroker" means any person, partnership or corporation engaged in the business of lending money on the security of pledged goods; or engaged in the business of purchasing tangible personal property on condition that it may be redeemed and repurchased by the seller for a fixed price within a fixed period of time; or engaged in the business of advancing money to a customer in consideration for the customer surrendering possession of tangible personal property on an agreement by which the property may be returned to the customer's possession on repayment of the money advanced; and engaged in the business of selling new and used tangible personal property, whether unredeemed tangible personal property resulting from a pawn transaction, or acquired by a purchase of tangible personal property not acquired in a pawn transaction or purchased merchandise for resale from dealers and traders;
(6) "Pawnshop" means the location at which or premises in which a pawnbroker regularly conducts business;
(7) "Person" means any individual, corporation, joint venture, association or any other legal entity however organized;
(8) "Pledged goods" means tangible personal property, other than choses in action, securities, printed evidences of indebtedness or title documents, which tangible personal property is purchased by, deposited with, or otherwise actually delivered into the possession of a pawnbroker in connection with a pawn transaction, and includes "pawn" or "pledged property" or similar words; and
(9) "Pledgor" means the pawn loan customer of the pawnbroker, entering into a pawn transaction with the pawnbroker.
Acts 1988, ch. 724, §3; 1994, ch. 539, §1; 1995, ch. 186, §§ 1,2.
Tenn. Code Ann. § 45-1-122 — TN Code / Title 45 / Chapter 1 / Section 45-1-122
Suits to vacate and annul bank charters
Status: in_force

In addition to other remedies provided in this chapter and chapter 2 of this title, the commissioner of financial institutions, in the name of the state, is authorized to institute a quo warranto, or other appropriate proceedings, to vacate and annul the charter of any bank where the bank has done or permitted such act or acts as under the law authorized a vacation of its charter, and no suit shall be instituted by any person to vacate the charter of any bank except by the commissioner. Acts 1969, ch. 36, § 1 (2.114); 1973, ch. 294, § 6; T.C.A., § 45-121.
In addition to other remedies provided in this chapter and chapter 2 of this title, the commissioner of financial institutions, in the name of the state, is authorized to institute a quo warranto, or other appropriate proceedings, to vacate and annul the charter of any bank where the bank has done or permitted such act or acts as under the law authorized a vacation of its charter, and no suit shall be instituted by any person to vacate the charter of any bank except by the commissioner.
Acts 1969, ch. 36, § 1 (2.114); 1973, ch. 294, § 6; T.C.A., § 45-121.
Tenn. Code Ann. § 45-2-1011 — TN Code / Title 45 / Chapter 2 / Section 45-2-1011
Fiduciary activities of out-of-state trust institution
Status: in_force

An out-of-state trust institution that establishes and maintains one (1) or more offices in this state under this chapter may conduct any activity at each office that would be authorized under the laws of this state for a state trust institution to conduct at the office. Acts 1999, ch. 112, § 10.
An out-of-state trust institution that establishes and maintains one (1) or more offices in this state under this chapter may conduct any activity at each office that would be authorized under the laws of this state for a state trust institution to conduct at the office.
Acts 1999, ch. 112, § 10.
Tenn. Code Ann. § 45-7-136 — TN Code / Title 45 / Chapter 7 / Section 45-7-136
Surety bond
Status: in_force

(a) An applicant for a money transmission license shall provide, and a licensee shall maintain at all times, security consisting of a surety bond in a form satisfactory to the commissioner. (b) The amount of the required security must be the greater of fifty thousand dollars ($50,000) or an amount equal to one hundred percent (100%) of the licensee's average daily money transmission liability in this state calculated for the most recently completed calendar quarter, up to a maximum of eight hundred thousand dollars ($800,000). (c) A licensee that maintains a surety bond in the maximum amount provided for in subsection (b) is not required to calculate its average daily money transmission liability in this state for purposes of this section. (d) A licensee may exceed the maximum required bond amount pursuant to § 45-7-138(a)(5) . (e) The surety bond must run to the state of Tennessee for the benefit of any claimants against the licensee to secure the faithful performance of the obligations of the licensee with respect to the receipt, handling, transmission, and payment of money in connection with money transmission. The aggregate liability of the surety bond shall not exceed the principal sum of the bond. Surety bonds must be obtained for a term of not less than one (1) year and evidence of the renewal of the surety bond must be provided to the commissioner not less than thirty (30) days before the bond expiration date. Claimants against the licensee or its authorized delegates may bring suit directly on the security device, or the commissioner may bring suit on behalf of the claimants, either in one (1) action or in successive actions. In the case of an irrevocable letter of credit, licensees shall obtain letters of credit for terms of not less than three (3) years and renew the letters of credit annually. (f) The surety bond must remain in effect until cancellation, which may occur only after thirty (30) days' written notice to the commissioner. Cancellation does not affect any liability incurred or accrued during that period. (g) The surety bond must remain in place for three (3) years after the licensee ceases money transmission operations in this state. The commissioner may permit a licensee to substitute a letter of credit or other form of security device acceptable to the commissioner for the security device in place at the time the licensee ceases money transmission operations in this state. Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
(a) An applicant for a money transmission license shall provide, and a licensee shall maintain at all times, security consisting of a surety bond in a form satisfactory to the commissioner.
(b) The amount of the required security must be the greater of fifty thousand dollars ($50,000) or an amount equal to one hundred percent (100%) of the licensee's average daily money transmission liability in this state calculated for the most recently completed calendar quarter, up to a maximum of eight hundred thousand dollars ($800,000).
(c) A licensee that maintains a surety bond in the maximum amount provided for in subsection (b) is not required to calculate its average daily money transmission liability in this state for purposes of this section.
(d) A licensee may exceed the maximum required bond amount pursuant to § 45-7-138(a)(5) .
(e) The surety bond must run to the state of Tennessee for the benefit of any claimants against the licensee to secure the faithful performance of the obligations of the licensee with respect to the receipt, handling, transmission, and payment of money in connection with money transmission. The aggregate liability of the surety bond shall not exceed the principal sum of the bond. Surety bonds must be obtained for a term of not less than one (1) year and evidence of the renewal of the surety bond must be provided to the commissioner not less than thirty (30) days before the bond expiration date. Claimants against the licensee or its authorized delegates may bring suit directly on the security device, or the commissioner may bring suit on behalf of the claimants, either in one (1) action or in successive actions. In the case of an irrevocable letter of credit, licensees shall obtain letters of credit for terms of not less than three (3) years and renew the letters of credit annually.
(f) The surety bond must remain in effect until cancellation, which may occur only after thirty (30) days' written notice to the commissioner. Cancellation does not affect any liability incurred or accrued during that period.
(g) The surety bond must remain in place for three (3) years after the licensee ceases money transmission operations in this state. The commissioner may permit a licensee to substitute a letter of credit or other form of security device acceptable to the commissioner for the security device in place at the time the licensee ceases money transmission operations in this state.
Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Tenn. Code Ann. § 45-13-405 — TN Code / Title 45 / Chapter 13 / Section 45-13-405
Violations - Cease and desist orders - Penalties
Status: in_force

(a) If, after notice and opportunity for a hearing, the commissioner finds that a person has violated this chapter or any administrative rule issued pursuant to this chapter, the commissioner may take any or all of the following actions: (1) Order the person to cease and desist violating this chapter or any administrative rule issued pursuant to this chapter; (2) Require the refund of any interest, fees or charges collected by the person in violation of this chapter or any administrative rule issued pursuant to this chapter; (3) Order the person to pay the commissioner a civil monetary penalty of not more than ten thousand dollars ($10,000) for each violation of this chapter or administrative rule issued pursuant to this chapter; or (4) Suspend or revoke any license issued under this chapter. (b) For any violation of this chapter, the commissioner may deny an application for licensure or refuse to renew a license issued under this chapter. The commissioner may also, after notice and opportunity for a hearing, suspend or revoke any license issued under this chapter for failure to maintain the requirements for licensure. (c) When a licensee is accused of any act, omission or misconduct that would subject the licensee to disciplinary action, the licensee, with the consent and approval of the commissioner, may surrender the license and all the rights and privileges pertaining to it for a period of time established by the commissioner. A person who surrenders a license shall not be eligible for or submit any application for a license under this chapter for a period of time established by the commissioner. (d) A licensee is subject to disciplinary action if any officer, director, person owning twenty-five percent (25%) or more of the licensee's outstanding capital, member, partner, managing principal, branch manager, mortgage loan originator, employee or any other person who acts on behalf of the licensee violates this chapter. Acts 2009, ch. 499, § 8.
(a) If, after notice and opportunity for a hearing, the commissioner finds that a person has violated this chapter or any administrative rule issued pursuant to this chapter, the commissioner may take any or all of the following actions: (1) Order the person to cease and desist violating this chapter or any administrative rule issued pursuant to this chapter; (2) Require the refund of any interest, fees or charges collected by the person in violation of this chapter or any administrative rule issued pursuant to this chapter; (3) Order the person to pay the commissioner a civil monetary penalty of not more than ten thousand dollars ($10,000) for each violation of this chapter or administrative rule issued pursuant to this chapter; or (4) Suspend or revoke any license issued under this chapter.
(1) Order the person to cease and desist violating this chapter or any administrative rule issued pursuant to this chapter;
(2) Require the refund of any interest, fees or charges collected by the person in violation of this chapter or any administrative rule issued pursuant to this chapter;
(3) Order the person to pay the commissioner a civil monetary penalty of not more than ten thousand dollars ($10,000) for each violation of this chapter or administrative rule issued pursuant to this chapter; or
(4) Suspend or revoke any license issued under this chapter.
(b) For any violation of this chapter, the commissioner may deny an application for licensure or refuse to renew a license issued under this chapter. The commissioner may also, after notice and opportunity for a hearing, suspend or revoke any license issued under this chapter for failure to maintain the requirements for licensure.
(c) When a licensee is accused of any act, omission or misconduct that would subject the licensee to disciplinary action, the licensee, with the consent and approval of the commissioner, may surrender the license and all the rights and privileges pertaining to it for a period of time established by the commissioner. A person who surrenders a license shall not be eligible for or submit any application for a license under this chapter for a period of time established by the commissioner.
(d) A licensee is subject to disciplinary action if any officer, director, person owning twenty-five percent (25%) or more of the licensee's outstanding capital, member, partner, managing principal, branch manager, mortgage loan originator, employee or any other person who acts on behalf of the licensee violates this chapter.
Acts 2009, ch. 499, § 8.
Tenn. Code Ann. § 45-8-219 — TN Code / Title 45 / Chapter 8 / Section 45-8-219
Civil penalties
Status: in_force

(a) Should the commissioner find that any person has violated this part or has violated an order issued pursuant to § 45-8-218 , the commissioner may order the person to pay to the state a civil penalty in an amount that the commissioner may specify. However, the amount of the civil penalty shall not exceed ten thousand dollars ($10,000) for each violation, or in the case of a continuing violation, ten thousand dollars ($10,000) for each day for which the violation continues. In determining the amount of the penalty, the commissioner shall consider the appropriateness of the penalty with respect to the size of the financial resources and good faith of the person charged, the gravity of the violation and other matters as justice may require. (b) A person assessed a penalty under subsection (a) shall be afforded an opportunity for a hearing upon request within ten (10) days of the issuance of the notice of assessment. The commissioner's decision after a hearing or otherwise shall constitute a final order and may be reviewed as provided in the Uniform Administrative Procedures Act, compiled in title 4, chapter 5; provided, that the original order shall not be reviewable in a proceeding initiated under this subsection (b). (c) Subsection (a) is in addition to, and not an alternative to, other provisions of this part that authorize the commissioner to issue orders or to take other action on account of a violation of this part. (d) Subsection (a) is in addition to, and not an alternative to, any criminal penalties that may be available under § 45-8-223 or any other criminal laws. Acts 1989, ch. 124, § 19.
(a) Should the commissioner find that any person has violated this part or has violated an order issued pursuant to § 45-8-218 , the commissioner may order the person to pay to the state a civil penalty in an amount that the commissioner may specify. However, the amount of the civil penalty shall not exceed ten thousand dollars ($10,000) for each violation, or in the case of a continuing violation, ten thousand dollars ($10,000) for each day for which the violation continues. In determining the amount of the penalty, the commissioner shall consider the appropriateness of the penalty with respect to the size of the financial resources and good faith of the person charged, the gravity of the violation and other matters as justice may require.
(b) A person assessed a penalty under subsection (a) shall be afforded an opportunity for a hearing upon request within ten (10) days of the issuance of the notice of assessment. The commissioner's decision after a hearing or otherwise shall constitute a final order and may be reviewed as provided in the Uniform Administrative Procedures Act, compiled in title 4, chapter 5; provided, that the original order shall not be reviewable in a proceeding initiated under this subsection (b).
(c) Subsection (a) is in addition to, and not an alternative to, other provisions of this part that authorize the commissioner to issue orders or to take other action on account of a violation of this part.
(d) Subsection (a) is in addition to, and not an alternative to, any criminal penalties that may be available under § 45-8-223 or any other criminal laws.
Acts 1989, ch. 124, § 19.
Tenn. Code Ann. § 45-7-138 — TN Code / Title 45 / Chapter 7 / Section 45-7-138
Types of permissible investments
Status: in_force

(a) The following investments are permissible under § 45-7-137 : (1) Cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee's customers in a federally insured depository financial institution, and cash equivalents, including automated clearing house (ACH) items in transit to the licensee, ACH items or international wires in transit to a payee, cash in transit via armored car, cash in smart safes, cash in licensee-owned locations, debit card or credit card-funded transmission receivables owed by any bank, or money market mutual funds rated "AAA" by S&P, or the equivalent from any eligible rating service; (2) Certificates of deposit or senior debt obligations of an insured depository institution, as defined in 12 U.S.C. § 1813(c) , or of an insured credit union, as defined in 12 U.S.C. § 1752(7) ; (3) An obligation of the United States or a commission, agency, or instrumentality thereof; an obligation that is guaranteed fully as to principal and interest by the United States; or an obligation of a state or a governmental subdivision, agency, or instrumentality thereof; (4) (A) The full drawable amount of an irrevocable standby letter of credit for which the stated beneficiary is the commissioner, that stipulates that the beneficiary need only draw a sight draft under the letter of credit and present it to obtain funds up to the letter of credit amount within seven (7) days of presentation of the items required by subdivision (a)(4)(D); (B) The letter of credit must: (i) Be issued by a federally insured depository financial institution, a foreign bank that is authorized under federal law to maintain a federal agency or federal branch office in a state or states, or a foreign bank that is authorized under state law to maintain a branch in a state that: (a) Bears an eligible rating or whose parent company bears an eligible rating; and (b) Is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks, credit unions, and trust companies; (ii) Be irrevocable, unconditional, and indicate that it is not subject to any condition or qualifications outside of the letter of credit; (iii) Not contain reference to any other agreements, documents, or entities, or otherwise provide for any security interest in the licensee; and (iv) Contain an issue date and expiration date, and expressly provide for automatic extension, without a written amendment, for an additional period of one (1) year from the present or each future expiration date, unless the issuer of the letter of credit notifies the commissioner in writing by certified or registered mail or courier mail or other receipted means, at least sixty (60) days prior to any expiration date, that the irrevocable letter of credit will not be extended; (C) In the event of any notice of expiration or non-extension of a letter of credit issued under subdivision (a)(4)(B)(iv), the licensee shall demonstrate to the satisfaction of the commissioner, fifteen (15) days prior to expiration, that the licensee maintains and will maintain permissible investments in accordance with § 45-7-137(a) upon the expiration of the letter of credit. If the licensee is not able to do so, then the commissioner may draw on the letter of credit in an amount up to the amount necessary to meet the licensee's requirements to maintain permissible investments in accordance with § 45-7-137(a) . Any such draw must be offset against the licensee's outstanding money transmission obligations. The commissioner or the commissioner's designated agent shall hold drawn funds in trust, to the extent authorized by law, as agent for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations; (D) The letter of credit must provide that the issuer of the letter of credit will honor, at sight, a presentation made by the beneficiary to the issuer of the following documents on or prior to the expiration date of the letter of credit: (i) The original letter of credit, including any amendments; and (ii) A written statement from the beneficiary stating that any of the following events have occurred: (a) The filing of a petition by or against the licensee under the federal Bankruptcy Code ( 11 U.S.C. §§ 101 - 110 ), for bankruptcy or reorganization; (b) The filing of a petition by or against the licensee for receivership, or the commencement of any other judicial or administrative proceeding for its dissolution or reorganization; (c) The seizure of assets of a licensee by the commissioner, or any other state government official holding a position of similar authority in another state, pursuant to an emergency order issued in accordance with applicable law, on the basis of an action, violation, or condition that has caused or is likely to cause the insolvency of the licensee; or (d) Receipt by the beneficiary of notice of expiration or non-extension of a letter of credit and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee will maintain permissible investments in accordance with § 45-7-137(a) upon the expiration or non-extension of the letter of credit; (E) The commissioner may designate an agent to serve on the commissioner's behalf as beneficiary to a letter of credit so long as the agent and letter of credit meet requirements established by the commissioner. The commissioner's agent may serve as agent for multiple licensing authorities for a single irrevocable letter of credit if the proceeds of the drawable amount for the purposes of this subsection are assigned to the commissioner; and (5) One hundred percent (100%) of the surety bond provided for under § 45-7-136 that exceeds the average daily money transmission liability in this state. (b) Unless permitted by the commissioner to exceed the limit, the following investments are permissible under § 45-7-137 to the extent specified: (1) Receivables that are payable to a licensee from its authorized delegates in the ordinary course of business that are less than seven (7) days old, up to fifty percent (50%) of the aggregate value of the licensee's total permissible investments; (2) Of the receivables permissible under subdivision (b)(1), receivables that are payable to a licensee from a single authorized delegate in the ordinary course of business must not exceed ten percent (10%) of the aggregate value of the licensee's total permissible investments; (3) The following investments, up to twenty percent (20%) per category and combined up to fifty percent (50%) of the aggregate value of the licensee's total permissible investments: (A) A short-term investment of up to six (6) months bearing an eligible rating; (B) Commercial paper bearing an eligible rating; (C) A bill, note, bond, or debenture bearing an eligible rating; (D) United States tri-party repurchase agreements collateralized at one hundred percent (100%) or more with United States government or agency securities, municipal bonds, or other securities bearing an eligible rating; (E) Money market mutual funds rated less than "AAA" and equal to or higher than "A-" by S&P, or the equivalent from any other eligible rating service; and (F) A mutual fund or other investment fund composed solely and exclusively of one (1) or more permissible investments listed in § 45-7-138(a)(1)-(3) ; and (4) Cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee's customers, at foreign depository institutions, up to ten percent (10%) of the aggregate value of the licensee's total permissible investments if the licensee has received a satisfactory rating in its most recent examination and the foreign depository institution: (A) Has an eligible rating; (B) Is registered under the Foreign Account Tax Compliance Act ( 26 U.S.C. § 1471 et seq.); (C) Is not located in any country subject to sanctions from the Office of Foreign Assets Control; and (D) Is not located in a high-risk or non-cooperative jurisdiction as designated by the Financial Action Task Force. Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
(a) The following investments are permissible under § 45-7-137 : (1) Cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee's customers in a federally insured depository financial institution, and cash equivalents, including automated clearing house (ACH) items in transit to the licensee, ACH items or international wires in transit to a payee, cash in transit via armored car, cash in smart safes, cash in licensee-owned locations, debit card or credit card-funded transmission receivables owed by any bank, or money market mutual funds rated "AAA" by S&P, or the equivalent from any eligible rating service; (2) Certificates of deposit or senior debt obligations of an insured depository institution, as defined in 12 U.S.C. § 1813(c) , or of an insured credit union, as defined in 12 U.S.C. § 1752(7) ; (3) An obligation of the United States or a commission, agency, or instrumentality thereof; an obligation that is guaranteed fully as to principal and interest by the United States; or an obligation of a state or a governmental subdivision, agency, or instrumentality thereof; (4) (A) The full drawable amount of an irrevocable standby letter of credit for which the stated beneficiary is the commissioner, that stipulates that the beneficiary need only draw a sight draft under the letter of credit and present it to obtain funds up to the letter of credit amount within seven (7) days of presentation of the items required by subdivision (a)(4)(D); (B) The letter of credit must: (i) Be issued by a federally insured depository financial institution, a foreign bank that is authorized under federal law to maintain a federal agency or federal branch office in a state or states, or a foreign bank that is authorized under state law to maintain a branch in a state that: (a) Bears an eligible rating or whose parent company bears an eligible rating; and (b) Is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks, credit unions, and trust companies; (ii) Be irrevocable, unconditional, and indicate that it is not subject to any condition or qualifications outside of the letter of credit; (iii) Not contain reference to any other agreements, documents, or entities, or otherwise provide for any security interest in the licensee; and (iv) Contain an issue date and expiration date, and expressly provide for automatic extension, without a written amendment, for an additional period of one (1) year from the present or each future expiration date, unless the issuer of the letter of credit notifies the commissioner in writing by certified or registered mail or courier mail or other receipted means, at least sixty (60) days prior to any expiration date, that the irrevocable letter of credit will not be extended; (C) In the event of any notice of expiration or non-extension of a letter of credit issued under subdivision (a)(4)(B)(iv), the licensee shall demonstrate to the satisfaction of the commissioner, fifteen (15) days prior to expiration, that the licensee maintains and will maintain permissible investments in accordance with § 45-7-137(a) upon the expiration of the letter of credit. If the licensee is not able to do so, then the commissioner may draw on the letter of credit in an amount up to the amount necessary to meet the licensee's requirements to maintain permissible investments in accordance with § 45-7-137(a) . Any such draw must be offset against the licensee's outstanding money transmission obligations. The commissioner or the commissioner's designated agent shall hold drawn funds in trust, to the extent authorized by law, as agent for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations; (D) The letter of credit must provide that the issuer of the letter of credit will honor, at sight, a presentation made by the beneficiary to the issuer of the following documents on or prior to the expiration date of the letter of credit: (i) The original letter of credit, including any amendments; and (ii) A written statement from the beneficiary stating that any of the following events have occurred: (a) The filing of a petition by or against the licensee under the federal Bankruptcy Code ( 11 U.S.C. §§ 101 - 110 ), for bankruptcy or reorganization; (b) The filing of a petition by or against the licensee for receivership, or the commencement of any other judicial or administrative proceeding for its dissolution or reorganization; (c) The seizure of assets of a licensee by the commissioner, or any other state government official holding a position of similar authority in another state, pursuant to an emergency order issued in accordance with applicable law, on the basis of an action, violation, or condition that has caused or is likely to cause the insolvency of the licensee; or (d) Receipt by the beneficiary of notice of expiration or non-extension of a letter of credit and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee will maintain permissible investments in accordance with § 45-7-137(a) upon the expiration or non-extension of the letter of credit; (E) The commissioner may designate an agent to serve on the commissioner's behalf as beneficiary to a letter of credit so long as the agent and letter of credit meet requirements established by the commissioner. The commissioner's agent may serve as agent for multiple licensing authorities for a single irrevocable letter of credit if the proceeds of the drawable amount for the purposes of this subsection are assigned to the commissioner; and (5) One hundred percent (100%) of the surety bond provided for under § 45-7-136 that exceeds the average daily money transmission liability in this state.
(1) Cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee's customers in a federally insured depository financial institution, and cash equivalents, including automated clearing house (ACH) items in transit to the licensee, ACH items or international wires in transit to a payee, cash in transit via armored car, cash in smart safes, cash in licensee-owned locations, debit card or credit card-funded transmission receivables owed by any bank, or money market mutual funds rated "AAA" by S&P, or the equivalent from any eligible rating service;
(2) Certificates of deposit or senior debt obligations of an insured depository institution, as defined in 12 U.S.C. § 1813(c) , or of an insured credit union, as defined in 12 U.S.C. § 1752(7) ;
(3) An obligation of the United States or a commission, agency, or instrumentality thereof; an obligation that is guaranteed fully as to principal and interest by the United States; or an obligation of a state or a governmental subdivision, agency, or instrumentality thereof;
(4) (A) The full drawable amount of an irrevocable standby letter of credit for which the stated beneficiary is the commissioner, that stipulates that the beneficiary need only draw a sight draft under the letter of credit and present it to obtain funds up to the letter of credit amount within seven (7) days of presentation of the items required by subdivision (a)(4)(D); (B) The letter of credit must: (i) Be issued by a federally insured depository financial institution, a foreign bank that is authorized under federal law to maintain a federal agency or federal branch office in a state or states, or a foreign bank that is authorized under state law to maintain a branch in a state that: (a) Bears an eligible rating or whose parent company bears an eligible rating; and (b) Is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks, credit unions, and trust companies; (ii) Be irrevocable, unconditional, and indicate that it is not subject to any condition or qualifications outside of the letter of credit; (iii) Not contain reference to any other agreements, documents, or entities, or otherwise provide for any security interest in the licensee; and (iv) Contain an issue date and expiration date, and expressly provide for automatic extension, without a written amendment, for an additional period of one (1) year from the present or each future expiration date, unless the issuer of the letter of credit notifies the commissioner in writing by certified or registered mail or courier mail or other receipted means, at least sixty (60) days prior to any expiration date, that the irrevocable letter of credit will not be extended; (C) In the event of any notice of expiration or non-extension of a letter of credit issued under subdivision (a)(4)(B)(iv), the licensee shall demonstrate to the satisfaction of the commissioner, fifteen (15) days prior to expiration, that the licensee maintains and will maintain permissible investments in accordance with § 45-7-137(a) upon the expiration of the letter of credit. If the licensee is not able to do so, then the commissioner may draw on the letter of credit in an amount up to the amount necessary to meet the licensee's requirements to maintain permissible investments in accordance with § 45-7-137(a) . Any such draw must be offset against the licensee's outstanding money transmission obligations. The commissioner or the commissioner's designated agent shall hold drawn funds in trust, to the extent authorized by law, as agent for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations; (D) The letter of credit must provide that the issuer of the letter of credit will honor, at sight, a presentation made by the beneficiary to the issuer of the following documents on or prior to the expiration date of the letter of credit: (i) The original letter of credit, including any amendments; and (ii) A written statement from the beneficiary stating that any of the following events have occurred: (a) The filing of a petition by or against the licensee under the federal Bankruptcy Code ( 11 U.S.C. §§ 101 - 110 ), for bankruptcy or reorganization; (b) The filing of a petition by or against the licensee for receivership, or the commencement of any other judicial or administrative proceeding for its dissolution or reorganization; (c) The seizure of assets of a licensee by the commissioner, or any other state government official holding a position of similar authority in another state, pursuant to an emergency order issued in accordance with applicable law, on the basis of an action, violation, or condition that has caused or is likely to cause the insolvency of the licensee; or (d) Receipt by the beneficiary of notice of expiration or non-extension of a letter of credit and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee will maintain permissible investments in accordance with § 45-7-137(a) upon the expiration or non-extension of the letter of credit; (E) The commissioner may designate an agent to serve on the commissioner's behalf as beneficiary to a letter of credit so long as the agent and letter of credit meet requirements established by the commissioner. The commissioner's agent may serve as agent for multiple licensing authorities for a single irrevocable letter of credit if the proceeds of the drawable amount for the purposes of this subsection are assigned to the commissioner; and
(A) The full drawable amount of an irrevocable standby letter of credit for which the stated beneficiary is the commissioner, that stipulates that the beneficiary need only draw a sight draft under the letter of credit and present it to obtain funds up to the letter of credit amount within seven (7) days of presentation of the items required by subdivision (a)(4)(D);
(B) The letter of credit must: (i) Be issued by a federally insured depository financial institution, a foreign bank that is authorized under federal law to maintain a federal agency or federal branch office in a state or states, or a foreign bank that is authorized under state law to maintain a branch in a state that: (a) Bears an eligible rating or whose parent company bears an eligible rating; and (b) Is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks, credit unions, and trust companies; (ii) Be irrevocable, unconditional, and indicate that it is not subject to any condition or qualifications outside of the letter of credit; (iii) Not contain reference to any other agreements, documents, or entities, or otherwise provide for any security interest in the licensee; and (iv) Contain an issue date and expiration date, and expressly provide for automatic extension, without a written amendment, for an additional period of one (1) year from the present or each future expiration date, unless the issuer of the letter of credit notifies the commissioner in writing by certified or registered mail or courier mail or other receipted means, at least sixty (60) days prior to any expiration date, that the irrevocable letter of credit will not be extended;
(i) Be issued by a federally insured depository financial institution, a foreign bank that is authorized under federal law to maintain a federal agency or federal branch office in a state or states, or a foreign bank that is authorized under state law to maintain a branch in a state that: (a) Bears an eligible rating or whose parent company bears an eligible rating; and (b) Is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks, credit unions, and trust companies;
(a) Bears an eligible rating or whose parent company bears an eligible rating; and
(b) Is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks, credit unions, and trust companies;
(ii) Be irrevocable, unconditional, and indicate that it is not subject to any condition or qualifications outside of the letter of credit;
(iii) Not contain reference to any other agreements, documents, or entities, or otherwise provide for any security interest in the licensee; and
(iv) Contain an issue date and expiration date, and expressly provide for automatic extension, without a written amendment, for an additional period of one (1) year from the present or each future expiration date, unless the issuer of the letter of credit notifies the commissioner in writing by certified or registered mail or courier mail or other receipted means, at least sixty (60) days prior to any expiration date, that the irrevocable letter of credit will not be extended;
(C) In the event of any notice of expiration or non-extension of a letter of credit issued under subdivision (a)(4)(B)(iv), the licensee shall demonstrate to the satisfaction of the commissioner, fifteen (15) days prior to expiration, that the licensee maintains and will maintain permissible investments in accordance with § 45-7-137(a) upon the expiration of the letter of credit. If the licensee is not able to do so, then the commissioner may draw on the letter of credit in an amount up to the amount necessary to meet the licensee's requirements to maintain permissible investments in accordance with § 45-7-137(a) . Any such draw must be offset against the licensee's outstanding money transmission obligations. The commissioner or the commissioner's designated agent shall hold drawn funds in trust, to the extent authorized by law, as agent for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations;
(D) The letter of credit must provide that the issuer of the letter of credit will honor, at sight, a presentation made by the beneficiary to the issuer of the following documents on or prior to the expiration date of the letter of credit: (i) The original letter of credit, including any amendments; and (ii) A written statement from the beneficiary stating that any of the following events have occurred: (a) The filing of a petition by or against the licensee under the federal Bankruptcy Code ( 11 U.S.C. §§ 101 - 110 ), for bankruptcy or reorganization; (b) The filing of a petition by or against the licensee for receivership, or the commencement of any other judicial or administrative proceeding for its dissolution or reorganization; (c) The seizure of assets of a licensee by the commissioner, or any other state government official holding a position of similar authority in another state, pursuant to an emergency order issued in accordance with applicable law, on the basis of an action, violation, or condition that has caused or is likely to cause the insolvency of the licensee; or (d) Receipt by the beneficiary of notice of expiration or non-extension of a letter of credit and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee will maintain permissible investments in accordance with § 45-7-137(a) upon the expiration or non-extension of the letter of credit;
(i) The original letter of credit, including any amendments; and
(ii) A written statement from the beneficiary stating that any of the following events have occurred: (a) The filing of a petition by or against the licensee under the federal Bankruptcy Code ( 11 U.S.C. §§ 101 - 110 ), for bankruptcy or reorganization; (b) The filing of a petition by or against the licensee for receivership, or the commencement of any other judicial or administrative proceeding for its dissolution or reorganization; (c) The seizure of assets of a licensee by the commissioner, or any other state government official holding a position of similar authority in another state, pursuant to an emergency order issued in accordance with applicable law, on the basis of an action, violation, or condition that has caused or is likely to cause the insolvency of the licensee; or (d) Receipt by the beneficiary of notice of expiration or non-extension of a letter of credit and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee will maintain permissible investments in accordance with § 45-7-137(a) upon the expiration or non-extension of the letter of credit;
(a) The filing of a petition by or against the licensee under the federal Bankruptcy Code ( 11 U.S.C. §§ 101 - 110 ), for bankruptcy or reorganization;
(b) The filing of a petition by or against the licensee for receivership, or the commencement of any other judicial or administrative proceeding for its dissolution or reorganization;
(c) The seizure of assets of a licensee by the commissioner, or any other state government official holding a position of similar authority in another state, pursuant to an emergency order issued in accordance with applicable law, on the basis of an action, violation, or condition that has caused or is likely to cause the insolvency of the licensee; or
(d) Receipt by the beneficiary of notice of expiration or non-extension of a letter of credit and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee will maintain permissible investments in accordance with § 45-7-137(a) upon the expiration or non-extension of the letter of credit;
(E) The commissioner may designate an agent to serve on the commissioner's behalf as beneficiary to a letter of credit so long as the agent and letter of credit meet requirements established by the commissioner. The commissioner's agent may serve as agent for multiple licensing authorities for a single irrevocable letter of credit if the proceeds of the drawable amount for the purposes of this subsection are assigned to the commissioner; and
(5) One hundred percent (100%) of the surety bond provided for under § 45-7-136 that exceeds the average daily money transmission liability in this state.
(b) Unless permitted by the commissioner to exceed the limit, the following investments are permissible under § 45-7-137 to the extent specified: (1) Receivables that are payable to a licensee from its authorized delegates in the ordinary course of business that are less than seven (7) days old, up to fifty percent (50%) of the aggregate value of the licensee's total permissible investments; (2) Of the receivables permissible under subdivision (b)(1), receivables that are payable to a licensee from a single authorized delegate in the ordinary course of business must not exceed ten percent (10%) of the aggregate value of the licensee's total permissible investments; (3) The following investments, up to twenty percent (20%) per category and combined up to fifty percent (50%) of the aggregate value of the licensee's total permissible investments: (A) A short-term investment of up to six (6) months bearing an eligible rating; (B) Commercial paper bearing an eligible rating; (C) A bill, note, bond, or debenture bearing an eligible rating; (D) United States tri-party repurchase agreements collateralized at one hundred percent (100%) or more with United States government or agency securities, municipal bonds, or other securities bearing an eligible rating; (E) Money market mutual funds rated less than "AAA" and equal to or higher than "A-" by S&P, or the equivalent from any other eligible rating service; and (F) A mutual fund or other investment fund composed solely and exclusively of one (1) or more permissible investments listed in § 45-7-138(a)(1)-(3) ; and (4) Cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee's customers, at foreign depository institutions, up to ten percent (10%) of the aggregate value of the licensee's total permissible investments if the licensee has received a satisfactory rating in its most recent examination and the foreign depository institution: (A) Has an eligible rating; (B) Is registered under the Foreign Account Tax Compliance Act ( 26 U.S.C. § 1471 et seq.); (C) Is not located in any country subject to sanctions from the Office of Foreign Assets Control; and (D) Is not located in a high-risk or non-cooperative jurisdiction as designated by the Financial Action Task Force.
(1) Receivables that are payable to a licensee from its authorized delegates in the ordinary course of business that are less than seven (7) days old, up to fifty percent (50%) of the aggregate value of the licensee's total permissible investments;
(2) Of the receivables permissible under subdivision (b)(1), receivables that are payable to a licensee from a single authorized delegate in the ordinary course of business must not exceed ten percent (10%) of the aggregate value of the licensee's total permissible investments;
(3) The following investments, up to twenty percent (20%) per category and combined up to fifty percent (50%) of the aggregate value of the licensee's total permissible investments: (A) A short-term investment of up to six (6) months bearing an eligible rating; (B) Commercial paper bearing an eligible rating; (C) A bill, note, bond, or debenture bearing an eligible rating; (D) United States tri-party repurchase agreements collateralized at one hundred percent (100%) or more with United States government or agency securities, municipal bonds, or other securities bearing an eligible rating; (E) Money market mutual funds rated less than "AAA" and equal to or higher than "A-" by S&P, or the equivalent from any other eligible rating service; and (F) A mutual fund or other investment fund composed solely and exclusively of one (1) or more permissible investments listed in § 45-7-138(a)(1)-(3) ; and
(A) A short-term investment of up to six (6) months bearing an eligible rating;
(B) Commercial paper bearing an eligible rating;
(C) A bill, note, bond, or debenture bearing an eligible rating;
(D) United States tri-party repurchase agreements collateralized at one hundred percent (100%) or more with United States government or agency securities, municipal bonds, or other securities bearing an eligible rating;
(E) Money market mutual funds rated less than "AAA" and equal to or higher than "A-" by S&P, or the equivalent from any other eligible rating service; and
(F) A mutual fund or other investment fund composed solely and exclusively of one (1) or more permissible investments listed in § 45-7-138(a)(1)-(3) ; and
(4) Cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee's customers, at foreign depository institutions, up to ten percent (10%) of the aggregate value of the licensee's total permissible investments if the licensee has received a satisfactory rating in its most recent examination and the foreign depository institution: (A) Has an eligible rating; (B) Is registered under the Foreign Account Tax Compliance Act ( 26 U.S.C. § 1471 et seq.); (C) Is not located in any country subject to sanctions from the Office of Foreign Assets Control; and (D) Is not located in a high-risk or non-cooperative jurisdiction as designated by the Financial Action Task Force.
(A) Has an eligible rating;
(B) Is registered under the Foreign Account Tax Compliance Act ( 26 U.S.C. § 1471 et seq.);
(C) Is not located in any country subject to sanctions from the Office of Foreign Assets Control; and
(D) Is not located in a high-risk or non-cooperative jurisdiction as designated by the Financial Action Task Force.
Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Tenn. Code Ann. § 45-4-1105 — TN Code / Title 45 / Chapter 4 / Section 45-4-1105
Amendments to articles
Status: in_force

(a) Amendments to the articles, adopted by a vote of two-thirds (2/3) of the number of member credit unions present at an annual meeting or a special meeting called for that purpose, shall be filed with the commissioner and, if approved by the commissioner, shall become effective upon being filed in the same manner as the original articles. (b) Any credit union that becomes a member of the corporation under § 45-4-1107(c) or (d) shall be entitled to vote on any proposed amendments arising after the credit union becomes a member, and the credit unions present shall be included when ascertaining whether the requisite two-thirds (2/3) vote of the proposed amendment has been met. Acts 1974, ch. 577, § 5; T.C.A., § 45-1839; Acts 1983, ch. 93, § 4.
(a) Amendments to the articles, adopted by a vote of two-thirds (2/3) of the number of member credit unions present at an annual meeting or a special meeting called for that purpose, shall be filed with the commissioner and, if approved by the commissioner, shall become effective upon being filed in the same manner as the original articles.
(b) Any credit union that becomes a member of the corporation under § 45-4-1107(c) or (d) shall be entitled to vote on any proposed amendments arising after the credit union becomes a member, and the credit unions present shall be included when ascertaining whether the requisite two-thirds (2/3) vote of the proposed amendment has been met.
Acts 1974, ch. 577, § 5; T.C.A., § 45-1839; Acts 1983, ch. 93, § 4.