Tenn. Code Ann. § 45-13-201 — TN Code / Title 45 / Chapter 13 / Section 45-13-201
License required - Exceptions
Status: in_force

(a) No person shall act as a mortgage lender, mortgage loan broker or mortgage loan servicer in this state without first obtaining a license under this chapter. Except in the case of sale of real property as provided in subsection (b), no contractor or home improvement contractor or other person who supplies materials and renders services in the improvement of real property shall engage in the business of making residential mortgage loans or of being a mortgage loan servicer or mortgage loan broker in this state. (b) (1) The requirement of a license under subsection (a) and this chapter do not apply to any of the following, except as provided in subdivision (b)(2): (A) Any depository institution; (B) Any subsidiary of a depository institution that is owned and controlled by the depository institution and regulated by a federal banking agency; (C) Any institution regulated by the farm credit administration; (D) Any individual who makes a residential mortgage loan to, or offers or negotiates terms of a residential mortgage loan with or on behalf of, an immediate family member of the individual; (E) An individual who makes a residential mortgage loan, or simply offers or negotiates terms of a residential mortgage loan, when the loan is secured by a dwelling that served as the individual's residence; (F) A licensed attorney performing activities that do not require licensure under the guidelines set forth in 12 CFR part 1008, appendix D; (G) (i) Any person, or person under the control of another person who, as seller, receives or makes in any consecutive twelve-month period five (5) or fewer residential mortgage loans and who does not hold themselves out to the public as being in the residential mortgage lending business; (ii) No person shall be exempt from subsection (a) and this chapter pursuant to this subdivision (b)(1)(G) if such person makes more than five (5) residential mortgage loans in a consecutive twelve-month period whether such person makes such loans themselves or through another person over whom such person has control; (H) Any person, or person under the control of a person, who makes a mortgage loan to an employee of such person as an employment benefit, employment incentive, or relocation package; (I) Any person, or person under the control of a person, doing any act related to mortgage loans pursuant to an order of a court of competent jurisdiction; (J) A person that performs only real estate brokerage activities, as defined in § 45-13-105 , and is licensed pursuant to the Tennessee Real Estate Broker License Act of 1973, compiled in title 62, chapter 13. Such person is permitted to communicate and include in any contract any mortgage terms agreed upon by the parties for the real property being financed without being required to be licensed under this chapter, so long as the communication does not include the offering or negotiating of any terms of a residential mortgage loan; and (K) A person that performs land title insurance services in connection with a closing of a sale transaction and is licensed pursuant to title 56, chapter 6 and the rules of the department of commerce and insurance compiled at chapter 0780-1-56. Such person is permitted to communicate and include in any closing documents any mortgage terms agreed upon by the parties for the real property being financed without being required to be licensed under this chapter, so long as the communication does not include the offering or negotiating of any terms of a residential mortgage loan. (2) This subsection (b) does not exempt a person from licensure as a mortgage loan originator if the United States department of housing and urban development or its duly designated successor has expressly determined that the person is subject to licensure as a mortgage loan originator as the term is defined in the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 ( 12 U.S.C. § 5101 et seq.). (c) The requirement of a license to act as a mortgage lender under subsection (a) and the requirements of this chapter pertaining to mortgage lenders, unless otherwise stated, do not apply to any registrant making residential mortgage loans that is authorized to do so under the Industrial Loan and Thrift Companies Act, compiled in chapter 5 of this title; provided, however, that all mortgage loan originators of the registrant must be licensed under part 3 of this chapter. (d) The commissioner shall be authorized to exempt in whole or in part from the requirements of this chapter additional entities or classes of entities, not including individuals, that the commissioner finds inappropriate to include to effectuate the purposes of this chapter, so long as the exemption is compliant with and does not impede the purposes of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 ( 12 U.S.C. § 5101 et seq.). (e) Upon approval or consent by the United States department of housing and urban development, the commissioner shall be authorized to exempt in whole or in part from this chapter additional individuals or classes of individuals, such as those working for bona fide nonprofit corporations and government agencies, that the commissioner finds inappropriate to include to effectuate the purposes of this chapter. Amended by 2013 Tenn. Acts, ch. 104, Secs.s 1, s 2, s 3, s 4 eff. 4/11/2013. Acts 2009 , ch. 499, § 8; 2011 , ch. 228, § 1.
(a) No person shall act as a mortgage lender, mortgage loan broker or mortgage loan servicer in this state without first obtaining a license under this chapter. Except in the case of sale of real property as provided in subsection (b), no contractor or home improvement contractor or other person who supplies materials and renders services in the improvement of real property shall engage in the business of making residential mortgage loans or of being a mortgage loan servicer or mortgage loan broker in this state.
(b) (1) The requirement of a license under subsection (a) and this chapter do not apply to any of the following, except as provided in subdivision (b)(2): (A) Any depository institution; (B) Any subsidiary of a depository institution that is owned and controlled by the depository institution and regulated by a federal banking agency; (C) Any institution regulated by the farm credit administration; (D) Any individual who makes a residential mortgage loan to, or offers or negotiates terms of a residential mortgage loan with or on behalf of, an immediate family member of the individual; (E) An individual who makes a residential mortgage loan, or simply offers or negotiates terms of a residential mortgage loan, when the loan is secured by a dwelling that served as the individual's residence; (F) A licensed attorney performing activities that do not require licensure under the guidelines set forth in 12 CFR part 1008, appendix D; (G) (i) Any person, or person under the control of another person who, as seller, receives or makes in any consecutive twelve-month period five (5) or fewer residential mortgage loans and who does not hold themselves out to the public as being in the residential mortgage lending business; (ii) No person shall be exempt from subsection (a) and this chapter pursuant to this subdivision (b)(1)(G) if such person makes more than five (5) residential mortgage loans in a consecutive twelve-month period whether such person makes such loans themselves or through another person over whom such person has control; (H) Any person, or person under the control of a person, who makes a mortgage loan to an employee of such person as an employment benefit, employment incentive, or relocation package; (I) Any person, or person under the control of a person, doing any act related to mortgage loans pursuant to an order of a court of competent jurisdiction; (J) A person that performs only real estate brokerage activities, as defined in § 45-13-105 , and is licensed pursuant to the Tennessee Real Estate Broker License Act of 1973, compiled in title 62, chapter 13. Such person is permitted to communicate and include in any contract any mortgage terms agreed upon by the parties for the real property being financed without being required to be licensed under this chapter, so long as the communication does not include the offering or negotiating of any terms of a residential mortgage loan; and (K) A person that performs land title insurance services in connection with a closing of a sale transaction and is licensed pursuant to title 56, chapter 6 and the rules of the department of commerce and insurance compiled at chapter 0780-1-56. Such person is permitted to communicate and include in any closing documents any mortgage terms agreed upon by the parties for the real property being financed without being required to be licensed under this chapter, so long as the communication does not include the offering or negotiating of any terms of a residential mortgage loan. (2) This subsection (b) does not exempt a person from licensure as a mortgage loan originator if the United States department of housing and urban development or its duly designated successor has expressly determined that the person is subject to licensure as a mortgage loan originator as the term is defined in the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 ( 12 U.S.C. § 5101 et seq.).
(1) The requirement of a license under subsection (a) and this chapter do not apply to any of the following, except as provided in subdivision (b)(2): (A) Any depository institution; (B) Any subsidiary of a depository institution that is owned and controlled by the depository institution and regulated by a federal banking agency; (C) Any institution regulated by the farm credit administration; (D) Any individual who makes a residential mortgage loan to, or offers or negotiates terms of a residential mortgage loan with or on behalf of, an immediate family member of the individual; (E) An individual who makes a residential mortgage loan, or simply offers or negotiates terms of a residential mortgage loan, when the loan is secured by a dwelling that served as the individual's residence; (F) A licensed attorney performing activities that do not require licensure under the guidelines set forth in 12 CFR part 1008, appendix D; (G) (i) Any person, or person under the control of another person who, as seller, receives or makes in any consecutive twelve-month period five (5) or fewer residential mortgage loans and who does not hold themselves out to the public as being in the residential mortgage lending business; (ii) No person shall be exempt from subsection (a) and this chapter pursuant to this subdivision (b)(1)(G) if such person makes more than five (5) residential mortgage loans in a consecutive twelve-month period whether such person makes such loans themselves or through another person over whom such person has control; (H) Any person, or person under the control of a person, who makes a mortgage loan to an employee of such person as an employment benefit, employment incentive, or relocation package; (I) Any person, or person under the control of a person, doing any act related to mortgage loans pursuant to an order of a court of competent jurisdiction; (J) A person that performs only real estate brokerage activities, as defined in § 45-13-105 , and is licensed pursuant to the Tennessee Real Estate Broker License Act of 1973, compiled in title 62, chapter 13. Such person is permitted to communicate and include in any contract any mortgage terms agreed upon by the parties for the real property being financed without being required to be licensed under this chapter, so long as the communication does not include the offering or negotiating of any terms of a residential mortgage loan; and (K) A person that performs land title insurance services in connection with a closing of a sale transaction and is licensed pursuant to title 56, chapter 6 and the rules of the department of commerce and insurance compiled at chapter 0780-1-56. Such person is permitted to communicate and include in any closing documents any mortgage terms agreed upon by the parties for the real property being financed without being required to be licensed under this chapter, so long as the communication does not include the offering or negotiating of any terms of a residential mortgage loan.
(A) Any depository institution;
(B) Any subsidiary of a depository institution that is owned and controlled by the depository institution and regulated by a federal banking agency;
(C) Any institution regulated by the farm credit administration;
(D) Any individual who makes a residential mortgage loan to, or offers or negotiates terms of a residential mortgage loan with or on behalf of, an immediate family member of the individual;
(E) An individual who makes a residential mortgage loan, or simply offers or negotiates terms of a residential mortgage loan, when the loan is secured by a dwelling that served as the individual's residence;
(F) A licensed attorney performing activities that do not require licensure under the guidelines set forth in 12 CFR part 1008, appendix D;
(G) (i) Any person, or person under the control of another person who, as seller, receives or makes in any consecutive twelve-month period five (5) or fewer residential mortgage loans and who does not hold themselves out to the public as being in the residential mortgage lending business; (ii) No person shall be exempt from subsection (a) and this chapter pursuant to this subdivision (b)(1)(G) if such person makes more than five (5) residential mortgage loans in a consecutive twelve-month period whether such person makes such loans themselves or through another person over whom such person has control;
(i) Any person, or person under the control of another person who, as seller, receives or makes in any consecutive twelve-month period five (5) or fewer residential mortgage loans and who does not hold themselves out to the public as being in the residential mortgage lending business;
(ii) No person shall be exempt from subsection (a) and this chapter pursuant to this subdivision (b)(1)(G) if such person makes more than five (5) residential mortgage loans in a consecutive twelve-month period whether such person makes such loans themselves or through another person over whom such person has control;
(H) Any person, or person under the control of a person, who makes a mortgage loan to an employee of such person as an employment benefit, employment incentive, or relocation package;
(I) Any person, or person under the control of a person, doing any act related to mortgage loans pursuant to an order of a court of competent jurisdiction;
(J) A person that performs only real estate brokerage activities, as defined in § 45-13-105 , and is licensed pursuant to the Tennessee Real Estate Broker License Act of 1973, compiled in title 62, chapter 13. Such person is permitted to communicate and include in any contract any mortgage terms agreed upon by the parties for the real property being financed without being required to be licensed under this chapter, so long as the communication does not include the offering or negotiating of any terms of a residential mortgage loan; and
(K) A person that performs land title insurance services in connection with a closing of a sale transaction and is licensed pursuant to title 56, chapter 6 and the rules of the department of commerce and insurance compiled at chapter 0780-1-56. Such person is permitted to communicate and include in any closing documents any mortgage terms agreed upon by the parties for the real property being financed without being required to be licensed under this chapter, so long as the communication does not include the offering or negotiating of any terms of a residential mortgage loan.
(2) This subsection (b) does not exempt a person from licensure as a mortgage loan originator if the United States department of housing and urban development or its duly designated successor has expressly determined that the person is subject to licensure as a mortgage loan originator as the term is defined in the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 ( 12 U.S.C. § 5101 et seq.).
(c) The requirement of a license to act as a mortgage lender under subsection (a) and the requirements of this chapter pertaining to mortgage lenders, unless otherwise stated, do not apply to any registrant making residential mortgage loans that is authorized to do so under the Industrial Loan and Thrift Companies Act, compiled in chapter 5 of this title; provided, however, that all mortgage loan originators of the registrant must be licensed under part 3 of this chapter.
(d) The commissioner shall be authorized to exempt in whole or in part from the requirements of this chapter additional entities or classes of entities, not including individuals, that the commissioner finds inappropriate to include to effectuate the purposes of this chapter, so long as the exemption is compliant with and does not impede the purposes of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 ( 12 U.S.C. § 5101 et seq.).
(e) Upon approval or consent by the United States department of housing and urban development, the commissioner shall be authorized to exempt in whole or in part from this chapter additional individuals or classes of individuals, such as those working for bona fide nonprofit corporations and government agencies, that the commissioner finds inappropriate to include to effectuate the purposes of this chapter.
Amended by 2013 Tenn. Acts, ch. 104, Secs.s 1, s 2, s 3, s 4 eff. 4/11/2013.
Acts 2009 , ch. 499, § 8; 2011 , ch. 228, § 1.
Tenn. Code Ann. § 45-4-604 — TN Code / Title 45 / Chapter 4 / Section 45-4-604
Priority of loans
Status: in_force

(a) The funds of credit unions shall be used first for loans to members. (b) Funds of credit unions not required for loans to members may be invested as otherwise provided by law. (c) If available funds do not permit all loans to be made that have been approved by the credit committee or loan officer, preference shall be given to the smaller loans that have been approved. Acts 1923, ch. 68, § 17; Shan. Supp., § 2198a24; Code 1932, § 3851; Acts 1951, ch. 192, § 2; 1976, ch. 525, § 2; 1979, ch. 207, § 1; T.C.A. (orig. ed.), § 45-1820.
(a) The funds of credit unions shall be used first for loans to members.
(b) Funds of credit unions not required for loans to members may be invested as otherwise provided by law.
(c) If available funds do not permit all loans to be made that have been approved by the credit committee or loan officer, preference shall be given to the smaller loans that have been approved.
Acts 1923, ch. 68, § 17; Shan. Supp., § 2198a24; Code 1932, § 3851; Acts 1951, ch. 192, § 2; 1976, ch. 525, § 2; 1979, ch. 207, § 1; T.C.A. (orig. ed.), § 45-1820.
Tenn. Code Ann. § 45-3-701 — TN Code / Title 45 / Chapter 3 / Section 45-3-701
Real estate loans
Status: in_force

(a) Original Real Estate Loans. Subject to this chapter and to rules and regulations promulgated by the commissioner, every association has the power to originate real estate loans of the following types: (1) Real estate loans on real estate that constitutes home property or primarily residential property and upon which has been constructed an existing and completed home or homes or other structure or structures designed or used primarily for residential purposes; provided, that the amount of the loans shall not exceed one hundred percent (100%) of the value of the real estate security for the loans, or another percentage that the commissioner may prescribe; (2) Real estate loans to finance the acquisition and development of real estate as home property or primarily residential property; provided, that the amount of the loan shall not exceed seventy-five percent (75%) of the value of the real estate security for the loans, or another percentage that the commissioner may prescribe, as of the completion of the development of the real estate into building lots or sites ready for construction; (3) Real estate loans to finance the construction of a home or homes or other structure or structures designed or used primarily for residential purposes on real estate that constitutes home property or primarily residential property, which loans may be inclusive or exclusive of loans to finance the acquisition and development of the real estate; provided, that the amount of the loan shall not exceed eighty percent (80%) of the value of the real estate security for the loans as of the completion of the construction of the homes or other structures, or other percentage that the commissioner may prescribe; and (4) Real estate loans on other improved real estate; provided, that the amount of the loan shall not exceed eighty percent (80%) of the value of the real estate security for the loans, or another percentage that the commissioner may prescribe. (b) Restrictions on Real Estate Loans. No association shall make a real estate loan to one (1) borrower if the sum of the amount of the loan and the total balance of all outstanding real estate loans owed to the association by the borrower exceeds an amount equal to ten percent (10%) of the association's deposit liability, or an amount equal to the sum of the association's net worth, whichever amount is less. (c) Methods or Plans of Repayment and Variations in Interest. (1) An association shall agree in writing with its borrowers as to the method or plan by which indebtedness shall be repaid. Repayments may be, but are not required to be, in level periodic installments. The agreements may provide for variations in the interest rates payable in connection with the indebtedness; provided, that the variations are in proportion to variations in the weighted average cost of savings, borrowings, and Federal Home Loan Bank advances as to Tennessee members of the Federal Home Loan Bank of Cincinnati as computed from statistics tabulated by the Federal Home Loan Bank of Cincinnati, or in proportion to another standard that the commissioner may approve. Where the term of a loan is for no more than three (3) years, and the loan is not set up with a monthly amortization, then the association and its borrower may agree in writing to utilize any other index for the variations. (2) (A) An association, in exercising its rights pursuant to a variable interest rate clause, may: (i) Change the amount of the periodic installment payments of an amortized loan; (ii) Reduce or extend the maturity date; or (iii) A combination of both subdivisions (c)(2)(A)(i) and (ii). (B) An association, at least thirty (30) days prior to the effective date of any change pursuant to subdivision (c)(2)(A), shall notify the borrower in writing of the change and its effects on the amount of periodic installment payments and/or on the maturity date of the installments. Notice shall be deemed given when it is deposited in the United States mail, postage prepaid, addressed to the persons personally liable to pay the indebtedness, as those persons' names and addresses appear on the association's records at the time of the giving of notice. (d) Power to Deal in Real Estate Loans. Every association may purchase real estate loans upon security of the same character and amount against which an association may make an original loan. (e) Participation in Real Estate Loans. Every association may participate with other lenders in real estate loans, whether by purchase, sale or joint origination, of any type that the association could originate. Acts 1978, ch. 708, § 2.24; T.C.A., § 45-1424; Acts 1981, ch. 115, § 1.
(a) Original Real Estate Loans. Subject to this chapter and to rules and regulations promulgated by the commissioner, every association has the power to originate real estate loans of the following types: (1) Real estate loans on real estate that constitutes home property or primarily residential property and upon which has been constructed an existing and completed home or homes or other structure or structures designed or used primarily for residential purposes; provided, that the amount of the loans shall not exceed one hundred percent (100%) of the value of the real estate security for the loans, or another percentage that the commissioner may prescribe; (2) Real estate loans to finance the acquisition and development of real estate as home property or primarily residential property; provided, that the amount of the loan shall not exceed seventy-five percent (75%) of the value of the real estate security for the loans, or another percentage that the commissioner may prescribe, as of the completion of the development of the real estate into building lots or sites ready for construction; (3) Real estate loans to finance the construction of a home or homes or other structure or structures designed or used primarily for residential purposes on real estate that constitutes home property or primarily residential property, which loans may be inclusive or exclusive of loans to finance the acquisition and development of the real estate; provided, that the amount of the loan shall not exceed eighty percent (80%) of the value of the real estate security for the loans as of the completion of the construction of the homes or other structures, or other percentage that the commissioner may prescribe; and (4) Real estate loans on other improved real estate; provided, that the amount of the loan shall not exceed eighty percent (80%) of the value of the real estate security for the loans, or another percentage that the commissioner may prescribe.
(1) Real estate loans on real estate that constitutes home property or primarily residential property and upon which has been constructed an existing and completed home or homes or other structure or structures designed or used primarily for residential purposes; provided, that the amount of the loans shall not exceed one hundred percent (100%) of the value of the real estate security for the loans, or another percentage that the commissioner may prescribe;
(2) Real estate loans to finance the acquisition and development of real estate as home property or primarily residential property; provided, that the amount of the loan shall not exceed seventy-five percent (75%) of the value of the real estate security for the loans, or another percentage that the commissioner may prescribe, as of the completion of the development of the real estate into building lots or sites ready for construction;
(3) Real estate loans to finance the construction of a home or homes or other structure or structures designed or used primarily for residential purposes on real estate that constitutes home property or primarily residential property, which loans may be inclusive or exclusive of loans to finance the acquisition and development of the real estate; provided, that the amount of the loan shall not exceed eighty percent (80%) of the value of the real estate security for the loans as of the completion of the construction of the homes or other structures, or other percentage that the commissioner may prescribe; and
(4) Real estate loans on other improved real estate; provided, that the amount of the loan shall not exceed eighty percent (80%) of the value of the real estate security for the loans, or another percentage that the commissioner may prescribe.
(b) Restrictions on Real Estate Loans. No association shall make a real estate loan to one (1) borrower if the sum of the amount of the loan and the total balance of all outstanding real estate loans owed to the association by the borrower exceeds an amount equal to ten percent (10%) of the association's deposit liability, or an amount equal to the sum of the association's net worth, whichever amount is less.
(c) Methods or Plans of Repayment and Variations in Interest. (1) An association shall agree in writing with its borrowers as to the method or plan by which indebtedness shall be repaid. Repayments may be, but are not required to be, in level periodic installments. The agreements may provide for variations in the interest rates payable in connection with the indebtedness; provided, that the variations are in proportion to variations in the weighted average cost of savings, borrowings, and Federal Home Loan Bank advances as to Tennessee members of the Federal Home Loan Bank of Cincinnati as computed from statistics tabulated by the Federal Home Loan Bank of Cincinnati, or in proportion to another standard that the commissioner may approve. Where the term of a loan is for no more than three (3) years, and the loan is not set up with a monthly amortization, then the association and its borrower may agree in writing to utilize any other index for the variations. (2) (A) An association, in exercising its rights pursuant to a variable interest rate clause, may: (i) Change the amount of the periodic installment payments of an amortized loan; (ii) Reduce or extend the maturity date; or (iii) A combination of both subdivisions (c)(2)(A)(i) and (ii). (B) An association, at least thirty (30) days prior to the effective date of any change pursuant to subdivision (c)(2)(A), shall notify the borrower in writing of the change and its effects on the amount of periodic installment payments and/or on the maturity date of the installments. Notice shall be deemed given when it is deposited in the United States mail, postage prepaid, addressed to the persons personally liable to pay the indebtedness, as those persons' names and addresses appear on the association's records at the time of the giving of notice.
(1) An association shall agree in writing with its borrowers as to the method or plan by which indebtedness shall be repaid. Repayments may be, but are not required to be, in level periodic installments. The agreements may provide for variations in the interest rates payable in connection with the indebtedness; provided, that the variations are in proportion to variations in the weighted average cost of savings, borrowings, and Federal Home Loan Bank advances as to Tennessee members of the Federal Home Loan Bank of Cincinnati as computed from statistics tabulated by the Federal Home Loan Bank of Cincinnati, or in proportion to another standard that the commissioner may approve. Where the term of a loan is for no more than three (3) years, and the loan is not set up with a monthly amortization, then the association and its borrower may agree in writing to utilize any other index for the variations.
(2) (A) An association, in exercising its rights pursuant to a variable interest rate clause, may: (i) Change the amount of the periodic installment payments of an amortized loan; (ii) Reduce or extend the maturity date; or (iii) A combination of both subdivisions (c)(2)(A)(i) and (ii). (B) An association, at least thirty (30) days prior to the effective date of any change pursuant to subdivision (c)(2)(A), shall notify the borrower in writing of the change and its effects on the amount of periodic installment payments and/or on the maturity date of the installments. Notice shall be deemed given when it is deposited in the United States mail, postage prepaid, addressed to the persons personally liable to pay the indebtedness, as those persons' names and addresses appear on the association's records at the time of the giving of notice.
(A) An association, in exercising its rights pursuant to a variable interest rate clause, may: (i) Change the amount of the periodic installment payments of an amortized loan; (ii) Reduce or extend the maturity date; or (iii) A combination of both subdivisions (c)(2)(A)(i) and (ii).
(i) Change the amount of the periodic installment payments of an amortized loan;
(ii) Reduce or extend the maturity date; or
(iii) A combination of both subdivisions (c)(2)(A)(i) and (ii).
(B) An association, at least thirty (30) days prior to the effective date of any change pursuant to subdivision (c)(2)(A), shall notify the borrower in writing of the change and its effects on the amount of periodic installment payments and/or on the maturity date of the installments. Notice shall be deemed given when it is deposited in the United States mail, postage prepaid, addressed to the persons personally liable to pay the indebtedness, as those persons' names and addresses appear on the association's records at the time of the giving of notice.
(d) Power to Deal in Real Estate Loans. Every association may purchase real estate loans upon security of the same character and amount against which an association may make an original loan.
(e) Participation in Real Estate Loans. Every association may participate with other lenders in real estate loans, whether by purchase, sale or joint origination, of any type that the association could originate.
Acts 1978, ch. 708, § 2.24; T.C.A., § 45-1424; Acts 1981, ch. 115, § 1.
Tenn. Code Ann. § 45-3-1501 — TN Code / Title 45 / Chapter 3 / Section 45-3-1501
Short title
Status: in_force

This part shall be known and may be cited as the "Tennessee Mutual Savings and Loan Holding Company Act." Acts 1989, ch. 354, § 1.
This part shall be known and may be cited as the "Tennessee Mutual Savings and Loan Holding Company Act."
Acts 1989, ch. 354, § 1.
Tenn. Code Ann. § 45-5-305 — TN Code / Title 45 / Chapter 5 / Section 45-5-305
Insurance
Status: in_force

(a) With respect to all insurance offered, sold or procured pursuant to the powers given registrants under § 45-5-301(4) and (5) : (1) The insurance shall be written by an agent and with a company authorized to do business in Tennessee, or under a group policy issued by a company authorized to do business in Tennessee, at rates approved by the commissioner of commerce and insurance; (2) The borrower has the right to furnish the insurance through any agent or company the borrower desires, if the insurance company is in good standing with the department; or the borrower may authorize the registrant to obtain the insurance for the borrower, and when so authorized by written request, which writing shall be preserved by the company during the term of the loan and for a period of at least two (2) years thereafter, the registrant may have the insurance written by an agent who is an employee, servant, or agent of the registrant, or the insurance may be effected under a group policy issued to the registrant. Any gain or advantage to a registrant or any employee, officer, director, agent, affiliate or associate of the registrant from the insurance or its sale shall not be considered as additional or further charge or interest in connection with any loan made under this chapter; and (3) The amount and type of insurance that may be required or accepted shall bear a reasonable relation to the existing hazard and risk of loss and shall be subject to the following terms and conditions: (A) Life insurance shall be in an amount that does not exceed the total amount of the loan and shall be for a period that does not exceed the term of the loan; (B) Insurance against the hazard of disability of the borrower shall provide equal benefits, the total of all of which shall not exceed the total amount of the loan and shall not be payable beyond the maturity of the loan. The required time of continuous and total disability of the borrower before the beginning of the payment of benefits under the terms of the policy shall be at least seven (7) days, after which time benefits may accrue from then forward or may be retroactive to the first day of disability. Nothing in this subdivision (a)(3)(B) shall be construed to prevent the issuance of insurance requiring more than seven (7) days waiting period; (C) Property insurance on collateral required pursuant to § 45-5-301(4) shall include only coverage that bears a reasonable relationship to the existing hazards or risk of loss in an amount not in excess of the total amount of the loan or for a term not longer than the term of the loan. If a minimum dollar premium is charged or retained, the total amount so charged to or retained from a borrower or spouse or both by a lender and affiliated lenders in any one (1) year shall not exceed the minimum dollar premium approved by the commissioner of financial institutions for that type of insurance. Neither shall the insurance be required during a period of time when there is adequate property insurance in force that was written in connection with any loan made by the same registrant or an affiliated lender to the same borrower or spouse, or both; (D) Insurance against the hazard of involuntary unemployment shall provide for a specified number of monthly benefit payments during a specified term of coverage expressed in number of months; provided, that the term of coverage shall not exceed sixty (60) months, and the number of monthly benefit payments shall be at least one-third (1/3) the number of months in the term of coverage; (E) A registrant that obtains a group policy for the purpose of perfecting any insurance that may be required or accepted hereunder, or that obtains any life, disability, property, or involuntary unemployment insurance described in subdivisions (a)(3)(A)-(D), at the request of the borrower, shall contract with the insurance company for a provision in the policy that the coverage effected as to each individual insured debtor or borrower shall terminate automatically on prepayment in full of the loan by refinancing, renewal or otherwise, and the unearned premium shall be refunded to the registrant. The registrant shall pay or credit the unearned premium refund to the borrower. Only one (1) policy or group certificate of each of these types of insurance shall be accepted as collateral on any one (1) loan, except in the case of joint life insurance, and except in the case of joint disability insurance; (F) At the time the loan is made, the lender shall give to the borrower: (i) An insurance policy, a binder, or a certificate of insurance; or (ii) A memorandum showing the name of the insurance company, the types of insurance issued, a description of the coverages, the date of the policy, which shall be the date on which the loan is made, the premium charge for each type of insurance, and if issued under a group policy, the number of the master policy; (G) If the premiums for insurance are paid from the proceeds of the loan, the amount so paid shall not exceed the premiums charged by the insurer for the insurance; and (H) In addition to this chapter, registrants shall have the power to accept or sell credit life and credit health and accident insurance pursuant to and in accordance with title 56, chapter 7, part 9. (b) The acceptance or sale of credit-related insurance products by registrants shall be subject to the following provisions: (1) The maximum term life insurance coverage and the maximum accidental death or dismemberment coverage available to one insured through a registrant shall not exceed twenty-five thousand dollars ($25,000) for each coverage, and the maximum term for each credit-related life insurance product shall not exceed sixty (60) months; (2) The registrant shall provide to each prospective insured a separate disclosure statement, signed by both the borrower or borrowers and the registrant's agent indicating the following: (A) The borrower's or borrowers' desire or desires to purchase the insurance as described in the disclosure statement; (B) The borrower or borrowers fully understand that buying the insurance is not a condition of the loan. The disclosure shall be made in bold face print appearing in the disclosure statement. In addition, notice of the disclosure shall be posted at any physical location where customers are served; (C) The owner of the policy may cancel the policy within thirty (30) days after the policy is issued and receive a full refund of the premium paid, by returning the policy to the insurer or upon written instructions to the insurer from the policy owner; (D) The owner of the policy may also cancel the policy more than thirty (30) days after the policy has been issued by giving notice of cancellation to the insurer, and on cancellation, the owner of the policy shall receive a portion of the premium paid in accordance with the terms of the policy; and (E) A statement with three (3) representative examples of the purchase of insurance under this section indicating the total amount of interest payable for each example of a loan and the amount of interest of the loan attributable to the insurance purchased under this section; and (3) Credit-related insurance products shall be treated as credit life insurance or credit accident and health insurance only as those terms are used in title 56, chapter 6, part 2 and title 56, chapter 8, part 1; credit-related insurance products shall not be treated as credit life insurance, credit accident and health insurance or credit disability insurance as those terms are otherwise used in title 56; provided, that this subsection (b) shall not affect any other provision of title 56, or any regulation adopted pursuant thereto. Acts 1979, ch. 204, § 12; T.C.A., § 45-2012; Acts 1985, ch. 107, § 5; 1993, ch. 100, § 2; 1994, ch. 588, § 1; 1999, ch. 172, § 2.
(a) With respect to all insurance offered, sold or procured pursuant to the powers given registrants under § 45-5-301(4) and (5) : (1) The insurance shall be written by an agent and with a company authorized to do business in Tennessee, or under a group policy issued by a company authorized to do business in Tennessee, at rates approved by the commissioner of commerce and insurance; (2) The borrower has the right to furnish the insurance through any agent or company the borrower desires, if the insurance company is in good standing with the department; or the borrower may authorize the registrant to obtain the insurance for the borrower, and when so authorized by written request, which writing shall be preserved by the company during the term of the loan and for a period of at least two (2) years thereafter, the registrant may have the insurance written by an agent who is an employee, servant, or agent of the registrant, or the insurance may be effected under a group policy issued to the registrant. Any gain or advantage to a registrant or any employee, officer, director, agent, affiliate or associate of the registrant from the insurance or its sale shall not be considered as additional or further charge or interest in connection with any loan made under this chapter; and (3) The amount and type of insurance that may be required or accepted shall bear a reasonable relation to the existing hazard and risk of loss and shall be subject to the following terms and conditions: (A) Life insurance shall be in an amount that does not exceed the total amount of the loan and shall be for a period that does not exceed the term of the loan; (B) Insurance against the hazard of disability of the borrower shall provide equal benefits, the total of all of which shall not exceed the total amount of the loan and shall not be payable beyond the maturity of the loan. The required time of continuous and total disability of the borrower before the beginning of the payment of benefits under the terms of the policy shall be at least seven (7) days, after which time benefits may accrue from then forward or may be retroactive to the first day of disability. Nothing in this subdivision (a)(3)(B) shall be construed to prevent the issuance of insurance requiring more than seven (7) days waiting period; (C) Property insurance on collateral required pursuant to § 45-5-301(4) shall include only coverage that bears a reasonable relationship to the existing hazards or risk of loss in an amount not in excess of the total amount of the loan or for a term not longer than the term of the loan. If a minimum dollar premium is charged or retained, the total amount so charged to or retained from a borrower or spouse or both by a lender and affiliated lenders in any one (1) year shall not exceed the minimum dollar premium approved by the commissioner of financial institutions for that type of insurance. Neither shall the insurance be required during a period of time when there is adequate property insurance in force that was written in connection with any loan made by the same registrant or an affiliated lender to the same borrower or spouse, or both; (D) Insurance against the hazard of involuntary unemployment shall provide for a specified number of monthly benefit payments during a specified term of coverage expressed in number of months; provided, that the term of coverage shall not exceed sixty (60) months, and the number of monthly benefit payments shall be at least one-third (1/3) the number of months in the term of coverage; (E) A registrant that obtains a group policy for the purpose of perfecting any insurance that may be required or accepted hereunder, or that obtains any life, disability, property, or involuntary unemployment insurance described in subdivisions (a)(3)(A)-(D), at the request of the borrower, shall contract with the insurance company for a provision in the policy that the coverage effected as to each individual insured debtor or borrower shall terminate automatically on prepayment in full of the loan by refinancing, renewal or otherwise, and the unearned premium shall be refunded to the registrant. The registrant shall pay or credit the unearned premium refund to the borrower. Only one (1) policy or group certificate of each of these types of insurance shall be accepted as collateral on any one (1) loan, except in the case of joint life insurance, and except in the case of joint disability insurance; (F) At the time the loan is made, the lender shall give to the borrower: (i) An insurance policy, a binder, or a certificate of insurance; or (ii) A memorandum showing the name of the insurance company, the types of insurance issued, a description of the coverages, the date of the policy, which shall be the date on which the loan is made, the premium charge for each type of insurance, and if issued under a group policy, the number of the master policy; (G) If the premiums for insurance are paid from the proceeds of the loan, the amount so paid shall not exceed the premiums charged by the insurer for the insurance; and (H) In addition to this chapter, registrants shall have the power to accept or sell credit life and credit health and accident insurance pursuant to and in accordance with title 56, chapter 7, part 9.
(1) The insurance shall be written by an agent and with a company authorized to do business in Tennessee, or under a group policy issued by a company authorized to do business in Tennessee, at rates approved by the commissioner of commerce and insurance;
(2) The borrower has the right to furnish the insurance through any agent or company the borrower desires, if the insurance company is in good standing with the department; or the borrower may authorize the registrant to obtain the insurance for the borrower, and when so authorized by written request, which writing shall be preserved by the company during the term of the loan and for a period of at least two (2) years thereafter, the registrant may have the insurance written by an agent who is an employee, servant, or agent of the registrant, or the insurance may be effected under a group policy issued to the registrant. Any gain or advantage to a registrant or any employee, officer, director, agent, affiliate or associate of the registrant from the insurance or its sale shall not be considered as additional or further charge or interest in connection with any loan made under this chapter; and
(3) The amount and type of insurance that may be required or accepted shall bear a reasonable relation to the existing hazard and risk of loss and shall be subject to the following terms and conditions: (A) Life insurance shall be in an amount that does not exceed the total amount of the loan and shall be for a period that does not exceed the term of the loan; (B) Insurance against the hazard of disability of the borrower shall provide equal benefits, the total of all of which shall not exceed the total amount of the loan and shall not be payable beyond the maturity of the loan. The required time of continuous and total disability of the borrower before the beginning of the payment of benefits under the terms of the policy shall be at least seven (7) days, after which time benefits may accrue from then forward or may be retroactive to the first day of disability. Nothing in this subdivision (a)(3)(B) shall be construed to prevent the issuance of insurance requiring more than seven (7) days waiting period; (C) Property insurance on collateral required pursuant to § 45-5-301(4) shall include only coverage that bears a reasonable relationship to the existing hazards or risk of loss in an amount not in excess of the total amount of the loan or for a term not longer than the term of the loan. If a minimum dollar premium is charged or retained, the total amount so charged to or retained from a borrower or spouse or both by a lender and affiliated lenders in any one (1) year shall not exceed the minimum dollar premium approved by the commissioner of financial institutions for that type of insurance. Neither shall the insurance be required during a period of time when there is adequate property insurance in force that was written in connection with any loan made by the same registrant or an affiliated lender to the same borrower or spouse, or both; (D) Insurance against the hazard of involuntary unemployment shall provide for a specified number of monthly benefit payments during a specified term of coverage expressed in number of months; provided, that the term of coverage shall not exceed sixty (60) months, and the number of monthly benefit payments shall be at least one-third (1/3) the number of months in the term of coverage; (E) A registrant that obtains a group policy for the purpose of perfecting any insurance that may be required or accepted hereunder, or that obtains any life, disability, property, or involuntary unemployment insurance described in subdivisions (a)(3)(A)-(D), at the request of the borrower, shall contract with the insurance company for a provision in the policy that the coverage effected as to each individual insured debtor or borrower shall terminate automatically on prepayment in full of the loan by refinancing, renewal or otherwise, and the unearned premium shall be refunded to the registrant. The registrant shall pay or credit the unearned premium refund to the borrower. Only one (1) policy or group certificate of each of these types of insurance shall be accepted as collateral on any one (1) loan, except in the case of joint life insurance, and except in the case of joint disability insurance; (F) At the time the loan is made, the lender shall give to the borrower: (i) An insurance policy, a binder, or a certificate of insurance; or (ii) A memorandum showing the name of the insurance company, the types of insurance issued, a description of the coverages, the date of the policy, which shall be the date on which the loan is made, the premium charge for each type of insurance, and if issued under a group policy, the number of the master policy; (G) If the premiums for insurance are paid from the proceeds of the loan, the amount so paid shall not exceed the premiums charged by the insurer for the insurance; and (H) In addition to this chapter, registrants shall have the power to accept or sell credit life and credit health and accident insurance pursuant to and in accordance with title 56, chapter 7, part 9.
(A) Life insurance shall be in an amount that does not exceed the total amount of the loan and shall be for a period that does not exceed the term of the loan;
(B) Insurance against the hazard of disability of the borrower shall provide equal benefits, the total of all of which shall not exceed the total amount of the loan and shall not be payable beyond the maturity of the loan. The required time of continuous and total disability of the borrower before the beginning of the payment of benefits under the terms of the policy shall be at least seven (7) days, after which time benefits may accrue from then forward or may be retroactive to the first day of disability. Nothing in this subdivision (a)(3)(B) shall be construed to prevent the issuance of insurance requiring more than seven (7) days waiting period;
(C) Property insurance on collateral required pursuant to § 45-5-301(4) shall include only coverage that bears a reasonable relationship to the existing hazards or risk of loss in an amount not in excess of the total amount of the loan or for a term not longer than the term of the loan. If a minimum dollar premium is charged or retained, the total amount so charged to or retained from a borrower or spouse or both by a lender and affiliated lenders in any one (1) year shall not exceed the minimum dollar premium approved by the commissioner of financial institutions for that type of insurance. Neither shall the insurance be required during a period of time when there is adequate property insurance in force that was written in connection with any loan made by the same registrant or an affiliated lender to the same borrower or spouse, or both;
(D) Insurance against the hazard of involuntary unemployment shall provide for a specified number of monthly benefit payments during a specified term of coverage expressed in number of months; provided, that the term of coverage shall not exceed sixty (60) months, and the number of monthly benefit payments shall be at least one-third (1/3) the number of months in the term of coverage;
(E) A registrant that obtains a group policy for the purpose of perfecting any insurance that may be required or accepted hereunder, or that obtains any life, disability, property, or involuntary unemployment insurance described in subdivisions (a)(3)(A)-(D), at the request of the borrower, shall contract with the insurance company for a provision in the policy that the coverage effected as to each individual insured debtor or borrower shall terminate automatically on prepayment in full of the loan by refinancing, renewal or otherwise, and the unearned premium shall be refunded to the registrant. The registrant shall pay or credit the unearned premium refund to the borrower. Only one (1) policy or group certificate of each of these types of insurance shall be accepted as collateral on any one (1) loan, except in the case of joint life insurance, and except in the case of joint disability insurance;
(F) At the time the loan is made, the lender shall give to the borrower: (i) An insurance policy, a binder, or a certificate of insurance; or (ii) A memorandum showing the name of the insurance company, the types of insurance issued, a description of the coverages, the date of the policy, which shall be the date on which the loan is made, the premium charge for each type of insurance, and if issued under a group policy, the number of the master policy;
(i) An insurance policy, a binder, or a certificate of insurance; or
(ii) A memorandum showing the name of the insurance company, the types of insurance issued, a description of the coverages, the date of the policy, which shall be the date on which the loan is made, the premium charge for each type of insurance, and if issued under a group policy, the number of the master policy;
(G) If the premiums for insurance are paid from the proceeds of the loan, the amount so paid shall not exceed the premiums charged by the insurer for the insurance; and
(H) In addition to this chapter, registrants shall have the power to accept or sell credit life and credit health and accident insurance pursuant to and in accordance with title 56, chapter 7, part 9.
(b) The acceptance or sale of credit-related insurance products by registrants shall be subject to the following provisions: (1) The maximum term life insurance coverage and the maximum accidental death or dismemberment coverage available to one insured through a registrant shall not exceed twenty-five thousand dollars ($25,000) for each coverage, and the maximum term for each credit-related life insurance product shall not exceed sixty (60) months; (2) The registrant shall provide to each prospective insured a separate disclosure statement, signed by both the borrower or borrowers and the registrant's agent indicating the following: (A) The borrower's or borrowers' desire or desires to purchase the insurance as described in the disclosure statement; (B) The borrower or borrowers fully understand that buying the insurance is not a condition of the loan. The disclosure shall be made in bold face print appearing in the disclosure statement. In addition, notice of the disclosure shall be posted at any physical location where customers are served; (C) The owner of the policy may cancel the policy within thirty (30) days after the policy is issued and receive a full refund of the premium paid, by returning the policy to the insurer or upon written instructions to the insurer from the policy owner; (D) The owner of the policy may also cancel the policy more than thirty (30) days after the policy has been issued by giving notice of cancellation to the insurer, and on cancellation, the owner of the policy shall receive a portion of the premium paid in accordance with the terms of the policy; and (E) A statement with three (3) representative examples of the purchase of insurance under this section indicating the total amount of interest payable for each example of a loan and the amount of interest of the loan attributable to the insurance purchased under this section; and (3) Credit-related insurance products shall be treated as credit life insurance or credit accident and health insurance only as those terms are used in title 56, chapter 6, part 2 and title 56, chapter 8, part 1; credit-related insurance products shall not be treated as credit life insurance, credit accident and health insurance or credit disability insurance as those terms are otherwise used in title 56; provided, that this subsection (b) shall not affect any other provision of title 56, or any regulation adopted pursuant thereto.
(1) The maximum term life insurance coverage and the maximum accidental death or dismemberment coverage available to one insured through a registrant shall not exceed twenty-five thousand dollars ($25,000) for each coverage, and the maximum term for each credit-related life insurance product shall not exceed sixty (60) months;
(2) The registrant shall provide to each prospective insured a separate disclosure statement, signed by both the borrower or borrowers and the registrant's agent indicating the following: (A) The borrower's or borrowers' desire or desires to purchase the insurance as described in the disclosure statement; (B) The borrower or borrowers fully understand that buying the insurance is not a condition of the loan. The disclosure shall be made in bold face print appearing in the disclosure statement. In addition, notice of the disclosure shall be posted at any physical location where customers are served; (C) The owner of the policy may cancel the policy within thirty (30) days after the policy is issued and receive a full refund of the premium paid, by returning the policy to the insurer or upon written instructions to the insurer from the policy owner; (D) The owner of the policy may also cancel the policy more than thirty (30) days after the policy has been issued by giving notice of cancellation to the insurer, and on cancellation, the owner of the policy shall receive a portion of the premium paid in accordance with the terms of the policy; and (E) A statement with three (3) representative examples of the purchase of insurance under this section indicating the total amount of interest payable for each example of a loan and the amount of interest of the loan attributable to the insurance purchased under this section; and
(A) The borrower's or borrowers' desire or desires to purchase the insurance as described in the disclosure statement;
(B) The borrower or borrowers fully understand that buying the insurance is not a condition of the loan. The disclosure shall be made in bold face print appearing in the disclosure statement. In addition, notice of the disclosure shall be posted at any physical location where customers are served;
(C) The owner of the policy may cancel the policy within thirty (30) days after the policy is issued and receive a full refund of the premium paid, by returning the policy to the insurer or upon written instructions to the insurer from the policy owner;
(D) The owner of the policy may also cancel the policy more than thirty (30) days after the policy has been issued by giving notice of cancellation to the insurer, and on cancellation, the owner of the policy shall receive a portion of the premium paid in accordance with the terms of the policy; and
(E) A statement with three (3) representative examples of the purchase of insurance under this section indicating the total amount of interest payable for each example of a loan and the amount of interest of the loan attributable to the insurance purchased under this section; and
(3) Credit-related insurance products shall be treated as credit life insurance or credit accident and health insurance only as those terms are used in title 56, chapter 6, part 2 and title 56, chapter 8, part 1; credit-related insurance products shall not be treated as credit life insurance, credit accident and health insurance or credit disability insurance as those terms are otherwise used in title 56; provided, that this subsection (b) shall not affect any other provision of title 56, or any regulation adopted pursuant thereto.
Acts 1979, ch. 204, § 12; T.C.A., § 45-2012; Acts 1985, ch. 107, § 5; 1993, ch. 100, § 2; 1994, ch. 588, § 1; 1999, ch. 172, § 2.
Tenn. Code Ann. § 45-3-119 — TN Code / Title 45 / Chapter 3 / Section 45-3-119
References to federal savings and loan associations
Status: in_force

Any and all references in any provision of the laws of this state to "federal savings and loan associations" are deemed to refer to "savings and loan associations operating under the laws of this state and federal savings and loan associations." Acts 1978, ch. 708, § 5.26; T.C.A., § 45-1726.
Any and all references in any provision of the laws of this state to "federal savings and loan associations" are deemed to refer to "savings and loan associations operating under the laws of this state and federal savings and loan associations."
Acts 1978, ch. 708, § 5.26; T.C.A., § 45-1726.
Tenn. Code Ann. § 45-2-1001 — TN Code / Title 45 / Chapter 2 / Section 45-2-1001
Company authorized to act as fiduciary
Status: in_force

(a) No company shall act as a fiduciary in this state except: (1) A state trust company; (2) A state bank authorized to act as a fiduciary; (3) A savings association or savings bank organized under the laws of this state and authorized to act as a fiduciary; (4) A national bank having its principal office in this state and authorized by the comptroller of the currency to act as a fiduciary pursuant to 12 U.S.C. § 92a ; (5) A federally chartered savings association or savings bank having its principal office in this state and authorized by its federal chartering authority to act as a fiduciary; (6) An out-of-state bank with a branch in this state established or maintained pursuant to this chapter, or a trust office authorized by the commissioner pursuant to this chapter; (7) An out-of-state trust company with a trust office authorized by the commissioner pursuant to this chapter; (8) A foreign bank with a trust office authorized by the commissioner pursuant to this chapter; or (9) A private trust company to the extent authorized by the commissioner pursuant to this chapter. (b) No company shall engage in an unauthorized trust activity. No company shall be deemed to be subject to this chapter and chapter 1 of this title, regulating fiduciary activities to the extent that the company's activities are permitted by existing statutory authority or are customarily performed as a traditional incident to the company's regular business activities. (c) (1) A bank authorized to act as a fiduciary, which includes a trust company for the purposes of this section and §§ 45-2-1002 - 45-2-1006, having and maintaining paid-in capital and surplus of five hundred thousand dollars ($500,000), may be appointed a fiduciary or cofiduciary by any person or any court having jurisdiction and authority to appoint fiduciaries. (2) When appointed as a fiduciary for a minor or other incompetent person, a bank shall have only the custody, control, management and administration of the property or estate of the person. (3) The personal care and custody of any minor or other incompetent person shall be committed and confided to those individuals who would otherwise be entitled by law to the guardianship or care and custody of the person of the minor or incompetent person. Acts 1969, ch. 36, § 1 (3.230); T.C.A., § 45-422; 1999, ch. 112, §§ 7, 9.
(a) No company shall act as a fiduciary in this state except: (1) A state trust company; (2) A state bank authorized to act as a fiduciary; (3) A savings association or savings bank organized under the laws of this state and authorized to act as a fiduciary; (4) A national bank having its principal office in this state and authorized by the comptroller of the currency to act as a fiduciary pursuant to 12 U.S.C. § 92a ; (5) A federally chartered savings association or savings bank having its principal office in this state and authorized by its federal chartering authority to act as a fiduciary; (6) An out-of-state bank with a branch in this state established or maintained pursuant to this chapter, or a trust office authorized by the commissioner pursuant to this chapter; (7) An out-of-state trust company with a trust office authorized by the commissioner pursuant to this chapter; (8) A foreign bank with a trust office authorized by the commissioner pursuant to this chapter; or (9) A private trust company to the extent authorized by the commissioner pursuant to this chapter.
(1) A state trust company;
(2) A state bank authorized to act as a fiduciary;
(3) A savings association or savings bank organized under the laws of this state and authorized to act as a fiduciary;
(4) A national bank having its principal office in this state and authorized by the comptroller of the currency to act as a fiduciary pursuant to 12 U.S.C. § 92a ;
(5) A federally chartered savings association or savings bank having its principal office in this state and authorized by its federal chartering authority to act as a fiduciary;
(6) An out-of-state bank with a branch in this state established or maintained pursuant to this chapter, or a trust office authorized by the commissioner pursuant to this chapter;
(7) An out-of-state trust company with a trust office authorized by the commissioner pursuant to this chapter;
(8) A foreign bank with a trust office authorized by the commissioner pursuant to this chapter; or
(9) A private trust company to the extent authorized by the commissioner pursuant to this chapter.
(b) No company shall engage in an unauthorized trust activity. No company shall be deemed to be subject to this chapter and chapter 1 of this title, regulating fiduciary activities to the extent that the company's activities are permitted by existing statutory authority or are customarily performed as a traditional incident to the company's regular business activities.
(c) (1) A bank authorized to act as a fiduciary, which includes a trust company for the purposes of this section and §§ 45-2-1002 - 45-2-1006, having and maintaining paid-in capital and surplus of five hundred thousand dollars ($500,000), may be appointed a fiduciary or cofiduciary by any person or any court having jurisdiction and authority to appoint fiduciaries. (2) When appointed as a fiduciary for a minor or other incompetent person, a bank shall have only the custody, control, management and administration of the property or estate of the person. (3) The personal care and custody of any minor or other incompetent person shall be committed and confided to those individuals who would otherwise be entitled by law to the guardianship or care and custody of the person of the minor or incompetent person.
(1) A bank authorized to act as a fiduciary, which includes a trust company for the purposes of this section and §§ 45-2-1002 - 45-2-1006, having and maintaining paid-in capital and surplus of five hundred thousand dollars ($500,000), may be appointed a fiduciary or cofiduciary by any person or any court having jurisdiction and authority to appoint fiduciaries.
(2) When appointed as a fiduciary for a minor or other incompetent person, a bank shall have only the custody, control, management and administration of the property or estate of the person.
(3) The personal care and custody of any minor or other incompetent person shall be committed and confided to those individuals who would otherwise be entitled by law to the guardianship or care and custody of the person of the minor or incompetent person.
Acts 1969, ch. 36, § 1 (3.230); T.C.A., § 45-422; 1999, ch. 112, §§ 7, 9.
Tenn. Code Ann. § 45-2-103 — TN Code / Title 45 / Chapter 2 / Section 45-2-103
Changes affecting bank control
Status: in_force

(a) (1) As used in this section, unless the context otherwise requires: (A) "Bank" means a bank or trust company organized under the laws of this state; (B) "Control" means possession, direct or indirect, of the power to direct or cause the direction of management and policies of a person, whether through the ownership of voting securities by contract or otherwise; provided, that no individual shall be deemed to control a person solely on account of being a director, officer, or employee of the person. For purposes of this section, a person who, directly or indirectly, owns, controls, holds the power to vote, or holds proxies representing twenty-five percent (25%) or more of the then outstanding voting securities issued by another person is presumed to control the other person. For purposes of this section, the commissioner may determine whether a person, in fact, controls another person; (C) "Controlling person" means a person who, directly or indirectly, controls a bank; (D) "Person" means an individual, a corporation, an association, a syndicate, a partnership, a business trust, an estate, a trust, or an organization of any kind, or any combination of any of the foregoing acting in concert; and (E) "Shareholder" means: (i) In the case of a corporation, a holder of a share of any class or series; (ii) In the case of a nonprofit or charitable corporation, an unincorporated association, or a syndicate, a member; (iii) In the case of a partnership, a partner; (iv) In the case of a business trust, an estate, or a trust, a holder of a beneficial interest; and (v) In the case of an organization of any other kind, a holder of an ownership interest. (2) No person shall, directly or indirectly, unless the commissioner has approved the acquisition of control, acquire control of a bank or a controlling person; provided, that nothing in this subdivision (a)(2) shall be considered to prohibit any person from negotiating to acquire (but not acquiring) control of a bank or a controlling person. (3) (A) The application shall be on a form prescribed by the commissioner and shall be made under oath. The application shall, except to the extent expressly waived by the commissioner, contain the following information: (i) The identity, personal history, business background and experience, and financial condition of each person by whom or on whose behalf the acquisition is to be made, including a description of the managerial resources and future prospects of each acquiring party and a description of any material pending legal or administrative proceedings in which the person is a party; (ii) The terms and conditions of any proposed acquisition and the manner in which the acquisition is to be made; (iii) The identity, source, and amount of the funds or other consideration that has been or is to be borrowed or otherwise obtained for the purpose of making the acquisition, a description of the transaction, the names of the parties, and arrangements, agreements, or understanding with those persons; (iv) Any plans or proposals that any acquiring party making the acquisition may have to liquidate the bank, to sell its assets or merge it with any company, or to make any other major changes in its business or corporate structure or management; (v) The terms and conditions of any offer, tender, invitation, agreement, or arrangement under which any voting security will be acquired and any contract affecting the security or its financing after it is acquired; and (vi) Other information that the commissioner by rule shall require to be furnished in an application, as well as any information that the commissioner orders to be included in the particular application filed. (B) The applicant shall pay a filing fee as established by the commissioner when the application is filed. (C) Information obtained by the commissioner under this section is confidential and is subject to the confidentiality requirements contained in § 45-2-1603 . (4) The commissioner shall deny an application for the proposed acquisition of control of a bank or a controlling person if the commissioner finds that: (A) The effect of the proposed acquisition of control may be to substantially lessen competition or to tend to create a monopoly or that the proposed acquisition of control would in any manner be in restraint of trade, and that the anticompetitive effects of the proposed acquisition of control are not clearly outweighed in the public interest by the probable effect of the transaction in meeting the convenience and needs of the community to be served; (B) The financial condition of any acquiring person might jeopardize the financial stability of the bank or controlling person being acquired, or prejudice the interests of the depositors, creditors, or shareholders of the bank or controlling person; (C) Plans or proposals to liquidate the bank or controlling person, to sell the assets of the bank or the controlling person, or to make any other major change in the business, corporate structure or management of the bank or the controlling person; (D) The competence, experience, or integrity of any acquiring person indicates that it would not be in the interests of the depositors, creditors, or shareholders of the bank or the controlling person or in the interest of the public to permit the person to control the bank or controlling person; (E) The bank will not have adequate capital structure, or be in compliance with the laws of this state after the acquisition; (F) The proposed acquisition is unfair, unjust, or inequitable to the bank or the controlling person or to the depositors, creditors, or shareholders of the bank or controlling person; (G) The applicant neglects, fails or refuses to furnish to the commissioner all the information required by the commissioner; or (H) The applicant is not acting in good faith. (5) The commissioner may, in approving a proposal to acquire control of a bank or a controlling person pursuant to subdivision (a)(4), impose conditions that the commissioner deems reasonable or necessary or advisable in the interest of the public. (6) The commissioner may, for good cause, amend, alter, suspend, or revoke any approval of a proposal to acquire control of a bank or a controlling person issued pursuant to subdivision (a)(4). (7) (A) Notwithstanding any other provision of this section, any application for approval to acquire control of a bank or a controlling person that is not denied or approved by the commissioner within a period of sixty (60) days after the application is filed with the commissioner, or if the applicant consents to an extension of the period within which the commissioner may act, within the extended period, shall be considered to be approved by the commissioner as of the first day after the period of sixty (60) days or the extended period as the case may be. (B) For purposes of this section, an application for approval to acquire control of a bank or a controlling person is considered to be filed with the commissioner at the time when the complete application, including any amendments or supplements, containing all the information in the form required by the commissioner, is received by the commissioner. (8) After denying an application for approval to acquire control of a bank or a controlling person, the commissioner, upon the filing of a written request for a hearing by any person prejudiced by the commissioner's decision, may conduct a hearing and upon the hearing shall affirm, modify, or reverse the decision. The hearing shall commence within a period of sixty (60) days after the written request for the hearing is filed with the commissioner or, if the person filing the written request for the hearing consents to an extension of the period within which the hearing is to commence, within the extended period. (9) This section does not apply to: (A) The acquisition of securities in connection with the exercise of a security interest or otherwise by way of foreclosure on default in the payment of a debt previously contracted for in good faith; provided, that the person acquiring the securities does not vote the securities so acquired without having given written notice of the foreclosure to the commissioner; (B) Transactions requiring the prior approval of the board of governors of the federal reserve system under the Bank Holding Company Act of 1956 ( 12 U.S.C. § 1841 et seq. and 26 U.S.C. § 1101 et seq. [repealed]); (C) Acquisitions or transfers by operation of law or by will or intestate succession; provided, that the person acquiring the securities does not vote the securities so acquired without having given written notice of acquisition to the commissioner; (D) Transactions governed by §§ 45-2-1304 , 45-2-1313 and 45-2-1505 ; or (E) Any transaction that the commissioner by rule or order may exempt as not being contemplated by the purposes of this section or the regulation of which is not necessary or appropriate to achieve the objectives of this section. (10) No provision of this section shall be construed to prevent the commissioner from investigating, commenting upon, or seeking to enjoin or set aside any transfer of voting securities, whether the transfer is included within this section or not, if the commissioner considers the transfer against the interest of the depositors, creditors, or shareholders of the bank or the controlling person or against the interest of the public. (b) Whenever a loan or loans are made by a bank, which loan or loans are or are to be secured by twenty-five percent (25%) or more of the voting stock of another state bank, the president or other chief executive officer of the bank that makes the loan or loans shall report the facts to the commissioner within twenty-four (24) hours after obtaining knowledge of the loan or loans, except when the borrower has been the owner of record of the stock for a period of one (1) year or more, or the stock is of a newly organized bank prior to its opening. (c) The reports required in subsections (a) and (b) shall contain whatever information is available to inform the commissioner of the effect of the transaction upon control of the bank whose stock is involved, and shall contain, when known by the person making the report, the number of shares involved, the identity of the sellers or transferors, and purchasers or transferees of record, the identity of the beneficial owners of the shares involved, the purchase price, the total number of shares owned by the sellers or transferors and purchasers or transferees of record, both immediately prior to and after the transaction being reported, and the total number of shares owned by the beneficial owners of the shares involved, both immediately prior to and after the transaction being reported, and the identity of the borrowers, the name of the bank issuing the stock securing the loan, the number of shares securing the loan and the amount of the loan or loans. The report shall be in addition to any report that may be required pursuant to other provisions of law. (d) All state banks shall report to the commissioner within twenty-four (24) hours any changes in chief executive officers, including in their reports a statement of the past and current business and professional affiliations of any new chief executive officers. Acts 1969, ch. 36, § 1 (3.321); 1973, ch. 294, § 6; T.C.A., § 45-232; Acts 1983, ch. 441, § 1.
(a) (1) As used in this section, unless the context otherwise requires: (A) "Bank" means a bank or trust company organized under the laws of this state; (B) "Control" means possession, direct or indirect, of the power to direct or cause the direction of management and policies of a person, whether through the ownership of voting securities by contract or otherwise; provided, that no individual shall be deemed to control a person solely on account of being a director, officer, or employee of the person. For purposes of this section, a person who, directly or indirectly, owns, controls, holds the power to vote, or holds proxies representing twenty-five percent (25%) or more of the then outstanding voting securities issued by another person is presumed to control the other person. For purposes of this section, the commissioner may determine whether a person, in fact, controls another person; (C) "Controlling person" means a person who, directly or indirectly, controls a bank; (D) "Person" means an individual, a corporation, an association, a syndicate, a partnership, a business trust, an estate, a trust, or an organization of any kind, or any combination of any of the foregoing acting in concert; and (E) "Shareholder" means: (i) In the case of a corporation, a holder of a share of any class or series; (ii) In the case of a nonprofit or charitable corporation, an unincorporated association, or a syndicate, a member; (iii) In the case of a partnership, a partner; (iv) In the case of a business trust, an estate, or a trust, a holder of a beneficial interest; and (v) In the case of an organization of any other kind, a holder of an ownership interest. (2) No person shall, directly or indirectly, unless the commissioner has approved the acquisition of control, acquire control of a bank or a controlling person; provided, that nothing in this subdivision (a)(2) shall be considered to prohibit any person from negotiating to acquire (but not acquiring) control of a bank or a controlling person. (3) (A) The application shall be on a form prescribed by the commissioner and shall be made under oath. The application shall, except to the extent expressly waived by the commissioner, contain the following information: (i) The identity, personal history, business background and experience, and financial condition of each person by whom or on whose behalf the acquisition is to be made, including a description of the managerial resources and future prospects of each acquiring party and a description of any material pending legal or administrative proceedings in which the person is a party; (ii) The terms and conditions of any proposed acquisition and the manner in which the acquisition is to be made; (iii) The identity, source, and amount of the funds or other consideration that has been or is to be borrowed or otherwise obtained for the purpose of making the acquisition, a description of the transaction, the names of the parties, and arrangements, agreements, or understanding with those persons; (iv) Any plans or proposals that any acquiring party making the acquisition may have to liquidate the bank, to sell its assets or merge it with any company, or to make any other major changes in its business or corporate structure or management; (v) The terms and conditions of any offer, tender, invitation, agreement, or arrangement under which any voting security will be acquired and any contract affecting the security or its financing after it is acquired; and (vi) Other information that the commissioner by rule shall require to be furnished in an application, as well as any information that the commissioner orders to be included in the particular application filed. (B) The applicant shall pay a filing fee as established by the commissioner when the application is filed. (C) Information obtained by the commissioner under this section is confidential and is subject to the confidentiality requirements contained in § 45-2-1603 . (4) The commissioner shall deny an application for the proposed acquisition of control of a bank or a controlling person if the commissioner finds that: (A) The effect of the proposed acquisition of control may be to substantially lessen competition or to tend to create a monopoly or that the proposed acquisition of control would in any manner be in restraint of trade, and that the anticompetitive effects of the proposed acquisition of control are not clearly outweighed in the public interest by the probable effect of the transaction in meeting the convenience and needs of the community to be served; (B) The financial condition of any acquiring person might jeopardize the financial stability of the bank or controlling person being acquired, or prejudice the interests of the depositors, creditors, or shareholders of the bank or controlling person; (C) Plans or proposals to liquidate the bank or controlling person, to sell the assets of the bank or the controlling person, or to make any other major change in the business, corporate structure or management of the bank or the controlling person; (D) The competence, experience, or integrity of any acquiring person indicates that it would not be in the interests of the depositors, creditors, or shareholders of the bank or the controlling person or in the interest of the public to permit the person to control the bank or controlling person; (E) The bank will not have adequate capital structure, or be in compliance with the laws of this state after the acquisition; (F) The proposed acquisition is unfair, unjust, or inequitable to the bank or the controlling person or to the depositors, creditors, or shareholders of the bank or controlling person; (G) The applicant neglects, fails or refuses to furnish to the commissioner all the information required by the commissioner; or (H) The applicant is not acting in good faith. (5) The commissioner may, in approving a proposal to acquire control of a bank or a controlling person pursuant to subdivision (a)(4), impose conditions that the commissioner deems reasonable or necessary or advisable in the interest of the public. (6) The commissioner may, for good cause, amend, alter, suspend, or revoke any approval of a proposal to acquire control of a bank or a controlling person issued pursuant to subdivision (a)(4). (7) (A) Notwithstanding any other provision of this section, any application for approval to acquire control of a bank or a controlling person that is not denied or approved by the commissioner within a period of sixty (60) days after the application is filed with the commissioner, or if the applicant consents to an extension of the period within which the commissioner may act, within the extended period, shall be considered to be approved by the commissioner as of the first day after the period of sixty (60) days or the extended period as the case may be. (B) For purposes of this section, an application for approval to acquire control of a bank or a controlling person is considered to be filed with the commissioner at the time when the complete application, including any amendments or supplements, containing all the information in the form required by the commissioner, is received by the commissioner. (8) After denying an application for approval to acquire control of a bank or a controlling person, the commissioner, upon the filing of a written request for a hearing by any person prejudiced by the commissioner's decision, may conduct a hearing and upon the hearing shall affirm, modify, or reverse the decision. The hearing shall commence within a period of sixty (60) days after the written request for the hearing is filed with the commissioner or, if the person filing the written request for the hearing consents to an extension of the period within which the hearing is to commence, within the extended period. (9) This section does not apply to: (A) The acquisition of securities in connection with the exercise of a security interest or otherwise by way of foreclosure on default in the payment of a debt previously contracted for in good faith; provided, that the person acquiring the securities does not vote the securities so acquired without having given written notice of the foreclosure to the commissioner; (B) Transactions requiring the prior approval of the board of governors of the federal reserve system under the Bank Holding Company Act of 1956 ( 12 U.S.C. § 1841 et seq. and 26 U.S.C. § 1101 et seq. [repealed]); (C) Acquisitions or transfers by operation of law or by will or intestate succession; provided, that the person acquiring the securities does not vote the securities so acquired without having given written notice of acquisition to the commissioner; (D) Transactions governed by §§ 45-2-1304 , 45-2-1313 and 45-2-1505 ; or (E) Any transaction that the commissioner by rule or order may exempt as not being contemplated by the purposes of this section or the regulation of which is not necessary or appropriate to achieve the objectives of this section. (10) No provision of this section shall be construed to prevent the commissioner from investigating, commenting upon, or seeking to enjoin or set aside any transfer of voting securities, whether the transfer is included within this section or not, if the commissioner considers the transfer against the interest of the depositors, creditors, or shareholders of the bank or the controlling person or against the interest of the public.
(1) As used in this section, unless the context otherwise requires: (A) "Bank" means a bank or trust company organized under the laws of this state; (B) "Control" means possession, direct or indirect, of the power to direct or cause the direction of management and policies of a person, whether through the ownership of voting securities by contract or otherwise; provided, that no individual shall be deemed to control a person solely on account of being a director, officer, or employee of the person. For purposes of this section, a person who, directly or indirectly, owns, controls, holds the power to vote, or holds proxies representing twenty-five percent (25%) or more of the then outstanding voting securities issued by another person is presumed to control the other person. For purposes of this section, the commissioner may determine whether a person, in fact, controls another person; (C) "Controlling person" means a person who, directly or indirectly, controls a bank; (D) "Person" means an individual, a corporation, an association, a syndicate, a partnership, a business trust, an estate, a trust, or an organization of any kind, or any combination of any of the foregoing acting in concert; and (E) "Shareholder" means: (i) In the case of a corporation, a holder of a share of any class or series; (ii) In the case of a nonprofit or charitable corporation, an unincorporated association, or a syndicate, a member; (iii) In the case of a partnership, a partner; (iv) In the case of a business trust, an estate, or a trust, a holder of a beneficial interest; and (v) In the case of an organization of any other kind, a holder of an ownership interest.
(A) "Bank" means a bank or trust company organized under the laws of this state;
(B) "Control" means possession, direct or indirect, of the power to direct or cause the direction of management and policies of a person, whether through the ownership of voting securities by contract or otherwise; provided, that no individual shall be deemed to control a person solely on account of being a director, officer, or employee of the person. For purposes of this section, a person who, directly or indirectly, owns, controls, holds the power to vote, or holds proxies representing twenty-five percent (25%) or more of the then outstanding voting securities issued by another person is presumed to control the other person. For purposes of this section, the commissioner may determine whether a person, in fact, controls another person;
(C) "Controlling person" means a person who, directly or indirectly, controls a bank;
(D) "Person" means an individual, a corporation, an association, a syndicate, a partnership, a business trust, an estate, a trust, or an organization of any kind, or any combination of any of the foregoing acting in concert; and
(E) "Shareholder" means: (i) In the case of a corporation, a holder of a share of any class or series; (ii) In the case of a nonprofit or charitable corporation, an unincorporated association, or a syndicate, a member; (iii) In the case of a partnership, a partner; (iv) In the case of a business trust, an estate, or a trust, a holder of a beneficial interest; and (v) In the case of an organization of any other kind, a holder of an ownership interest.
(i) In the case of a corporation, a holder of a share of any class or series;
(ii) In the case of a nonprofit or charitable corporation, an unincorporated association, or a syndicate, a member;
(iii) In the case of a partnership, a partner;
(iv) In the case of a business trust, an estate, or a trust, a holder of a beneficial interest; and
(v) In the case of an organization of any other kind, a holder of an ownership interest.
(2) No person shall, directly or indirectly, unless the commissioner has approved the acquisition of control, acquire control of a bank or a controlling person; provided, that nothing in this subdivision (a)(2) shall be considered to prohibit any person from negotiating to acquire (but not acquiring) control of a bank or a controlling person.
(3) (A) The application shall be on a form prescribed by the commissioner and shall be made under oath. The application shall, except to the extent expressly waived by the commissioner, contain the following information: (i) The identity, personal history, business background and experience, and financial condition of each person by whom or on whose behalf the acquisition is to be made, including a description of the managerial resources and future prospects of each acquiring party and a description of any material pending legal or administrative proceedings in which the person is a party; (ii) The terms and conditions of any proposed acquisition and the manner in which the acquisition is to be made; (iii) The identity, source, and amount of the funds or other consideration that has been or is to be borrowed or otherwise obtained for the purpose of making the acquisition, a description of the transaction, the names of the parties, and arrangements, agreements, or understanding with those persons; (iv) Any plans or proposals that any acquiring party making the acquisition may have to liquidate the bank, to sell its assets or merge it with any company, or to make any other major changes in its business or corporate structure or management; (v) The terms and conditions of any offer, tender, invitation, agreement, or arrangement under which any voting security will be acquired and any contract affecting the security or its financing after it is acquired; and (vi) Other information that the commissioner by rule shall require to be furnished in an application, as well as any information that the commissioner orders to be included in the particular application filed. (B) The applicant shall pay a filing fee as established by the commissioner when the application is filed. (C) Information obtained by the commissioner under this section is confidential and is subject to the confidentiality requirements contained in § 45-2-1603 .
(A) The application shall be on a form prescribed by the commissioner and shall be made under oath. The application shall, except to the extent expressly waived by the commissioner, contain the following information: (i) The identity, personal history, business background and experience, and financial condition of each person by whom or on whose behalf the acquisition is to be made, including a description of the managerial resources and future prospects of each acquiring party and a description of any material pending legal or administrative proceedings in which the person is a party; (ii) The terms and conditions of any proposed acquisition and the manner in which the acquisition is to be made; (iii) The identity, source, and amount of the funds or other consideration that has been or is to be borrowed or otherwise obtained for the purpose of making the acquisition, a description of the transaction, the names of the parties, and arrangements, agreements, or understanding with those persons; (iv) Any plans or proposals that any acquiring party making the acquisition may have to liquidate the bank, to sell its assets or merge it with any company, or to make any other major changes in its business or corporate structure or management; (v) The terms and conditions of any offer, tender, invitation, agreement, or arrangement under which any voting security will be acquired and any contract affecting the security or its financing after it is acquired; and (vi) Other information that the commissioner by rule shall require to be furnished in an application, as well as any information that the commissioner orders to be included in the particular application filed.
(i) The identity, personal history, business background and experience, and financial condition of each person by whom or on whose behalf the acquisition is to be made, including a description of the managerial resources and future prospects of each acquiring party and a description of any material pending legal or administrative proceedings in which the person is a party;
(ii) The terms and conditions of any proposed acquisition and the manner in which the acquisition is to be made;
(iii) The identity, source, and amount of the funds or other consideration that has been or is to be borrowed or otherwise obtained for the purpose of making the acquisition, a description of the transaction, the names of the parties, and arrangements, agreements, or understanding with those persons;
(iv) Any plans or proposals that any acquiring party making the acquisition may have to liquidate the bank, to sell its assets or merge it with any company, or to make any other major changes in its business or corporate structure or management;
(v) The terms and conditions of any offer, tender, invitation, agreement, or arrangement under which any voting security will be acquired and any contract affecting the security or its financing after it is acquired; and
(vi) Other information that the commissioner by rule shall require to be furnished in an application, as well as any information that the commissioner orders to be included in the particular application filed.
(B) The applicant shall pay a filing fee as established by the commissioner when the application is filed.
(C) Information obtained by the commissioner under this section is confidential and is subject to the confidentiality requirements contained in § 45-2-1603 .
(4) The commissioner shall deny an application for the proposed acquisition of control of a bank or a controlling person if the commissioner finds that: (A) The effect of the proposed acquisition of control may be to substantially lessen competition or to tend to create a monopoly or that the proposed acquisition of control would in any manner be in restraint of trade, and that the anticompetitive effects of the proposed acquisition of control are not clearly outweighed in the public interest by the probable effect of the transaction in meeting the convenience and needs of the community to be served; (B) The financial condition of any acquiring person might jeopardize the financial stability of the bank or controlling person being acquired, or prejudice the interests of the depositors, creditors, or shareholders of the bank or controlling person; (C) Plans or proposals to liquidate the bank or controlling person, to sell the assets of the bank or the controlling person, or to make any other major change in the business, corporate structure or management of the bank or the controlling person; (D) The competence, experience, or integrity of any acquiring person indicates that it would not be in the interests of the depositors, creditors, or shareholders of the bank or the controlling person or in the interest of the public to permit the person to control the bank or controlling person; (E) The bank will not have adequate capital structure, or be in compliance with the laws of this state after the acquisition; (F) The proposed acquisition is unfair, unjust, or inequitable to the bank or the controlling person or to the depositors, creditors, or shareholders of the bank or controlling person; (G) The applicant neglects, fails or refuses to furnish to the commissioner all the information required by the commissioner; or (H) The applicant is not acting in good faith.
(A) The effect of the proposed acquisition of control may be to substantially lessen competition or to tend to create a monopoly or that the proposed acquisition of control would in any manner be in restraint of trade, and that the anticompetitive effects of the proposed acquisition of control are not clearly outweighed in the public interest by the probable effect of the transaction in meeting the convenience and needs of the community to be served;
(B) The financial condition of any acquiring person might jeopardize the financial stability of the bank or controlling person being acquired, or prejudice the interests of the depositors, creditors, or shareholders of the bank or controlling person;
(C) Plans or proposals to liquidate the bank or controlling person, to sell the assets of the bank or the controlling person, or to make any other major change in the business, corporate structure or management of the bank or the controlling person;
(D) The competence, experience, or integrity of any acquiring person indicates that it would not be in the interests of the depositors, creditors, or shareholders of the bank or the controlling person or in the interest of the public to permit the person to control the bank or controlling person;
(E) The bank will not have adequate capital structure, or be in compliance with the laws of this state after the acquisition;
(F) The proposed acquisition is unfair, unjust, or inequitable to the bank or the controlling person or to the depositors, creditors, or shareholders of the bank or controlling person;
(G) The applicant neglects, fails or refuses to furnish to the commissioner all the information required by the commissioner; or
(H) The applicant is not acting in good faith.
(5) The commissioner may, in approving a proposal to acquire control of a bank or a controlling person pursuant to subdivision (a)(4), impose conditions that the commissioner deems reasonable or necessary or advisable in the interest of the public.
(6) The commissioner may, for good cause, amend, alter, suspend, or revoke any approval of a proposal to acquire control of a bank or a controlling person issued pursuant to subdivision (a)(4).
(7) (A) Notwithstanding any other provision of this section, any application for approval to acquire control of a bank or a controlling person that is not denied or approved by the commissioner within a period of sixty (60) days after the application is filed with the commissioner, or if the applicant consents to an extension of the period within which the commissioner may act, within the extended period, shall be considered to be approved by the commissioner as of the first day after the period of sixty (60) days or the extended period as the case may be. (B) For purposes of this section, an application for approval to acquire control of a bank or a controlling person is considered to be filed with the commissioner at the time when the complete application, including any amendments or supplements, containing all the information in the form required by the commissioner, is received by the commissioner.
(A) Notwithstanding any other provision of this section, any application for approval to acquire control of a bank or a controlling person that is not denied or approved by the commissioner within a period of sixty (60) days after the application is filed with the commissioner, or if the applicant consents to an extension of the period within which the commissioner may act, within the extended period, shall be considered to be approved by the commissioner as of the first day after the period of sixty (60) days or the extended period as the case may be.
(B) For purposes of this section, an application for approval to acquire control of a bank or a controlling person is considered to be filed with the commissioner at the time when the complete application, including any amendments or supplements, containing all the information in the form required by the commissioner, is received by the commissioner.
(8) After denying an application for approval to acquire control of a bank or a controlling person, the commissioner, upon the filing of a written request for a hearing by any person prejudiced by the commissioner's decision, may conduct a hearing and upon the hearing shall affirm, modify, or reverse the decision. The hearing shall commence within a period of sixty (60) days after the written request for the hearing is filed with the commissioner or, if the person filing the written request for the hearing consents to an extension of the period within which the hearing is to commence, within the extended period.
(9) This section does not apply to: (A) The acquisition of securities in connection with the exercise of a security interest or otherwise by way of foreclosure on default in the payment of a debt previously contracted for in good faith; provided, that the person acquiring the securities does not vote the securities so acquired without having given written notice of the foreclosure to the commissioner; (B) Transactions requiring the prior approval of the board of governors of the federal reserve system under the Bank Holding Company Act of 1956 ( 12 U.S.C. § 1841 et seq. and 26 U.S.C. § 1101 et seq. [repealed]); (C) Acquisitions or transfers by operation of law or by will or intestate succession; provided, that the person acquiring the securities does not vote the securities so acquired without having given written notice of acquisition to the commissioner; (D) Transactions governed by §§ 45-2-1304 , 45-2-1313 and 45-2-1505 ; or (E) Any transaction that the commissioner by rule or order may exempt as not being contemplated by the purposes of this section or the regulation of which is not necessary or appropriate to achieve the objectives of this section.
(A) The acquisition of securities in connection with the exercise of a security interest or otherwise by way of foreclosure on default in the payment of a debt previously contracted for in good faith; provided, that the person acquiring the securities does not vote the securities so acquired without having given written notice of the foreclosure to the commissioner;
(B) Transactions requiring the prior approval of the board of governors of the federal reserve system under the Bank Holding Company Act of 1956 ( 12 U.S.C. § 1841 et seq. and 26 U.S.C. § 1101 et seq. [repealed]);
(C) Acquisitions or transfers by operation of law or by will or intestate succession; provided, that the person acquiring the securities does not vote the securities so acquired without having given written notice of acquisition to the commissioner;
(D) Transactions governed by §§ 45-2-1304 , 45-2-1313 and 45-2-1505 ; or
(E) Any transaction that the commissioner by rule or order may exempt as not being contemplated by the purposes of this section or the regulation of which is not necessary or appropriate to achieve the objectives of this section.
(10) No provision of this section shall be construed to prevent the commissioner from investigating, commenting upon, or seeking to enjoin or set aside any transfer of voting securities, whether the transfer is included within this section or not, if the commissioner considers the transfer against the interest of the depositors, creditors, or shareholders of the bank or the controlling person or against the interest of the public.
(b) Whenever a loan or loans are made by a bank, which loan or loans are or are to be secured by twenty-five percent (25%) or more of the voting stock of another state bank, the president or other chief executive officer of the bank that makes the loan or loans shall report the facts to the commissioner within twenty-four (24) hours after obtaining knowledge of the loan or loans, except when the borrower has been the owner of record of the stock for a period of one (1) year or more, or the stock is of a newly organized bank prior to its opening.
(c) The reports required in subsections (a) and (b) shall contain whatever information is available to inform the commissioner of the effect of the transaction upon control of the bank whose stock is involved, and shall contain, when known by the person making the report, the number of shares involved, the identity of the sellers or transferors, and purchasers or transferees of record, the identity of the beneficial owners of the shares involved, the purchase price, the total number of shares owned by the sellers or transferors and purchasers or transferees of record, both immediately prior to and after the transaction being reported, and the total number of shares owned by the beneficial owners of the shares involved, both immediately prior to and after the transaction being reported, and the identity of the borrowers, the name of the bank issuing the stock securing the loan, the number of shares securing the loan and the amount of the loan or loans. The report shall be in addition to any report that may be required pursuant to other provisions of law.
(d) All state banks shall report to the commissioner within twenty-four (24) hours any changes in chief executive officers, including in their reports a statement of the past and current business and professional affiliations of any new chief executive officers.
Acts 1969, ch. 36, § 1 (3.321); 1973, ch. 294, § 6; T.C.A., § 45-232; Acts 1983, ch. 441, § 1.
Tenn. Code Ann. § 45-7-137 — TN Code / Title 45 / Chapter 7 / Section 45-7-137
Maintenance of permissible investments
Status: in_force

(a) A licensee shall at all times maintain permissible investments that have a market value, computed in accordance with United States generally accepted accounting principles, of not less than the aggregate amount of all of its outstanding money transmission obligations. (b) Except for permissible investments under § 45-7-138(a) , the commissioner, with respect to any licensee, may limit the extent to which a specific investment maintained by a licensee within a class of permissible investments may be considered a permissible investment, if the specific investment represents undue risk to customers, not reflected in the market value of investments. (c) Permissible investments, even if commingled with other assets of the licensee, are held in trust for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations in the event of insolvency, the filing of a petition by or against the licensee under the federal Bankruptcy Code ( 11 U.S.C. §§ 101 - 110 ) for bankruptcy or reorganization, the filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or an action by a creditor against the licensee who is not a beneficiary of this statutory trust. No permissible investments impressed with a trust pursuant to this subsection (c) are subject to attachment, levy of execution, or sequestration by order of any court, except for a beneficiary of this statutory trust. (d) Upon the establishment of a statutory trust in accordance with subsection (c), or when any funds are drawn on a letter of credit pursuant to § 45-7-138(a)(4) , the commissioner shall notify the applicable regulator of each state in which the licensee is licensed to engage in money transmission, if any, of the establishment of the trust or the funds drawn on the letter of credit, as applicable. Notice is deemed satisfied if performed pursuant to a multistate agreement or through NMLS. Funds drawn on a letter of credit, and any other permissible investments held in trust for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations, are deemed held in trust for the benefit of such purchasers and holders on a pro rata and equitable basis in accordance with statutes pursuant to which permissible investments are required to be held in this state, and other states, as applicable. Any statutory trust established pursuant to this chapter terminates upon extinguishment of all of the licensee's outstanding money transmission obligations. (e) The commissioner may allow other types of investments that the commissioner determines are of sufficient liquidity and quality to be a permissible investment. Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
(a) A licensee shall at all times maintain permissible investments that have a market value, computed in accordance with United States generally accepted accounting principles, of not less than the aggregate amount of all of its outstanding money transmission obligations.
(b) Except for permissible investments under § 45-7-138(a) , the commissioner, with respect to any licensee, may limit the extent to which a specific investment maintained by a licensee within a class of permissible investments may be considered a permissible investment, if the specific investment represents undue risk to customers, not reflected in the market value of investments.
(c) Permissible investments, even if commingled with other assets of the licensee, are held in trust for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations in the event of insolvency, the filing of a petition by or against the licensee under the federal Bankruptcy Code ( 11 U.S.C. §§ 101 - 110 ) for bankruptcy or reorganization, the filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or an action by a creditor against the licensee who is not a beneficiary of this statutory trust. No permissible investments impressed with a trust pursuant to this subsection (c) are subject to attachment, levy of execution, or sequestration by order of any court, except for a beneficiary of this statutory trust.
(d) Upon the establishment of a statutory trust in accordance with subsection (c), or when any funds are drawn on a letter of credit pursuant to § 45-7-138(a)(4) , the commissioner shall notify the applicable regulator of each state in which the licensee is licensed to engage in money transmission, if any, of the establishment of the trust or the funds drawn on the letter of credit, as applicable. Notice is deemed satisfied if performed pursuant to a multistate agreement or through NMLS. Funds drawn on a letter of credit, and any other permissible investments held in trust for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations, are deemed held in trust for the benefit of such purchasers and holders on a pro rata and equitable basis in accordance with statutes pursuant to which permissible investments are required to be held in this state, and other states, as applicable. Any statutory trust established pursuant to this chapter terminates upon extinguishment of all of the licensee's outstanding money transmission obligations.
(e) The commissioner may allow other types of investments that the commissioner determines are of sufficient liquidity and quality to be a permissible investment.
Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
Tenn. Code Ann. § 45-18-102 — TN Code / Title 45 / Chapter 18 / Section 45-18-102
Chapter definitions
Status: in_force

As used in this chapter, unless the context requires otherwise: (1) "Applicant" means a person filing an application for a license under this chapter; (2) "Check" means any payment instrument; (3) "Check casher" means a person who, for compensation, provides currency in exchange for payment instrument received; (4) "Commissioner" means the commissioner of financial institutions; (5) "Consideration" means and includes any premium charged for the sale of goods, or services provided in connection with the sale of the goods that is in excess of the cash price of the goods or services; (6) "Control" means ownership of, or the power to vote, twenty-five percent (25%) or more of the outstanding voting securities of a licensee controlled by any person. There shall be aggregated with the person's interest the interest of any other person controlled by the person or by any spouse, parent, or child of the person; (7) "Currency" means the coin and paper money of the United States or of any other country that is designated as legal tender and that circulates and is customarily used and accepted as a medium of exchange in the country of issuance. "Currency" includes United States silver certificates, United States notes, and Federal Reserve notes. "Currency" also includes official foreign bank notes that are customarily used and accepted as a medium of exchange in a foreign country; (8) "Department" means the department of financial institutions; (9) "Licensee" means a check cashing business licensed by the commissioner to engage in that business in accordance with this chapter; (10) "Material litigation" means any litigation that, according to generally accepted accounting principles, is deemed significant to a person's financial health and would be required to be referenced in annual audited financial statements, reports to shareholders or similar documents; (11) "Payment instrument" means a check, draft, warrant, money order, traveler's check or other instrument for payment of money, whether or not negotiable. "Payment instrument" does not include an instrument that is redeemable by the issuer in merchandise or service, a credit card voucher, or a letter of credit; and (12) "Person" means any individual, partnership, association, trust, corporation, limited liability company, or other group, however organized, but does not include the governments of the United States or this state or any department, agency, or instrumentality thereof. Acts 1997, ch. 309, § 2.
As used in this chapter, unless the context requires otherwise:
(1) "Applicant" means a person filing an application for a license under this chapter;
(2) "Check" means any payment instrument;
(3) "Check casher" means a person who, for compensation, provides currency in exchange for payment instrument received;
(4) "Commissioner" means the commissioner of financial institutions;
(5) "Consideration" means and includes any premium charged for the sale of goods, or services provided in connection with the sale of the goods that is in excess of the cash price of the goods or services;
(6) "Control" means ownership of, or the power to vote, twenty-five percent (25%) or more of the outstanding voting securities of a licensee controlled by any person. There shall be aggregated with the person's interest the interest of any other person controlled by the person or by any spouse, parent, or child of the person;
(7) "Currency" means the coin and paper money of the United States or of any other country that is designated as legal tender and that circulates and is customarily used and accepted as a medium of exchange in the country of issuance. "Currency" includes United States silver certificates, United States notes, and Federal Reserve notes. "Currency" also includes official foreign bank notes that are customarily used and accepted as a medium of exchange in a foreign country;
(8) "Department" means the department of financial institutions;
(9) "Licensee" means a check cashing business licensed by the commissioner to engage in that business in accordance with this chapter;
(10) "Material litigation" means any litigation that, according to generally accepted accounting principles, is deemed significant to a person's financial health and would be required to be referenced in annual audited financial statements, reports to shareholders or similar documents;
(11) "Payment instrument" means a check, draft, warrant, money order, traveler's check or other instrument for payment of money, whether or not negotiable. "Payment instrument" does not include an instrument that is redeemable by the issuer in merchandise or service, a credit card voucher, or a letter of credit; and
(12) "Person" means any individual, partnership, association, trust, corporation, limited liability company, or other group, however organized, but does not include the governments of the United States or this state or any department, agency, or instrumentality thereof.
Acts 1997, ch. 309, § 2.
Tenn. Code Ann. § 45-15-120 — TN Code / Title 45 / Chapter 15 / Section 45-15-120
Applicability of motor vehicle provisions
Status: in_force

Title 55, chapter 17, shall apply to all sales and transfers of any motor vehicle acquired under this chapter. Acts 1995, ch. 186, § 14.
Title 55, chapter 17, shall apply to all sales and transfers of any motor vehicle acquired under this chapter.
Acts 1995, ch. 186, § 14.
Tenn. Code Ann. § 45-1-107 — TN Code / Title 45 / Chapter 1 / Section 45-1-107
Powers and duties of commissioner
Status: in_force

(a) In addition to other powers conferred by this title, the commissioner has the power to: (1) Interpret this chapter and chapter 2 of this title, and regulate banking practices thereunder; (2) Restrict the withdrawal of deposits from all or one (1) or more state banks where the commissioner finds that extraordinary circumstances make the restriction necessary for the proper protection of depositors in the affected institutions; (3) Authorize a state bank to participate in a public agency hereafter created under the laws of this state or of the United States, the purpose of which is to afford advantages or safeguards to banks or to depositors and to comply with all requirements and conditions imposed upon the participants; (4) Order any person to cease violating a provision of this title or lawful regulation issued under this title; (5) Order any person to cease and desist from engaging in any unsafe or unsound banking practice when the practice is likely to cause insolvency or dissipation of assets or earnings of a state bank or is likely to otherwise seriously prejudice the interests of the depositors of a state bank; and (6) Bring an action in the chancery court of Davidson County to enjoin any act or practice in or from this state that constitutes a violation of any provision of law or any rule or order that the department has the duty to execute pursuant to § 45-1-104 . The court may not require the commissioner to post a bond in bringing the action. Upon a proper showing by the commissioner, the court shall grant a permanent or temporary injunction, restraining order, writ of mandamus, disgorgement, or other proper equitable relief including the recovery by the commissioner of costs and attorney fees. Further, to the extent that this subdivision (a)(6) does not conflict with other provisions of this title, a receiver or conservator may be appointed for the defendant or the defendant's assets. (b) The commissioner may remove a director, trustee, officer or employee of a state bank who becomes ineligible to hold the position or who, after receipt of an order to cease under subsection (a), violates this title or a lawful regulation or order issued under this title, or who is dishonest. It is a criminal offense against the state for any such persons, after receipt of a removal order, to perform any duty or exercise any power of any state bank for a period of three (3) years. A removal order shall specify the grounds of removal and a copy of the order shall be sent to the bank concerned. (c) Notice and opportunity for a hearing shall be provided in advance of any of the foregoing actions in this section taken by the commissioner, except the formulation of regulations of general application. In cases involving extraordinary circumstances requiring immediate action, the commissioner may take the action but shall promptly afford a subsequent hearing upon application to rescind the action taken. (d) The commissioner may, on petition of any interested person and after hearing, issue a declaratory order with respect to the applicability to any person, property or state of facts under this title or a rule issued by the commissioner. The order shall bind the commissioner and all parties to the proceeding on the state of facts alleged unless it is modified or reversed by a court. A declaratory order may be reviewed and enforced in the same manner as other orders of the commissioner, but the refusal to issue a declaratory order shall not be reviewable. (e) In addition to other powers conferred by this title, the commissioner has power to require a state bank to: (1) Maintain its accounts in accordance with regulations that the commissioner prescribes, having regard to the size of the organization; (2) Observe methods and standards that the commissioner prescribes for determining the value of various types of assets; (3) Charge off the whole or part of an asset that at the time of the commissioner's action could not lawfully be acquired; (4) Write down an asset to its market value; (5) Record liens and security in property or at the option of the bank, insure against losses from not recording; (6) Obtain a financial statement from a prospective borrower to the extent that the bank can do so; (7) Search, or obtain insurance of, the title to real estate taken as security; (8) Maintain adequate insurance against other risks that the commissioner determines to be necessary and appropriate for the protection of depositors and the public; and (9) Call a special meeting of the shareholders. (f) The commissioner has the power to subpoena witnesses, compel their attendance, require the production of evidence, administer an oath and examine any person under oath in connection with any subject relating to duty imposed upon or a power vested in the commissioner. These powers shall be enforced by a court of competent jurisdiction of the county in which the hearing is held. (g) No person shall be subjected to any civil or criminal liability for any act or omission to act in good faith in reliance upon a subsisting order, regulation or definition of the commissioner, notwithstanding a subsequent decision by a court invalidating the order, regulation or definition. (h) The commissioner is granted the power to enact reasonable substantive and procedural rules to carry out the purposes of any and all chapters within the commissioner's regulatory authority as conferred by law. This power shall specifically include, but not be limited to, the authority to establish a schedule of fees to be charged by the department relative to notifications or applications to be reviewed by the department. The promulgation shall be done in conformity with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. (i) (1) The commissioner may accept payments to the department by credit card, debit card, electronic funds transfer, electronic check or other electronic means. The commissioner may adopt reasonable policies and rules governing the manner of acceptance of such payments. (2) The commissioner may enter into appropriate agreements with card issuers or other appropriate parties as needed to facilitate the acceptance of payments authorized under this subsection (i). The commissioner may impose and collect a convenience fee from any person making payment by credit card, debit card, electronic funds transfer, electronic check or other electronic means in order to offset the actual administrative fees and costs incurred by the department for accepting or processing such payments. Notwithstanding any law to the contrary, the convenience fee shall be charged in addition to all other fees, penalties, taxes and costs required by law. (3) The commissioner also may enter into appropriate agreements with third-party service providers for the acceptance and processing of payments made by credit card, debit card, electronic funds transfer, electronic check or other electronic means. Such agreements may authorize third-party service providers to impose and collect a convenience fee from persons making such payments. (4) When a person elects to make a payment to the department by credit card, debit card, electronic funds transfer, electronic check or other electronic means and a convenience fee is imposed and collected as authorized by this subsection (i), the payment of the convenience fee shall be deemed voluntary and shall not be refundable. Amended by 2013 Tenn. Acts, ch. 102,s 1, eff. 4/11/2013. Acts 1969, ch. 36, § 1 (2.012); impl. am. Acts 1971, ch. 137, § 2; Acts 1973, ch. 294, § 12; 1975, ch. 59, § 1; 1978, ch. 516, § 1; T.C.A., § 45-108; Acts 1992, ch. 658, § 1; 1993, ch. 130, § 1; 1994, ch. 551, § 1; 1996, ch. 562, § 2; 2001, ch. 54, §§ 1, 2.
(a) In addition to other powers conferred by this title, the commissioner has the power to: (1) Interpret this chapter and chapter 2 of this title, and regulate banking practices thereunder; (2) Restrict the withdrawal of deposits from all or one (1) or more state banks where the commissioner finds that extraordinary circumstances make the restriction necessary for the proper protection of depositors in the affected institutions; (3) Authorize a state bank to participate in a public agency hereafter created under the laws of this state or of the United States, the purpose of which is to afford advantages or safeguards to banks or to depositors and to comply with all requirements and conditions imposed upon the participants; (4) Order any person to cease violating a provision of this title or lawful regulation issued under this title; (5) Order any person to cease and desist from engaging in any unsafe or unsound banking practice when the practice is likely to cause insolvency or dissipation of assets or earnings of a state bank or is likely to otherwise seriously prejudice the interests of the depositors of a state bank; and (6) Bring an action in the chancery court of Davidson County to enjoin any act or practice in or from this state that constitutes a violation of any provision of law or any rule or order that the department has the duty to execute pursuant to § 45-1-104 . The court may not require the commissioner to post a bond in bringing the action. Upon a proper showing by the commissioner, the court shall grant a permanent or temporary injunction, restraining order, writ of mandamus, disgorgement, or other proper equitable relief including the recovery by the commissioner of costs and attorney fees. Further, to the extent that this subdivision (a)(6) does not conflict with other provisions of this title, a receiver or conservator may be appointed for the defendant or the defendant's assets.
(1) Interpret this chapter and chapter 2 of this title, and regulate banking practices thereunder;
(2) Restrict the withdrawal of deposits from all or one (1) or more state banks where the commissioner finds that extraordinary circumstances make the restriction necessary for the proper protection of depositors in the affected institutions;
(3) Authorize a state bank to participate in a public agency hereafter created under the laws of this state or of the United States, the purpose of which is to afford advantages or safeguards to banks or to depositors and to comply with all requirements and conditions imposed upon the participants;
(4) Order any person to cease violating a provision of this title or lawful regulation issued under this title;
(5) Order any person to cease and desist from engaging in any unsafe or unsound banking practice when the practice is likely to cause insolvency or dissipation of assets or earnings of a state bank or is likely to otherwise seriously prejudice the interests of the depositors of a state bank; and
(6) Bring an action in the chancery court of Davidson County to enjoin any act or practice in or from this state that constitutes a violation of any provision of law or any rule or order that the department has the duty to execute pursuant to § 45-1-104 . The court may not require the commissioner to post a bond in bringing the action. Upon a proper showing by the commissioner, the court shall grant a permanent or temporary injunction, restraining order, writ of mandamus, disgorgement, or other proper equitable relief including the recovery by the commissioner of costs and attorney fees. Further, to the extent that this subdivision (a)(6) does not conflict with other provisions of this title, a receiver or conservator may be appointed for the defendant or the defendant's assets.
(b) The commissioner may remove a director, trustee, officer or employee of a state bank who becomes ineligible to hold the position or who, after receipt of an order to cease under subsection (a), violates this title or a lawful regulation or order issued under this title, or who is dishonest. It is a criminal offense against the state for any such persons, after receipt of a removal order, to perform any duty or exercise any power of any state bank for a period of three (3) years. A removal order shall specify the grounds of removal and a copy of the order shall be sent to the bank concerned.
(c) Notice and opportunity for a hearing shall be provided in advance of any of the foregoing actions in this section taken by the commissioner, except the formulation of regulations of general application. In cases involving extraordinary circumstances requiring immediate action, the commissioner may take the action but shall promptly afford a subsequent hearing upon application to rescind the action taken.
(d) The commissioner may, on petition of any interested person and after hearing, issue a declaratory order with respect to the applicability to any person, property or state of facts under this title or a rule issued by the commissioner. The order shall bind the commissioner and all parties to the proceeding on the state of facts alleged unless it is modified or reversed by a court. A declaratory order may be reviewed and enforced in the same manner as other orders of the commissioner, but the refusal to issue a declaratory order shall not be reviewable.
(e) In addition to other powers conferred by this title, the commissioner has power to require a state bank to: (1) Maintain its accounts in accordance with regulations that the commissioner prescribes, having regard to the size of the organization; (2) Observe methods and standards that the commissioner prescribes for determining the value of various types of assets; (3) Charge off the whole or part of an asset that at the time of the commissioner's action could not lawfully be acquired; (4) Write down an asset to its market value; (5) Record liens and security in property or at the option of the bank, insure against losses from not recording; (6) Obtain a financial statement from a prospective borrower to the extent that the bank can do so; (7) Search, or obtain insurance of, the title to real estate taken as security; (8) Maintain adequate insurance against other risks that the commissioner determines to be necessary and appropriate for the protection of depositors and the public; and (9) Call a special meeting of the shareholders.
(1) Maintain its accounts in accordance with regulations that the commissioner prescribes, having regard to the size of the organization;
(2) Observe methods and standards that the commissioner prescribes for determining the value of various types of assets;
(3) Charge off the whole or part of an asset that at the time of the commissioner's action could not lawfully be acquired;
(4) Write down an asset to its market value;
(5) Record liens and security in property or at the option of the bank, insure against losses from not recording;
(6) Obtain a financial statement from a prospective borrower to the extent that the bank can do so;
(7) Search, or obtain insurance of, the title to real estate taken as security;
(8) Maintain adequate insurance against other risks that the commissioner determines to be necessary and appropriate for the protection of depositors and the public; and
(9) Call a special meeting of the shareholders.
(f) The commissioner has the power to subpoena witnesses, compel their attendance, require the production of evidence, administer an oath and examine any person under oath in connection with any subject relating to duty imposed upon or a power vested in the commissioner. These powers shall be enforced by a court of competent jurisdiction of the county in which the hearing is held.
(g) No person shall be subjected to any civil or criminal liability for any act or omission to act in good faith in reliance upon a subsisting order, regulation or definition of the commissioner, notwithstanding a subsequent decision by a court invalidating the order, regulation or definition.
(h) The commissioner is granted the power to enact reasonable substantive and procedural rules to carry out the purposes of any and all chapters within the commissioner's regulatory authority as conferred by law. This power shall specifically include, but not be limited to, the authority to establish a schedule of fees to be charged by the department relative to notifications or applications to be reviewed by the department. The promulgation shall be done in conformity with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(i) (1) The commissioner may accept payments to the department by credit card, debit card, electronic funds transfer, electronic check or other electronic means. The commissioner may adopt reasonable policies and rules governing the manner of acceptance of such payments. (2) The commissioner may enter into appropriate agreements with card issuers or other appropriate parties as needed to facilitate the acceptance of payments authorized under this subsection (i). The commissioner may impose and collect a convenience fee from any person making payment by credit card, debit card, electronic funds transfer, electronic check or other electronic means in order to offset the actual administrative fees and costs incurred by the department for accepting or processing such payments. Notwithstanding any law to the contrary, the convenience fee shall be charged in addition to all other fees, penalties, taxes and costs required by law. (3) The commissioner also may enter into appropriate agreements with third-party service providers for the acceptance and processing of payments made by credit card, debit card, electronic funds transfer, electronic check or other electronic means. Such agreements may authorize third-party service providers to impose and collect a convenience fee from persons making such payments. (4) When a person elects to make a payment to the department by credit card, debit card, electronic funds transfer, electronic check or other electronic means and a convenience fee is imposed and collected as authorized by this subsection (i), the payment of the convenience fee shall be deemed voluntary and shall not be refundable.
(1) The commissioner may accept payments to the department by credit card, debit card, electronic funds transfer, electronic check or other electronic means. The commissioner may adopt reasonable policies and rules governing the manner of acceptance of such payments.
(2) The commissioner may enter into appropriate agreements with card issuers or other appropriate parties as needed to facilitate the acceptance of payments authorized under this subsection (i). The commissioner may impose and collect a convenience fee from any person making payment by credit card, debit card, electronic funds transfer, electronic check or other electronic means in order to offset the actual administrative fees and costs incurred by the department for accepting or processing such payments. Notwithstanding any law to the contrary, the convenience fee shall be charged in addition to all other fees, penalties, taxes and costs required by law.
(3) The commissioner also may enter into appropriate agreements with third-party service providers for the acceptance and processing of payments made by credit card, debit card, electronic funds transfer, electronic check or other electronic means. Such agreements may authorize third-party service providers to impose and collect a convenience fee from persons making such payments.
(4) When a person elects to make a payment to the department by credit card, debit card, electronic funds transfer, electronic check or other electronic means and a convenience fee is imposed and collected as authorized by this subsection (i), the payment of the convenience fee shall be deemed voluntary and shall not be refundable.
Amended by 2013 Tenn. Acts, ch. 102,s 1, eff. 4/11/2013.
Acts 1969, ch. 36, § 1 (2.012); impl. am. Acts 1971, ch. 137, § 2; Acts 1973, ch. 294, § 12; 1975, ch. 59, § 1; 1978, ch. 516, § 1; T.C.A., § 45-108; Acts 1992, ch. 658, § 1; 1993, ch. 130, § 1; 1994, ch. 551, § 1; 1996, ch. 562, § 2; 2001, ch. 54, §§ 1, 2.
Tenn. Code Ann. § 45-3-205 — TN Code / Title 45 / Chapter 3 / Section 45-3-205
Requirements for charter and bylaws
Status: in_force

The proposed charter and bylaws of the association adopted at the meeting of subscribers shall contain those provisions required of charters and bylaws under the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27, as well as other information that the commissioner may, by regulation, prescribe, including, but not limited to, a statement in the charter that the association is organized under this chapter. Acts 1978, ch. 708, § 1.19; T.C.A., § 45-1319; Acts 1994, ch. 551, § 19.
The proposed charter and bylaws of the association adopted at the meeting of subscribers shall contain those provisions required of charters and bylaws under the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27, as well as other information that the commissioner may, by regulation, prescribe, including, but not limited to, a statement in the charter that the association is organized under this chapter.
Acts 1978, ch. 708, § 1.19; T.C.A., § 45-1319; Acts 1994, ch. 551, § 19.
Tenn. Code Ann. § 45-1-111 — TN Code / Title 45 / Chapter 1 / Section 45-1-111
Limitation of personal liability
Status: in_force

Neither the commissioner nor any other employee of the department shall be liable in any civil action for damages for any act done or omitted in good faith in performing the duties of the person's office. Acts 1969, ch. 36, § 1 (2.106); 1973, ch. 294, § 6; T.C.A., § 45-111.
Neither the commissioner nor any other employee of the department shall be liable in any civil action for damages for any act done or omitted in good faith in performing the duties of the person's office.
Acts 1969, ch. 36, § 1 (2.106); 1973, ch. 294, § 6; T.C.A., § 45-111.
Tenn. Code Ann. § 45-1-117 — TN Code / Title 45 / Chapter 1 / Section 45-1-117
Banking interests of employees of department - Criminal history records check
Status: in_force

(a) (1) No officer or employee of the department, except as provided in this title, shall receive, directly or indirectly, any payment or gratuity from any institutions regulated by the department, or be indebted to any state institutions regulated by the department, or engage in the negotiation of loans for others with the institutions regulated by the department. This provision shall not prohibit any employee from being a depositor or a lessor of safe deposit boxes on the same terms as are available to the public generally nor being indebted to any institution regulated by the department: (A) Upon a mortgage loan upon the residence of the mortgagor; (B) Upon any evidence of indebtedness transferred to any institution regulated by the department in the regular course of business by a seller of consumer goods or services purchased by the employee; or (C) Pursuant to any revolving credit arrangement offered to the employee upon the same terms as are available to the public generally. (2) A violation of subdivision (a)(1) is a criminal offense. (b) (1) The commissioner, or any other employee of the department, shall not hold office or position in, have any indirect pecuniary interest in, or directly or indirectly own shares or securities issued by an institution supervised by the department, except that the commissioner may continue to own shares or securities issued by an institution that are owned on the date of the commissioner's appointment and all shares or security distributed by the institution and received by the commissioner on account of the shares or securities so owned. (2) A violation of subdivision (b)(1) is a criminal offense. (c) In the event of ownership of shares or securities by the commissioner, the commissioner shall disclose the ownership, amount and date of acquisition of the shares or securities in writing to the state treasurer immediately after the commissioner's appointment and shall not during the commissioner's term of office participate in any decision or take any action concerning an institution in which the commissioner owns the shares or securities other than actions or decisions generally applicable to institutions or classes of institutions. (d) The prohibitions of this section do not apply to employees of the department who hold clerical or support staff positions as determined by the commissioner. (e) Notwithstanding subsections (a)-(d), the commissioner has the authority by rule or by policy to determine what situations are material to the maintenance of regulatory independence and shall establish appropriate exceptions for those situations subject to this section where, by actions beyond the employee's control, there is no intent by the employee to circumvent this section. In so doing, the commissioner shall establish the circumstances under which covered department employees must be recused from official duties and has the authority to define the terms of this section. In establishing these standards, the commissioner shall consider the ethical standards established by other state or federal regulators. Nothing in this subsection (e) shall apply to the requirements otherwise imposed on the commissioner. (f) (1) As a condition of employment with the department, the commissioner is authorized to require an applicant to provide the department or a duly authorized state contractor with a fingerprint sample in a form acceptable to the commissioner, as well as consent to a criminal history records check. Any criminal history records check conducted under this subdivision (f)(1) shall be conducted by the Tennessee bureau of investigation or the federal bureau of investigation, or both, and the results of the check shall be forwarded to the commissioner. The department shall pay the reasonable costs incurred in conducting the criminal history records check. The commissioner shall by rule or by policy determine what classes of applicants shall submit to a fingerprint criminal history records check and what officers or employees of the department shall have access to the results of the criminal history records check. (2) Subdivision (f)(1) shall not apply to applicants for clerical or support staff positions as determined by the commissioner. (3) The department shall maintain the confidentiality of all criminal history records information received pursuant to this subsection (f). Acts 1969, ch. 36, § 1 (2.109); 1973, ch. 294, § 6; T.C.A., § 45-116; Acts 1983, ch. 274, § 7; 1993, ch. 25, § 1; 2001, ch. 54, § 3; 2009, ch. 499, § 9.
(a) (1) No officer or employee of the department, except as provided in this title, shall receive, directly or indirectly, any payment or gratuity from any institutions regulated by the department, or be indebted to any state institutions regulated by the department, or engage in the negotiation of loans for others with the institutions regulated by the department. This provision shall not prohibit any employee from being a depositor or a lessor of safe deposit boxes on the same terms as are available to the public generally nor being indebted to any institution regulated by the department: (A) Upon a mortgage loan upon the residence of the mortgagor; (B) Upon any evidence of indebtedness transferred to any institution regulated by the department in the regular course of business by a seller of consumer goods or services purchased by the employee; or (C) Pursuant to any revolving credit arrangement offered to the employee upon the same terms as are available to the public generally. (2) A violation of subdivision (a)(1) is a criminal offense.
(1) No officer or employee of the department, except as provided in this title, shall receive, directly or indirectly, any payment or gratuity from any institutions regulated by the department, or be indebted to any state institutions regulated by the department, or engage in the negotiation of loans for others with the institutions regulated by the department. This provision shall not prohibit any employee from being a depositor or a lessor of safe deposit boxes on the same terms as are available to the public generally nor being indebted to any institution regulated by the department: (A) Upon a mortgage loan upon the residence of the mortgagor; (B) Upon any evidence of indebtedness transferred to any institution regulated by the department in the regular course of business by a seller of consumer goods or services purchased by the employee; or (C) Pursuant to any revolving credit arrangement offered to the employee upon the same terms as are available to the public generally.
(A) Upon a mortgage loan upon the residence of the mortgagor;
(B) Upon any evidence of indebtedness transferred to any institution regulated by the department in the regular course of business by a seller of consumer goods or services purchased by the employee; or
(C) Pursuant to any revolving credit arrangement offered to the employee upon the same terms as are available to the public generally.
(2) A violation of subdivision (a)(1) is a criminal offense.
(b) (1) The commissioner, or any other employee of the department, shall not hold office or position in, have any indirect pecuniary interest in, or directly or indirectly own shares or securities issued by an institution supervised by the department, except that the commissioner may continue to own shares or securities issued by an institution that are owned on the date of the commissioner's appointment and all shares or security distributed by the institution and received by the commissioner on account of the shares or securities so owned. (2) A violation of subdivision (b)(1) is a criminal offense.
(1) The commissioner, or any other employee of the department, shall not hold office or position in, have any indirect pecuniary interest in, or directly or indirectly own shares or securities issued by an institution supervised by the department, except that the commissioner may continue to own shares or securities issued by an institution that are owned on the date of the commissioner's appointment and all shares or security distributed by the institution and received by the commissioner on account of the shares or securities so owned.
(2) A violation of subdivision (b)(1) is a criminal offense.
(c) In the event of ownership of shares or securities by the commissioner, the commissioner shall disclose the ownership, amount and date of acquisition of the shares or securities in writing to the state treasurer immediately after the commissioner's appointment and shall not during the commissioner's term of office participate in any decision or take any action concerning an institution in which the commissioner owns the shares or securities other than actions or decisions generally applicable to institutions or classes of institutions.
(d) The prohibitions of this section do not apply to employees of the department who hold clerical or support staff positions as determined by the commissioner.
(e) Notwithstanding subsections (a)-(d), the commissioner has the authority by rule or by policy to determine what situations are material to the maintenance of regulatory independence and shall establish appropriate exceptions for those situations subject to this section where, by actions beyond the employee's control, there is no intent by the employee to circumvent this section. In so doing, the commissioner shall establish the circumstances under which covered department employees must be recused from official duties and has the authority to define the terms of this section. In establishing these standards, the commissioner shall consider the ethical standards established by other state or federal regulators. Nothing in this subsection (e) shall apply to the requirements otherwise imposed on the commissioner.
(f) (1) As a condition of employment with the department, the commissioner is authorized to require an applicant to provide the department or a duly authorized state contractor with a fingerprint sample in a form acceptable to the commissioner, as well as consent to a criminal history records check. Any criminal history records check conducted under this subdivision (f)(1) shall be conducted by the Tennessee bureau of investigation or the federal bureau of investigation, or both, and the results of the check shall be forwarded to the commissioner. The department shall pay the reasonable costs incurred in conducting the criminal history records check. The commissioner shall by rule or by policy determine what classes of applicants shall submit to a fingerprint criminal history records check and what officers or employees of the department shall have access to the results of the criminal history records check. (2) Subdivision (f)(1) shall not apply to applicants for clerical or support staff positions as determined by the commissioner. (3) The department shall maintain the confidentiality of all criminal history records information received pursuant to this subsection (f).
(1) As a condition of employment with the department, the commissioner is authorized to require an applicant to provide the department or a duly authorized state contractor with a fingerprint sample in a form acceptable to the commissioner, as well as consent to a criminal history records check. Any criminal history records check conducted under this subdivision (f)(1) shall be conducted by the Tennessee bureau of investigation or the federal bureau of investigation, or both, and the results of the check shall be forwarded to the commissioner. The department shall pay the reasonable costs incurred in conducting the criminal history records check. The commissioner shall by rule or by policy determine what classes of applicants shall submit to a fingerprint criminal history records check and what officers or employees of the department shall have access to the results of the criminal history records check.
(2) Subdivision (f)(1) shall not apply to applicants for clerical or support staff positions as determined by the commissioner.
(3) The department shall maintain the confidentiality of all criminal history records information received pursuant to this subsection (f).
Acts 1969, ch. 36, § 1 (2.109); 1973, ch. 294, § 6; T.C.A., § 45-116; Acts 1983, ch. 274, § 7; 1993, ch. 25, § 1; 2001, ch. 54, § 3; 2009, ch. 499, § 9.
Tenn. Code Ann. § 45-5-102 — TN Code / Title 45 / Chapter 5 / Section 45-5-102
Chapter definitions
Status: in_force

As used in this chapter, unless the context otherwise requires: (1) "Actuarial method" means the method of allocating payments made on a debt between the principal and interest pursuant to which payment is applied first to accumulated interest and any remainder is subtracted from, or any deficiency is added to, the unpaid principal balance of the debt; (2) "Affiliated lender" means any industrial loan and thrift company or industrial investment company or industrial bank under common control with another registrant, or working together with another registrant, so as to effect for each other a greater volume of business; (3) "Amount financed" means the amount financed as disclosed under the federal Truth in Lending Act, which is contained in Title I of the Consumer Credit Protection Act ( 15 U.S.C. § 1601 et seq.) and Regulation Z ( 12 CFR Part 226 ); (4) "Commissioner" means the commissioner of financial institutions; (5) "Control" means possession, direct or indirect, of the power to direct or cause the direction of management and policies of a person, whether through the ownership of voting securities by contract or otherwise; provided, that no individual shall be deemed to control a person solely on account of being a director, officer, or employee of the person. For purposes of this section, a person who, directly or indirectly, owns, controls, holds the power to vote, or holds proxies representing twenty-five percent (25%) or more of the then outstanding voting securities issued by another person is presumed to control the person. For purposes of this section, the commissioner may determine whether a person, in fact, controls another person; (6) "Controlling person" means any person in control of a registrant; (7) "Effective rate of interest" means the simple rate of interest, including the result of converting discount or other nominal rates of interest into simple rates of interest; (8) "Endorsement company" is any person engaged in the business of arranging for the making of loans, other than a residential mortgage loan, for a fee, consideration or charge, by endorsement or by providing security for loans or otherwise, even though the person does not actually make the loan; provided, however, that for loans, other than a residential mortgage loan, a natural person may refer a potential borrower to a registrant and receive a fee or consideration from the registrant without being deemed an "endorsement company," so long as the natural person does not claim to be a loan broker or "endorsement company"; (9) "Industrial bank" means a person organized and registered as an industrial bank pursuant to this chapter, engaged in the business of making loans and imposing the interest and loan charges authorized under this chapter, that issues thrift certificates and that is also examined, supervised and liquidated as a state bank under this title; (10) "Industrial investment company" means a person organized and registered as an industrial investment company pursuant to this chapter, engaged in the business of making loans and imposing the interest and loan charges authorized under this chapter, that issues investment certificates subject to the Tennessee Securities Act, compiled in title 48, chapter 1, part 1, and that is also examined, supervised and liquidated as a state bank under this title; (11) "Industrial loan and thrift company" means a person engaged in the business of making loans and imposing the interest and loan charges authorized under this chapter, and includes persons engaged in business as endorsement companies; (12) "Interest" means compensation for the use, detention or forbearance to collect money over a period of time, and does not include compensation for other purposes, including, but not limited to: (A) Time-price differentials; (B) Loan charges as provided in § 45-5-403 ; and (C) Insurance charges as provided in § 45-5-305 ; (13) (A) "Investment certificate" means a writing by which an industrial investment company evidences its receipt of money from a natural person and its obligation to repay the money, with interest, in accordance with the writing, which certificates are not insured by an agency of the United States government; (B) "Investment certificate" does not include: (i) Promissory notes, bonds, debentures, commercial paper and the like issued by an industrial loan and thrift company or industrial investment company or industrial bank to a bank, insurance company, or other commercial lender; or (ii) A promissory note - provided, that the note is nonnegotiable to a natural person and includes a provision to the effect that any attempt at its assignment to any person other than the maker, a bank, insurance company, or other commercial lender shall be null, void and of no effect - issued by an industrial loan and thrift company to the following: (a) A bona fide executive officer who works at least thirty (30) hours per week at the company, or to members of the executive officer's immediate family; (b) A voting member of the board of directors of the company, or to members of the voting member's immediate family; or (c) To a shareholder, including a beneficial owner, of the company where the shareholder and members of the shareholder's immediate family own at least twenty-five percent (25%) of the outstanding voting shares of the company; (C) For purposes of subdivision (13)(B)(ii), "immediate family" includes a note payee, and the payee's parents, grandparents, siblings, children and grandchildren; and (D) The burden of demonstrating to the commissioner that an obligation is not an "investment certificate" shall be on the registrant, and the registrant shall file its reports under this chapter in a manner that clearly reflects that exempt status is being claimed; (14) "Loan charges" means compensation to a registrant for services, expenses, detriments or commitments directly incident to a loan, and does not include compensation for other purposes, including, but not limited to, time-price differentials, interest or insurance charges; (15) (A) In general, "loan processor or underwriter" means an individual who performs clerical or support duties as an employee, not an independent contractor, at the direction of and subject to the supervision and instruction of a registrant authorized to make residential mortgage loans; (B) For purposes of subdivision (15)(A), "clerical or support duties" may include, subsequent to the receipt of an application for a residential mortgage loan: (i) The receipt, collection, distribution and analysis of information common for the processing or underwriting of the loan; and/or (ii) Communicating with a consumer to obtain the information necessary for the processing or underwriting of the loan, to the extent that the communication does not include offering or negotiating loan rates or terms or counseling consumers about residential mortgage loan rates or terms; (16) "Mortgage loan originator" means: (A) An individual who, for compensation or gain or in the expectation of compensation or gain: (i) Takes a residential mortgage loan application; or (ii) Offers or negotiates terms of a residential mortgage loan; (B) "Mortgage loan originator" does not include an individual engaged solely as a loan processor or underwriter for a registrant, unless that individual is an independent contractor and not an employee; (17) "Nationwide Mortgage Licensing System and Registry" means a mortgage licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of licensed mortgage loan originators; (18) "Nominal rate of interest" means a stated rate of interest, other than simple interest, including, but not limited to, discount interest; (19) "Person" means an individual, corporation, firm, trust, estate, partnership, joint venture or association, as the context may require; (20) "Principal" means the total of money paid to, received by, or paid or credited to the account of the borrower, including loan charges as provided in § 45-5-403(a)(1)-(3) , as applicable, and including insurance charges for which the borrower contracts to pay pursuant to § 45-5-305 ; (21) "Registrant" means any person registered as an industrial loan and thrift company, industrial investment company or industrial bank under this chapter; (22) "Residential mortgage loan" means any loan, including an extension of credit, primarily for personal, family or household use that is secured by a mortgage, deed of trust or other equivalent consensual security interest on a dwelling, as defined in § 103(v) of the federal Truth in Lending Act ( 15 U.S.C. § 1602(v) ), or residential real estate upon which is constructed or intended to be constructed a dwelling, as so defined; (23) "Residential real estate" means any real property located in this state upon which is constructed or intended to be constructed a dwelling; (24) "Simple rate of interest" means the ratio between the interest payable on an obligation and the principal for a period of time, expressed as a percentage for a period such as a year or a month; (25) "Thrift certificate" means a writing by which an industrial bank evidences its receipt of money from a natural person and its obligation to repay the money, with interest in accordance with the writing, that is insured by an agency of the United States government. "Thrift certificate" does not include investment certificate, and does not include commercial paper or other evidence of indebtedness issued by an industrial bank to a bank, insurance company or other commercial lender; (26) "Total amount of the loan" means the aggregate amount of money scheduled to be paid by a borrower to a registrant to repay a loan, including principal and any interest precomputed and deducted in advance; and (27) "Unique identifier" means a number or other identifier assigned by protocols established by the Nationwide Mortgage Licensing System and Registry. Amended by 2018 Tenn. Acts, ch. 600, Secs.s 1, s 2 eff. 3/23/2018. Acts 1979, ch. 204, § 1; T.C.A., § 45-2001; Acts 1983, ch. 274, § 8; 1988, ch. 737, § 1; 1990, ch. 857, §§ 1, 3; 1991, ch. 57, § 1; 1997 , ch. 19, § 1; 2001, ch. 165, §§ 1, 2; 2009 , ch. 499, §§ 1, 2.
As used in this chapter, unless the context otherwise requires:
(1) "Actuarial method" means the method of allocating payments made on a debt between the principal and interest pursuant to which payment is applied first to accumulated interest and any remainder is subtracted from, or any deficiency is added to, the unpaid principal balance of the debt;
(2) "Affiliated lender" means any industrial loan and thrift company or industrial investment company or industrial bank under common control with another registrant, or working together with another registrant, so as to effect for each other a greater volume of business;
(3) "Amount financed" means the amount financed as disclosed under the federal Truth in Lending Act, which is contained in Title I of the Consumer Credit Protection Act ( 15 U.S.C. § 1601 et seq.) and Regulation Z ( 12 CFR Part 226 );
(4) "Commissioner" means the commissioner of financial institutions;
(5) "Control" means possession, direct or indirect, of the power to direct or cause the direction of management and policies of a person, whether through the ownership of voting securities by contract or otherwise; provided, that no individual shall be deemed to control a person solely on account of being a director, officer, or employee of the person. For purposes of this section, a person who, directly or indirectly, owns, controls, holds the power to vote, or holds proxies representing twenty-five percent (25%) or more of the then outstanding voting securities issued by another person is presumed to control the person. For purposes of this section, the commissioner may determine whether a person, in fact, controls another person;
(6) "Controlling person" means any person in control of a registrant;
(7) "Effective rate of interest" means the simple rate of interest, including the result of converting discount or other nominal rates of interest into simple rates of interest;
(8) "Endorsement company" is any person engaged in the business of arranging for the making of loans, other than a residential mortgage loan, for a fee, consideration or charge, by endorsement or by providing security for loans or otherwise, even though the person does not actually make the loan; provided, however, that for loans, other than a residential mortgage loan, a natural person may refer a potential borrower to a registrant and receive a fee or consideration from the registrant without being deemed an "endorsement company," so long as the natural person does not claim to be a loan broker or "endorsement company";
(9) "Industrial bank" means a person organized and registered as an industrial bank pursuant to this chapter, engaged in the business of making loans and imposing the interest and loan charges authorized under this chapter, that issues thrift certificates and that is also examined, supervised and liquidated as a state bank under this title;
(10) "Industrial investment company" means a person organized and registered as an industrial investment company pursuant to this chapter, engaged in the business of making loans and imposing the interest and loan charges authorized under this chapter, that issues investment certificates subject to the Tennessee Securities Act, compiled in title 48, chapter 1, part 1, and that is also examined, supervised and liquidated as a state bank under this title;
(11) "Industrial loan and thrift company" means a person engaged in the business of making loans and imposing the interest and loan charges authorized under this chapter, and includes persons engaged in business as endorsement companies;
(12) "Interest" means compensation for the use, detention or forbearance to collect money over a period of time, and does not include compensation for other purposes, including, but not limited to: (A) Time-price differentials; (B) Loan charges as provided in § 45-5-403 ; and (C) Insurance charges as provided in § 45-5-305 ;
(A) Time-price differentials;
(B) Loan charges as provided in § 45-5-403 ; and
(C) Insurance charges as provided in § 45-5-305 ;
(13) (A) "Investment certificate" means a writing by which an industrial investment company evidences its receipt of money from a natural person and its obligation to repay the money, with interest, in accordance with the writing, which certificates are not insured by an agency of the United States government; (B) "Investment certificate" does not include: (i) Promissory notes, bonds, debentures, commercial paper and the like issued by an industrial loan and thrift company or industrial investment company or industrial bank to a bank, insurance company, or other commercial lender; or (ii) A promissory note - provided, that the note is nonnegotiable to a natural person and includes a provision to the effect that any attempt at its assignment to any person other than the maker, a bank, insurance company, or other commercial lender shall be null, void and of no effect - issued by an industrial loan and thrift company to the following: (a) A bona fide executive officer who works at least thirty (30) hours per week at the company, or to members of the executive officer's immediate family; (b) A voting member of the board of directors of the company, or to members of the voting member's immediate family; or (c) To a shareholder, including a beneficial owner, of the company where the shareholder and members of the shareholder's immediate family own at least twenty-five percent (25%) of the outstanding voting shares of the company; (C) For purposes of subdivision (13)(B)(ii), "immediate family" includes a note payee, and the payee's parents, grandparents, siblings, children and grandchildren; and (D) The burden of demonstrating to the commissioner that an obligation is not an "investment certificate" shall be on the registrant, and the registrant shall file its reports under this chapter in a manner that clearly reflects that exempt status is being claimed;
(A) "Investment certificate" means a writing by which an industrial investment company evidences its receipt of money from a natural person and its obligation to repay the money, with interest, in accordance with the writing, which certificates are not insured by an agency of the United States government;
(B) "Investment certificate" does not include: (i) Promissory notes, bonds, debentures, commercial paper and the like issued by an industrial loan and thrift company or industrial investment company or industrial bank to a bank, insurance company, or other commercial lender; or (ii) A promissory note - provided, that the note is nonnegotiable to a natural person and includes a provision to the effect that any attempt at its assignment to any person other than the maker, a bank, insurance company, or other commercial lender shall be null, void and of no effect - issued by an industrial loan and thrift company to the following: (a) A bona fide executive officer who works at least thirty (30) hours per week at the company, or to members of the executive officer's immediate family; (b) A voting member of the board of directors of the company, or to members of the voting member's immediate family; or (c) To a shareholder, including a beneficial owner, of the company where the shareholder and members of the shareholder's immediate family own at least twenty-five percent (25%) of the outstanding voting shares of the company;
(i) Promissory notes, bonds, debentures, commercial paper and the like issued by an industrial loan and thrift company or industrial investment company or industrial bank to a bank, insurance company, or other commercial lender; or
(ii) A promissory note - provided, that the note is nonnegotiable to a natural person and includes a provision to the effect that any attempt at its assignment to any person other than the maker, a bank, insurance company, or other commercial lender shall be null, void and of no effect - issued by an industrial loan and thrift company to the following: (a) A bona fide executive officer who works at least thirty (30) hours per week at the company, or to members of the executive officer's immediate family; (b) A voting member of the board of directors of the company, or to members of the voting member's immediate family; or (c) To a shareholder, including a beneficial owner, of the company where the shareholder and members of the shareholder's immediate family own at least twenty-five percent (25%) of the outstanding voting shares of the company;
(a) A bona fide executive officer who works at least thirty (30) hours per week at the company, or to members of the executive officer's immediate family;
(b) A voting member of the board of directors of the company, or to members of the voting member's immediate family; or
(c) To a shareholder, including a beneficial owner, of the company where the shareholder and members of the shareholder's immediate family own at least twenty-five percent (25%) of the outstanding voting shares of the company;
(C) For purposes of subdivision (13)(B)(ii), "immediate family" includes a note payee, and the payee's parents, grandparents, siblings, children and grandchildren; and
(D) The burden of demonstrating to the commissioner that an obligation is not an "investment certificate" shall be on the registrant, and the registrant shall file its reports under this chapter in a manner that clearly reflects that exempt status is being claimed;
(14) "Loan charges" means compensation to a registrant for services, expenses, detriments or commitments directly incident to a loan, and does not include compensation for other purposes, including, but not limited to, time-price differentials, interest or insurance charges;
(15) (A) In general, "loan processor or underwriter" means an individual who performs clerical or support duties as an employee, not an independent contractor, at the direction of and subject to the supervision and instruction of a registrant authorized to make residential mortgage loans; (B) For purposes of subdivision (15)(A), "clerical or support duties" may include, subsequent to the receipt of an application for a residential mortgage loan: (i) The receipt, collection, distribution and analysis of information common for the processing or underwriting of the loan; and/or (ii) Communicating with a consumer to obtain the information necessary for the processing or underwriting of the loan, to the extent that the communication does not include offering or negotiating loan rates or terms or counseling consumers about residential mortgage loan rates or terms;
(A) In general, "loan processor or underwriter" means an individual who performs clerical or support duties as an employee, not an independent contractor, at the direction of and subject to the supervision and instruction of a registrant authorized to make residential mortgage loans;
(B) For purposes of subdivision (15)(A), "clerical or support duties" may include, subsequent to the receipt of an application for a residential mortgage loan: (i) The receipt, collection, distribution and analysis of information common for the processing or underwriting of the loan; and/or (ii) Communicating with a consumer to obtain the information necessary for the processing or underwriting of the loan, to the extent that the communication does not include offering or negotiating loan rates or terms or counseling consumers about residential mortgage loan rates or terms;
(i) The receipt, collection, distribution and analysis of information common for the processing or underwriting of the loan; and/or
(ii) Communicating with a consumer to obtain the information necessary for the processing or underwriting of the loan, to the extent that the communication does not include offering or negotiating loan rates or terms or counseling consumers about residential mortgage loan rates or terms;
(16) "Mortgage loan originator" means: (A) An individual who, for compensation or gain or in the expectation of compensation or gain: (i) Takes a residential mortgage loan application; or (ii) Offers or negotiates terms of a residential mortgage loan; (B) "Mortgage loan originator" does not include an individual engaged solely as a loan processor or underwriter for a registrant, unless that individual is an independent contractor and not an employee;
(A) An individual who, for compensation or gain or in the expectation of compensation or gain: (i) Takes a residential mortgage loan application; or (ii) Offers or negotiates terms of a residential mortgage loan;
(i) Takes a residential mortgage loan application; or
(ii) Offers or negotiates terms of a residential mortgage loan;
(B) "Mortgage loan originator" does not include an individual engaged solely as a loan processor or underwriter for a registrant, unless that individual is an independent contractor and not an employee;
(17) "Nationwide Mortgage Licensing System and Registry" means a mortgage licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of licensed mortgage loan originators;
(18) "Nominal rate of interest" means a stated rate of interest, other than simple interest, including, but not limited to, discount interest;
(19) "Person" means an individual, corporation, firm, trust, estate, partnership, joint venture or association, as the context may require;
(20) "Principal" means the total of money paid to, received by, or paid or credited to the account of the borrower, including loan charges as provided in § 45-5-403(a)(1)-(3) , as applicable, and including insurance charges for which the borrower contracts to pay pursuant to § 45-5-305 ;
(21) "Registrant" means any person registered as an industrial loan and thrift company, industrial investment company or industrial bank under this chapter;
(22) "Residential mortgage loan" means any loan, including an extension of credit, primarily for personal, family or household use that is secured by a mortgage, deed of trust or other equivalent consensual security interest on a dwelling, as defined in § 103(v) of the federal Truth in Lending Act ( 15 U.S.C. § 1602(v) ), or residential real estate upon which is constructed or intended to be constructed a dwelling, as so defined;
(23) "Residential real estate" means any real property located in this state upon which is constructed or intended to be constructed a dwelling;
(24) "Simple rate of interest" means the ratio between the interest payable on an obligation and the principal for a period of time, expressed as a percentage for a period such as a year or a month;
(25) "Thrift certificate" means a writing by which an industrial bank evidences its receipt of money from a natural person and its obligation to repay the money, with interest in accordance with the writing, that is insured by an agency of the United States government. "Thrift certificate" does not include investment certificate, and does not include commercial paper or other evidence of indebtedness issued by an industrial bank to a bank, insurance company or other commercial lender;
(26) "Total amount of the loan" means the aggregate amount of money scheduled to be paid by a borrower to a registrant to repay a loan, including principal and any interest precomputed and deducted in advance; and
(27) "Unique identifier" means a number or other identifier assigned by protocols established by the Nationwide Mortgage Licensing System and Registry.
Amended by 2018 Tenn. Acts, ch. 600, Secs.s 1, s 2 eff. 3/23/2018.
Acts 1979, ch. 204, § 1; T.C.A., § 45-2001; Acts 1983, ch. 274, § 8; 1988, ch. 737, § 1; 1990, ch. 857, §§ 1, 3; 1991, ch. 57, § 1; 1997 , ch. 19, § 1; 2001, ch. 165, §§ 1, 2; 2009 , ch. 499, §§ 1, 2.
Tenn. Code Ann. § 45-14-104 — TN Code / Title 45 / Chapter 14 / Section 45-14-104
Deposits - Borrowing and securities - Investments - Issuance of credit cards - Offices - Trust business
Status: in_force

(a) A savings bank may accept deposits that: (1) May be withdrawn on a demand or other basis; (2) May be negotiable instruments of the savings bank; and (3) It may pay interest upon. (b) A savings bank may borrow, give security, and issue securities, (including capital stock), notes, bonds, debentures and other obligations. (c) A savings bank may invest in, sell or otherwise deal in the accounts, investments and loans, in the same manner as is provided for associations in chapter 3 of this title, and the regulations issued under that chapter. (d) A savings bank may: (1) Issue credit cards, extend credit in connection therewith, and otherwise engage in or participate in credit card operations; (2) Establish, maintain and close offices, branches, remote service units, automated teller machines and other facilities on the same basis as savings institutions chartered under the laws of this state; and (3) Carry on a trust business, which may encompass acting as trustee, executor, administrator, guardian or in any other fiduciary capacity, on the same basis, and subject to the same requirements with regard to the business, as may commercial banks, trust companies and other corporations authorized under the laws of this state and the regulations under the laws to carry on the business. Acts 1991, ch. 177, §§ 4-6; 1996, ch. 768, §§ 30, 31.
(a) A savings bank may accept deposits that: (1) May be withdrawn on a demand or other basis; (2) May be negotiable instruments of the savings bank; and (3) It may pay interest upon.
(1) May be withdrawn on a demand or other basis;
(2) May be negotiable instruments of the savings bank; and
(3) It may pay interest upon.
(b) A savings bank may borrow, give security, and issue securities, (including capital stock), notes, bonds, debentures and other obligations.
(c) A savings bank may invest in, sell or otherwise deal in the accounts, investments and loans, in the same manner as is provided for associations in chapter 3 of this title, and the regulations issued under that chapter.
(d) A savings bank may: (1) Issue credit cards, extend credit in connection therewith, and otherwise engage in or participate in credit card operations; (2) Establish, maintain and close offices, branches, remote service units, automated teller machines and other facilities on the same basis as savings institutions chartered under the laws of this state; and (3) Carry on a trust business, which may encompass acting as trustee, executor, administrator, guardian or in any other fiduciary capacity, on the same basis, and subject to the same requirements with regard to the business, as may commercial banks, trust companies and other corporations authorized under the laws of this state and the regulations under the laws to carry on the business.
(1) Issue credit cards, extend credit in connection therewith, and otherwise engage in or participate in credit card operations;
(2) Establish, maintain and close offices, branches, remote service units, automated teller machines and other facilities on the same basis as savings institutions chartered under the laws of this state; and
(3) Carry on a trust business, which may encompass acting as trustee, executor, administrator, guardian or in any other fiduciary capacity, on the same basis, and subject to the same requirements with regard to the business, as may commercial banks, trust companies and other corporations authorized under the laws of this state and the regulations under the laws to carry on the business.
Acts 1991, ch. 177, §§ 4-6; 1996, ch. 768, §§ 30, 31.
Tenn. Code Ann. § 45-2-205 — TN Code / Title 45 / Chapter 2 / Section 45-2-205
Examination of application for charter - Factors considered
Status: in_force

(a) When an application for a charter has been filed with the commissioner, the commissioner shall make or cause to be made a careful investigation and examination relative to the following: (1) The character, reputation and financial standing of the organizers or incorporators and their motives in seeking to organize the proposed state bank; (2) The character, financial responsibility, banking or trust experience, and business qualifications of those proposed as officers of the bank; (3) The character, financial responsibility, business experiences and standing in the community of the proposed directors of the bank; (4) The need in the community where the bank would be located for banking, banking and trust, or trust facilities, or additional facilities of like character, giving particular consideration to the adequacy of existing banking and trust facilities; (5) The ability of the community to support the proposed bank, giving consideration to: (A) The competition offered by existing banks and other financial institutions; (B) The banking history of the community; (C) The opportunities for profitable employment of bank funds as indicated by the average demand for credit, the number of potential depositors, the volume of bank transactions, and the business and industries of the community, with particular regard to their stability, diversification and size; and (D) If the bank is to exercise trust powers, the opportunities for profitable employment of fiduciary services; and (6) Other facts and circumstances bearing on the proposed bank and its relation to the community that, in the opinion of the commissioner, may be relevant. (b) Within the longer of six (6) months after the filing of the application or three (3) months after the filing of a listing of subscribers showing that at least seventy-five percent (75%) of the stock has been subscribed, the commissioner shall consider the commissioner's findings and recommendations and all other relevant information available to the commissioner and shall have the discretion to approve the application, but the commissioner shall not approve the application before ascertaining to the commissioner's satisfaction that: (1) The public need and advantage will be promoted by the establishment of the proposed bank; (2) Conditions in the community in which the bank would transact business afford reasonable promise of successful operation; (3) The bank is being formed for no other purpose than the legitimate objects contemplated by this chapter and chapter 1 of this title; (4) The proposed capital and surplus are not less than the required minimum and are adequate in the light of current and prospective banking conditions; (5) Those proposed as officers and directors have sufficient experience, ability and standing to afford reasonable promise of successful operation; and (6) The applicants have complied with all applicable provisions of this chapter and chapter 1 of this title. (c) If the charter has not been previously granted in accordance with § 45-2-204(c) , upon approval of the application, the commissioner shall grant a charter by endorsing the approval on all copies of the charter and filing one (1) copy with the secretary of state, one (1) copy with the register in the county in which the bank is located, retaining one (1) copy for the department's files and returning one (1) copy to the incorporators within twenty (20) days of the action approving the application. Acts 1969, ch. 36, § 1 (3.308); 1973, ch. 294, § 6; T.C.A., § 45-205; Acts 1980, ch. 620, § 2; 1996, ch. 768, § 9; 2001, ch. 54, § 6.
(a) When an application for a charter has been filed with the commissioner, the commissioner shall make or cause to be made a careful investigation and examination relative to the following: (1) The character, reputation and financial standing of the organizers or incorporators and their motives in seeking to organize the proposed state bank; (2) The character, financial responsibility, banking or trust experience, and business qualifications of those proposed as officers of the bank; (3) The character, financial responsibility, business experiences and standing in the community of the proposed directors of the bank; (4) The need in the community where the bank would be located for banking, banking and trust, or trust facilities, or additional facilities of like character, giving particular consideration to the adequacy of existing banking and trust facilities; (5) The ability of the community to support the proposed bank, giving consideration to: (A) The competition offered by existing banks and other financial institutions; (B) The banking history of the community; (C) The opportunities for profitable employment of bank funds as indicated by the average demand for credit, the number of potential depositors, the volume of bank transactions, and the business and industries of the community, with particular regard to their stability, diversification and size; and (D) If the bank is to exercise trust powers, the opportunities for profitable employment of fiduciary services; and (6) Other facts and circumstances bearing on the proposed bank and its relation to the community that, in the opinion of the commissioner, may be relevant.
(1) The character, reputation and financial standing of the organizers or incorporators and their motives in seeking to organize the proposed state bank;
(2) The character, financial responsibility, banking or trust experience, and business qualifications of those proposed as officers of the bank;
(3) The character, financial responsibility, business experiences and standing in the community of the proposed directors of the bank;
(4) The need in the community where the bank would be located for banking, banking and trust, or trust facilities, or additional facilities of like character, giving particular consideration to the adequacy of existing banking and trust facilities;
(5) The ability of the community to support the proposed bank, giving consideration to: (A) The competition offered by existing banks and other financial institutions; (B) The banking history of the community; (C) The opportunities for profitable employment of bank funds as indicated by the average demand for credit, the number of potential depositors, the volume of bank transactions, and the business and industries of the community, with particular regard to their stability, diversification and size; and (D) If the bank is to exercise trust powers, the opportunities for profitable employment of fiduciary services; and
(A) The competition offered by existing banks and other financial institutions;
(B) The banking history of the community;
(C) The opportunities for profitable employment of bank funds as indicated by the average demand for credit, the number of potential depositors, the volume of bank transactions, and the business and industries of the community, with particular regard to their stability, diversification and size; and
(D) If the bank is to exercise trust powers, the opportunities for profitable employment of fiduciary services; and
(6) Other facts and circumstances bearing on the proposed bank and its relation to the community that, in the opinion of the commissioner, may be relevant.
(b) Within the longer of six (6) months after the filing of the application or three (3) months after the filing of a listing of subscribers showing that at least seventy-five percent (75%) of the stock has been subscribed, the commissioner shall consider the commissioner's findings and recommendations and all other relevant information available to the commissioner and shall have the discretion to approve the application, but the commissioner shall not approve the application before ascertaining to the commissioner's satisfaction that: (1) The public need and advantage will be promoted by the establishment of the proposed bank; (2) Conditions in the community in which the bank would transact business afford reasonable promise of successful operation; (3) The bank is being formed for no other purpose than the legitimate objects contemplated by this chapter and chapter 1 of this title; (4) The proposed capital and surplus are not less than the required minimum and are adequate in the light of current and prospective banking conditions; (5) Those proposed as officers and directors have sufficient experience, ability and standing to afford reasonable promise of successful operation; and (6) The applicants have complied with all applicable provisions of this chapter and chapter 1 of this title.
(1) The public need and advantage will be promoted by the establishment of the proposed bank;
(2) Conditions in the community in which the bank would transact business afford reasonable promise of successful operation;
(3) The bank is being formed for no other purpose than the legitimate objects contemplated by this chapter and chapter 1 of this title;
(4) The proposed capital and surplus are not less than the required minimum and are adequate in the light of current and prospective banking conditions;
(5) Those proposed as officers and directors have sufficient experience, ability and standing to afford reasonable promise of successful operation; and
(6) The applicants have complied with all applicable provisions of this chapter and chapter 1 of this title.
(c) If the charter has not been previously granted in accordance with § 45-2-204(c) , upon approval of the application, the commissioner shall grant a charter by endorsing the approval on all copies of the charter and filing one (1) copy with the secretary of state, one (1) copy with the register in the county in which the bank is located, retaining one (1) copy for the department's files and returning one (1) copy to the incorporators within twenty (20) days of the action approving the application.
Acts 1969, ch. 36, § 1 (3.308); 1973, ch. 294, § 6; T.C.A., § 45-205; Acts 1980, ch. 620, § 2; 1996, ch. 768, § 9; 2001, ch. 54, § 6.