Tenn. Code Ann. § 45-4-1904 — TN Code / Title 45 / Chapter 4 / Section 45-4-1904
Foreign credit unions
Status: in_force

(a) Before a foreign credit union, defined as a credit union chartered and operating under the laws of another state, may open an office in Tennessee for the purpose of serving its members residing or working in Tennessee, the credit union shall procure from the commissioner a certificate of authority to operate in Tennessee. The foreign credit union may obtain a certificate of authority from the commissioner by filing an application, which shall include a copy of the foreign credit union's charter, bylaws, a statement of its field of membership if not contained in the bylaws, a copy of its most recent call report made to its supervisory agency, and other information that the commissioner may require. (b) The commissioner may issue a certificate of authority to the foreign credit union if the commissioner finds that all of the following requirements are satisfied: (1) The Tennessee members of the credit union will be protected by share insurance comparable to that approved for members of Tennessee credit unions; (2) The credit union supervisor in the chartering state of the foreign credit union has consented to the entry of the foreign credit union into Tennessee and agrees to furnish upon request copies of its examination reports of the foreign credit union; (3) The field of membership proposed to be served in Tennessee by the foreign credit union is not being adequately served by a credit union chartered under this title or under the federal Credit Union Act; (4) A designation of registered agent, upon a form prescribed by the commissioner. The registered agent shall be a natural person who is a resident of and has a business address in this state or a domestic or foreign corporation for profit authorized to transact business in this state. If a registered agent resigns by filing a written notice thereof or is unable to perform the agent's duties, the designating credit union shall promptly designate another registered agent to the end that the credit union shall at all times have a registered agent in this state; and (5) Reciprocal recognition and authority are given to credit unions chartered in Tennessee by the chartering state of the foreign credit union. (c) Upon issuance of a certificate of authority by the commissioner, the foreign credit union may serve its members residing or working in Tennessee with an office or offices in Tennessee. The activities or services offered the members served from a Tennessee office shall be in accordance with the bylaws of the foreign credit union and the laws of the state where the foreign credit union is chartered; provided, that loans executed in Tennessee to members residing in Tennessee shall not bear a rate of interest in excess of that rate of interest for similar loans permitted credit unions chartered under this chapter. (d) The commissioner may examine the records and affairs of any foreign credit union operating in Tennessee if the commissioner deems it necessary to protect the interest of Tennessee members of the foreign credit union. In all cases, a foreign credit union operating in Tennessee shall file with the commissioner a copy of its annual report or call report at the time it files the reports with the credit union supervisor where it is chartered. The commissioner may revoke a certificate of authority if a foreign credit union violates any order issued pursuant to § 45-4-206 . (e) Whenever the laws of any other state of the United States shall impose a supervisory fee or any other charge upon the assets or deposits of credit unions chartered under the laws of this state, the credit unions chartered under the laws of the foreign states shall be required to pay to the commissioner an annual supervision fee based upon the assets of the foreign credit unions located within Tennessee, including loans made by the credit unions to persons or entities that resided in Tennessee at the time the loans were first made. The fee shall be calculated in accordance with § 45-4-1002(c) . (f) (1) A foreign credit union may participate in a shared service center network that is operated from inside or outside of this state and which shared service center, referred to as "center" in this subsection (f), uses an electronic network to provide credit union services to members of credit unions, who are participants in the network, and at which center the services provided are performed by automated teller machines and/or similar electronic communications between the center and the participating credit union. Credit unions whose members use such centers shall not be deemed to be maintaining offices in Tennessee and shall not be subject to any of the foregoing sections applicable to the opening and maintaining of offices by foreign credit unions. (2) (A) For purposes of this section, "services performed by automated teller machines and/or similar electronic communications" means only the following activities: (i) Access to and withdrawals from a member's share and other accounts through the acceptance of share drafts, debit approvals and transfers between accounts; (ii) Loan advances pursuant to any lending agreement between the member using the service center and the member's home credit union through any credit access device including drafts, credit cards or otherwise, and including authorizations to increase lines of credit; provided, that the service center may not make a credit determination or create a new loan; and (iii) May provide access to member account information, account balance inquiries, transfers between accounts, initiation of payments from existing accounts to existing loans; (B) The service center may not, for any foreign credit union, accept loan payments directly, open member accounts, solicit new members or otherwise act as a branch. (3) Nothing in this section shall limit the ability of a branch of a Tennessee credit union to engage in any service for its members permitted by law at a location where a service center is maintained. (4) The commissioner may promulgate rules for the implementation of the foregoing section and the sound operation of credit union services in the state pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. Amended by 2015 Tenn. Acts, ch. 241,s 3, eff. 4/24/2015. Acts 1979, ch. 86, § 12; T.C.A., §§ 45-1851, 45-4-1204; Acts 1984, ch. 714, § 5; 1996, ch. 650, § 1.
(a) Before a foreign credit union, defined as a credit union chartered and operating under the laws of another state, may open an office in Tennessee for the purpose of serving its members residing or working in Tennessee, the credit union shall procure from the commissioner a certificate of authority to operate in Tennessee. The foreign credit union may obtain a certificate of authority from the commissioner by filing an application, which shall include a copy of the foreign credit union's charter, bylaws, a statement of its field of membership if not contained in the bylaws, a copy of its most recent call report made to its supervisory agency, and other information that the commissioner may require.
(b) The commissioner may issue a certificate of authority to the foreign credit union if the commissioner finds that all of the following requirements are satisfied: (1) The Tennessee members of the credit union will be protected by share insurance comparable to that approved for members of Tennessee credit unions; (2) The credit union supervisor in the chartering state of the foreign credit union has consented to the entry of the foreign credit union into Tennessee and agrees to furnish upon request copies of its examination reports of the foreign credit union; (3) The field of membership proposed to be served in Tennessee by the foreign credit union is not being adequately served by a credit union chartered under this title or under the federal Credit Union Act; (4) A designation of registered agent, upon a form prescribed by the commissioner. The registered agent shall be a natural person who is a resident of and has a business address in this state or a domestic or foreign corporation for profit authorized to transact business in this state. If a registered agent resigns by filing a written notice thereof or is unable to perform the agent's duties, the designating credit union shall promptly designate another registered agent to the end that the credit union shall at all times have a registered agent in this state; and (5) Reciprocal recognition and authority are given to credit unions chartered in Tennessee by the chartering state of the foreign credit union.
(1) The Tennessee members of the credit union will be protected by share insurance comparable to that approved for members of Tennessee credit unions;
(2) The credit union supervisor in the chartering state of the foreign credit union has consented to the entry of the foreign credit union into Tennessee and agrees to furnish upon request copies of its examination reports of the foreign credit union;
(3) The field of membership proposed to be served in Tennessee by the foreign credit union is not being adequately served by a credit union chartered under this title or under the federal Credit Union Act;
(4) A designation of registered agent, upon a form prescribed by the commissioner. The registered agent shall be a natural person who is a resident of and has a business address in this state or a domestic or foreign corporation for profit authorized to transact business in this state. If a registered agent resigns by filing a written notice thereof or is unable to perform the agent's duties, the designating credit union shall promptly designate another registered agent to the end that the credit union shall at all times have a registered agent in this state; and
(5) Reciprocal recognition and authority are given to credit unions chartered in Tennessee by the chartering state of the foreign credit union.
(c) Upon issuance of a certificate of authority by the commissioner, the foreign credit union may serve its members residing or working in Tennessee with an office or offices in Tennessee. The activities or services offered the members served from a Tennessee office shall be in accordance with the bylaws of the foreign credit union and the laws of the state where the foreign credit union is chartered; provided, that loans executed in Tennessee to members residing in Tennessee shall not bear a rate of interest in excess of that rate of interest for similar loans permitted credit unions chartered under this chapter.
(d) The commissioner may examine the records and affairs of any foreign credit union operating in Tennessee if the commissioner deems it necessary to protect the interest of Tennessee members of the foreign credit union. In all cases, a foreign credit union operating in Tennessee shall file with the commissioner a copy of its annual report or call report at the time it files the reports with the credit union supervisor where it is chartered. The commissioner may revoke a certificate of authority if a foreign credit union violates any order issued pursuant to § 45-4-206 .
(e) Whenever the laws of any other state of the United States shall impose a supervisory fee or any other charge upon the assets or deposits of credit unions chartered under the laws of this state, the credit unions chartered under the laws of the foreign states shall be required to pay to the commissioner an annual supervision fee based upon the assets of the foreign credit unions located within Tennessee, including loans made by the credit unions to persons or entities that resided in Tennessee at the time the loans were first made. The fee shall be calculated in accordance with § 45-4-1002(c) .
(f) (1) A foreign credit union may participate in a shared service center network that is operated from inside or outside of this state and which shared service center, referred to as "center" in this subsection (f), uses an electronic network to provide credit union services to members of credit unions, who are participants in the network, and at which center the services provided are performed by automated teller machines and/or similar electronic communications between the center and the participating credit union. Credit unions whose members use such centers shall not be deemed to be maintaining offices in Tennessee and shall not be subject to any of the foregoing sections applicable to the opening and maintaining of offices by foreign credit unions. (2) (A) For purposes of this section, "services performed by automated teller machines and/or similar electronic communications" means only the following activities: (i) Access to and withdrawals from a member's share and other accounts through the acceptance of share drafts, debit approvals and transfers between accounts; (ii) Loan advances pursuant to any lending agreement between the member using the service center and the member's home credit union through any credit access device including drafts, credit cards or otherwise, and including authorizations to increase lines of credit; provided, that the service center may not make a credit determination or create a new loan; and (iii) May provide access to member account information, account balance inquiries, transfers between accounts, initiation of payments from existing accounts to existing loans; (B) The service center may not, for any foreign credit union, accept loan payments directly, open member accounts, solicit new members or otherwise act as a branch. (3) Nothing in this section shall limit the ability of a branch of a Tennessee credit union to engage in any service for its members permitted by law at a location where a service center is maintained. (4) The commissioner may promulgate rules for the implementation of the foregoing section and the sound operation of credit union services in the state pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(1) A foreign credit union may participate in a shared service center network that is operated from inside or outside of this state and which shared service center, referred to as "center" in this subsection (f), uses an electronic network to provide credit union services to members of credit unions, who are participants in the network, and at which center the services provided are performed by automated teller machines and/or similar electronic communications between the center and the participating credit union. Credit unions whose members use such centers shall not be deemed to be maintaining offices in Tennessee and shall not be subject to any of the foregoing sections applicable to the opening and maintaining of offices by foreign credit unions.
(2) (A) For purposes of this section, "services performed by automated teller machines and/or similar electronic communications" means only the following activities: (i) Access to and withdrawals from a member's share and other accounts through the acceptance of share drafts, debit approvals and transfers between accounts; (ii) Loan advances pursuant to any lending agreement between the member using the service center and the member's home credit union through any credit access device including drafts, credit cards or otherwise, and including authorizations to increase lines of credit; provided, that the service center may not make a credit determination or create a new loan; and (iii) May provide access to member account information, account balance inquiries, transfers between accounts, initiation of payments from existing accounts to existing loans; (B) The service center may not, for any foreign credit union, accept loan payments directly, open member accounts, solicit new members or otherwise act as a branch.
(A) For purposes of this section, "services performed by automated teller machines and/or similar electronic communications" means only the following activities: (i) Access to and withdrawals from a member's share and other accounts through the acceptance of share drafts, debit approvals and transfers between accounts; (ii) Loan advances pursuant to any lending agreement between the member using the service center and the member's home credit union through any credit access device including drafts, credit cards or otherwise, and including authorizations to increase lines of credit; provided, that the service center may not make a credit determination or create a new loan; and (iii) May provide access to member account information, account balance inquiries, transfers between accounts, initiation of payments from existing accounts to existing loans;
(i) Access to and withdrawals from a member's share and other accounts through the acceptance of share drafts, debit approvals and transfers between accounts;
(ii) Loan advances pursuant to any lending agreement between the member using the service center and the member's home credit union through any credit access device including drafts, credit cards or otherwise, and including authorizations to increase lines of credit; provided, that the service center may not make a credit determination or create a new loan; and
(iii) May provide access to member account information, account balance inquiries, transfers between accounts, initiation of payments from existing accounts to existing loans;
(B) The service center may not, for any foreign credit union, accept loan payments directly, open member accounts, solicit new members or otherwise act as a branch.
(3) Nothing in this section shall limit the ability of a branch of a Tennessee credit union to engage in any service for its members permitted by law at a location where a service center is maintained.
(4) The commissioner may promulgate rules for the implementation of the foregoing section and the sound operation of credit union services in the state pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
Amended by 2015 Tenn. Acts, ch. 241,s 3, eff. 4/24/2015.
Acts 1979, ch. 86, § 12; T.C.A., §§ 45-1851, 45-4-1204; Acts 1984, ch. 714, § 5; 1996, ch. 650, § 1.
Tenn. Code Ann. § 45-3-104 — TN Code / Title 45 / Chapter 3 / Section 45-3-104
Chapter definitions
Status: in_force

(a) As used in this chapter, unless the context otherwise requires: (1) "Association" means a capital stock or mutual savings and loan association; (A) "Capital stock association" means an association, 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 association; and (B) "Mutual association" means an association, 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 association; (2) "Branch office" means an office or facility, other than the home office, at which payments on accounts and loans may be accepted and applications for loans may be received, at which accounts may be opened, and loans may be closed, and at which any other authorized business of the association may be transacted; (3) "Commissioner" means the commissioner of financial institutions; (4) "Deposit" or "deposit account" means that part of the deposit liability of an association that is credited to the account of the holder; (5) "Deposit liability" means the aggregate amount of deposit accounts of depositors or members, including interest credited to the accounts, less redemptions and withdrawals; (6) "Depositor" means the holder of a deposit account in an association; (7) "Dividend" means that part of the net income or capital surplus of a capital stock association that is declared payable to the stockholders of the association from time to time by the board of directors, and is to be distinguished from "interest"; (8) "Electronic funds transfer system (EFTS)" means a computer payment system for transferring funds from one (1) party to another; (9) "Federal association" means a savings and loan association operating under the laws and regulations of the United States; (10) "Financial institution" means a thrift institution, commercial bank, or trust company; (11) "Home" means a structure designed for residential use by not more than four (4) families or a single condominium unit, including common elements pertinent thereto, designed for residential use by one (1) family in a multiple dwelling unit structure or complex, and includes fixtures; (12) "Home office" means the principal place of business maintained by the association and so designated in its charter, at which all authorized business of the association may be transacted; (13) "Home property" means real estate on which there is located, or will be located, a home; (14) "Homeowner" means any person or persons in whose name or names legal title to a home, or real property on which a home is located, or is to be located, is registered pursuant to the laws of this state; (15) "Impaired condition" means a condition in which the assets of an association in the aggregate do not equal the aggregate amount of its liabilities; (16) "Interest" means that part of the net income, retained earnings, or surplus of an association that is payable to or credited to holders of deposit accounts; (17) "Interest date" means the effective date on which interest is payable to depositors on deposit accounts; (18) "Liquid assets" means: (A) Cash on hand; (B) Time certificates of deposit or cash on deposit in federal home loan banks, state banks performing similar functions, or in commercial banks, that is withdrawable upon not more than thirty (30) days' notice and that is not pledged as security for indebtedness, except that any deposits in a bank that is being liquidated or rehabilitated by any supervisory authority shall not be considered as liquid assets; (C) Obligations of, or obligations that are fully guaranteed as to principal and interest by, the United States or this state; and (D) Other assets that the commissioner may, by rule or regulation, designate as liquid assets; (19) "Member" means a person holding a deposit account of a mutual association; (20) "Mobile home" means a dwelling designed for occupancy by a single family unit, which may be permanently affixed to real property, and is designed to be movable from one (1) location to another. "Mobile home" does not include recreation vehicles or campers; (21) "Net income" means gross revenues for an accounting period, less all interest and expenses paid or incurred, taxes, and losses sustained that have not been charged to any reserve accounts; (22) "Net worth" means the aggregate of all loan contracts of an association, plus the aggregate value of all other assets of the association, less the aggregate amount of deposit accounts of depositors, including interest credited to the accounts, and less any other liabilities of the association; (23) "Person" means an individual, firm, partnership, joint venture, trust, estate, unincorporated association, company, or corporation organized under the laws of this or any other state, the United States or foreign country; (24) "Primarily residential property" means real estate on which there is located, or will be located pursuant to a real estate loan, any of the following: (A) A structure or structures designed or used primarily for residential rather than nonresidential purposes and consisting of more than one (1) dwelling unit; (B) A structure or structures designed or used primarily for residential rather than nonresidential purposes for students, residents, and persons under care, employees, or members of the staff of an educational, health, or welfare institution or facility; or (C) A structure or structures that are used in part for residential purposes for not more than one (1) family and in part for business purposes; provided, that the residential use of the structure or structures must be substantial and permanent, not merely transitory; (25) "Primary lending area" means any area within the territorial limits of this state or within a radius of one hundred (100) miles from the home office or branch of an association; (26) "Real estate loan" means any loan or other obligation secured by a lien on real estate in any state held in fee or in a leasehold extending or renewable automatically for a period of at least ten (10) years beyond the date scheduled for the final principal payment of the loan or obligation, or any transactions out of which a lien or claim is created against the real estate, including, inter alia, the purchase of the real estate in fee by an association and the concurrent or immediate sale thereof on installment contract; (27) "Remote service unit" means a facility where deposits to, withdrawals from, and transfers between existing accounts may be made and where payments on loans made or serviced by the association may be made; (28) "Satellite office" means a facility that is operated ancillary to a home or branch office and that does not have more than one thousand (1,000) square feet of floor space nor more than four (4) teller stations; (29) "Service organization" means either a corporation, the majority of the capital stock of which is owned by one (1) or more associations, and that has the powers to engage in those activities of general service corporations in which federal associations may invest; or a corporation, business trust, or other similar organization that is an affiliate of an association that owns a majority of the voting shares of the organization and that has the powers of an affiliate of a federal association; (30) "Stockholder" means the holder of one (1) or more shares of any class of capital stock of a capital stock association organized and operating pursuant to this chapter; (31) "Surplus" means the aggregate amount of the undistributed net income of an association held as undivided profits or unallocated reserves for general corporate purposes, and any paid-in surplus or initial undivided profits held by an association; (32) "Thrift institution" means an association, a mutual savings bank, a cooperative bank, a homestead association, a credit union, a federal association, a small loan company, and any supervised thrift or residential financing institution of a substantially similar nature as determined by the commissioner; and (33) "Withdrawal value" means the amount paid to an association on a deposit account, plus interest credited thereto, less lawful deductions therefrom, as shown by the books of the association. (b) Any reference in this chapter or elsewhere in this code to a savings and loan association, or to a federal savings and loan association, or to any association as may be defined in this chapter, includes a federal savings bank or other financial institution, the accounts of which are insured by the federal savings and loan insurance corporation (FSLIC) or any successor of the corporation. Acts 1978, ch. 708, § 1.04; T.C.A., § 45-1304; Acts 1984, ch. 705, § 2.
(a) As used in this chapter, unless the context otherwise requires: (1) "Association" means a capital stock or mutual savings and loan association; (A) "Capital stock association" means an association, 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 association; and (B) "Mutual association" means an association, 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 association; (2) "Branch office" means an office or facility, other than the home office, at which payments on accounts and loans may be accepted and applications for loans may be received, at which accounts may be opened, and loans may be closed, and at which any other authorized business of the association may be transacted; (3) "Commissioner" means the commissioner of financial institutions; (4) "Deposit" or "deposit account" means that part of the deposit liability of an association that is credited to the account of the holder; (5) "Deposit liability" means the aggregate amount of deposit accounts of depositors or members, including interest credited to the accounts, less redemptions and withdrawals; (6) "Depositor" means the holder of a deposit account in an association; (7) "Dividend" means that part of the net income or capital surplus of a capital stock association that is declared payable to the stockholders of the association from time to time by the board of directors, and is to be distinguished from "interest"; (8) "Electronic funds transfer system (EFTS)" means a computer payment system for transferring funds from one (1) party to another; (9) "Federal association" means a savings and loan association operating under the laws and regulations of the United States; (10) "Financial institution" means a thrift institution, commercial bank, or trust company; (11) "Home" means a structure designed for residential use by not more than four (4) families or a single condominium unit, including common elements pertinent thereto, designed for residential use by one (1) family in a multiple dwelling unit structure or complex, and includes fixtures; (12) "Home office" means the principal place of business maintained by the association and so designated in its charter, at which all authorized business of the association may be transacted; (13) "Home property" means real estate on which there is located, or will be located, a home; (14) "Homeowner" means any person or persons in whose name or names legal title to a home, or real property on which a home is located, or is to be located, is registered pursuant to the laws of this state; (15) "Impaired condition" means a condition in which the assets of an association in the aggregate do not equal the aggregate amount of its liabilities; (16) "Interest" means that part of the net income, retained earnings, or surplus of an association that is payable to or credited to holders of deposit accounts; (17) "Interest date" means the effective date on which interest is payable to depositors on deposit accounts; (18) "Liquid assets" means: (A) Cash on hand; (B) Time certificates of deposit or cash on deposit in federal home loan banks, state banks performing similar functions, or in commercial banks, that is withdrawable upon not more than thirty (30) days' notice and that is not pledged as security for indebtedness, except that any deposits in a bank that is being liquidated or rehabilitated by any supervisory authority shall not be considered as liquid assets; (C) Obligations of, or obligations that are fully guaranteed as to principal and interest by, the United States or this state; and (D) Other assets that the commissioner may, by rule or regulation, designate as liquid assets; (19) "Member" means a person holding a deposit account of a mutual association; (20) "Mobile home" means a dwelling designed for occupancy by a single family unit, which may be permanently affixed to real property, and is designed to be movable from one (1) location to another. "Mobile home" does not include recreation vehicles or campers; (21) "Net income" means gross revenues for an accounting period, less all interest and expenses paid or incurred, taxes, and losses sustained that have not been charged to any reserve accounts; (22) "Net worth" means the aggregate of all loan contracts of an association, plus the aggregate value of all other assets of the association, less the aggregate amount of deposit accounts of depositors, including interest credited to the accounts, and less any other liabilities of the association; (23) "Person" means an individual, firm, partnership, joint venture, trust, estate, unincorporated association, company, or corporation organized under the laws of this or any other state, the United States or foreign country; (24) "Primarily residential property" means real estate on which there is located, or will be located pursuant to a real estate loan, any of the following: (A) A structure or structures designed or used primarily for residential rather than nonresidential purposes and consisting of more than one (1) dwelling unit; (B) A structure or structures designed or used primarily for residential rather than nonresidential purposes for students, residents, and persons under care, employees, or members of the staff of an educational, health, or welfare institution or facility; or (C) A structure or structures that are used in part for residential purposes for not more than one (1) family and in part for business purposes; provided, that the residential use of the structure or structures must be substantial and permanent, not merely transitory; (25) "Primary lending area" means any area within the territorial limits of this state or within a radius of one hundred (100) miles from the home office or branch of an association; (26) "Real estate loan" means any loan or other obligation secured by a lien on real estate in any state held in fee or in a leasehold extending or renewable automatically for a period of at least ten (10) years beyond the date scheduled for the final principal payment of the loan or obligation, or any transactions out of which a lien or claim is created against the real estate, including, inter alia, the purchase of the real estate in fee by an association and the concurrent or immediate sale thereof on installment contract; (27) "Remote service unit" means a facility where deposits to, withdrawals from, and transfers between existing accounts may be made and where payments on loans made or serviced by the association may be made; (28) "Satellite office" means a facility that is operated ancillary to a home or branch office and that does not have more than one thousand (1,000) square feet of floor space nor more than four (4) teller stations; (29) "Service organization" means either a corporation, the majority of the capital stock of which is owned by one (1) or more associations, and that has the powers to engage in those activities of general service corporations in which federal associations may invest; or a corporation, business trust, or other similar organization that is an affiliate of an association that owns a majority of the voting shares of the organization and that has the powers of an affiliate of a federal association; (30) "Stockholder" means the holder of one (1) or more shares of any class of capital stock of a capital stock association organized and operating pursuant to this chapter; (31) "Surplus" means the aggregate amount of the undistributed net income of an association held as undivided profits or unallocated reserves for general corporate purposes, and any paid-in surplus or initial undivided profits held by an association; (32) "Thrift institution" means an association, a mutual savings bank, a cooperative bank, a homestead association, a credit union, a federal association, a small loan company, and any supervised thrift or residential financing institution of a substantially similar nature as determined by the commissioner; and (33) "Withdrawal value" means the amount paid to an association on a deposit account, plus interest credited thereto, less lawful deductions therefrom, as shown by the books of the association.
(1) "Association" means a capital stock or mutual savings and loan association; (A) "Capital stock association" means an association, 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 association; and (B) "Mutual association" means an association, 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 association;
(A) "Capital stock association" means an association, 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 association; and
(B) "Mutual association" means an association, 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 association;
(2) "Branch office" means an office or facility, other than the home office, at which payments on accounts and loans may be accepted and applications for loans may be received, at which accounts may be opened, and loans may be closed, and at which any other authorized business of the association may be transacted;
(3) "Commissioner" means the commissioner of financial institutions;
(4) "Deposit" or "deposit account" means that part of the deposit liability of an association that is credited to the account of the holder;
(5) "Deposit liability" means the aggregate amount of deposit accounts of depositors or members, including interest credited to the accounts, less redemptions and withdrawals;
(6) "Depositor" means the holder of a deposit account in an association;
(7) "Dividend" means that part of the net income or capital surplus of a capital stock association that is declared payable to the stockholders of the association from time to time by the board of directors, and is to be distinguished from "interest";
(8) "Electronic funds transfer system (EFTS)" means a computer payment system for transferring funds from one (1) party to another;
(9) "Federal association" means a savings and loan association operating under the laws and regulations of the United States;
(10) "Financial institution" means a thrift institution, commercial bank, or trust company;
(11) "Home" means a structure designed for residential use by not more than four (4) families or a single condominium unit, including common elements pertinent thereto, designed for residential use by one (1) family in a multiple dwelling unit structure or complex, and includes fixtures;
(12) "Home office" means the principal place of business maintained by the association and so designated in its charter, at which all authorized business of the association may be transacted;
(13) "Home property" means real estate on which there is located, or will be located, a home;
(14) "Homeowner" means any person or persons in whose name or names legal title to a home, or real property on which a home is located, or is to be located, is registered pursuant to the laws of this state;
(15) "Impaired condition" means a condition in which the assets of an association in the aggregate do not equal the aggregate amount of its liabilities;
(16) "Interest" means that part of the net income, retained earnings, or surplus of an association that is payable to or credited to holders of deposit accounts;
(17) "Interest date" means the effective date on which interest is payable to depositors on deposit accounts;
(18) "Liquid assets" means: (A) Cash on hand; (B) Time certificates of deposit or cash on deposit in federal home loan banks, state banks performing similar functions, or in commercial banks, that is withdrawable upon not more than thirty (30) days' notice and that is not pledged as security for indebtedness, except that any deposits in a bank that is being liquidated or rehabilitated by any supervisory authority shall not be considered as liquid assets; (C) Obligations of, or obligations that are fully guaranteed as to principal and interest by, the United States or this state; and (D) Other assets that the commissioner may, by rule or regulation, designate as liquid assets;
(A) Cash on hand;
(B) Time certificates of deposit or cash on deposit in federal home loan banks, state banks performing similar functions, or in commercial banks, that is withdrawable upon not more than thirty (30) days' notice and that is not pledged as security for indebtedness, except that any deposits in a bank that is being liquidated or rehabilitated by any supervisory authority shall not be considered as liquid assets;
(C) Obligations of, or obligations that are fully guaranteed as to principal and interest by, the United States or this state; and
(D) Other assets that the commissioner may, by rule or regulation, designate as liquid assets;
(19) "Member" means a person holding a deposit account of a mutual association;
(20) "Mobile home" means a dwelling designed for occupancy by a single family unit, which may be permanently affixed to real property, and is designed to be movable from one (1) location to another. "Mobile home" does not include recreation vehicles or campers;
(21) "Net income" means gross revenues for an accounting period, less all interest and expenses paid or incurred, taxes, and losses sustained that have not been charged to any reserve accounts;
(22) "Net worth" means the aggregate of all loan contracts of an association, plus the aggregate value of all other assets of the association, less the aggregate amount of deposit accounts of depositors, including interest credited to the accounts, and less any other liabilities of the association;
(23) "Person" means an individual, firm, partnership, joint venture, trust, estate, unincorporated association, company, or corporation organized under the laws of this or any other state, the United States or foreign country;
(24) "Primarily residential property" means real estate on which there is located, or will be located pursuant to a real estate loan, any of the following: (A) A structure or structures designed or used primarily for residential rather than nonresidential purposes and consisting of more than one (1) dwelling unit; (B) A structure or structures designed or used primarily for residential rather than nonresidential purposes for students, residents, and persons under care, employees, or members of the staff of an educational, health, or welfare institution or facility; or (C) A structure or structures that are used in part for residential purposes for not more than one (1) family and in part for business purposes; provided, that the residential use of the structure or structures must be substantial and permanent, not merely transitory;
(A) A structure or structures designed or used primarily for residential rather than nonresidential purposes and consisting of more than one (1) dwelling unit;
(B) A structure or structures designed or used primarily for residential rather than nonresidential purposes for students, residents, and persons under care, employees, or members of the staff of an educational, health, or welfare institution or facility; or
(C) A structure or structures that are used in part for residential purposes for not more than one (1) family and in part for business purposes; provided, that the residential use of the structure or structures must be substantial and permanent, not merely transitory;
(25) "Primary lending area" means any area within the territorial limits of this state or within a radius of one hundred (100) miles from the home office or branch of an association;
(26) "Real estate loan" means any loan or other obligation secured by a lien on real estate in any state held in fee or in a leasehold extending or renewable automatically for a period of at least ten (10) years beyond the date scheduled for the final principal payment of the loan or obligation, or any transactions out of which a lien or claim is created against the real estate, including, inter alia, the purchase of the real estate in fee by an association and the concurrent or immediate sale thereof on installment contract;
(27) "Remote service unit" means a facility where deposits to, withdrawals from, and transfers between existing accounts may be made and where payments on loans made or serviced by the association may be made;
(28) "Satellite office" means a facility that is operated ancillary to a home or branch office and that does not have more than one thousand (1,000) square feet of floor space nor more than four (4) teller stations;
(29) "Service organization" means either a corporation, the majority of the capital stock of which is owned by one (1) or more associations, and that has the powers to engage in those activities of general service corporations in which federal associations may invest; or a corporation, business trust, or other similar organization that is an affiliate of an association that owns a majority of the voting shares of the organization and that has the powers of an affiliate of a federal association;
(30) "Stockholder" means the holder of one (1) or more shares of any class of capital stock of a capital stock association organized and operating pursuant to this chapter;
(31) "Surplus" means the aggregate amount of the undistributed net income of an association held as undivided profits or unallocated reserves for general corporate purposes, and any paid-in surplus or initial undivided profits held by an association;
(32) "Thrift institution" means an association, a mutual savings bank, a cooperative bank, a homestead association, a credit union, a federal association, a small loan company, and any supervised thrift or residential financing institution of a substantially similar nature as determined by the commissioner; and
(33) "Withdrawal value" means the amount paid to an association on a deposit account, plus interest credited thereto, less lawful deductions therefrom, as shown by the books of the association.
(b) Any reference in this chapter or elsewhere in this code to a savings and loan association, or to a federal savings and loan association, or to any association as may be defined in this chapter, includes a federal savings bank or other financial institution, the accounts of which are insured by the federal savings and loan insurance corporation (FSLIC) or any successor of the corporation.
Acts 1978, ch. 708, § 1.04; T.C.A., § 45-1304; Acts 1984, ch. 705, § 2.
Tenn. Code Ann. § 45-18-110 — TN Code / Title 45 / Chapter 18 / Section 45-18-110
Licensee's change of address, name and/or ownership - Revocation of license
Status: in_force

(a) No licensee shall change its address unless it has given fourteen (14) days prior notice to the commissioner. (b) No licensee shall change its name unless it has given fourteen (14) days prior notice to the commissioner. (c) A change in control of a licensee shall require prior written notice to the commissioner. In the case of a publicly traded corporation, notice shall be made in writing within thirty (30) days of a proposed change or acquisition of control of a licensee. Upon notification, the commissioner may require such information deemed necessary to determine whether an application for a license is required. "Control," in the case of a corporation, has the meaning used in § 45-18-102 . "Control," in the case of any other entity, means any change in the principals of the organization, whether active or passive. Costs incurred by the department in investigating a change in control request shall be paid by the person or persons requesting approval. The commissioner may waive the filing of an application if, in the commissioner's discretion, the change of control does not pose any risk to the interests of the public. (d) Whenever control of a licensee is acquired or exercised in violation of this section, the license shall be deemed revoked as of the date of the unlawful acquisition of control. The licensee, or its controlling person, shall surrender the license to the commissioner on demand. (e) If the commissioner approves of the change of name, location or ownership and an amended license must be issued, a fifty dollar ($50.00) fee shall be paid for the amended license. Acts 1997 , ch. 309, § 10.
(a) No licensee shall change its address unless it has given fourteen (14) days prior notice to the commissioner.
(b) No licensee shall change its name unless it has given fourteen (14) days prior notice to the commissioner.
(c) A change in control of a licensee shall require prior written notice to the commissioner. In the case of a publicly traded corporation, notice shall be made in writing within thirty (30) days of a proposed change or acquisition of control of a licensee. Upon notification, the commissioner may require such information deemed necessary to determine whether an application for a license is required. "Control," in the case of a corporation, has the meaning used in § 45-18-102 . "Control," in the case of any other entity, means any change in the principals of the organization, whether active or passive. Costs incurred by the department in investigating a change in control request shall be paid by the person or persons requesting approval. The commissioner may waive the filing of an application if, in the commissioner's discretion, the change of control does not pose any risk to the interests of the public.
(d) Whenever control of a licensee is acquired or exercised in violation of this section, the license shall be deemed revoked as of the date of the unlawful acquisition of control. The licensee, or its controlling person, shall surrender the license to the commissioner on demand.
(e) If the commissioner approves of the change of name, location or ownership and an amended license must be issued, a fifty dollar ($50.00) fee shall be paid for the amended license.
Acts 1997 , ch. 309, § 10.
Tenn. Code Ann. § 45-16-101 — TN Code / Title 45 / Chapter 16 / Section 45-16-101
Chapter definitions
Status: in_force

As used in this chapter, unless the context otherwise requires: (1) "Electronic terminal" means an electronic device through which a person may initiate an electronic fund transfer to access the person's deposit, share, or other accounts or credit facility, and includes, but is not limited to, automated teller machines, cash dispensing machines, point of sale terminals, or other cash, debit, stored value, script, or cash equivalent device; (2) "Financial institution" means a state or national bank, savings and loan association, savings bank, or credit union that owns or operates an electronic terminal; (3) "Foreign access card" means any card or other device eligible for use in an electronic terminal where the foreign access card is not issued to the user by the owner or operator of the electronic terminal; (4) "Shared electronic network" means any system by which a person may initiate any financial transaction from an electronic terminal owned or operated by any person other than a financial institution with whom the person has a deposit, share, or other account or credit facility; and (5) "Usage fee" is any fee charged by the owner or operator of an electronic terminal on transactions by a holder of a foreign access card. Acts 1996, ch. 899, § 1.
As used in this chapter, unless the context otherwise requires:
(1) "Electronic terminal" means an electronic device through which a person may initiate an electronic fund transfer to access the person's deposit, share, or other accounts or credit facility, and includes, but is not limited to, automated teller machines, cash dispensing machines, point of sale terminals, or other cash, debit, stored value, script, or cash equivalent device;
(2) "Financial institution" means a state or national bank, savings and loan association, savings bank, or credit union that owns or operates an electronic terminal;
(3) "Foreign access card" means any card or other device eligible for use in an electronic terminal where the foreign access card is not issued to the user by the owner or operator of the electronic terminal;
(4) "Shared electronic network" means any system by which a person may initiate any financial transaction from an electronic terminal owned or operated by any person other than a financial institution with whom the person has a deposit, share, or other account or credit facility; and
(5) "Usage fee" is any fee charged by the owner or operator of an electronic terminal on transactions by a holder of a foreign access card.
Acts 1996, ch. 899, § 1.
Tenn. Code Ann. § 45-12-113 — TN Code / Title 45 / Chapter 12 / Section 45-12-113
Books, accounts and records - Limitations and requirements applicable to operation of business of making flex loans
Status: in_force

(a) Each licensee shall keep and use in its business any books, accounts and records the commissioner may require to effectuate this chapter and the rules promulgated pursuant to this chapter. Every licensee shall preserve the books, accounts and records for at least two (2) years. Any licensee, after receiving the prior written approval of the commissioner, may maintain records at a location within or outside this state. (b) No licensee shall engage in unfair or deceptive acts, practices or advertising in the conduct of the licensed business. (c) (1) No customer may have outstanding more than one (1) flex loan plan under this chapter at any one (1) time. Each licensee shall inquire of any customer seeking a flex loan plan under this chapter regarding the customer's outstanding flex loan plans. (2) If the customer represents in writing that the customer has no outstanding flex loan plans, a licensee may offer the customer a flex loan plan. (3) If the customer represents in writing that the customer has one (1) or more outstanding flex loan plans, a licensee shall not offer a flex loan plan to the customer until the customer represents to the licensee in writing that the customer qualifies to open a new flex loan plan in accordance with this subsection (c). (4) Each licensee may rely on a written representation of a customer regarding the existence of any outstanding indebtedness with any other lender other than the licensee receiving the representation. (d) A licensee shall not use any device or agreement, including agreements with affiliated licensees, with the intent to obtain greater charges than otherwise would be authorized by this chapter. (e) A licensee shall comply with any state or federal law, rule, or regulation applicable to any business authorized or conducted under this chapter, including, but not limited to, the federal Truth in Lending Act ( 15 U.S.C. § 1601 et seq.), the federal Equal Credit Opportunity Act ( 15 U.S.C. §§ 1691 - 1691f ), and the federal Fair Debt Collection Practices Act ( 15 U.S.C. § 1692 et seq.). (f) (1) No flex loan plan subject to this chapter shall: (A) Provide that the law of a jurisdiction other than this state applies; (B) Provide that the customer consents to the jurisdiction of another state or foreign country; (C) Fix venue; or (D) Waive any provision of this chapter. (2) Any provision described in subdivision (f)(1) that is contained in a flex loan plan subject to this chapter shall be void and not enforceable as a matter of public policy. Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
(a) Each licensee shall keep and use in its business any books, accounts and records the commissioner may require to effectuate this chapter and the rules promulgated pursuant to this chapter. Every licensee shall preserve the books, accounts and records for at least two (2) years. Any licensee, after receiving the prior written approval of the commissioner, may maintain records at a location within or outside this state.
(b) No licensee shall engage in unfair or deceptive acts, practices or advertising in the conduct of the licensed business.
(c) (1) No customer may have outstanding more than one (1) flex loan plan under this chapter at any one (1) time. Each licensee shall inquire of any customer seeking a flex loan plan under this chapter regarding the customer's outstanding flex loan plans. (2) If the customer represents in writing that the customer has no outstanding flex loan plans, a licensee may offer the customer a flex loan plan. (3) If the customer represents in writing that the customer has one (1) or more outstanding flex loan plans, a licensee shall not offer a flex loan plan to the customer until the customer represents to the licensee in writing that the customer qualifies to open a new flex loan plan in accordance with this subsection (c). (4) Each licensee may rely on a written representation of a customer regarding the existence of any outstanding indebtedness with any other lender other than the licensee receiving the representation.
(1) No customer may have outstanding more than one (1) flex loan plan under this chapter at any one (1) time. Each licensee shall inquire of any customer seeking a flex loan plan under this chapter regarding the customer's outstanding flex loan plans.
(2) If the customer represents in writing that the customer has no outstanding flex loan plans, a licensee may offer the customer a flex loan plan.
(3) If the customer represents in writing that the customer has one (1) or more outstanding flex loan plans, a licensee shall not offer a flex loan plan to the customer until the customer represents to the licensee in writing that the customer qualifies to open a new flex loan plan in accordance with this subsection (c).
(4) Each licensee may rely on a written representation of a customer regarding the existence of any outstanding indebtedness with any other lender other than the licensee receiving the representation.
(d) A licensee shall not use any device or agreement, including agreements with affiliated licensees, with the intent to obtain greater charges than otherwise would be authorized by this chapter.
(e) A licensee shall comply with any state or federal law, rule, or regulation applicable to any business authorized or conducted under this chapter, including, but not limited to, the federal Truth in Lending Act ( 15 U.S.C. § 1601 et seq.), the federal Equal Credit Opportunity Act ( 15 U.S.C. §§ 1691 - 1691f ), and the federal Fair Debt Collection Practices Act ( 15 U.S.C. § 1692 et seq.).
(f) (1) No flex loan plan subject to this chapter shall: (A) Provide that the law of a jurisdiction other than this state applies; (B) Provide that the customer consents to the jurisdiction of another state or foreign country; (C) Fix venue; or (D) Waive any provision of this chapter. (2) Any provision described in subdivision (f)(1) that is contained in a flex loan plan subject to this chapter shall be void and not enforceable as a matter of public policy.
(1) No flex loan plan subject to this chapter shall: (A) Provide that the law of a jurisdiction other than this state applies; (B) Provide that the customer consents to the jurisdiction of another state or foreign country; (C) Fix venue; or (D) Waive any provision of this chapter.
(A) Provide that the law of a jurisdiction other than this state applies;
(B) Provide that the customer consents to the jurisdiction of another state or foreign country;
(C) Fix venue; or
(D) Waive any provision of this chapter.
(2) Any provision described in subdivision (f)(1) that is contained in a flex loan plan subject to this chapter shall be void and not enforceable as a matter of public policy.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
Tenn. Code Ann. § 45-1-130 — TN Code / Title 45 / Chapter 1 / Section 45-1-130
License, certification or registration - Notifications - Prerequisites - Website
Status: in_force

(a) The department and each board, commission, agency or other governmental entity created pursuant to this title shall notify each applicant for a professional or occupational license, certification or registration from the department, board, commission, agency or other governmental entity where to obtain a copy of any statutes, rules, guidelines, and policies setting forth the prerequisites for the license, certification or registration and shall, upon request, make available to the applicant a copy of the statutes, rules, guidelines, and policies. (b) The department and each board, commission, agency or other governmental entity created pursuant to this title shall notify each holder of a professional or occupational license, certification or registration from the board, commission, agency or other governmental entity of changes in state law that impact the holder and are implemented or enforced by the entity including newly promulgated or amended statutes, rules, policies, and guidelines, upon the issuance and upon each renewal of a holder's license, certification or registration. (c) The department and each board, commission, agency or other governmental entity created pursuant to this title shall establish and maintain a link or links on the entity's website to the statutes, rules, policies, and guidelines that are implemented or enforced by the entity and that impact an applicant for, or a holder of, a professional or occupational license, certification, or registration from the entity. (d) (1) The department and each board, commission, agency, or other governmental entity created pursuant to this title shall allow each holder of a professional or occupational license, certification or registration from the department, board, commission, agency or other governmental entity to have the option of being notified by electronic mail of: (A) Renewals of the holder's license, certification or registration; (B) Any fee increases; (C) Any changes in state law that impact the holder and are implemented or enforced by the entity, including newly promulgated or amended statutes, rules, policies and guidelines; and (D) Any meeting where changes in rules or fees are on the agenda. For purposes of this subdivision (d)(1)(D), the electronic notice shall be at least forty-five (45) days in advance of the meeting, unless it is an emergency meeting then the notice shall be sent as soon as is practicable. (2) The department and each board, commission, agency or other governmental entity created pursuant to this title shall notify each holder of a license, certification or registration of the availability of receiving electronic notices pursuant to subdivision (d)(1) upon issuance or renewal of the holder's license, certification or registration. Acts 2008, ch. 1070, § 11; 2012, ch. 952, § 8.
(a) The department and each board, commission, agency or other governmental entity created pursuant to this title shall notify each applicant for a professional or occupational license, certification or registration from the department, board, commission, agency or other governmental entity where to obtain a copy of any statutes, rules, guidelines, and policies setting forth the prerequisites for the license, certification or registration and shall, upon request, make available to the applicant a copy of the statutes, rules, guidelines, and policies.
(b) The department and each board, commission, agency or other governmental entity created pursuant to this title shall notify each holder of a professional or occupational license, certification or registration from the board, commission, agency or other governmental entity of changes in state law that impact the holder and are implemented or enforced by the entity including newly promulgated or amended statutes, rules, policies, and guidelines, upon the issuance and upon each renewal of a holder's license, certification or registration.
(c) The department and each board, commission, agency or other governmental entity created pursuant to this title shall establish and maintain a link or links on the entity's website to the statutes, rules, policies, and guidelines that are implemented or enforced by the entity and that impact an applicant for, or a holder of, a professional or occupational license, certification, or registration from the entity.
(d) (1) The department and each board, commission, agency, or other governmental entity created pursuant to this title shall allow each holder of a professional or occupational license, certification or registration from the department, board, commission, agency or other governmental entity to have the option of being notified by electronic mail of: (A) Renewals of the holder's license, certification or registration; (B) Any fee increases; (C) Any changes in state law that impact the holder and are implemented or enforced by the entity, including newly promulgated or amended statutes, rules, policies and guidelines; and (D) Any meeting where changes in rules or fees are on the agenda. For purposes of this subdivision (d)(1)(D), the electronic notice shall be at least forty-five (45) days in advance of the meeting, unless it is an emergency meeting then the notice shall be sent as soon as is practicable. (2) The department and each board, commission, agency or other governmental entity created pursuant to this title shall notify each holder of a license, certification or registration of the availability of receiving electronic notices pursuant to subdivision (d)(1) upon issuance or renewal of the holder's license, certification or registration.
(1) The department and each board, commission, agency, or other governmental entity created pursuant to this title shall allow each holder of a professional or occupational license, certification or registration from the department, board, commission, agency or other governmental entity to have the option of being notified by electronic mail of: (A) Renewals of the holder's license, certification or registration; (B) Any fee increases; (C) Any changes in state law that impact the holder and are implemented or enforced by the entity, including newly promulgated or amended statutes, rules, policies and guidelines; and (D) Any meeting where changes in rules or fees are on the agenda. For purposes of this subdivision (d)(1)(D), the electronic notice shall be at least forty-five (45) days in advance of the meeting, unless it is an emergency meeting then the notice shall be sent as soon as is practicable.
(A) Renewals of the holder's license, certification or registration;
(B) Any fee increases;
(C) Any changes in state law that impact the holder and are implemented or enforced by the entity, including newly promulgated or amended statutes, rules, policies and guidelines; and
(D) Any meeting where changes in rules or fees are on the agenda. For purposes of this subdivision (d)(1)(D), the electronic notice shall be at least forty-five (45) days in advance of the meeting, unless it is an emergency meeting then the notice shall be sent as soon as is practicable.
(2) The department and each board, commission, agency or other governmental entity created pursuant to this title shall notify each holder of a license, certification or registration of the availability of receiving electronic notices pursuant to subdivision (d)(1) upon issuance or renewal of the holder's license, certification or registration.
Acts 2008, ch. 1070, § 11; 2012, ch. 952, § 8.
Tenn. Code Ann. § 45-4-1107 — TN Code / Title 45 / Chapter 4 / Section 45-4-1107
Membership
Status: in_force

(a) Any credit union legally chartered by the state of Tennessee, or any credit union legally chartered by those states eligible for membership under subsection (c), or any credit union chartered by the federal government eligible for membership under subsection (d), may become a member of the corporation upon application by the board of directors of the credit union and approval of the board of directors of the corporation. (b) Any credit union that becomes a member under subsection (c) or (d) shall have the same privileges, benefits, and obligations of membership as those credit union members chartered under the laws of the state of Tennessee. (c) At any time after the corporation begins operations, credit unions chartered by other states of the United States may make application for membership in the corporation in either of the following methods: (1) Upon enactment of statutes in the state in which it is chartered, which provide: (A) Credit unions of the state may maintain membership in the corporation, or associations or corporations similar to the corporation; (B) The credit union supervisory authority of the state shall cooperate with the corporation and the commissioner toward the end that the corporation can exercise its powers; and (C) The member credit union shall comply with the articles of incorporation and bylaws of the corporation and comply with the statutes of the state of Tennessee establishing and governing the corporation; or (2) By contract if all of the following conditions are satisfied: (A) The commissioner permits the agreement; (B) The credit union supervisory authority of the domicile state of the credit union applying for membership permits the agreement; (C) The agreement is lawful under the laws of both the state of Tennessee and the domicile state of the credit union applying for membership; (D) The corporation by agreement or law has sufficient authority to require the credit union applying for membership to comply with the bylaws and regulations of the corporation; and (E) The board of directors of the corporation authorizes the contract. (d) Credit unions chartered by the federal government may make application for membership in the corporation; provided, that the following conditions are satisfied: (1) The commissioner permits the agreement; (2) The National Credit Union Association or the supervisory authority of the credit unions chartered by the federal government and applying for membership permits the agreement; (3) The agreement is lawful under the laws of both the state of Tennessee and the federal government; (4) The corporation by agreement or law has sufficient authority to require the credit union applying for membership to comply with the bylaws and regulations of the corporation; (5) The board of directors of the corporation authorizes the contract; and (6) The credit union supervisory authority of the credit union chartered by the federal government shall agree to furnish to the corporation copies of all examination reports on all credit unions chartered by the federal government that are or become members of the corporation. Acts 1974, ch. 577, § 7; 1978, ch. 553, § 1; T.C.A., § 45-1841; Acts 1981, ch. 89, § 2; 1983, ch. 93, §§ 1-3.
(a) Any credit union legally chartered by the state of Tennessee, or any credit union legally chartered by those states eligible for membership under subsection (c), or any credit union chartered by the federal government eligible for membership under subsection (d), may become a member of the corporation upon application by the board of directors of the credit union and approval of the board of directors of the corporation.
(b) Any credit union that becomes a member under subsection (c) or (d) shall have the same privileges, benefits, and obligations of membership as those credit union members chartered under the laws of the state of Tennessee.
(c) At any time after the corporation begins operations, credit unions chartered by other states of the United States may make application for membership in the corporation in either of the following methods: (1) Upon enactment of statutes in the state in which it is chartered, which provide: (A) Credit unions of the state may maintain membership in the corporation, or associations or corporations similar to the corporation; (B) The credit union supervisory authority of the state shall cooperate with the corporation and the commissioner toward the end that the corporation can exercise its powers; and (C) The member credit union shall comply with the articles of incorporation and bylaws of the corporation and comply with the statutes of the state of Tennessee establishing and governing the corporation; or (2) By contract if all of the following conditions are satisfied: (A) The commissioner permits the agreement; (B) The credit union supervisory authority of the domicile state of the credit union applying for membership permits the agreement; (C) The agreement is lawful under the laws of both the state of Tennessee and the domicile state of the credit union applying for membership; (D) The corporation by agreement or law has sufficient authority to require the credit union applying for membership to comply with the bylaws and regulations of the corporation; and (E) The board of directors of the corporation authorizes the contract.
(1) Upon enactment of statutes in the state in which it is chartered, which provide: (A) Credit unions of the state may maintain membership in the corporation, or associations or corporations similar to the corporation; (B) The credit union supervisory authority of the state shall cooperate with the corporation and the commissioner toward the end that the corporation can exercise its powers; and (C) The member credit union shall comply with the articles of incorporation and bylaws of the corporation and comply with the statutes of the state of Tennessee establishing and governing the corporation; or
(A) Credit unions of the state may maintain membership in the corporation, or associations or corporations similar to the corporation;
(B) The credit union supervisory authority of the state shall cooperate with the corporation and the commissioner toward the end that the corporation can exercise its powers; and
(C) The member credit union shall comply with the articles of incorporation and bylaws of the corporation and comply with the statutes of the state of Tennessee establishing and governing the corporation; or
(2) By contract if all of the following conditions are satisfied: (A) The commissioner permits the agreement; (B) The credit union supervisory authority of the domicile state of the credit union applying for membership permits the agreement; (C) The agreement is lawful under the laws of both the state of Tennessee and the domicile state of the credit union applying for membership; (D) The corporation by agreement or law has sufficient authority to require the credit union applying for membership to comply with the bylaws and regulations of the corporation; and (E) The board of directors of the corporation authorizes the contract.
(A) The commissioner permits the agreement;
(B) The credit union supervisory authority of the domicile state of the credit union applying for membership permits the agreement;
(C) The agreement is lawful under the laws of both the state of Tennessee and the domicile state of the credit union applying for membership;
(D) The corporation by agreement or law has sufficient authority to require the credit union applying for membership to comply with the bylaws and regulations of the corporation; and
(E) The board of directors of the corporation authorizes the contract.
(d) Credit unions chartered by the federal government may make application for membership in the corporation; provided, that the following conditions are satisfied: (1) The commissioner permits the agreement; (2) The National Credit Union Association or the supervisory authority of the credit unions chartered by the federal government and applying for membership permits the agreement; (3) The agreement is lawful under the laws of both the state of Tennessee and the federal government; (4) The corporation by agreement or law has sufficient authority to require the credit union applying for membership to comply with the bylaws and regulations of the corporation; (5) The board of directors of the corporation authorizes the contract; and (6) The credit union supervisory authority of the credit union chartered by the federal government shall agree to furnish to the corporation copies of all examination reports on all credit unions chartered by the federal government that are or become members of the corporation.
(1) The commissioner permits the agreement;
(2) The National Credit Union Association or the supervisory authority of the credit unions chartered by the federal government and applying for membership permits the agreement;
(3) The agreement is lawful under the laws of both the state of Tennessee and the federal government;
(4) The corporation by agreement or law has sufficient authority to require the credit union applying for membership to comply with the bylaws and regulations of the corporation;
(5) The board of directors of the corporation authorizes the contract; and
(6) The credit union supervisory authority of the credit union chartered by the federal government shall agree to furnish to the corporation copies of all examination reports on all credit unions chartered by the federal government that are or become members of the corporation.
Acts 1974, ch. 577, § 7; 1978, ch. 553, § 1; T.C.A., § 45-1841; Acts 1981, ch. 89, § 2; 1983, ch. 93, §§ 1-3.
Tenn. Code Ann. § 45-2-2103 — TN Code / Title 45 / Chapter 2 / Section 45-2-2103
Application for charter - Records check - Notifications - Withdrawal
Status: in_force

(a) The application for charter shall be filed with the commissioner, in the form the commissioner prescribes, containing the following information: (1) The name, residence and occupation of each incorporator or organizer, or of each individual controlling any entity acting as an incorporator or organizer, as determined by the commissioner, as well as the amount of stock subscribed to, and paid for, by each; (2) The name and contact information of an individual to whom correspondence relative to the application may be sent; (3) The names and addresses, and other biographical information as the commissioner may require, of the initial directors or managers and officers of the trust company; (4) The proposed charter or articles of organization of the company, which, in addition to the provisions required by the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27, or the Tennessee Revised Limited Liability Company Act, compiled in title 48, chapter 249, shall contain the following: (A) The proposed name of the trust company, which, in the commissioner's judgment, is not likely to cause confusion to the affected public; and (B) A statement that the company is being formed under the Tennessee Banking Act, as compiled in chapters 1 and 2 of this title, to act as a state trust company; (5) The proposed bylaws or operating agreement; (6) The address of the principal office in this state and of each proposed office, or, if not yet known, the communities in which the offices will be located; (7) A three-year business plan for the trust company including pro forma financial projections specifically identifying the opportunities for profitable employment of its fiduciary services; (8) The proposed capital structure of the trust company, complying with § 45-2-2107 ; (9) The offering circular or offering letter if capital is to be raised by public offering or private placement offering whether at the trust company level or by an entity that will control the state trust company and a copy of the escrow agreement for the escrow account in which funds shall be placed; (10) The nonrefundable application fee required by the commissioner; and (11) Such other information as the commissioner may require. (b) The commissioner shall require each individual identified in subdivision (a)(1) and (3) to consent to a criminal history records check and provide their fingerprints in a form acceptable to the commissioner. The criminal history records check shall be conducted by the Tennessee bureau of investigation or the federal bureau of investigation, or both, at the expense of the applicant, and the results of the check shall be forwarded to the commissioner. For any individual who is not a citizen of the United States, the commissioner shall conduct an international background investigation at the expense of the applicant, or require the applicant or individual to provide the results of an international background investigation on the individual, which the commissioner has the discretion to accept or reject. (c) The applicant shall use the phrase "in organization" after the proposed trust company's name, until the certificate of authority has been issued. (d) At any time prior to approval of the application for charter, so long as the applicant has provided the address for the principal office, the applicant may request that the commissioner issue the charter or articles of organization by endorsing the document and having it filed with the secretary of state at the expense of the applicant and returning the original to the applicant. (e) Within thirty (30) calendar days of filing the application, the commissioner shall notify the applicant whether the application for charter is deemed complete, or whether additional information is needed. Once the applicant has been notified that the application is deemed complete, the applicant shall promptly publish public notice of the formation of the trust company in the form and manner that the commissioner specifies. The ninety-day period referenced in § 45-2-2104(a) shall not commence until evidence of publication has been received by the commissioner. (f) The commissioner may consider an application to be withdrawn if the commissioner has not received all information and fees required to complete the application within twelve (12) months after the date the application is first submitted, unless the commissioner has granted a request for extension. If an application is deemed withdrawn, a new application for charter, including a new application fee, is required to form a state trust company. Added by 2014 Tenn. Acts, ch. 642, s 3, eff. 7/1/2014.
(a) The application for charter shall be filed with the commissioner, in the form the commissioner prescribes, containing the following information: (1) The name, residence and occupation of each incorporator or organizer, or of each individual controlling any entity acting as an incorporator or organizer, as determined by the commissioner, as well as the amount of stock subscribed to, and paid for, by each; (2) The name and contact information of an individual to whom correspondence relative to the application may be sent; (3) The names and addresses, and other biographical information as the commissioner may require, of the initial directors or managers and officers of the trust company; (4) The proposed charter or articles of organization of the company, which, in addition to the provisions required by the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27, or the Tennessee Revised Limited Liability Company Act, compiled in title 48, chapter 249, shall contain the following: (A) The proposed name of the trust company, which, in the commissioner's judgment, is not likely to cause confusion to the affected public; and (B) A statement that the company is being formed under the Tennessee Banking Act, as compiled in chapters 1 and 2 of this title, to act as a state trust company; (5) The proposed bylaws or operating agreement; (6) The address of the principal office in this state and of each proposed office, or, if not yet known, the communities in which the offices will be located; (7) A three-year business plan for the trust company including pro forma financial projections specifically identifying the opportunities for profitable employment of its fiduciary services; (8) The proposed capital structure of the trust company, complying with § 45-2-2107 ; (9) The offering circular or offering letter if capital is to be raised by public offering or private placement offering whether at the trust company level or by an entity that will control the state trust company and a copy of the escrow agreement for the escrow account in which funds shall be placed; (10) The nonrefundable application fee required by the commissioner; and (11) Such other information as the commissioner may require.
(1) The name, residence and occupation of each incorporator or organizer, or of each individual controlling any entity acting as an incorporator or organizer, as determined by the commissioner, as well as the amount of stock subscribed to, and paid for, by each;
(2) The name and contact information of an individual to whom correspondence relative to the application may be sent;
(3) The names and addresses, and other biographical information as the commissioner may require, of the initial directors or managers and officers of the trust company;
(4) The proposed charter or articles of organization of the company, which, in addition to the provisions required by the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27, or the Tennessee Revised Limited Liability Company Act, compiled in title 48, chapter 249, shall contain the following: (A) The proposed name of the trust company, which, in the commissioner's judgment, is not likely to cause confusion to the affected public; and (B) A statement that the company is being formed under the Tennessee Banking Act, as compiled in chapters 1 and 2 of this title, to act as a state trust company;
(A) The proposed name of the trust company, which, in the commissioner's judgment, is not likely to cause confusion to the affected public; and
(B) A statement that the company is being formed under the Tennessee Banking Act, as compiled in chapters 1 and 2 of this title, to act as a state trust company;
(5) The proposed bylaws or operating agreement;
(6) The address of the principal office in this state and of each proposed office, or, if not yet known, the communities in which the offices will be located;
(7) A three-year business plan for the trust company including pro forma financial projections specifically identifying the opportunities for profitable employment of its fiduciary services;
(8) The proposed capital structure of the trust company, complying with § 45-2-2107 ;
(9) The offering circular or offering letter if capital is to be raised by public offering or private placement offering whether at the trust company level or by an entity that will control the state trust company and a copy of the escrow agreement for the escrow account in which funds shall be placed;
(10) The nonrefundable application fee required by the commissioner; and
(11) Such other information as the commissioner may require.
(b) The commissioner shall require each individual identified in subdivision (a)(1) and (3) to consent to a criminal history records check and provide their fingerprints in a form acceptable to the commissioner. The criminal history records check shall be conducted by the Tennessee bureau of investigation or the federal bureau of investigation, or both, at the expense of the applicant, and the results of the check shall be forwarded to the commissioner. For any individual who is not a citizen of the United States, the commissioner shall conduct an international background investigation at the expense of the applicant, or require the applicant or individual to provide the results of an international background investigation on the individual, which the commissioner has the discretion to accept or reject.
(c) The applicant shall use the phrase "in organization" after the proposed trust company's name, until the certificate of authority has been issued.
(d) At any time prior to approval of the application for charter, so long as the applicant has provided the address for the principal office, the applicant may request that the commissioner issue the charter or articles of organization by endorsing the document and having it filed with the secretary of state at the expense of the applicant and returning the original to the applicant.
(e) Within thirty (30) calendar days of filing the application, the commissioner shall notify the applicant whether the application for charter is deemed complete, or whether additional information is needed. Once the applicant has been notified that the application is deemed complete, the applicant shall promptly publish public notice of the formation of the trust company in the form and manner that the commissioner specifies. The ninety-day period referenced in § 45-2-2104(a) shall not commence until evidence of publication has been received by the commissioner.
(f) The commissioner may consider an application to be withdrawn if the commissioner has not received all information and fees required to complete the application within twelve (12) months after the date the application is first submitted, unless the commissioner has granted a request for extension. If an application is deemed withdrawn, a new application for charter, including a new application fee, is required to form a state trust company.
Added by 2014 Tenn. Acts, ch. 642, s 3, eff. 7/1/2014.
Tenn. Code Ann. § 45-1-119 — TN Code / Title 45 / Chapter 1 / Section 45-1-119
Annual report
Status: in_force

(a) The commissioner shall report to the governor annually within sixty (60) days after the end of each calendar year. The report shall include: (1) The text of all rules of the department of general application adopted or altered since the commissioner's last previous report; (2) Recommendations for legislation; (3) A statement of the status and remaining assets and liabilities of all banking organizations in the possession of the commissioner; (4) A summary of all changes occurring since the commissioner's last previous report by reason of opening new state banks, mergers and conversions, increases and decreases in capital and the like; and (5) A combined statement of condition of all state banks as of the date of the most recent reports of condition rendered to the commissioner, and reference to the availability in the commissioner's office of the statements of condition of each state bank, as of the date of the most recent reports to the commissioner. (b) Copies of the last annual report not previously so submitted shall be available to the general assembly at the opening of each regular session. (c) The annual report of the commissioner may be published on the order of the governor, if the governor deems the report to be of sufficient importance to the public. Acts 1969, ch. 36, § 1 (2.111); 1973, ch. 294, § 6; T.C.A., § 45-118; Acts 2003, ch. 253, § 1.
(a) The commissioner shall report to the governor annually within sixty (60) days after the end of each calendar year. The report shall include: (1) The text of all rules of the department of general application adopted or altered since the commissioner's last previous report; (2) Recommendations for legislation; (3) A statement of the status and remaining assets and liabilities of all banking organizations in the possession of the commissioner; (4) A summary of all changes occurring since the commissioner's last previous report by reason of opening new state banks, mergers and conversions, increases and decreases in capital and the like; and (5) A combined statement of condition of all state banks as of the date of the most recent reports of condition rendered to the commissioner, and reference to the availability in the commissioner's office of the statements of condition of each state bank, as of the date of the most recent reports to the commissioner.
(1) The text of all rules of the department of general application adopted or altered since the commissioner's last previous report;
(2) Recommendations for legislation;
(3) A statement of the status and remaining assets and liabilities of all banking organizations in the possession of the commissioner;
(4) A summary of all changes occurring since the commissioner's last previous report by reason of opening new state banks, mergers and conversions, increases and decreases in capital and the like; and
(5) A combined statement of condition of all state banks as of the date of the most recent reports of condition rendered to the commissioner, and reference to the availability in the commissioner's office of the statements of condition of each state bank, as of the date of the most recent reports to the commissioner.
(b) Copies of the last annual report not previously so submitted shall be available to the general assembly at the opening of each regular session.
(c) The annual report of the commissioner may be published on the order of the governor, if the governor deems the report to be of sufficient importance to the public.
Acts 1969, ch. 36, § 1 (2.111); 1973, ch. 294, § 6; T.C.A., § 45-118; Acts 2003, ch. 253, § 1.
Tenn. Code Ann. § 45-14-101 — TN Code / Title 45 / Chapter 14 / Section 45-14-101
Short title
Status: in_force

This chapter shall be known and may be cited as the "Savings Bank Chartering Act of 1991." Acts 1991, ch. 177, § 1.
This chapter shall be known and may be cited as the "Savings Bank Chartering Act of 1991."
Acts 1991, ch. 177, § 1.
Tenn. Code Ann. § 45-19-101 — TN Code / Title 45 / Chapter 19 / Section 45-19-101
Operating agreements for data match systems
Status: in_force

(a) All financial institutions conducting business in this state shall enter agreements with the department of human services to develop and operate, in coordination with the department of human services, and the federal parent locator service in the case of financial institutions doing business in two (2) or more states, a data match system using automated data exchanges to the maximum extent feasible, to locate, encumber, escrow, seize or surrender the assets of any obligor who owes past-due child support. Each financial institution each calendar quarter will provide the name, record address, social security or other taxpayer identification number, and other identifying information for each obligor maintaining an account at the institution who owes past-due child support as identified by the department of human services or its agents or contractors by that person's name and social security or other taxpayer identification number. In drafting the agreements, the department of human services shall consult with a representative number of financial institutions and shall avoid the imposition of requirements that are not reasonably compatible with the data processing and recordkeeping systems generally utilized by financial institutions. (b) All financial institutions conducting business in this state shall enter agreements with the department of human services to encumber, escrow, seize or surrender, as the case may be, in response to a notice of lien or levy by any agency enforcing child support, the assets of any obligor whose assets held by the financial institution are subject to a child support lien pursuant to 42 U.S.C. § 666(a)(4) . The agreements shall provide, wherever feasible by automated data exchange, for the automated notice to the financial institution of any liens on the assets of the obligor and shall provide for the automated escrow, seizure or surrender of the assets pending any adjudication by the department of any encumbrance, escrow, seizure or surrender and for the automated transfer of assets to the department or its contractors or agents after completion of the adjudication, or, at the option of the financial institution and with the agreement of the department, the financial institution may furnish information for all account holders at the financial institution from which the department may determine the delinquent child support obligors. (c) When an administrative order is issued by the department of human services pursuant to any provisions of law or regulations or pursuant to agreements entered pursuant to subsection (a) or (b) directing the encumbrance, escrow, seizure or surrender of assets of an obligor consisting of a demand deposit account, or an account accessible by a checking or negotiable order of withdrawal for the purpose of satisfying a lien for past-due child support, the department may direct that only a portion of the accounts, up to the amount necessary to satisfy the existing lien for past-due child support, be encumbered, escrowed, seized or surrendered. If less than the whole amount of the account is sought, the department's order shall direct the financial institution to withhold a specific percentage or a specific dollar amount of those types of accounts. (d) The agreements shall provide for the department of human services to pay a reasonable fee to the financial institution for providing account information and for conducting the data match provided in subsection (a), not to exceed the actual costs incurred by the financial institution. (e) As used in this part, unless the context otherwise requires: (1) "Account" means a demand deposit account, account accessible by checking or negotiable orders of withdrawal, savings account, time deposit account, or money-market mutual fund account; and (2) "Financial institution" means: (A) A depository institution, as defined in § 3(c) of the Federal Deposit Insurance Act ( 12 U.S.C. § 1813(c) ); (B) An institution-affiliated party, as defined in § 3(u) of the act ( 12 U.S.C. § 1813(u) ); (C) Any federal credit union or state credit union as defined in § 101 of the Federal Credit Union Act ( 12 U.S.C. § 1752 ), including, for the purposes of title 36, chapter 5, parts 8 and 9, an institution-affiliated party of the credit union, as defined in § 206 of the act ( 12 U.S.C. § 1786 ); and (D) Any benefit association, insurance company, safe deposit company, money market mutual fund, securities broker/dealer or similar entity authorized to conduct business in this state. Acts 1997 , ch. 551, § 14; 1998, ch. 1098, § 60; 2001, ch. 447, § 12.
(a) All financial institutions conducting business in this state shall enter agreements with the department of human services to develop and operate, in coordination with the department of human services, and the federal parent locator service in the case of financial institutions doing business in two (2) or more states, a data match system using automated data exchanges to the maximum extent feasible, to locate, encumber, escrow, seize or surrender the assets of any obligor who owes past-due child support. Each financial institution each calendar quarter will provide the name, record address, social security or other taxpayer identification number, and other identifying information for each obligor maintaining an account at the institution who owes past-due child support as identified by the department of human services or its agents or contractors by that person's name and social security or other taxpayer identification number. In drafting the agreements, the department of human services shall consult with a representative number of financial institutions and shall avoid the imposition of requirements that are not reasonably compatible with the data processing and recordkeeping systems generally utilized by financial institutions.
(b) All financial institutions conducting business in this state shall enter agreements with the department of human services to encumber, escrow, seize or surrender, as the case may be, in response to a notice of lien or levy by any agency enforcing child support, the assets of any obligor whose assets held by the financial institution are subject to a child support lien pursuant to 42 U.S.C. § 666(a)(4) . The agreements shall provide, wherever feasible by automated data exchange, for the automated notice to the financial institution of any liens on the assets of the obligor and shall provide for the automated escrow, seizure or surrender of the assets pending any adjudication by the department of any encumbrance, escrow, seizure or surrender and for the automated transfer of assets to the department or its contractors or agents after completion of the adjudication, or, at the option of the financial institution and with the agreement of the department, the financial institution may furnish information for all account holders at the financial institution from which the department may determine the delinquent child support obligors.
(c) When an administrative order is issued by the department of human services pursuant to any provisions of law or regulations or pursuant to agreements entered pursuant to subsection (a) or (b) directing the encumbrance, escrow, seizure or surrender of assets of an obligor consisting of a demand deposit account, or an account accessible by a checking or negotiable order of withdrawal for the purpose of satisfying a lien for past-due child support, the department may direct that only a portion of the accounts, up to the amount necessary to satisfy the existing lien for past-due child support, be encumbered, escrowed, seized or surrendered. If less than the whole amount of the account is sought, the department's order shall direct the financial institution to withhold a specific percentage or a specific dollar amount of those types of accounts.
(d) The agreements shall provide for the department of human services to pay a reasonable fee to the financial institution for providing account information and for conducting the data match provided in subsection (a), not to exceed the actual costs incurred by the financial institution.
(e) As used in this part, unless the context otherwise requires: (1) "Account" means a demand deposit account, account accessible by checking or negotiable orders of withdrawal, savings account, time deposit account, or money-market mutual fund account; and (2) "Financial institution" means: (A) A depository institution, as defined in § 3(c) of the Federal Deposit Insurance Act ( 12 U.S.C. § 1813(c) ); (B) An institution-affiliated party, as defined in § 3(u) of the act ( 12 U.S.C. § 1813(u) ); (C) Any federal credit union or state credit union as defined in § 101 of the Federal Credit Union Act ( 12 U.S.C. § 1752 ), including, for the purposes of title 36, chapter 5, parts 8 and 9, an institution-affiliated party of the credit union, as defined in § 206 of the act ( 12 U.S.C. § 1786 ); and (D) Any benefit association, insurance company, safe deposit company, money market mutual fund, securities broker/dealer or similar entity authorized to conduct business in this state.
(1) "Account" means a demand deposit account, account accessible by checking or negotiable orders of withdrawal, savings account, time deposit account, or money-market mutual fund account; and
(2) "Financial institution" means: (A) A depository institution, as defined in § 3(c) of the Federal Deposit Insurance Act ( 12 U.S.C. § 1813(c) ); (B) An institution-affiliated party, as defined in § 3(u) of the act ( 12 U.S.C. § 1813(u) ); (C) Any federal credit union or state credit union as defined in § 101 of the Federal Credit Union Act ( 12 U.S.C. § 1752 ), including, for the purposes of title 36, chapter 5, parts 8 and 9, an institution-affiliated party of the credit union, as defined in § 206 of the act ( 12 U.S.C. § 1786 ); and (D) Any benefit association, insurance company, safe deposit company, money market mutual fund, securities broker/dealer or similar entity authorized to conduct business in this state.
(A) A depository institution, as defined in § 3(c) of the Federal Deposit Insurance Act ( 12 U.S.C. § 1813(c) );
(B) An institution-affiliated party, as defined in § 3(u) of the act ( 12 U.S.C. § 1813(u) );
(C) Any federal credit union or state credit union as defined in § 101 of the Federal Credit Union Act ( 12 U.S.C. § 1752 ), including, for the purposes of title 36, chapter 5, parts 8 and 9, an institution-affiliated party of the credit union, as defined in § 206 of the act ( 12 U.S.C. § 1786 ); and
(D) Any benefit association, insurance company, safe deposit company, money market mutual fund, securities broker/dealer or similar entity authorized to conduct business in this state.
Acts 1997 , ch. 551, § 14; 1998, ch. 1098, § 60; 2001, ch. 447, § 12.
Tenn. Code Ann. § 45-13-303 — TN Code / Title 45 / Chapter 13 / Section 45-13-303
Mortgage loan originator sponsorship required
Status: in_force

(a) No mortgage loan originator license issued under this part is considered active unless the individual has also been sponsored by a licensed mortgage lender or mortgage loan broker or by a registrant in accordance with the Industrial Loan and Thrift Companies Act, compiled in chapter 5 of this title. A mortgage loan originator is prohibited from providing origination services with an inactive license. No mortgage loan originator may be sponsored by more than one (1) person at the same time, and the provision of origination services for a person that has not properly sponsored the mortgage loan originator shall constitute a violation of this chapter. Subsections (b)-(e) shall not apply to a mortgage loan originator that is properly sponsored by a registrant under the Industrial Loan and Thrift Companies Act. (b) To sponsor a mortgage loan originator, a mortgage lender or mortgage loan broker must file with the commissioner the form that the commissioner prescribes and pay to the commissioner a nonrefundable sponsorship fee of one hundred dollars ($100), which fee may be decreased or increased by rule of the commissioner. Upon determining that the individual is duly licensed and not sponsored by any other person, the commissioner shall authorize the sponsorship, which may be done electronically or in writing, or both. A mortgage loan originator sponsorship terminates if the sponsoring mortgage lender or mortgage loan broker's license expires or is revoked or otherwise terminates or if the mortgage loan originator ceases providing services for such company. A mortgage loan originator sponsorship does not terminate if the mortgage loan originator changes from one (1) branch office of the sponsoring mortgage lender or mortgage loan broker to another branch office of the same company. Upon any change in the mortgage loan originator's office, the sponsoring mortgage lender or mortgage loan broker shall notify the commissioner in writing within fourteen (14) days of the change. (c) Should a mortgage loan originator sponsorship terminate, the mortgage loan originator's license shall become inactive, but shall not expire so long as the mortgage loan originator continues to meet the requirements for licensure and renewal of licensure. An inactive license is reactivated if the mortgage loan originator obtains a new sponsorship under this section or under the Industrial Loan and Thrift Companies Act. The commissioner may not approve a new sponsorship unless and until the commissioner has been notified that any prior sponsorship has terminated. (d) The sponsoring mortgage lender or mortgage loan broker shall ensure that: (1) Each application for a residential mortgage loan contains the name and unique identifier of the mortgage lender or mortgage loan broker, as well as the name, signature, and the unique identifier of the mortgage loan originator who provided origination services with respect to the loan; and (2) Its records pertaining to the residential mortgage loan contain the unique identifier of each mortgage loan originator that provided services with respect to the loan. (e) The sponsoring mortgage lender or mortgage loan broker is responsible for and shall supervise the acts of each sponsored mortgage loan originator. Amended by 2022 Tenn. Acts, ch. 659, s 1, eff. 7/1/2022. Acts 2009 , ch. 499, § 8.
(a) No mortgage loan originator license issued under this part is considered active unless the individual has also been sponsored by a licensed mortgage lender or mortgage loan broker or by a registrant in accordance with the Industrial Loan and Thrift Companies Act, compiled in chapter 5 of this title. A mortgage loan originator is prohibited from providing origination services with an inactive license. No mortgage loan originator may be sponsored by more than one (1) person at the same time, and the provision of origination services for a person that has not properly sponsored the mortgage loan originator shall constitute a violation of this chapter. Subsections (b)-(e) shall not apply to a mortgage loan originator that is properly sponsored by a registrant under the Industrial Loan and Thrift Companies Act.
(b) To sponsor a mortgage loan originator, a mortgage lender or mortgage loan broker must file with the commissioner the form that the commissioner prescribes and pay to the commissioner a nonrefundable sponsorship fee of one hundred dollars ($100), which fee may be decreased or increased by rule of the commissioner. Upon determining that the individual is duly licensed and not sponsored by any other person, the commissioner shall authorize the sponsorship, which may be done electronically or in writing, or both. A mortgage loan originator sponsorship terminates if the sponsoring mortgage lender or mortgage loan broker's license expires or is revoked or otherwise terminates or if the mortgage loan originator ceases providing services for such company. A mortgage loan originator sponsorship does not terminate if the mortgage loan originator changes from one (1) branch office of the sponsoring mortgage lender or mortgage loan broker to another branch office of the same company. Upon any change in the mortgage loan originator's office, the sponsoring mortgage lender or mortgage loan broker shall notify the commissioner in writing within fourteen (14) days of the change.
(c) Should a mortgage loan originator sponsorship terminate, the mortgage loan originator's license shall become inactive, but shall not expire so long as the mortgage loan originator continues to meet the requirements for licensure and renewal of licensure. An inactive license is reactivated if the mortgage loan originator obtains a new sponsorship under this section or under the Industrial Loan and Thrift Companies Act. The commissioner may not approve a new sponsorship unless and until the commissioner has been notified that any prior sponsorship has terminated.
(d) The sponsoring mortgage lender or mortgage loan broker shall ensure that: (1) Each application for a residential mortgage loan contains the name and unique identifier of the mortgage lender or mortgage loan broker, as well as the name, signature, and the unique identifier of the mortgage loan originator who provided origination services with respect to the loan; and (2) Its records pertaining to the residential mortgage loan contain the unique identifier of each mortgage loan originator that provided services with respect to the loan.
(1) Each application for a residential mortgage loan contains the name and unique identifier of the mortgage lender or mortgage loan broker, as well as the name, signature, and the unique identifier of the mortgage loan originator who provided origination services with respect to the loan; and
(2) Its records pertaining to the residential mortgage loan contain the unique identifier of each mortgage loan originator that provided services with respect to the loan.
(e) The sponsoring mortgage lender or mortgage loan broker is responsible for and shall supervise the acts of each sponsored mortgage loan originator.
Amended by 2022 Tenn. Acts, ch. 659, s 1, eff. 7/1/2022.
Acts 2009 , ch. 499, § 8.
Tenn. Code Ann. § 45-2-704 — TN Code / Title 45 / Chapter 2 / Section 45-2-704
Deposits in trust - Contracts with bank for payable-on-death accounts - Living trusts
Status: in_force

(a) (1) Whenever any deposit is made in any bank by any person in trust for another, and no other or further notice of the existence and terms of a legal and valid trust is given in writing to the bank, the bank is entitled to deem the following with respect to the deposit, that: (A) The person designated as trustee is the owner of the deposit account; (B) The owner retains the right during the owner's lifetime to withdraw, assign or pledge the balance of the deposit account, in whole or in part, as though no survivor beneficiary had been named, and to delete or change a survivor beneficiary; and (C) The interest of a person designated as beneficiary shall not vest until the death of the owner, or in the case of joint owners, until the death of the last surviving owner, and the interest shall be subject to any lien, assignment, pledge, right of offset or other claim that the bank could have asserted against the owner. (2) No change in the designation of the survivor beneficiary is valid unless executed on a form and in a manner prescribed by the bank. (3) The following terms shall be deemed to apply to the account, unless the owner notifies the bank otherwise: (A) The interest of the beneficiary in the account vests, only if the beneficiary survives the last surviving owner; (B) Multiple beneficiaries surviving the last surviving owner shall be entitled to equal shares of the account; and (C) If no beneficiary survives, the account shall remain in the estate of the last surviving owner. (4) When a deposit account is so established, the account, or any part of the account, or any interest in the account, may be paid to any owner during the owner's lifetime. On the death of the last surviving owner, the deposit account, or any part of the account, or interest in the account, unless otherwise provided by notice to the bank and its acknowledgement, may be paid either: (A) To each designated beneficiary in equal shares; or (B) To all beneficiaries as tenants in common, the duty of any apportionment among beneficiaries devolving to the beneficiary or beneficiaries receiving payment; and the receipt or acquittance of the person or persons so paid shall be a sufficient release and discharge of the bank from liability to any person for payment. (5) In the event that any beneficiary, or any other person, contests any payment to a beneficiary, the bank may interplead the funds into a general sessions court, circuit court, or probate court with appropriate jurisdiction. A bank initiating, joining in, joined into, or defending in any manner, an interpleader action shall be entitled to recover from the funds tendered or offered to be tendered the costs of the action, including reasonable attorneys' fees. (6) In determining persons to be paid, or shares to be paid, if a bank chooses to pay more than one (1) beneficiary, a bank is entitled to presume the survival of an owner, or beneficiary, and no payment need be made to a beneficiary until the person's entitlement by right of survivorship is confirmed by official death certificate or other proof acceptable to the bank. (b) (1) Any person, or persons jointly as tenants with right of survivorship, owning a deposit account may enter into a written contract with any bank whereby the balance of the deposit account may be made payable on the death of the last surviving owner to another person or persons, notwithstanding any provisions of law to the contrary. (2) In creating the account, "payable-on-death" or "payable on the death of" may be abbreviated to "P.O.D." (3) The contract shall be deemed to contain a right on the part of an owner during the owner's lifetime both to withdraw, assign or pledge the balance of the deposit account, in whole or in part, as though no death payee had been named, and to delete or change a designated death payee. (4) The interest of a death payee shall be deemed not to vest until the death of the owner, or, in the case of joint owners until the death of the last surviving owner, and the interest shall be subject to any lien, assignment, pledge, right of offset or other claim that the bank could have asserted against the owner. (5) The following terms shall apply to the account, unless the contract provides otherwise: (A) The interest of a death payee in the account vests only if the payee survives the last surviving owner; (B) Multiple death payees surviving the last surviving owner shall be entitled to equal shares of the account; and (C) If no death payees survives, the account shall remain in the estate of the last surviving owner. (6) No change in the designation of a death payee shall be valid unless executed on a form and in a manner prescribed by the bank and authorized by all account owners living at the time of the change. (7) (A) When a deposit account is so established, the account, or any part of the account or any interest in the account, may be paid to any owner during the owner's lifetime. On the death of the last surviving owner, the deposit account, or any part of the account or any interest in the account, unless otherwise provided in the contract, may be paid either: (i) To each designated death payee in equal shares; or (ii) To all death payees as tenants in common, the duty of any apportionment among death payees devolving to the death payee or payees receiving payment; (B) The receipt or acquittance of the person or persons paid shall be a sufficient release and discharge of the bank from liability to any person for payment. (8) In the event that any death payee or any other person contests any payment to a death payee, the bank may interplead the funds into a general sessions court, circuit court, or probate court with appropriate jurisdiction. A bank initiating an interpleader action shall be entitled to recover from the funds tendered the costs of the action, including reasonable attorneys' fees. (9) In determining persons to be paid, or shares to be paid, if a bank contracts or chooses to pay more than one (1) death payee, a bank is entitled to presume the survival of an owner, or death payee, and no payment need be made to a death payee until the person's entitlement by right of survivorship is confirmed by official death certificate or other proof acceptable to the bank. (c) No bank so paying the survivor or death payee shall be liable for any estate, inheritance or succession taxes due this state. (d) (1) Notwithstanding any provision of this section or any other law to the contrary, nothing contained within this section shall be construed to prevent a living trust from being designated as a beneficiary of a payable-on-death account. (2) Prior to accepting the designation of a living trust as beneficiary, a bank may require the account owner to deliver a copy of: (A) Certificate or affidavit of trust: (i) In the form and containing the information required by the bank; (ii) Signed by the grantor, trustee or both; and (iii) Notarized; or (B) Other documents establishing the trust as may be acceptable to the bank. (3) A bank may rely on the continuance of the trust and the information provided in the certificate, affidavit or other documentation, until the bank receives actual notice of any amendment, revocation or change, including, but not limited to, appointment of a co-trustee or successor trustee, or removal of a trustee. Actual notice shall not be effective until delivery of documentation acceptable to the bank to support the amendment, revocation or change. Amended by 2017 Tenn. Acts, ch. 264,s 5, eff. 7/1/2017. Acts 1969, ch. 36, § 1 (3.205); T.C.A., § 45-408; Acts 1983, ch. 110, §§ 2, 3; 1991, ch. 51, § 1; 1993, ch. 39, §§ 1-5, 7-9; 1994, ch. 655, § 1.
(a) (1) Whenever any deposit is made in any bank by any person in trust for another, and no other or further notice of the existence and terms of a legal and valid trust is given in writing to the bank, the bank is entitled to deem the following with respect to the deposit, that: (A) The person designated as trustee is the owner of the deposit account; (B) The owner retains the right during the owner's lifetime to withdraw, assign or pledge the balance of the deposit account, in whole or in part, as though no survivor beneficiary had been named, and to delete or change a survivor beneficiary; and (C) The interest of a person designated as beneficiary shall not vest until the death of the owner, or in the case of joint owners, until the death of the last surviving owner, and the interest shall be subject to any lien, assignment, pledge, right of offset or other claim that the bank could have asserted against the owner. (2) No change in the designation of the survivor beneficiary is valid unless executed on a form and in a manner prescribed by the bank. (3) The following terms shall be deemed to apply to the account, unless the owner notifies the bank otherwise: (A) The interest of the beneficiary in the account vests, only if the beneficiary survives the last surviving owner; (B) Multiple beneficiaries surviving the last surviving owner shall be entitled to equal shares of the account; and (C) If no beneficiary survives, the account shall remain in the estate of the last surviving owner. (4) When a deposit account is so established, the account, or any part of the account, or any interest in the account, may be paid to any owner during the owner's lifetime. On the death of the last surviving owner, the deposit account, or any part of the account, or interest in the account, unless otherwise provided by notice to the bank and its acknowledgement, may be paid either: (A) To each designated beneficiary in equal shares; or (B) To all beneficiaries as tenants in common, the duty of any apportionment among beneficiaries devolving to the beneficiary or beneficiaries receiving payment; and the receipt or acquittance of the person or persons so paid shall be a sufficient release and discharge of the bank from liability to any person for payment. (5) In the event that any beneficiary, or any other person, contests any payment to a beneficiary, the bank may interplead the funds into a general sessions court, circuit court, or probate court with appropriate jurisdiction. A bank initiating, joining in, joined into, or defending in any manner, an interpleader action shall be entitled to recover from the funds tendered or offered to be tendered the costs of the action, including reasonable attorneys' fees. (6) In determining persons to be paid, or shares to be paid, if a bank chooses to pay more than one (1) beneficiary, a bank is entitled to presume the survival of an owner, or beneficiary, and no payment need be made to a beneficiary until the person's entitlement by right of survivorship is confirmed by official death certificate or other proof acceptable to the bank.
(1) Whenever any deposit is made in any bank by any person in trust for another, and no other or further notice of the existence and terms of a legal and valid trust is given in writing to the bank, the bank is entitled to deem the following with respect to the deposit, that: (A) The person designated as trustee is the owner of the deposit account; (B) The owner retains the right during the owner's lifetime to withdraw, assign or pledge the balance of the deposit account, in whole or in part, as though no survivor beneficiary had been named, and to delete or change a survivor beneficiary; and (C) The interest of a person designated as beneficiary shall not vest until the death of the owner, or in the case of joint owners, until the death of the last surviving owner, and the interest shall be subject to any lien, assignment, pledge, right of offset or other claim that the bank could have asserted against the owner.
(A) The person designated as trustee is the owner of the deposit account;
(B) The owner retains the right during the owner's lifetime to withdraw, assign or pledge the balance of the deposit account, in whole or in part, as though no survivor beneficiary had been named, and to delete or change a survivor beneficiary; and
(C) The interest of a person designated as beneficiary shall not vest until the death of the owner, or in the case of joint owners, until the death of the last surviving owner, and the interest shall be subject to any lien, assignment, pledge, right of offset or other claim that the bank could have asserted against the owner.
(2) No change in the designation of the survivor beneficiary is valid unless executed on a form and in a manner prescribed by the bank.
(3) The following terms shall be deemed to apply to the account, unless the owner notifies the bank otherwise: (A) The interest of the beneficiary in the account vests, only if the beneficiary survives the last surviving owner; (B) Multiple beneficiaries surviving the last surviving owner shall be entitled to equal shares of the account; and (C) If no beneficiary survives, the account shall remain in the estate of the last surviving owner.
(A) The interest of the beneficiary in the account vests, only if the beneficiary survives the last surviving owner;
(B) Multiple beneficiaries surviving the last surviving owner shall be entitled to equal shares of the account; and
(C) If no beneficiary survives, the account shall remain in the estate of the last surviving owner.
(4) When a deposit account is so established, the account, or any part of the account, or any interest in the account, may be paid to any owner during the owner's lifetime. On the death of the last surviving owner, the deposit account, or any part of the account, or interest in the account, unless otherwise provided by notice to the bank and its acknowledgement, may be paid either: (A) To each designated beneficiary in equal shares; or (B) To all beneficiaries as tenants in common, the duty of any apportionment among beneficiaries devolving to the beneficiary or beneficiaries receiving payment; and the receipt or acquittance of the person or persons so paid shall be a sufficient release and discharge of the bank from liability to any person for payment.
(A) To each designated beneficiary in equal shares; or
(B) To all beneficiaries as tenants in common, the duty of any apportionment among beneficiaries devolving to the beneficiary or beneficiaries receiving payment; and the receipt or acquittance of the person or persons so paid shall be a sufficient release and discharge of the bank from liability to any person for payment.
(5) In the event that any beneficiary, or any other person, contests any payment to a beneficiary, the bank may interplead the funds into a general sessions court, circuit court, or probate court with appropriate jurisdiction. A bank initiating, joining in, joined into, or defending in any manner, an interpleader action shall be entitled to recover from the funds tendered or offered to be tendered the costs of the action, including reasonable attorneys' fees.
(6) In determining persons to be paid, or shares to be paid, if a bank chooses to pay more than one (1) beneficiary, a bank is entitled to presume the survival of an owner, or beneficiary, and no payment need be made to a beneficiary until the person's entitlement by right of survivorship is confirmed by official death certificate or other proof acceptable to the bank.
(b) (1) Any person, or persons jointly as tenants with right of survivorship, owning a deposit account may enter into a written contract with any bank whereby the balance of the deposit account may be made payable on the death of the last surviving owner to another person or persons, notwithstanding any provisions of law to the contrary. (2) In creating the account, "payable-on-death" or "payable on the death of" may be abbreviated to "P.O.D." (3) The contract shall be deemed to contain a right on the part of an owner during the owner's lifetime both to withdraw, assign or pledge the balance of the deposit account, in whole or in part, as though no death payee had been named, and to delete or change a designated death payee. (4) The interest of a death payee shall be deemed not to vest until the death of the owner, or, in the case of joint owners until the death of the last surviving owner, and the interest shall be subject to any lien, assignment, pledge, right of offset or other claim that the bank could have asserted against the owner. (5) The following terms shall apply to the account, unless the contract provides otherwise: (A) The interest of a death payee in the account vests only if the payee survives the last surviving owner; (B) Multiple death payees surviving the last surviving owner shall be entitled to equal shares of the account; and (C) If no death payees survives, the account shall remain in the estate of the last surviving owner. (6) No change in the designation of a death payee shall be valid unless executed on a form and in a manner prescribed by the bank and authorized by all account owners living at the time of the change. (7) (A) When a deposit account is so established, the account, or any part of the account or any interest in the account, may be paid to any owner during the owner's lifetime. On the death of the last surviving owner, the deposit account, or any part of the account or any interest in the account, unless otherwise provided in the contract, may be paid either: (i) To each designated death payee in equal shares; or (ii) To all death payees as tenants in common, the duty of any apportionment among death payees devolving to the death payee or payees receiving payment; (B) The receipt or acquittance of the person or persons paid shall be a sufficient release and discharge of the bank from liability to any person for payment. (8) In the event that any death payee or any other person contests any payment to a death payee, the bank may interplead the funds into a general sessions court, circuit court, or probate court with appropriate jurisdiction. A bank initiating an interpleader action shall be entitled to recover from the funds tendered the costs of the action, including reasonable attorneys' fees. (9) In determining persons to be paid, or shares to be paid, if a bank contracts or chooses to pay more than one (1) death payee, a bank is entitled to presume the survival of an owner, or death payee, and no payment need be made to a death payee until the person's entitlement by right of survivorship is confirmed by official death certificate or other proof acceptable to the bank.
(1) Any person, or persons jointly as tenants with right of survivorship, owning a deposit account may enter into a written contract with any bank whereby the balance of the deposit account may be made payable on the death of the last surviving owner to another person or persons, notwithstanding any provisions of law to the contrary.
(2) In creating the account, "payable-on-death" or "payable on the death of" may be abbreviated to "P.O.D."
(3) The contract shall be deemed to contain a right on the part of an owner during the owner's lifetime both to withdraw, assign or pledge the balance of the deposit account, in whole or in part, as though no death payee had been named, and to delete or change a designated death payee.
(4) The interest of a death payee shall be deemed not to vest until the death of the owner, or, in the case of joint owners until the death of the last surviving owner, and the interest shall be subject to any lien, assignment, pledge, right of offset or other claim that the bank could have asserted against the owner.
(5) The following terms shall apply to the account, unless the contract provides otherwise: (A) The interest of a death payee in the account vests only if the payee survives the last surviving owner; (B) Multiple death payees surviving the last surviving owner shall be entitled to equal shares of the account; and (C) If no death payees survives, the account shall remain in the estate of the last surviving owner.
(A) The interest of a death payee in the account vests only if the payee survives the last surviving owner;
(B) Multiple death payees surviving the last surviving owner shall be entitled to equal shares of the account; and
(C) If no death payees survives, the account shall remain in the estate of the last surviving owner.
(6) No change in the designation of a death payee shall be valid unless executed on a form and in a manner prescribed by the bank and authorized by all account owners living at the time of the change.
(7) (A) When a deposit account is so established, the account, or any part of the account or any interest in the account, may be paid to any owner during the owner's lifetime. On the death of the last surviving owner, the deposit account, or any part of the account or any interest in the account, unless otherwise provided in the contract, may be paid either: (i) To each designated death payee in equal shares; or (ii) To all death payees as tenants in common, the duty of any apportionment among death payees devolving to the death payee or payees receiving payment; (B) The receipt or acquittance of the person or persons paid shall be a sufficient release and discharge of the bank from liability to any person for payment.
(A) When a deposit account is so established, the account, or any part of the account or any interest in the account, may be paid to any owner during the owner's lifetime. On the death of the last surviving owner, the deposit account, or any part of the account or any interest in the account, unless otherwise provided in the contract, may be paid either: (i) To each designated death payee in equal shares; or (ii) To all death payees as tenants in common, the duty of any apportionment among death payees devolving to the death payee or payees receiving payment;
(i) To each designated death payee in equal shares; or
(ii) To all death payees as tenants in common, the duty of any apportionment among death payees devolving to the death payee or payees receiving payment;
(B) The receipt or acquittance of the person or persons paid shall be a sufficient release and discharge of the bank from liability to any person for payment.
(8) In the event that any death payee or any other person contests any payment to a death payee, the bank may interplead the funds into a general sessions court, circuit court, or probate court with appropriate jurisdiction. A bank initiating an interpleader action shall be entitled to recover from the funds tendered the costs of the action, including reasonable attorneys' fees.
(9) In determining persons to be paid, or shares to be paid, if a bank contracts or chooses to pay more than one (1) death payee, a bank is entitled to presume the survival of an owner, or death payee, and no payment need be made to a death payee until the person's entitlement by right of survivorship is confirmed by official death certificate or other proof acceptable to the bank.
(c) No bank so paying the survivor or death payee shall be liable for any estate, inheritance or succession taxes due this state.
(d) (1) Notwithstanding any provision of this section or any other law to the contrary, nothing contained within this section shall be construed to prevent a living trust from being designated as a beneficiary of a payable-on-death account. (2) Prior to accepting the designation of a living trust as beneficiary, a bank may require the account owner to deliver a copy of: (A) Certificate or affidavit of trust: (i) In the form and containing the information required by the bank; (ii) Signed by the grantor, trustee or both; and (iii) Notarized; or (B) Other documents establishing the trust as may be acceptable to the bank. (3) A bank may rely on the continuance of the trust and the information provided in the certificate, affidavit or other documentation, until the bank receives actual notice of any amendment, revocation or change, including, but not limited to, appointment of a co-trustee or successor trustee, or removal of a trustee. Actual notice shall not be effective until delivery of documentation acceptable to the bank to support the amendment, revocation or change.
(1) Notwithstanding any provision of this section or any other law to the contrary, nothing contained within this section shall be construed to prevent a living trust from being designated as a beneficiary of a payable-on-death account.
(2) Prior to accepting the designation of a living trust as beneficiary, a bank may require the account owner to deliver a copy of: (A) Certificate or affidavit of trust: (i) In the form and containing the information required by the bank; (ii) Signed by the grantor, trustee or both; and (iii) Notarized; or (B) Other documents establishing the trust as may be acceptable to the bank.
(A) Certificate or affidavit of trust: (i) In the form and containing the information required by the bank; (ii) Signed by the grantor, trustee or both; and (iii) Notarized; or
(i) In the form and containing the information required by the bank;
(ii) Signed by the grantor, trustee or both; and
(iii) Notarized; or
(B) Other documents establishing the trust as may be acceptable to the bank.
(3) A bank may rely on the continuance of the trust and the information provided in the certificate, affidavit or other documentation, until the bank receives actual notice of any amendment, revocation or change, including, but not limited to, appointment of a co-trustee or successor trustee, or removal of a trustee. Actual notice shall not be effective until delivery of documentation acceptable to the bank to support the amendment, revocation or change.
Amended by 2017 Tenn. Acts, ch. 264,s 5, eff. 7/1/2017.
Acts 1969, ch. 36, § 1 (3.205); T.C.A., § 45-408; Acts 1983, ch. 110, §§ 2, 3; 1991, ch. 51, § 1; 1993, ch. 39, §§ 1-5, 7-9; 1994, ch. 655, § 1.
Tenn. Code Ann. § 45-2-1807 — TN Code / Title 45 / Chapter 2 / Section 45-2-1807
Uninsured depository accounts
Status: in_force

Any depository account with a state bank or state bank subsidiary upon which drafts, checks, or other negotiable instruments can be drawn and that is not insured or partially insured by a corporation or subdivision of the United States government must in the application for the account inform the customer of the lack of deposit insurance, and the customer must acknowledge by signature and date of the same. Acts 1989, ch. 168, § 1.
Any depository account with a state bank or state bank subsidiary upon which drafts, checks, or other negotiable instruments can be drawn and that is not insured or partially insured by a corporation or subdivision of the United States government must in the application for the account inform the customer of the lack of deposit insurance, and the customer must acknowledge by signature and date of the same.
Acts 1989, ch. 168, § 1.
Tenn. Code Ann. § 45-5-403 — TN Code / Title 45 / Chapter 5 / Section 45-5-403
Limitations on loan charges - Acquisition charges - Term of loan
Status: in_force

(a) No registrant under this chapter has the power to charge loan charges other than, or in amounts greater than, the following: (1) (A) Registrants may charge a service charge in an amount equal to five percent (5%) of the total amount of the loan, which charge may be deducted in advance from the principal of the loan. This service charge shall be in lieu of all other compensation for services, expenses, detriments or commitments directly incident to the loan, except those charges that are otherwise specifically provided in this chapter. This charge is authorized and limited on the basis that it is generally reasonably related to the total costs and expenses that it is designed to cover, and in order to make the amount of the charges more certain and readily ascertainable by the registrants, their borrowers and the commissioner; and to that end, registrants shall not be required to maintain detailed records with respect to the services, expenses, detriments or commitments covered by the charges. This charge shall not, however, be imposed on that portion of a loan used to pay any existing loan or part thereof owing by the same borrower or spouse, or both, to the same registrant or any affiliated lender; (B) In the case of open-end credit plans or in the case of loans secured by real property, in lieu of the five-percent service charge provided in subdivision (a)(1)(A), registrants may charge borrowers with the actual, bona fide, reasonable expenses, directly incident to the loan, paid or to be paid by the registrant to third parties, including, but not limited to, expenses for title examination or title insurance, surveys, preparation of necessary documents, credit reports and appraisals; (2) In lieu of the five-percent service charge provided in subdivision (a)(1)(A), and for the same purposes, registrants may charge: (A) A flat service charge of two dollars ($2.00) on all loans that do not exceed twenty dollars ($20.00), and charge a flat service charge in addition thereto of fifty cents (50¢) per each five-dollar increase on all loans in excess of twenty dollars ($20.00) but that do not exceed one hundred dollars ($100), and to charge a flat service charge of ten dollars ($10.00) on all loans of more than one hundred dollars ($100); provided, that no lender may charge the flat service charge on multiple loans existing at the same time to any one (1) borrower; (B) In the event the borrower shall repay the loan in full within three (3) business days following the date of the loan, then all charges of every kind shall be refunded in cash; provided, that in the event a loan on which a flat service charge has been made shall be renewed, rescheduled or refinanced within forty-five (45) days of the date of the making of the loan, the flat service charge in connection with any new moneys advanced shall not exceed one-half (½) of the flat service charge that would be applicable thereto; and (C) It being the intent of the general assembly that the flat service charges permitted hereunder shall never be imposed on any portion of any loan used to pay any existing loan, or part thereof, owing by the same borrower or spouse or both to the same registrant or any affiliated lender; (3) Registrants may also charge the borrower with any fees or taxes paid, or to be paid, any public official for filing, recording or releasing any document relating to the loan. In lieu of charging the borrower with any fees for filing or recording any document relating to the loan, registrants may charge the borrower with any premiums payable for insurance in lieu of filing or recording the document; provided, that the premium shall not exceed the current fee for filing or recording the document. Moreover, the sum shall not be charged more than one (1) time during any twelve-month period; (4) Registrants may also charge a handling or delinquent charge of five cents (5¢) for each default in the payment of each one dollar ($1.00), or fraction thereof, or fifteen dollars ($15.00), whichever is greater, at the time any payment on any loan made hereunder becomes past due for a period of five (5) or more days; provided, that the charge shall not be collected more than once for the same default; (5) (A) Registrants may also charge an installment maintenance fee of five dollars ($5.00) per month; (B) The fee may be charged for a period not to exceed the original term of the loan; provided, that the loan is made for a period of ninety (90) days or more; and provided further, that the monthly installment payments are at least fifteen dollars ($15.00) per month. No registrant may charge the installment maintenance fee on multiple loans existing at the same time to any one (1) borrower. The installment maintenance fees shall not be deducted in advance. Registrants may, however, include the maximum maintenance fee for the term of the loan in the face amount of the note evidencing that loan; provided, that neither interest, loan charges, delinquent charges nor insurance charges are computed on the amount; and provided further, that any installment maintenance fee due more than one (1) month following payment in full of the note shall be credited to the note; (6) Registrants may also require the payment by the borrower of any reasonable and actual attorneys' fees and other costs incurred in the collection or enforcement of any loan contract; (7) Registrants may also charge and collect from the borrower, through regular billing procedure or otherwise, a bad check charge as provided in § 47-29-102 for any check, draft, electronic funds transfer, electronic check, card payment, or any other electronic payment, negotiable order of withdrawal or like instrument drawn on a bank or other depository institution given by any person in full or partial repayment of a loan or other extension of credit if the instrument is not paid or dishonored by the institution; provided, that: (A) Registrants may redeposit the instrument with the institution or return the dishonored instrument to the borrower or person to whom the credit was extended upon redemption of the instrument; and (B) Registrants may collect not more than one (1) bad check charge on any one (1) check or electronic debit authorization; (8) In the case of a residential mortgage loan, a registrant may, from the service charge imposed under subdivision (a)(1)(A), pay a mortgage broker, licensed or otherwise exempt from licensing under the Residential Lending Brokerage and Servicing Act, compiled in chapter 13 of this title, a fee for the services actually rendered by the mortgage broker with respect to a specific transaction; provided, however, that the aggregate fee paid to a mortgage broker may not exceed the five percent (5%), which may be imposed under subdivision (a)(1)(A); and (9) (A) Registrants may also impose and collect a convenience fee from any borrower making payment by credit card, debit card, electronic funds transfer, electronic check, or other electronic means in order to offset actual costs incurred by a registrant for accepting and processing payments made by electronic means; (B) (i) Any convenience fee collected by a registrant pursuant to this subdivision (a)(9) may not exceed the actual costs incurred by the registrant; provided, however, a registrant may impose a convenience fee in lieu of the actual cost of the individual payment type that does not exceed the average of the actual cost incurred for the various types of electronic payments for which the registrant imposes a convenience fee; (ii) Any registrant charging a convenience fee pursuant to this subdivision (a)(9) shall notify the customer of the amount of the fee prior to completing a transaction, provide an opportunity for the customer to cancel the transaction without incurring a fee, and make available the option to make a payment on a loan by check, cash, or money order directly to the registrant without the imposition of a convenience fee for a card payment or electronic payment; (iii) When a borrower elects to make a payment to the registrant by credit card, debit card, electronic funds transfer, electronic check, or other electronic means and a convenience fee is imposed and collected pursuant to this subdivision (a)(9), the payment of the convenience fee shall not be refundable; (iv) The convenience fee may be charged in addition to all other interest and fees allowed by law; (v) For purposes of this subdivision (a)(9)(B), "actual costs" means actual third party costs incurred for the processing of payments made by electronic means. If a registrant is a subsidiary of an entity that processes payments made by electronic means, then the parent entity shall be considered a third party; (vi) A registrant shall not charge a convenience fee on any debit card or prepaid card transaction if the payment card network on which the transaction is initiated or processed prohibits such convenience fee by contract, rule or policy. (b) (1) As an alternative to the loan charges permitted under subsection (a) and interest permitted under § 45-5-301 , a registrant may charge loan charges in amounts no greater than the following: (A) On any loan of an amount of one hundred dollars ($100) or more up to and including the amount of three hundred dollars ($300), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition thereto, an installment account handling charge shall be allowed not to exceed twelve dollars ($12.00) per month; (B) On any loan of an amount in excess of three hundred dollars ($300) but not more than four hundred dollars ($400), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition thereto, an installment account handling charge shall be allowed not to exceed fourteen dollars ($14.00) per month; (C) On any loan of an amount in excess of four hundred dollars ($400) but not more than five hundred dollars ($500), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition thereto, an installment account handling charge shall be allowed not to exceed sixteen dollars ($16.00) per month; (D) On any loan of an amount in excess of five hundred dollars ($500) but not more than one thousand dollars ($1,000), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition thereto, an installment account handling charge shall be allowed not to exceed twenty dollars ($20.00) per month; (E) On any loan of an amount in excess of one thousand dollars ($1,000) but not more than one thousand two hundred fifty dollars ($1,250), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition, an installment account handling charge shall be allowed. The handling charge shall not exceed twenty-three dollars ($23.00) per month; (F) On any loan of an amount in excess of one thousand two hundred fifty dollars ($1,250) but not more than one thousand five hundred dollars ($1,500), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition, an installment account handling charge shall be allowed. The handling charge shall not exceed twenty-six dollars ($26.00) per month; (G) On any loan of an amount in excess of one thousand five hundred dollars ($1,500) but not more than one thousand seven hundred fifty dollars ($1,750), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition, an installment account handling charge shall be allowed. The handling charge shall not exceed twenty-nine dollars ($29.00) per month; or (H) On any loan of an amount in excess of one thousand seven hundred fifty dollars ($1,750) but not more than two thousand dollars ($2,000), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition, an installment account handling charge shall be allowed. The handling charge shall not exceed thirty-two dollars ($32.00) per month. (2) The minimum term of any loan made under this subsection (b) is three (3) months. The maximum term of any loan made under this subsection (b) is twenty-five (25) months. (3) On the prepayment of any loan under this subsection (b), the installment account handling charges are subject to § 45-5-402 as it relates to refunds; provided, for the purpose of calculating the rebate due, the term of the loan begins on the date the loan is made. (4) On any loan established under this subsection (b), no insurance charge or any other charge of any nature whatsoever is permitted except as provided in this subsection (b) and except for the delinquent charge under subdivision (a)(4), the reasonable attorney fee and costs charge under subdivision (a)(6) and the bad check charge under subdivision (a)(7) and a convenience fee under subdivision (a)(9). (5) In a civil action, a finding by the court that a registrant has violated this subsection (b) gives rise to a rebuttable presumption that the violation constitutes unconscionable conduct under § 47-14-117(c) , and the registrant is subject to the remedies under that section. (6) The loan charges allowed under this subsection (b) may not be imposed on a loan to a borrower who has one (1) or more loans outstanding with the same registrant or an affiliated lender and upon which loan charges were imposed under subsection (a). (7) (A) In addition to any other charges permitted for the making of a loan under this part, a registrant may collect a closing fee at the time of the making of the loan for the purpose of preparing and executing the documents for, and verifying compliance with, the federal Truth in Lending Act ( 15 U.S.C. § 1601 et seq.), this section, and all other applicable statutes. The closing fee may be for an amount up to four percent (4%) of the amount financed but must not be more than fifty dollars ($50.00). The closing fee may be paid from the proceeds of the amount borrowed or added to the amount financed. (B) If a loan, upon which a closing fee has been charged, is prepaid in full by any means within ninety (90) days of the date of the loan, then the registrant must refund or credit the borrower with a pro rata portion of the closing fee. However, the registrant may retain up to twenty-five dollars ($25.00) of the closing fee regardless of when the loan is prepaid. Amended by 2021 Tenn. Acts, ch. 91, Secs.s 2, s 3, s 4, s 5, s 6 eff. 7/1/2021. Amended by 2021 Tenn. Acts, ch. 91, s 1, eff. 7/1/2021. Amended by 2014 Tenn. Acts, ch. 616, Secs.s 2, s 3, s 4 eff. 7/1/2014. Amended by 2014 Tenn. Acts, ch. 616, s 1, eff. 7/1/2014. Acts 1979, ch. 204, § 11; T.C.A., § 45-2011; Acts 1983, ch. 164, § 4; 1986, ch. 576, § 2, 3; 1987, ch. 124, § 2; 1988, ch. 621, § 1; 1989, ch. 265, § 1; 1990, ch. 685, § 1; 1996, ch. 607, §§ 1-4; 1998, ch. 576, § 1; 1999, ch. 172, § 3; 2000, ch. 684, § 1; 2001, ch. 165, § 8; 2006, ch. 563, § 1; 2009 , ch. 499, § 7; 2012 , ch. 534, §§ 1-5.
(a) No registrant under this chapter has the power to charge loan charges other than, or in amounts greater than, the following: (1) (A) Registrants may charge a service charge in an amount equal to five percent (5%) of the total amount of the loan, which charge may be deducted in advance from the principal of the loan. This service charge shall be in lieu of all other compensation for services, expenses, detriments or commitments directly incident to the loan, except those charges that are otherwise specifically provided in this chapter. This charge is authorized and limited on the basis that it is generally reasonably related to the total costs and expenses that it is designed to cover, and in order to make the amount of the charges more certain and readily ascertainable by the registrants, their borrowers and the commissioner; and to that end, registrants shall not be required to maintain detailed records with respect to the services, expenses, detriments or commitments covered by the charges. This charge shall not, however, be imposed on that portion of a loan used to pay any existing loan or part thereof owing by the same borrower or spouse, or both, to the same registrant or any affiliated lender; (B) In the case of open-end credit plans or in the case of loans secured by real property, in lieu of the five-percent service charge provided in subdivision (a)(1)(A), registrants may charge borrowers with the actual, bona fide, reasonable expenses, directly incident to the loan, paid or to be paid by the registrant to third parties, including, but not limited to, expenses for title examination or title insurance, surveys, preparation of necessary documents, credit reports and appraisals; (2) In lieu of the five-percent service charge provided in subdivision (a)(1)(A), and for the same purposes, registrants may charge: (A) A flat service charge of two dollars ($2.00) on all loans that do not exceed twenty dollars ($20.00), and charge a flat service charge in addition thereto of fifty cents (50¢) per each five-dollar increase on all loans in excess of twenty dollars ($20.00) but that do not exceed one hundred dollars ($100), and to charge a flat service charge of ten dollars ($10.00) on all loans of more than one hundred dollars ($100); provided, that no lender may charge the flat service charge on multiple loans existing at the same time to any one (1) borrower; (B) In the event the borrower shall repay the loan in full within three (3) business days following the date of the loan, then all charges of every kind shall be refunded in cash; provided, that in the event a loan on which a flat service charge has been made shall be renewed, rescheduled or refinanced within forty-five (45) days of the date of the making of the loan, the flat service charge in connection with any new moneys advanced shall not exceed one-half (½) of the flat service charge that would be applicable thereto; and (C) It being the intent of the general assembly that the flat service charges permitted hereunder shall never be imposed on any portion of any loan used to pay any existing loan, or part thereof, owing by the same borrower or spouse or both to the same registrant or any affiliated lender; (3) Registrants may also charge the borrower with any fees or taxes paid, or to be paid, any public official for filing, recording or releasing any document relating to the loan. In lieu of charging the borrower with any fees for filing or recording any document relating to the loan, registrants may charge the borrower with any premiums payable for insurance in lieu of filing or recording the document; provided, that the premium shall not exceed the current fee for filing or recording the document. Moreover, the sum shall not be charged more than one (1) time during any twelve-month period; (4) Registrants may also charge a handling or delinquent charge of five cents (5¢) for each default in the payment of each one dollar ($1.00), or fraction thereof, or fifteen dollars ($15.00), whichever is greater, at the time any payment on any loan made hereunder becomes past due for a period of five (5) or more days; provided, that the charge shall not be collected more than once for the same default; (5) (A) Registrants may also charge an installment maintenance fee of five dollars ($5.00) per month; (B) The fee may be charged for a period not to exceed the original term of the loan; provided, that the loan is made for a period of ninety (90) days or more; and provided further, that the monthly installment payments are at least fifteen dollars ($15.00) per month. No registrant may charge the installment maintenance fee on multiple loans existing at the same time to any one (1) borrower. The installment maintenance fees shall not be deducted in advance. Registrants may, however, include the maximum maintenance fee for the term of the loan in the face amount of the note evidencing that loan; provided, that neither interest, loan charges, delinquent charges nor insurance charges are computed on the amount; and provided further, that any installment maintenance fee due more than one (1) month following payment in full of the note shall be credited to the note; (6) Registrants may also require the payment by the borrower of any reasonable and actual attorneys' fees and other costs incurred in the collection or enforcement of any loan contract; (7) Registrants may also charge and collect from the borrower, through regular billing procedure or otherwise, a bad check charge as provided in § 47-29-102 for any check, draft, electronic funds transfer, electronic check, card payment, or any other electronic payment, negotiable order of withdrawal or like instrument drawn on a bank or other depository institution given by any person in full or partial repayment of a loan or other extension of credit if the instrument is not paid or dishonored by the institution; provided, that: (A) Registrants may redeposit the instrument with the institution or return the dishonored instrument to the borrower or person to whom the credit was extended upon redemption of the instrument; and (B) Registrants may collect not more than one (1) bad check charge on any one (1) check or electronic debit authorization; (8) In the case of a residential mortgage loan, a registrant may, from the service charge imposed under subdivision (a)(1)(A), pay a mortgage broker, licensed or otherwise exempt from licensing under the Residential Lending Brokerage and Servicing Act, compiled in chapter 13 of this title, a fee for the services actually rendered by the mortgage broker with respect to a specific transaction; provided, however, that the aggregate fee paid to a mortgage broker may not exceed the five percent (5%), which may be imposed under subdivision (a)(1)(A); and (9) (A) Registrants may also impose and collect a convenience fee from any borrower making payment by credit card, debit card, electronic funds transfer, electronic check, or other electronic means in order to offset actual costs incurred by a registrant for accepting and processing payments made by electronic means; (B) (i) Any convenience fee collected by a registrant pursuant to this subdivision (a)(9) may not exceed the actual costs incurred by the registrant; provided, however, a registrant may impose a convenience fee in lieu of the actual cost of the individual payment type that does not exceed the average of the actual cost incurred for the various types of electronic payments for which the registrant imposes a convenience fee; (ii) Any registrant charging a convenience fee pursuant to this subdivision (a)(9) shall notify the customer of the amount of the fee prior to completing a transaction, provide an opportunity for the customer to cancel the transaction without incurring a fee, and make available the option to make a payment on a loan by check, cash, or money order directly to the registrant without the imposition of a convenience fee for a card payment or electronic payment; (iii) When a borrower elects to make a payment to the registrant by credit card, debit card, electronic funds transfer, electronic check, or other electronic means and a convenience fee is imposed and collected pursuant to this subdivision (a)(9), the payment of the convenience fee shall not be refundable; (iv) The convenience fee may be charged in addition to all other interest and fees allowed by law; (v) For purposes of this subdivision (a)(9)(B), "actual costs" means actual third party costs incurred for the processing of payments made by electronic means. If a registrant is a subsidiary of an entity that processes payments made by electronic means, then the parent entity shall be considered a third party; (vi) A registrant shall not charge a convenience fee on any debit card or prepaid card transaction if the payment card network on which the transaction is initiated or processed prohibits such convenience fee by contract, rule or policy.
(1) (A) Registrants may charge a service charge in an amount equal to five percent (5%) of the total amount of the loan, which charge may be deducted in advance from the principal of the loan. This service charge shall be in lieu of all other compensation for services, expenses, detriments or commitments directly incident to the loan, except those charges that are otherwise specifically provided in this chapter. This charge is authorized and limited on the basis that it is generally reasonably related to the total costs and expenses that it is designed to cover, and in order to make the amount of the charges more certain and readily ascertainable by the registrants, their borrowers and the commissioner; and to that end, registrants shall not be required to maintain detailed records with respect to the services, expenses, detriments or commitments covered by the charges. This charge shall not, however, be imposed on that portion of a loan used to pay any existing loan or part thereof owing by the same borrower or spouse, or both, to the same registrant or any affiliated lender; (B) In the case of open-end credit plans or in the case of loans secured by real property, in lieu of the five-percent service charge provided in subdivision (a)(1)(A), registrants may charge borrowers with the actual, bona fide, reasonable expenses, directly incident to the loan, paid or to be paid by the registrant to third parties, including, but not limited to, expenses for title examination or title insurance, surveys, preparation of necessary documents, credit reports and appraisals;
(A) Registrants may charge a service charge in an amount equal to five percent (5%) of the total amount of the loan, which charge may be deducted in advance from the principal of the loan. This service charge shall be in lieu of all other compensation for services, expenses, detriments or commitments directly incident to the loan, except those charges that are otherwise specifically provided in this chapter. This charge is authorized and limited on the basis that it is generally reasonably related to the total costs and expenses that it is designed to cover, and in order to make the amount of the charges more certain and readily ascertainable by the registrants, their borrowers and the commissioner; and to that end, registrants shall not be required to maintain detailed records with respect to the services, expenses, detriments or commitments covered by the charges. This charge shall not, however, be imposed on that portion of a loan used to pay any existing loan or part thereof owing by the same borrower or spouse, or both, to the same registrant or any affiliated lender;
(B) In the case of open-end credit plans or in the case of loans secured by real property, in lieu of the five-percent service charge provided in subdivision (a)(1)(A), registrants may charge borrowers with the actual, bona fide, reasonable expenses, directly incident to the loan, paid or to be paid by the registrant to third parties, including, but not limited to, expenses for title examination or title insurance, surveys, preparation of necessary documents, credit reports and appraisals;
(2) In lieu of the five-percent service charge provided in subdivision (a)(1)(A), and for the same purposes, registrants may charge: (A) A flat service charge of two dollars ($2.00) on all loans that do not exceed twenty dollars ($20.00), and charge a flat service charge in addition thereto of fifty cents (50¢) per each five-dollar increase on all loans in excess of twenty dollars ($20.00) but that do not exceed one hundred dollars ($100), and to charge a flat service charge of ten dollars ($10.00) on all loans of more than one hundred dollars ($100); provided, that no lender may charge the flat service charge on multiple loans existing at the same time to any one (1) borrower; (B) In the event the borrower shall repay the loan in full within three (3) business days following the date of the loan, then all charges of every kind shall be refunded in cash; provided, that in the event a loan on which a flat service charge has been made shall be renewed, rescheduled or refinanced within forty-five (45) days of the date of the making of the loan, the flat service charge in connection with any new moneys advanced shall not exceed one-half (½) of the flat service charge that would be applicable thereto; and (C) It being the intent of the general assembly that the flat service charges permitted hereunder shall never be imposed on any portion of any loan used to pay any existing loan, or part thereof, owing by the same borrower or spouse or both to the same registrant or any affiliated lender;
(A) A flat service charge of two dollars ($2.00) on all loans that do not exceed twenty dollars ($20.00), and charge a flat service charge in addition thereto of fifty cents (50¢) per each five-dollar increase on all loans in excess of twenty dollars ($20.00) but that do not exceed one hundred dollars ($100), and to charge a flat service charge of ten dollars ($10.00) on all loans of more than one hundred dollars ($100); provided, that no lender may charge the flat service charge on multiple loans existing at the same time to any one (1) borrower;
(B) In the event the borrower shall repay the loan in full within three (3) business days following the date of the loan, then all charges of every kind shall be refunded in cash; provided, that in the event a loan on which a flat service charge has been made shall be renewed, rescheduled or refinanced within forty-five (45) days of the date of the making of the loan, the flat service charge in connection with any new moneys advanced shall not exceed one-half (½) of the flat service charge that would be applicable thereto; and
(C) It being the intent of the general assembly that the flat service charges permitted hereunder shall never be imposed on any portion of any loan used to pay any existing loan, or part thereof, owing by the same borrower or spouse or both to the same registrant or any affiliated lender;
(3) Registrants may also charge the borrower with any fees or taxes paid, or to be paid, any public official for filing, recording or releasing any document relating to the loan. In lieu of charging the borrower with any fees for filing or recording any document relating to the loan, registrants may charge the borrower with any premiums payable for insurance in lieu of filing or recording the document; provided, that the premium shall not exceed the current fee for filing or recording the document. Moreover, the sum shall not be charged more than one (1) time during any twelve-month period;
(4) Registrants may also charge a handling or delinquent charge of five cents (5¢) for each default in the payment of each one dollar ($1.00), or fraction thereof, or fifteen dollars ($15.00), whichever is greater, at the time any payment on any loan made hereunder becomes past due for a period of five (5) or more days; provided, that the charge shall not be collected more than once for the same default;
(5) (A) Registrants may also charge an installment maintenance fee of five dollars ($5.00) per month; (B) The fee may be charged for a period not to exceed the original term of the loan; provided, that the loan is made for a period of ninety (90) days or more; and provided further, that the monthly installment payments are at least fifteen dollars ($15.00) per month. No registrant may charge the installment maintenance fee on multiple loans existing at the same time to any one (1) borrower. The installment maintenance fees shall not be deducted in advance. Registrants may, however, include the maximum maintenance fee for the term of the loan in the face amount of the note evidencing that loan; provided, that neither interest, loan charges, delinquent charges nor insurance charges are computed on the amount; and provided further, that any installment maintenance fee due more than one (1) month following payment in full of the note shall be credited to the note;
(A) Registrants may also charge an installment maintenance fee of five dollars ($5.00) per month;
(B) The fee may be charged for a period not to exceed the original term of the loan; provided, that the loan is made for a period of ninety (90) days or more; and provided further, that the monthly installment payments are at least fifteen dollars ($15.00) per month. No registrant may charge the installment maintenance fee on multiple loans existing at the same time to any one (1) borrower. The installment maintenance fees shall not be deducted in advance. Registrants may, however, include the maximum maintenance fee for the term of the loan in the face amount of the note evidencing that loan; provided, that neither interest, loan charges, delinquent charges nor insurance charges are computed on the amount; and provided further, that any installment maintenance fee due more than one (1) month following payment in full of the note shall be credited to the note;
(6) Registrants may also require the payment by the borrower of any reasonable and actual attorneys' fees and other costs incurred in the collection or enforcement of any loan contract;
(7) Registrants may also charge and collect from the borrower, through regular billing procedure or otherwise, a bad check charge as provided in § 47-29-102 for any check, draft, electronic funds transfer, electronic check, card payment, or any other electronic payment, negotiable order of withdrawal or like instrument drawn on a bank or other depository institution given by any person in full or partial repayment of a loan or other extension of credit if the instrument is not paid or dishonored by the institution; provided, that: (A) Registrants may redeposit the instrument with the institution or return the dishonored instrument to the borrower or person to whom the credit was extended upon redemption of the instrument; and (B) Registrants may collect not more than one (1) bad check charge on any one (1) check or electronic debit authorization;
(A) Registrants may redeposit the instrument with the institution or return the dishonored instrument to the borrower or person to whom the credit was extended upon redemption of the instrument; and
(B) Registrants may collect not more than one (1) bad check charge on any one (1) check or electronic debit authorization;
(8) In the case of a residential mortgage loan, a registrant may, from the service charge imposed under subdivision (a)(1)(A), pay a mortgage broker, licensed or otherwise exempt from licensing under the Residential Lending Brokerage and Servicing Act, compiled in chapter 13 of this title, a fee for the services actually rendered by the mortgage broker with respect to a specific transaction; provided, however, that the aggregate fee paid to a mortgage broker may not exceed the five percent (5%), which may be imposed under subdivision (a)(1)(A); and
(9) (A) Registrants may also impose and collect a convenience fee from any borrower making payment by credit card, debit card, electronic funds transfer, electronic check, or other electronic means in order to offset actual costs incurred by a registrant for accepting and processing payments made by electronic means; (B) (i) Any convenience fee collected by a registrant pursuant to this subdivision (a)(9) may not exceed the actual costs incurred by the registrant; provided, however, a registrant may impose a convenience fee in lieu of the actual cost of the individual payment type that does not exceed the average of the actual cost incurred for the various types of electronic payments for which the registrant imposes a convenience fee; (ii) Any registrant charging a convenience fee pursuant to this subdivision (a)(9) shall notify the customer of the amount of the fee prior to completing a transaction, provide an opportunity for the customer to cancel the transaction without incurring a fee, and make available the option to make a payment on a loan by check, cash, or money order directly to the registrant without the imposition of a convenience fee for a card payment or electronic payment; (iii) When a borrower elects to make a payment to the registrant by credit card, debit card, electronic funds transfer, electronic check, or other electronic means and a convenience fee is imposed and collected pursuant to this subdivision (a)(9), the payment of the convenience fee shall not be refundable; (iv) The convenience fee may be charged in addition to all other interest and fees allowed by law; (v) For purposes of this subdivision (a)(9)(B), "actual costs" means actual third party costs incurred for the processing of payments made by electronic means. If a registrant is a subsidiary of an entity that processes payments made by electronic means, then the parent entity shall be considered a third party; (vi) A registrant shall not charge a convenience fee on any debit card or prepaid card transaction if the payment card network on which the transaction is initiated or processed prohibits such convenience fee by contract, rule or policy.
(A) Registrants may also impose and collect a convenience fee from any borrower making payment by credit card, debit card, electronic funds transfer, electronic check, or other electronic means in order to offset actual costs incurred by a registrant for accepting and processing payments made by electronic means;
(B) (i) Any convenience fee collected by a registrant pursuant to this subdivision (a)(9) may not exceed the actual costs incurred by the registrant; provided, however, a registrant may impose a convenience fee in lieu of the actual cost of the individual payment type that does not exceed the average of the actual cost incurred for the various types of electronic payments for which the registrant imposes a convenience fee; (ii) Any registrant charging a convenience fee pursuant to this subdivision (a)(9) shall notify the customer of the amount of the fee prior to completing a transaction, provide an opportunity for the customer to cancel the transaction without incurring a fee, and make available the option to make a payment on a loan by check, cash, or money order directly to the registrant without the imposition of a convenience fee for a card payment or electronic payment; (iii) When a borrower elects to make a payment to the registrant by credit card, debit card, electronic funds transfer, electronic check, or other electronic means and a convenience fee is imposed and collected pursuant to this subdivision (a)(9), the payment of the convenience fee shall not be refundable; (iv) The convenience fee may be charged in addition to all other interest and fees allowed by law; (v) For purposes of this subdivision (a)(9)(B), "actual costs" means actual third party costs incurred for the processing of payments made by electronic means. If a registrant is a subsidiary of an entity that processes payments made by electronic means, then the parent entity shall be considered a third party; (vi) A registrant shall not charge a convenience fee on any debit card or prepaid card transaction if the payment card network on which the transaction is initiated or processed prohibits such convenience fee by contract, rule or policy.
(i) Any convenience fee collected by a registrant pursuant to this subdivision (a)(9) may not exceed the actual costs incurred by the registrant; provided, however, a registrant may impose a convenience fee in lieu of the actual cost of the individual payment type that does not exceed the average of the actual cost incurred for the various types of electronic payments for which the registrant imposes a convenience fee;
(ii) Any registrant charging a convenience fee pursuant to this subdivision (a)(9) shall notify the customer of the amount of the fee prior to completing a transaction, provide an opportunity for the customer to cancel the transaction without incurring a fee, and make available the option to make a payment on a loan by check, cash, or money order directly to the registrant without the imposition of a convenience fee for a card payment or electronic payment;
(iii) When a borrower elects to make a payment to the registrant by credit card, debit card, electronic funds transfer, electronic check, or other electronic means and a convenience fee is imposed and collected pursuant to this subdivision (a)(9), the payment of the convenience fee shall not be refundable;
(iv) The convenience fee may be charged in addition to all other interest and fees allowed by law;
(v) For purposes of this subdivision (a)(9)(B), "actual costs" means actual third party costs incurred for the processing of payments made by electronic means. If a registrant is a subsidiary of an entity that processes payments made by electronic means, then the parent entity shall be considered a third party;
(vi) A registrant shall not charge a convenience fee on any debit card or prepaid card transaction if the payment card network on which the transaction is initiated or processed prohibits such convenience fee by contract, rule or policy.
(b) (1) As an alternative to the loan charges permitted under subsection (a) and interest permitted under § 45-5-301 , a registrant may charge loan charges in amounts no greater than the following: (A) On any loan of an amount of one hundred dollars ($100) or more up to and including the amount of three hundred dollars ($300), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition thereto, an installment account handling charge shall be allowed not to exceed twelve dollars ($12.00) per month; (B) On any loan of an amount in excess of three hundred dollars ($300) but not more than four hundred dollars ($400), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition thereto, an installment account handling charge shall be allowed not to exceed fourteen dollars ($14.00) per month; (C) On any loan of an amount in excess of four hundred dollars ($400) but not more than five hundred dollars ($500), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition thereto, an installment account handling charge shall be allowed not to exceed sixteen dollars ($16.00) per month; (D) On any loan of an amount in excess of five hundred dollars ($500) but not more than one thousand dollars ($1,000), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition thereto, an installment account handling charge shall be allowed not to exceed twenty dollars ($20.00) per month; (E) On any loan of an amount in excess of one thousand dollars ($1,000) but not more than one thousand two hundred fifty dollars ($1,250), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition, an installment account handling charge shall be allowed. The handling charge shall not exceed twenty-three dollars ($23.00) per month; (F) On any loan of an amount in excess of one thousand two hundred fifty dollars ($1,250) but not more than one thousand five hundred dollars ($1,500), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition, an installment account handling charge shall be allowed. The handling charge shall not exceed twenty-six dollars ($26.00) per month; (G) On any loan of an amount in excess of one thousand five hundred dollars ($1,500) but not more than one thousand seven hundred fifty dollars ($1,750), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition, an installment account handling charge shall be allowed. The handling charge shall not exceed twenty-nine dollars ($29.00) per month; or (H) On any loan of an amount in excess of one thousand seven hundred fifty dollars ($1,750) but not more than two thousand dollars ($2,000), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition, an installment account handling charge shall be allowed. The handling charge shall not exceed thirty-two dollars ($32.00) per month. (2) The minimum term of any loan made under this subsection (b) is three (3) months. The maximum term of any loan made under this subsection (b) is twenty-five (25) months. (3) On the prepayment of any loan under this subsection (b), the installment account handling charges are subject to § 45-5-402 as it relates to refunds; provided, for the purpose of calculating the rebate due, the term of the loan begins on the date the loan is made. (4) On any loan established under this subsection (b), no insurance charge or any other charge of any nature whatsoever is permitted except as provided in this subsection (b) and except for the delinquent charge under subdivision (a)(4), the reasonable attorney fee and costs charge under subdivision (a)(6) and the bad check charge under subdivision (a)(7) and a convenience fee under subdivision (a)(9). (5) In a civil action, a finding by the court that a registrant has violated this subsection (b) gives rise to a rebuttable presumption that the violation constitutes unconscionable conduct under § 47-14-117(c) , and the registrant is subject to the remedies under that section. (6) The loan charges allowed under this subsection (b) may not be imposed on a loan to a borrower who has one (1) or more loans outstanding with the same registrant or an affiliated lender and upon which loan charges were imposed under subsection (a). (7) (A) In addition to any other charges permitted for the making of a loan under this part, a registrant may collect a closing fee at the time of the making of the loan for the purpose of preparing and executing the documents for, and verifying compliance with, the federal Truth in Lending Act ( 15 U.S.C. § 1601 et seq.), this section, and all other applicable statutes. The closing fee may be for an amount up to four percent (4%) of the amount financed but must not be more than fifty dollars ($50.00). The closing fee may be paid from the proceeds of the amount borrowed or added to the amount financed. (B) If a loan, upon which a closing fee has been charged, is prepaid in full by any means within ninety (90) days of the date of the loan, then the registrant must refund or credit the borrower with a pro rata portion of the closing fee. However, the registrant may retain up to twenty-five dollars ($25.00) of the closing fee regardless of when the loan is prepaid.
(1) As an alternative to the loan charges permitted under subsection (a) and interest permitted under § 45-5-301 , a registrant may charge loan charges in amounts no greater than the following: (A) On any loan of an amount of one hundred dollars ($100) or more up to and including the amount of three hundred dollars ($300), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition thereto, an installment account handling charge shall be allowed not to exceed twelve dollars ($12.00) per month; (B) On any loan of an amount in excess of three hundred dollars ($300) but not more than four hundred dollars ($400), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition thereto, an installment account handling charge shall be allowed not to exceed fourteen dollars ($14.00) per month; (C) On any loan of an amount in excess of four hundred dollars ($400) but not more than five hundred dollars ($500), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition thereto, an installment account handling charge shall be allowed not to exceed sixteen dollars ($16.00) per month; (D) On any loan of an amount in excess of five hundred dollars ($500) but not more than one thousand dollars ($1,000), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition thereto, an installment account handling charge shall be allowed not to exceed twenty dollars ($20.00) per month; (E) On any loan of an amount in excess of one thousand dollars ($1,000) but not more than one thousand two hundred fifty dollars ($1,250), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition, an installment account handling charge shall be allowed. The handling charge shall not exceed twenty-three dollars ($23.00) per month; (F) On any loan of an amount in excess of one thousand two hundred fifty dollars ($1,250) but not more than one thousand five hundred dollars ($1,500), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition, an installment account handling charge shall be allowed. The handling charge shall not exceed twenty-six dollars ($26.00) per month; (G) On any loan of an amount in excess of one thousand five hundred dollars ($1,500) but not more than one thousand seven hundred fifty dollars ($1,750), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition, an installment account handling charge shall be allowed. The handling charge shall not exceed twenty-nine dollars ($29.00) per month; or (H) On any loan of an amount in excess of one thousand seven hundred fifty dollars ($1,750) but not more than two thousand dollars ($2,000), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition, an installment account handling charge shall be allowed. The handling charge shall not exceed thirty-two dollars ($32.00) per month.
(A) On any loan of an amount of one hundred dollars ($100) or more up to and including the amount of three hundred dollars ($300), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition thereto, an installment account handling charge shall be allowed not to exceed twelve dollars ($12.00) per month;
(B) On any loan of an amount in excess of three hundred dollars ($300) but not more than four hundred dollars ($400), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition thereto, an installment account handling charge shall be allowed not to exceed fourteen dollars ($14.00) per month;
(C) On any loan of an amount in excess of four hundred dollars ($400) but not more than five hundred dollars ($500), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition thereto, an installment account handling charge shall be allowed not to exceed sixteen dollars ($16.00) per month;
(D) On any loan of an amount in excess of five hundred dollars ($500) but not more than one thousand dollars ($1,000), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition thereto, an installment account handling charge shall be allowed not to exceed twenty dollars ($20.00) per month;
(E) On any loan of an amount in excess of one thousand dollars ($1,000) but not more than one thousand two hundred fifty dollars ($1,250), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition, an installment account handling charge shall be allowed. The handling charge shall not exceed twenty-three dollars ($23.00) per month;
(F) On any loan of an amount in excess of one thousand two hundred fifty dollars ($1,250) but not more than one thousand five hundred dollars ($1,500), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition, an installment account handling charge shall be allowed. The handling charge shall not exceed twenty-six dollars ($26.00) per month;
(G) On any loan of an amount in excess of one thousand five hundred dollars ($1,500) but not more than one thousand seven hundred fifty dollars ($1,750), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition, an installment account handling charge shall be allowed. The handling charge shall not exceed twenty-nine dollars ($29.00) per month; or
(H) On any loan of an amount in excess of one thousand seven hundred fifty dollars ($1,750) but not more than two thousand dollars ($2,000), there shall be allowed an acquisition charge for making the loan not in excess of ten percent (10%) of the amount of the principal. In addition, an installment account handling charge shall be allowed. The handling charge shall not exceed thirty-two dollars ($32.00) per month.
(2) The minimum term of any loan made under this subsection (b) is three (3) months. The maximum term of any loan made under this subsection (b) is twenty-five (25) months.
(3) On the prepayment of any loan under this subsection (b), the installment account handling charges are subject to § 45-5-402 as it relates to refunds; provided, for the purpose of calculating the rebate due, the term of the loan begins on the date the loan is made.
(4) On any loan established under this subsection (b), no insurance charge or any other charge of any nature whatsoever is permitted except as provided in this subsection (b) and except for the delinquent charge under subdivision (a)(4), the reasonable attorney fee and costs charge under subdivision (a)(6) and the bad check charge under subdivision (a)(7) and a convenience fee under subdivision (a)(9).
(5) In a civil action, a finding by the court that a registrant has violated this subsection (b) gives rise to a rebuttable presumption that the violation constitutes unconscionable conduct under § 47-14-117(c) , and the registrant is subject to the remedies under that section.
(6) The loan charges allowed under this subsection (b) may not be imposed on a loan to a borrower who has one (1) or more loans outstanding with the same registrant or an affiliated lender and upon which loan charges were imposed under subsection (a).
(7) (A) In addition to any other charges permitted for the making of a loan under this part, a registrant may collect a closing fee at the time of the making of the loan for the purpose of preparing and executing the documents for, and verifying compliance with, the federal Truth in Lending Act ( 15 U.S.C. § 1601 et seq.), this section, and all other applicable statutes. The closing fee may be for an amount up to four percent (4%) of the amount financed but must not be more than fifty dollars ($50.00). The closing fee may be paid from the proceeds of the amount borrowed or added to the amount financed. (B) If a loan, upon which a closing fee has been charged, is prepaid in full by any means within ninety (90) days of the date of the loan, then the registrant must refund or credit the borrower with a pro rata portion of the closing fee. However, the registrant may retain up to twenty-five dollars ($25.00) of the closing fee regardless of when the loan is prepaid.
(A) In addition to any other charges permitted for the making of a loan under this part, a registrant may collect a closing fee at the time of the making of the loan for the purpose of preparing and executing the documents for, and verifying compliance with, the federal Truth in Lending Act ( 15 U.S.C. § 1601 et seq.), this section, and all other applicable statutes. The closing fee may be for an amount up to four percent (4%) of the amount financed but must not be more than fifty dollars ($50.00). The closing fee may be paid from the proceeds of the amount borrowed or added to the amount financed.
(B) If a loan, upon which a closing fee has been charged, is prepaid in full by any means within ninety (90) days of the date of the loan, then the registrant must refund or credit the borrower with a pro rata portion of the closing fee. However, the registrant may retain up to twenty-five dollars ($25.00) of the closing fee regardless of when the loan is prepaid.
Amended by 2021 Tenn. Acts, ch. 91, Secs.s 2, s 3, s 4, s 5, s 6 eff. 7/1/2021.
Amended by 2021 Tenn. Acts, ch. 91, s 1, eff. 7/1/2021.
Amended by 2014 Tenn. Acts, ch. 616, Secs.s 2, s 3, s 4 eff. 7/1/2014.
Amended by 2014 Tenn. Acts, ch. 616, s 1, eff. 7/1/2014.
Acts 1979, ch. 204, § 11; T.C.A., § 45-2011; Acts 1983, ch. 164, § 4; 1986, ch. 576, § 2, 3; 1987, ch. 124, § 2; 1988, ch. 621, § 1; 1989, ch. 265, § 1; 1990, ch. 685, § 1; 1996, ch. 607, §§ 1-4; 1998, ch. 576, § 1; 1999, ch. 172, § 3; 2000, ch. 684, § 1; 2001, ch. 165, § 8; 2006, ch. 563, § 1; 2009 , ch. 499, § 7; 2012 , ch. 534, §§ 1-5.