Tenn. Code Ann. § 45-3-811 — TN Code / Title 45 / Chapter 3 / Section 45-3-811
Financial statements
Status: in_force

(a) Publication. Every association shall prepare and publish annually, on or before a date prescribed by the commissioner in a newspaper of general circulation in the county in which the home office of the association is located, a statement of its financial condition, in the form and containing the information prescribed by the commissioner as of the last business day of its previous fiscal year. It is the duty of the commissioner to see that each association has published its statement in accordance with the form prescribed, and to check the published statement, using the newspaper clipping furnished the commissioner by the association, with the annual report of the association filed with the commissioner. If the statement is not published by the association, the commissioner shall, at the expense of the association, publish the statement. (b) Discrepancies; Republication; Penalties. In the event there are discrepancies in the published statement of the association and the annual report furnished to the commissioner, and if, in the opinion of the commissioner, the discrepancies are due to clerical errors, it shall be the duty of the commissioner to notify the association to publish its statement so as to conform with the annual report filed with the commissioner, and it shall be the duty of the association to make the republication. If, in the opinion of the commissioner, the discrepancies in the published statement and annual report are not due to clerical errors, it shall be the duty of the commissioner forthwith to publish a true and correct statement as shown by the annual report filed with the commissioner, stating in the publication that the published statement of the association did not conform to the annual report on file with the commissioner, and it shall be the duty of the association to pay the cost and expenses of the publication by the commissioner. Any association that fails or refuses to pay the cost and expenses of the publication by the commissioner of any statement of the association made pursuant to the requirements of this section, shall forfeit to the state one hundred dollars ($100), in addition to the costs and expenses of the publication, which sum the commissioner shall sue for and recover in the name of the state in any court having jurisdiction. Acts 1978, ch. 708, § 3.11; T.C.A., § 45-1518.
(a) Publication. Every association shall prepare and publish annually, on or before a date prescribed by the commissioner in a newspaper of general circulation in the county in which the home office of the association is located, a statement of its financial condition, in the form and containing the information prescribed by the commissioner as of the last business day of its previous fiscal year. It is the duty of the commissioner to see that each association has published its statement in accordance with the form prescribed, and to check the published statement, using the newspaper clipping furnished the commissioner by the association, with the annual report of the association filed with the commissioner. If the statement is not published by the association, the commissioner shall, at the expense of the association, publish the statement.
(b) Discrepancies; Republication; Penalties. In the event there are discrepancies in the published statement of the association and the annual report furnished to the commissioner, and if, in the opinion of the commissioner, the discrepancies are due to clerical errors, it shall be the duty of the commissioner to notify the association to publish its statement so as to conform with the annual report filed with the commissioner, and it shall be the duty of the association to make the republication. If, in the opinion of the commissioner, the discrepancies in the published statement and annual report are not due to clerical errors, it shall be the duty of the commissioner forthwith to publish a true and correct statement as shown by the annual report filed with the commissioner, stating in the publication that the published statement of the association did not conform to the annual report on file with the commissioner, and it shall be the duty of the association to pay the cost and expenses of the publication by the commissioner. Any association that fails or refuses to pay the cost and expenses of the publication by the commissioner of any statement of the association made pursuant to the requirements of this section, shall forfeit to the state one hundred dollars ($100), in addition to the costs and expenses of the publication, which sum the commissioner shall sue for and recover in the name of the state in any court having jurisdiction.
Acts 1978, ch. 708, § 3.11; T.C.A., § 45-1518.
Tenn. Code Ann. § 45-5-301 — TN Code / Title 45 / Chapter 5 / Section 45-5-301
General powers of registrants
Status: in_force

Any registrant under this chapter has the power to: (1) Lend money, with or without security, and to take as security real or personal property, or both; (2) (A) Charge interest: (i) On loans where the amount financed is less than one hundred dollars ($100), at a nominal rate not in excess of seven and one-half percent (7.5%) per annum, deducted in advance, on the principal for the full term thereof without regard to the payment schedule; but no interest shall be charged on the loans in excess of a maximum effective rate of eighteen percent (18%) per annum; (ii) On loans where the amount financed is one hundred dollars ($100) or more, up to five thousand dollars ($5,000), on the principal at any rate not in excess of a maximum effective rate of thirty percent (30%) per annum; (iii) On loans where the amount financed is more than five thousand dollars ($5,000), on the principal at any rate not in excess of the maximum effective rate of twenty-four percent (24%) per annum; and (iv) On loans made under open-end credit plans, which are plans under which a registrant contemplates repeated loans that may be without fixed maturities or limitation as to the length of term, and that are subject to prepayment at any time, at any rate not in excess of a maximum effective rate of twenty-four percent (24%) per annum; (B) All the interest shall be contracted for and computed in accordance with § 45-5-401 ; (3) Charge loan charges, but subject to the limitations provided in § 45-5-403 ; provided, that no loan charge shall be imposed unless a loan is made or an open-end credit plan is established or renewed for a term of not less than three (3) years; (4) Require, at the expense of the borrower, insurance against the hazards to which any collateral used to secure the loan is subject; and upon the failure of the borrower to supply the same to procure the same, subject to § 45-5-305 ; (5) Accept, but not require, as additional collateral at the expense of the borrower or borrowers, insurance against the hazards of death, or disability, or involuntary unemployment, or any combination thereof, of the borrower or borrowers, subject to § 45-5-305 ; (6) Engage in the purchase, discount and rediscount of notes, security agreements or security interests or other indicia of security originating from the sale or purchase of property or services; (7) Make loans to dealers in motor vehicles, appliances and other chattels for the purpose of acquiring, stocking and offering for sale the merchandise and to take appropriate security therefor; (8) Purchase or otherwise acquire and sell and negotiate drafts and acceptances drawn in connection with the sale of personal property on account of the purchase price thereof and take from the acceptors or holders of the drafts and acceptances as security for the drafts and acceptances, with or without other collateral, choses in action or other evidences of indebtedness issued by it and to be paid in uniform monthly, weekly or other periodical installments; (9) If an industrial investment company, not insured by an agency of the United States government, issue investment certificates subject to this chapter; (10) If an industrial bank, insured by an agency of the United States government, issue thrift certificates subject to this chapter; (11) Have any and all powers not specifically defined in this chapter that are granted by the laws of this state to corporations generally, except powers that are inconsistent with this chapter; provided, that nothing in this chapter shall be construed as limiting the power of registrants to make loans, charge interest and other charges consistent with the powers of corporations generally and subject to the limitations provided by title 47, chapters 14 and 15; (12) (A) Subject to § 45-5-305(b) , accept or sell, but not require, at the expense of the borrower or borrowers, one (1) or more credit-related insurance products; (B) As used in subdivision (12)(A) and § 45-5-305(b) , "credit-related insurance products" is limited to individual term life or individual accidental death and dismemberment insurance sold by a registrant where the: (i) Beneficiary named by the debtor is a person other than the creditor; (ii) Insurance is purchased by the debtor and financed as part of the credit transaction; and (iii) Premium for the insurance is included in the principal of the loan; and (13) Make any change among the president, chief executive officer, treasurer, or chief financial officer, or among the general partner or partners; provided that the registrant gives written notice to the commissioner within fourteen (14) days of the change and furnishes other information that the commissioner may require. Amended by 2018 Tenn. Acts, ch. 600, s 3, eff. 3/23/2018. Amended by 2017 Tenn. Acts, ch. 164, s 1, eff. 4/24/2017. Acts 1979, ch. 204, § 8; T.C.A., § 45-2008; Acts 1983, ch. 164, § 1; 1983, ch. 274, § 15; 1985, ch. 107, § 5; 1987, ch. 124, § 1; 1991, ch. 87, § 1; 1993, ch. 100, § 1; 1999, ch. 172, § 1; 2001, ch. 165, § 7.
Any registrant under this chapter has the power to:
(1) Lend money, with or without security, and to take as security real or personal property, or both;
(2) (A) Charge interest: (i) On loans where the amount financed is less than one hundred dollars ($100), at a nominal rate not in excess of seven and one-half percent (7.5%) per annum, deducted in advance, on the principal for the full term thereof without regard to the payment schedule; but no interest shall be charged on the loans in excess of a maximum effective rate of eighteen percent (18%) per annum; (ii) On loans where the amount financed is one hundred dollars ($100) or more, up to five thousand dollars ($5,000), on the principal at any rate not in excess of a maximum effective rate of thirty percent (30%) per annum; (iii) On loans where the amount financed is more than five thousand dollars ($5,000), on the principal at any rate not in excess of the maximum effective rate of twenty-four percent (24%) per annum; and (iv) On loans made under open-end credit plans, which are plans under which a registrant contemplates repeated loans that may be without fixed maturities or limitation as to the length of term, and that are subject to prepayment at any time, at any rate not in excess of a maximum effective rate of twenty-four percent (24%) per annum; (B) All the interest shall be contracted for and computed in accordance with § 45-5-401 ;
(A) Charge interest: (i) On loans where the amount financed is less than one hundred dollars ($100), at a nominal rate not in excess of seven and one-half percent (7.5%) per annum, deducted in advance, on the principal for the full term thereof without regard to the payment schedule; but no interest shall be charged on the loans in excess of a maximum effective rate of eighteen percent (18%) per annum; (ii) On loans where the amount financed is one hundred dollars ($100) or more, up to five thousand dollars ($5,000), on the principal at any rate not in excess of a maximum effective rate of thirty percent (30%) per annum; (iii) On loans where the amount financed is more than five thousand dollars ($5,000), on the principal at any rate not in excess of the maximum effective rate of twenty-four percent (24%) per annum; and (iv) On loans made under open-end credit plans, which are plans under which a registrant contemplates repeated loans that may be without fixed maturities or limitation as to the length of term, and that are subject to prepayment at any time, at any rate not in excess of a maximum effective rate of twenty-four percent (24%) per annum;
(i) On loans where the amount financed is less than one hundred dollars ($100), at a nominal rate not in excess of seven and one-half percent (7.5%) per annum, deducted in advance, on the principal for the full term thereof without regard to the payment schedule; but no interest shall be charged on the loans in excess of a maximum effective rate of eighteen percent (18%) per annum;
(ii) On loans where the amount financed is one hundred dollars ($100) or more, up to five thousand dollars ($5,000), on the principal at any rate not in excess of a maximum effective rate of thirty percent (30%) per annum;
(iii) On loans where the amount financed is more than five thousand dollars ($5,000), on the principal at any rate not in excess of the maximum effective rate of twenty-four percent (24%) per annum; and
(iv) On loans made under open-end credit plans, which are plans under which a registrant contemplates repeated loans that may be without fixed maturities or limitation as to the length of term, and that are subject to prepayment at any time, at any rate not in excess of a maximum effective rate of twenty-four percent (24%) per annum;
(B) All the interest shall be contracted for and computed in accordance with § 45-5-401 ;
(3) Charge loan charges, but subject to the limitations provided in § 45-5-403 ; provided, that no loan charge shall be imposed unless a loan is made or an open-end credit plan is established or renewed for a term of not less than three (3) years;
(4) Require, at the expense of the borrower, insurance against the hazards to which any collateral used to secure the loan is subject; and upon the failure of the borrower to supply the same to procure the same, subject to § 45-5-305 ;
(5) Accept, but not require, as additional collateral at the expense of the borrower or borrowers, insurance against the hazards of death, or disability, or involuntary unemployment, or any combination thereof, of the borrower or borrowers, subject to § 45-5-305 ;
(6) Engage in the purchase, discount and rediscount of notes, security agreements or security interests or other indicia of security originating from the sale or purchase of property or services;
(7) Make loans to dealers in motor vehicles, appliances and other chattels for the purpose of acquiring, stocking and offering for sale the merchandise and to take appropriate security therefor;
(8) Purchase or otherwise acquire and sell and negotiate drafts and acceptances drawn in connection with the sale of personal property on account of the purchase price thereof and take from the acceptors or holders of the drafts and acceptances as security for the drafts and acceptances, with or without other collateral, choses in action or other evidences of indebtedness issued by it and to be paid in uniform monthly, weekly or other periodical installments;
(9) If an industrial investment company, not insured by an agency of the United States government, issue investment certificates subject to this chapter;
(10) If an industrial bank, insured by an agency of the United States government, issue thrift certificates subject to this chapter;
(11) Have any and all powers not specifically defined in this chapter that are granted by the laws of this state to corporations generally, except powers that are inconsistent with this chapter; provided, that nothing in this chapter shall be construed as limiting the power of registrants to make loans, charge interest and other charges consistent with the powers of corporations generally and subject to the limitations provided by title 47, chapters 14 and 15;
(12) (A) Subject to § 45-5-305(b) , accept or sell, but not require, at the expense of the borrower or borrowers, one (1) or more credit-related insurance products; (B) As used in subdivision (12)(A) and § 45-5-305(b) , "credit-related insurance products" is limited to individual term life or individual accidental death and dismemberment insurance sold by a registrant where the: (i) Beneficiary named by the debtor is a person other than the creditor; (ii) Insurance is purchased by the debtor and financed as part of the credit transaction; and (iii) Premium for the insurance is included in the principal of the loan; and
(A) Subject to § 45-5-305(b) , accept or sell, but not require, at the expense of the borrower or borrowers, one (1) or more credit-related insurance products;
(B) As used in subdivision (12)(A) and § 45-5-305(b) , "credit-related insurance products" is limited to individual term life or individual accidental death and dismemberment insurance sold by a registrant where the: (i) Beneficiary named by the debtor is a person other than the creditor; (ii) Insurance is purchased by the debtor and financed as part of the credit transaction; and (iii) Premium for the insurance is included in the principal of the loan; and
(i) Beneficiary named by the debtor is a person other than the creditor;
(ii) Insurance is purchased by the debtor and financed as part of the credit transaction; and
(iii) Premium for the insurance is included in the principal of the loan; and
(13) Make any change among the president, chief executive officer, treasurer, or chief financial officer, or among the general partner or partners; provided that the registrant gives written notice to the commissioner within fourteen (14) days of the change and furnishes other information that the commissioner may require.
Amended by 2018 Tenn. Acts, ch. 600, s 3, eff. 3/23/2018.
Amended by 2017 Tenn. Acts, ch. 164, s 1, eff. 4/24/2017.
Acts 1979, ch. 204, § 8; T.C.A., § 45-2008; Acts 1983, ch. 164, § 1; 1983, ch. 274, § 15; 1985, ch. 107, § 5; 1987, ch. 124, § 1; 1991, ch. 87, § 1; 1993, ch. 100, § 1; 1999, ch. 172, § 1; 2001, ch. 165, § 7.
Tenn. Code Ann. § 45-3-805 — TN Code / Title 45 / Chapter 3 / Section 45-3-805
Charging off or setting up reserves against bad assets
Status: in_force

The commissioner, after a determination of value, may order that assets, individually or in the aggregate, to the extent that the assets are overvalued on an association's books, be charged off, or that a special reserve or reserves equal to the overvaluation be set up by transfers from surplus, undivided profits or reserves. Acts 1978, ch. 708, § 3.05; T.C.A., § 45-1512.
The commissioner, after a determination of value, may order that assets, individually or in the aggregate, to the extent that the assets are overvalued on an association's books, be charged off, or that a special reserve or reserves equal to the overvaluation be set up by transfers from surplus, undivided profits or reserves.
Acts 1978, ch. 708, § 3.05; T.C.A., § 45-1512.
Tenn. Code Ann. § 45-20-104 — TN Code / Title 45 / Chapter 20 / Section 45-20-104
Cure of default - Foreclosure
Status: in_force

(a) If a lender or servicer asserts that grounds for acceleration exist and requires the payment in full of all sums secured by the security instrument of a high-cost home loan, the borrower, or anyone authorized to act on the borrower's behalf, shall have the right at any time, prior to three (3) business days prior to a foreclosure sale, to cure the default and reinstate the home loan by tendering the amount or performance. Cure of default shall reinstate the borrower to the same position as if the default had not occurred and shall nullify, as of the date of the cure, any acceleration of any obligation under the security instrument or note arising from the default. (b) Not less than thirty (30) days prior to publishing notice of foreclosure as provided in § 35-5-104 , or commencing an action for judicial foreclosure, a notice of the right to cure the default shall be sent to the borrower informing the borrower of the following: (1) The nature of default claimed on the home loan, and of the borrower's right to cure the default by paying the sum of money required to cure the default. If the amount necessary to cure the default will change during the thirty-day period after the effective date of the notice, due to the application of a daily interest rate or the addition of late fees, the notice shall give sufficient information to enable the borrower to calculate the amount at any point during the thirty-day period; (2) The date by which the borrower shall cure the default to avoid acceleration and initiation of foreclosure, or other action to seize the home, which date shall not be less than thirty (30) days after the date the notice is sent, and the name and address and telephone number of a person to whom the payment or tender shall be made; (3) That if the borrower does not cure the default by the date specified, steps may be taken to terminate the borrower's ownership in the property by requiring payment in full of the home loan and commencing a foreclosure proceeding or other action to seize the home; and (4) The name and address of the lender or servicer and the telephone number of a representative of the person whom the borrower may contact if the borrower disagrees with the assertion that a default has occurred or the correctness of the calculation of the amount required to cure the default. (c) To cure a default under this section, a borrower shall not be required to pay any charge, fee or penalty attributable to the exercise of the right to cure a default as provided for in this section, other than the fees specifically allowed by this section. During the cure period, the borrower shall be liable for any expenses actually incurred to preserve, maintain, or protect the property or the security interest of the lender that are otherwise permitted in the note or deed of trust, or other loan documents. After a lender publicly files a notice of foreclosure or takes other action to seize or transfer ownership of the home, the borrower shall be liable for attorney's fees that are reasonable and actually incurred by the lender, based on a reasonable hourly rate and a reasonable number of hours and reasonable cost for publishing notice of and conducting the foreclosure sale. (d) A borrower's right to cure a default prior to commencing a foreclosure proceeding under this section may not be invoked more than once in any twelve-month period. Acts 2006, ch. 801, § 4.
(a) If a lender or servicer asserts that grounds for acceleration exist and requires the payment in full of all sums secured by the security instrument of a high-cost home loan, the borrower, or anyone authorized to act on the borrower's behalf, shall have the right at any time, prior to three (3) business days prior to a foreclosure sale, to cure the default and reinstate the home loan by tendering the amount or performance. Cure of default shall reinstate the borrower to the same position as if the default had not occurred and shall nullify, as of the date of the cure, any acceleration of any obligation under the security instrument or note arising from the default.
(b) Not less than thirty (30) days prior to publishing notice of foreclosure as provided in § 35-5-104 , or commencing an action for judicial foreclosure, a notice of the right to cure the default shall be sent to the borrower informing the borrower of the following: (1) The nature of default claimed on the home loan, and of the borrower's right to cure the default by paying the sum of money required to cure the default. If the amount necessary to cure the default will change during the thirty-day period after the effective date of the notice, due to the application of a daily interest rate or the addition of late fees, the notice shall give sufficient information to enable the borrower to calculate the amount at any point during the thirty-day period; (2) The date by which the borrower shall cure the default to avoid acceleration and initiation of foreclosure, or other action to seize the home, which date shall not be less than thirty (30) days after the date the notice is sent, and the name and address and telephone number of a person to whom the payment or tender shall be made; (3) That if the borrower does not cure the default by the date specified, steps may be taken to terminate the borrower's ownership in the property by requiring payment in full of the home loan and commencing a foreclosure proceeding or other action to seize the home; and (4) The name and address of the lender or servicer and the telephone number of a representative of the person whom the borrower may contact if the borrower disagrees with the assertion that a default has occurred or the correctness of the calculation of the amount required to cure the default.
(1) The nature of default claimed on the home loan, and of the borrower's right to cure the default by paying the sum of money required to cure the default. If the amount necessary to cure the default will change during the thirty-day period after the effective date of the notice, due to the application of a daily interest rate or the addition of late fees, the notice shall give sufficient information to enable the borrower to calculate the amount at any point during the thirty-day period;
(2) The date by which the borrower shall cure the default to avoid acceleration and initiation of foreclosure, or other action to seize the home, which date shall not be less than thirty (30) days after the date the notice is sent, and the name and address and telephone number of a person to whom the payment or tender shall be made;
(3) That if the borrower does not cure the default by the date specified, steps may be taken to terminate the borrower's ownership in the property by requiring payment in full of the home loan and commencing a foreclosure proceeding or other action to seize the home; and
(4) The name and address of the lender or servicer and the telephone number of a representative of the person whom the borrower may contact if the borrower disagrees with the assertion that a default has occurred or the correctness of the calculation of the amount required to cure the default.
(c) To cure a default under this section, a borrower shall not be required to pay any charge, fee or penalty attributable to the exercise of the right to cure a default as provided for in this section, other than the fees specifically allowed by this section. During the cure period, the borrower shall be liable for any expenses actually incurred to preserve, maintain, or protect the property or the security interest of the lender that are otherwise permitted in the note or deed of trust, or other loan documents. After a lender publicly files a notice of foreclosure or takes other action to seize or transfer ownership of the home, the borrower shall be liable for attorney's fees that are reasonable and actually incurred by the lender, based on a reasonable hourly rate and a reasonable number of hours and reasonable cost for publishing notice of and conducting the foreclosure sale.
(d) A borrower's right to cure a default prior to commencing a foreclosure proceeding under this section may not be invoked more than once in any twelve-month period.
Acts 2006, ch. 801, § 4.
Tenn. Code Ann. § 45-10-116 — TN Code / Title 45 / Chapter 10 / Section 45-10-116
Substitution of copies for original records
Status: in_force

In view of the property right of the financial institution in its records, original records may be withdrawn after introduction into evidence and copies substituted, unless otherwise directed for good cause by the court, judge, officer, body or tribunal conducting the hearing. The custodian may prepare copies of original records in advance of testifying for the purpose of making substitution of the original records, and the reasonable charges for making the copies shall be taxed as costs of court. If copies are not prepared in advance, they can be made and substituted at any time after introduction of the original record, and the reasonable charges for making the copies shall be taxed as costs of court. Acts 1983, ch. 224, § 16.
In view of the property right of the financial institution in its records, original records may be withdrawn after introduction into evidence and copies substituted, unless otherwise directed for good cause by the court, judge, officer, body or tribunal conducting the hearing. The custodian may prepare copies of original records in advance of testifying for the purpose of making substitution of the original records, and the reasonable charges for making the copies shall be taxed as costs of court. If copies are not prepared in advance, they can be made and substituted at any time after introduction of the original record, and the reasonable charges for making the copies shall be taxed as costs of court.
Acts 1983, ch. 224, § 16.
Tenn. Code Ann. § 45-1-103 — TN Code / Title 45 / Chapter 1 / Section 45-1-103
General definitions
Status: in_force

As used in this chapter and chapter 2 of this title, unless the context otherwise requires: (1) "Act as a fiduciary" or "acting as a fiduciary" means to act in the capacity of a fiduciary as defined in § 35-2-102 ; (2) "Action," in the sense of a judicial proceeding, includes recoupment, counterclaim, setoff, suit in equity and any other proceedings in which rights are determined; (3) "Bank" means any person, as hereinafter defined, doing a banking business subject to the laws of this or any other jurisdiction and, for the purposes of supervision, examination and liquidation, includes industrial investment companies and industrial banks authorized by chapter 5 of this title; (4) "Branch" with respect to a state bank means any place of business separated from the main office of a bank at which deposits are received, or checks paid or money lent; (5) "Commissioner" means the commissioner of financial institutions; (6) "Community" means a city, town, or incorporated village in this state, or where not within any of the foregoing, a trade area in this state; (7) "Company" includes a bank, trust company, corporation, partnership, association, business or other trust, or similar business entity; (8) "Department" means the department of financial institutions; (9) "Deposit" means a deposit of money, bonds or other things of value, creating a debtor-creditor relationship; (10) "Depository institution" means any company included for any purpose within any of the definitions of insured depository institution, as set forth in 12 U.S.C. § 1813(c)(2) and (3) ; (11) "Executive officer," when referring to a bank, means any officer designated as such in the bylaws and includes, whether or not so designated, the president, any vice president, the treasurer, the cashier, the comptroller and the secretary, or any officer who performs the duties appropriate to those officers; (12) "Fiduciary record" means a matter written, transcribed, recorded, received or otherwise in the possession or control of a trust institution, whether in physical or electromagnetic form, that is necessary to preserve information concerning an act or event relevant to an account or a client of a trust institution; (13) "Foreign bank" means a foreign bank, as defined in the International Banking Act of 1978 § 1(b)(7) ( 12 U.S.C. § 3101(7) ); (14) "Good faith" means honesty in fact in the conduct or transaction concerned; (15) "Home state" means: (A) With respect to a federally chartered trust institution and a foreign bank, the state in which the institution maintains its principal office; and (B) With respect to any other trust institution, the state that chartered the institution; (16) "Home state regulator" means the bank supervisory agency with primary responsibility for chartering and supervising an out-of-state trust institution; (17) "In operation" or "operating" means that: (A) A charter has been issued to a bank by the United States comptroller of the currency or a certificate of authority has been issued by the commissioner; or (B) A bank has all appropriate approvals to accept insured deposits from the public; (18) "Item" means any instrument for the payment of money, even though not negotiable, but does not include money; (19) "New trust office" means a trust office located in a host state that: (A) Is originally established by the trust institution as a trust office; and (B) Does not become a trust office of the trust institution as a result of: (i) The acquisition of another trust institution or trust office of another trust institution; or (ii) A merger, consolidation, or conversion involving the trust institution or trust office; (20) "Office," with respect to a trust institution, means the principal office or a trust office, but not a branch; (21) "Officer," when referring to a bank, means any person designated as such in the bylaws and includes, whether or not so designated, any executive officer, the chair of the board of directors, the chair of the executive committee and any trust officer, assistant vice president, assistant treasurer, assistant cashier, assistant comptroller, assistant trust officer, or any person who performs the duties appropriate to those offices; (22) "Person" means an individual, corporation, firm, trust, estate, partnership, joint venture, or association; (23) "Principal office" with respect to a: (A) State trust company means a location registered with the commissioner as the state trust company's home office at which: (i) The state trust company does business; (ii) The state trust company keeps its corporate books; and (iii) At least one (1) executive officer of the state trust company maintains an office; or (B) Trust institution, other than a state trust company, means its principal place of business in the United States; (24) "Private trust company" means a company that is a private trust company as set forth in § 45-2-2001 ; (25) "Public trust company" means a state trust company that is not a private trust company; (26) "Reason to know" means that, upon the information available, a person of ordinary intelligence in the particular business, or of the superior intelligence or experience that the person in question may have, would infer that the fact in question exists or that there is such a substantial chance of its existence that, if exercising reasonable care with reference to the matter in question, conduct would be predicated upon the assumption of its possible existence; (27) "Savings association" means an association as defined and operating under chapter 3 of this title or under the laws of the United States; (28) "State bank" means any bank chartered by this state; (29) "State trust company" means a corporation or limited liability company organized or reorganized under the Tennessee Banking Act, compiled in this chapter and chapter 2 of this title, whose purposes and powers are limited to fiduciary purposes and power, including a trust company previously organized under the laws of this state; (30) "State trust institution" means a trust institution having its principal office in this state; (31) "Subsidiary corporation" means any corporation, all or part of the stock of which is owned by a bank principally for the purpose of participating in the active management of the business of the corporation as distinguished from the purpose of deriving profit from the appreciation in value of the stock or from dividends paid on the stock; (32) "Terms" when referring to loans means maturities, security for, rates of interest and other charges; (33) "Trust company" means a state trust company or any other company chartered to act as a fiduciary that is neither a depository institution nor a foreign bank; (34) "Trust institution" means a depository institution, foreign bank, state bank or trust company authorized to act as a fiduciary; (35) "Trust office" means an office, other than the principal office, at which a trust institution is authorized by the commissioner to act as a fiduciary; and (36) "Unauthorized trust activity" means: (A) A company, other than one identified in chapter 2, part 10 of this title, acting as a fiduciary within this state; (B) A trust institution acting as a fiduciary in this state at any location that is not its principal office, trust office or branch; or (C) An out-of-state trust institution acting as a fiduciary in this state in violation of an order issued by the commissioner. Amended by 2024 Tenn. Acts, ch. 556,s 1, eff. 7/1/2024. Amended by 2014 Tenn. Acts, ch. 642, s 1, eff. 7/1/2014. Acts 1969, ch. 36, § 1 (1.103); 1973, ch. 294, §§ 6, 8; T.C.A., § 45-103; Acts 1983, ch. 274, § 2; 1993, ch. 22, § 1; 1996, ch. 768, § 3; 1999, ch. 112, § 1.
As used in this chapter and chapter 2 of this title, unless the context otherwise requires:
(1) "Act as a fiduciary" or "acting as a fiduciary" means to act in the capacity of a fiduciary as defined in § 35-2-102 ;
(2) "Action," in the sense of a judicial proceeding, includes recoupment, counterclaim, setoff, suit in equity and any other proceedings in which rights are determined;
(3) "Bank" means any person, as hereinafter defined, doing a banking business subject to the laws of this or any other jurisdiction and, for the purposes of supervision, examination and liquidation, includes industrial investment companies and industrial banks authorized by chapter 5 of this title;
(4) "Branch" with respect to a state bank means any place of business separated from the main office of a bank at which deposits are received, or checks paid or money lent;
(5) "Commissioner" means the commissioner of financial institutions;
(6) "Community" means a city, town, or incorporated village in this state, or where not within any of the foregoing, a trade area in this state;
(7) "Company" includes a bank, trust company, corporation, partnership, association, business or other trust, or similar business entity;
(8) "Department" means the department of financial institutions;
(9) "Deposit" means a deposit of money, bonds or other things of value, creating a debtor-creditor relationship;
(10) "Depository institution" means any company included for any purpose within any of the definitions of insured depository institution, as set forth in 12 U.S.C. § 1813(c)(2) and (3) ;
(11) "Executive officer," when referring to a bank, means any officer designated as such in the bylaws and includes, whether or not so designated, the president, any vice president, the treasurer, the cashier, the comptroller and the secretary, or any officer who performs the duties appropriate to those officers;
(12) "Fiduciary record" means a matter written, transcribed, recorded, received or otherwise in the possession or control of a trust institution, whether in physical or electromagnetic form, that is necessary to preserve information concerning an act or event relevant to an account or a client of a trust institution;
(13) "Foreign bank" means a foreign bank, as defined in the International Banking Act of 1978 § 1(b)(7) ( 12 U.S.C. § 3101(7) );
(14) "Good faith" means honesty in fact in the conduct or transaction concerned;
(15) "Home state" means: (A) With respect to a federally chartered trust institution and a foreign bank, the state in which the institution maintains its principal office; and (B) With respect to any other trust institution, the state that chartered the institution;
(A) With respect to a federally chartered trust institution and a foreign bank, the state in which the institution maintains its principal office; and
(B) With respect to any other trust institution, the state that chartered the institution;
(16) "Home state regulator" means the bank supervisory agency with primary responsibility for chartering and supervising an out-of-state trust institution;
(17) "In operation" or "operating" means that: (A) A charter has been issued to a bank by the United States comptroller of the currency or a certificate of authority has been issued by the commissioner; or (B) A bank has all appropriate approvals to accept insured deposits from the public;
(A) A charter has been issued to a bank by the United States comptroller of the currency or a certificate of authority has been issued by the commissioner; or
(B) A bank has all appropriate approvals to accept insured deposits from the public;
(18) "Item" means any instrument for the payment of money, even though not negotiable, but does not include money;
(19) "New trust office" means a trust office located in a host state that: (A) Is originally established by the trust institution as a trust office; and (B) Does not become a trust office of the trust institution as a result of: (i) The acquisition of another trust institution or trust office of another trust institution; or (ii) A merger, consolidation, or conversion involving the trust institution or trust office;
(A) Is originally established by the trust institution as a trust office; and
(B) Does not become a trust office of the trust institution as a result of: (i) The acquisition of another trust institution or trust office of another trust institution; or (ii) A merger, consolidation, or conversion involving the trust institution or trust office;
(i) The acquisition of another trust institution or trust office of another trust institution; or
(ii) A merger, consolidation, or conversion involving the trust institution or trust office;
(20) "Office," with respect to a trust institution, means the principal office or a trust office, but not a branch;
(21) "Officer," when referring to a bank, means any person designated as such in the bylaws and includes, whether or not so designated, any executive officer, the chair of the board of directors, the chair of the executive committee and any trust officer, assistant vice president, assistant treasurer, assistant cashier, assistant comptroller, assistant trust officer, or any person who performs the duties appropriate to those offices;
(22) "Person" means an individual, corporation, firm, trust, estate, partnership, joint venture, or association;
(23) "Principal office" with respect to a: (A) State trust company means a location registered with the commissioner as the state trust company's home office at which: (i) The state trust company does business; (ii) The state trust company keeps its corporate books; and (iii) At least one (1) executive officer of the state trust company maintains an office; or (B) Trust institution, other than a state trust company, means its principal place of business in the United States;
(A) State trust company means a location registered with the commissioner as the state trust company's home office at which: (i) The state trust company does business; (ii) The state trust company keeps its corporate books; and (iii) At least one (1) executive officer of the state trust company maintains an office; or
(i) The state trust company does business;
(ii) The state trust company keeps its corporate books; and
(iii) At least one (1) executive officer of the state trust company maintains an office; or
(B) Trust institution, other than a state trust company, means its principal place of business in the United States;
(24) "Private trust company" means a company that is a private trust company as set forth in § 45-2-2001 ;
(25) "Public trust company" means a state trust company that is not a private trust company;
(26) "Reason to know" means that, upon the information available, a person of ordinary intelligence in the particular business, or of the superior intelligence or experience that the person in question may have, would infer that the fact in question exists or that there is such a substantial chance of its existence that, if exercising reasonable care with reference to the matter in question, conduct would be predicated upon the assumption of its possible existence;
(27) "Savings association" means an association as defined and operating under chapter 3 of this title or under the laws of the United States;
(28) "State bank" means any bank chartered by this state;
(29) "State trust company" means a corporation or limited liability company organized or reorganized under the Tennessee Banking Act, compiled in this chapter and chapter 2 of this title, whose purposes and powers are limited to fiduciary purposes and power, including a trust company previously organized under the laws of this state;
(30) "State trust institution" means a trust institution having its principal office in this state;
(31) "Subsidiary corporation" means any corporation, all or part of the stock of which is owned by a bank principally for the purpose of participating in the active management of the business of the corporation as distinguished from the purpose of deriving profit from the appreciation in value of the stock or from dividends paid on the stock;
(32) "Terms" when referring to loans means maturities, security for, rates of interest and other charges;
(33) "Trust company" means a state trust company or any other company chartered to act as a fiduciary that is neither a depository institution nor a foreign bank;
(34) "Trust institution" means a depository institution, foreign bank, state bank or trust company authorized to act as a fiduciary;
(35) "Trust office" means an office, other than the principal office, at which a trust institution is authorized by the commissioner to act as a fiduciary; and
(36) "Unauthorized trust activity" means: (A) A company, other than one identified in chapter 2, part 10 of this title, acting as a fiduciary within this state; (B) A trust institution acting as a fiduciary in this state at any location that is not its principal office, trust office or branch; or (C) An out-of-state trust institution acting as a fiduciary in this state in violation of an order issued by the commissioner.
(A) A company, other than one identified in chapter 2, part 10 of this title, acting as a fiduciary within this state;
(B) A trust institution acting as a fiduciary in this state at any location that is not its principal office, trust office or branch; or
(C) An out-of-state trust institution acting as a fiduciary in this state in violation of an order issued by the commissioner.
Amended by 2024 Tenn. Acts, ch. 556,s 1, eff. 7/1/2024.
Amended by 2014 Tenn. Acts, ch. 642, s 1, eff. 7/1/2014.
Acts 1969, ch. 36, § 1 (1.103); 1973, ch. 294, §§ 6, 8; T.C.A., § 45-103; Acts 1983, ch. 274, § 2; 1993, ch. 22, § 1; 1996, ch. 768, § 3; 1999, ch. 112, § 1.
Tenn. Code Ann. § 45-15-106 — TN Code / Title 45 / Chapter 15 / Section 45-15-106
Eligibility requirements for license - Application - Fees - Issuance or denial of license - Hearing on denial - Renewal - Change in control of lender
Status: in_force

(a) To qualify for a license, an applicant shall satisfy the following requirements: (1) The applicant has a tangible net worth that comprises tangible assets less liabilities of not less than seventy-five thousand dollars ($75,000) for each location; and (2) The financial responsibility, financial condition, business experience, character, and general fitness of the applicant shall reasonably warrant the belief that the applicant's business will be conducted lawfully and fairly. In determining whether this qualification has been met, and for the purpose of investigating compliance with this chapter, the commissioner may review and approve: (A) The relevant business records and the capital adequacy of the applicant; (B) The financial responsibility, financial condition, business experience, character, and general fitness of any person who is a director, officer, a shareholder who owns five percent (5%) or more of the applicant, or owns or controls the applicant; and (C) Any record on the part of the applicant, or any person referred to in subdivision (a)(2)(B), of any criminal activity, any fraud or other act of personal dishonesty, any act, omission or practice that constitutes a breach of a fiduciary duty, or any suspension, removal or administrative action by any agency or department of the United States or any state, from participation in the conduct of any business. (b) The requirements set forth in subsection (a) are continuing in nature. (c) Each application for a license shall be in writing and under oath to the commissioner, in a form prescribed by the commissioner, and shall include the following: (1) The legal name, residence and business address of the applicant, and, if the applicant is a partnership, association, or corporation, of every member, officer, managing employee and director of the applicant; (2) The location in Tennessee at which the registered officer of the applicant shall be located; and (3) Other data and information the commissioner may require with respect to the applicant, its directors, trustees, officers, members, managing employees or agents. (d) Each application for a license shall be accompanied by: (1) A nonrefundable supervision fee, as provided in § 45-1-118(i) . The supervision fee shall be applicable to each location; (2) A balance sheet and income statement for the immediately preceding fiscal year end, prepared in accordance with generally accepted accounting principles by a certified public accountant or public accounting firm not affiliated with the applicant. For a newly created entity, the commissioner may accept only a balance sheet prepared by a certified public accountant or public accounting firm not affiliated with the applicant, accompanied by a projected income statement demonstrating that the title pledge lender will have adequate capital after payment of start-up costs; and (3) A surety bond, issued by an insurer regulated under title 56 and not affiliated with the applicant, in the amount of twenty-five thousand dollars ($25,000) for each location. However, in no event shall the aggregate amount of the surety bond required for a single title pledge lender exceed two hundred thousand dollars ($200,000). In lieu of the surety bond, the applicant shall file an irrevocable letter of credit, in the amount of the surety bond, issued by any federally insured bank, savings bank or credit union not affiliated with the applicant. The surety bond or irrevocable letter of credit shall be in a form satisfactory to the commissioner, and shall be payable to the commissioner for the benefit of any person who is injured pursuant to a title pledge or property pledge transaction by the fraud, misrepresentation, breach of contract, financial failure or violation of any provision of this chapter by a title pledge lender. In the case of a bond, the aggregate liability of the surety, in no event, shall exceed the principal sum of the surety bond. In the case of an irrevocable letter of credit, title pledge lenders shall obtain letters of credit for terms of not less than three (3) years and renew the letters of credit annually. If the title pledge lender fails to pay a person or the commissioner as required by this chapter, then a person may bring suit against the title pledge lender directly on the surety bond or irrevocable letter of credit in any court of competent jurisdiction, or the commissioner may bring suit in the chancery court of Davidson County, on behalf of those persons, either in one (1) or successive actions. The surety bond or irrevocable letter of credit shall be maintained by the title pledge lender for not less than three (3) years, following the expiration, revocation, suspension, or surrender of the license. (e) Upon the filing of an application in a form prescribed by the commissioner, accompanied by the fee and documents required in this section, the commissioner shall investigate to ascertain whether the qualifications prescribed by this section have been satisfied. If the commissioner finds that the qualifications have been satisfied, and approves the documents, the commissioner shall issue to the applicant a license to engage in the title pledge lending business in Tennessee. A license issued pursuant to this subsection (e) shall remain in force and effect through December 31 in the year it was issued, unless earlier surrendered, suspended or revoked pursuant to this chapter. (f) If the commissioner determines that an applicant is not qualified to receive a license, the commissioner shall notify the applicant in writing that the application has been denied, stating the basis for denial. If the commissioner denies an application, or if the commissioner fails to act on an application within ninety (90) days after the filing of a properly completed application, the applicant may make written demand to the commissioner for a hearing before the commissioner on the question of whether the license should be granted. Any hearing shall be conducted pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. In the hearing, the burden of proving that the applicant is entitled to a license shall be on the applicant. A decision of the commissioner following any hearing on the denial of license is subject to review under the Uniform Administrative Procedures Act. (g) The license shall be kept conspicuously posted in the place of business of the title pledge lender. (h) The license is not transferable or assignable. (i) Licenses issued pursuant to this chapter expire on December 31. A license may be renewed for the ensuing twelve-month period upon application by the license holder showing continued compliance with the requirements of this section and the payment of the nonrefundable supervision fee, as provided in § 45-1-118(i) . A licensee making timely and complete application for renewal of its license may continue to operate under its existing license until its application is approved or denied. The completed renewal application and the payment of the annual supervision fee must be sent to the department on or before December 31, but no earlier than November 1, of each year. (j) The commissioner may establish a biennial licensing arrangement for the filing of the application for license renewal, but in no case shall the supervision fee be payable for more than one (1) year at a time. (k) (1) A change in control of a title pledge lender shall require thirty-day prior written notice to the commissioner. In the case of a publicly traded corporation, notification shall be made in writing, within thirty (30) days of a change or acquisition of control of a title pledge lender. (2) Upon notification of a change in control, the commissioner may require information deemed necessary to determine whether an application for license is required. The commissioner may waive the filing of an application, if, in the commissioner's discretion, the change of control does not pose any risk to the interests of the public. (3) Costs incurred by the commissioner in investigating a change of control notification shall be paid by the person requesting approval, subject to limitations set forth in § 45-15-108(b) . (4) Whenever control of a title pledge lender is acquired or exercised in violation of this subsection (k), the license of the title pledge lender shall be deemed revoked as of the date of the unlawful acquisition of control. The title pledge lender, or its controlling person, shall surrender the license to the commissioner on demand. Amended by 2017 Tenn. Acts, ch. 122,s 5, eff. 7/1/2017. Amended by 2014 Tenn. Acts, ch. 736,Secs.s14, s15, s16 eff. 7/1/2015. Amended by 2014 Tenn. Acts, ch. 736,s 13, eff. 7/1/2015. Acts 1995, ch. 186, § 13; 2005, ch. 440, § 5.
(a) To qualify for a license, an applicant shall satisfy the following requirements: (1) The applicant has a tangible net worth that comprises tangible assets less liabilities of not less than seventy-five thousand dollars ($75,000) for each location; and (2) The financial responsibility, financial condition, business experience, character, and general fitness of the applicant shall reasonably warrant the belief that the applicant's business will be conducted lawfully and fairly. In determining whether this qualification has been met, and for the purpose of investigating compliance with this chapter, the commissioner may review and approve: (A) The relevant business records and the capital adequacy of the applicant; (B) The financial responsibility, financial condition, business experience, character, and general fitness of any person who is a director, officer, a shareholder who owns five percent (5%) or more of the applicant, or owns or controls the applicant; and (C) Any record on the part of the applicant, or any person referred to in subdivision (a)(2)(B), of any criminal activity, any fraud or other act of personal dishonesty, any act, omission or practice that constitutes a breach of a fiduciary duty, or any suspension, removal or administrative action by any agency or department of the United States or any state, from participation in the conduct of any business.
(1) The applicant has a tangible net worth that comprises tangible assets less liabilities of not less than seventy-five thousand dollars ($75,000) for each location; and
(2) The financial responsibility, financial condition, business experience, character, and general fitness of the applicant shall reasonably warrant the belief that the applicant's business will be conducted lawfully and fairly. In determining whether this qualification has been met, and for the purpose of investigating compliance with this chapter, the commissioner may review and approve: (A) The relevant business records and the capital adequacy of the applicant; (B) The financial responsibility, financial condition, business experience, character, and general fitness of any person who is a director, officer, a shareholder who owns five percent (5%) or more of the applicant, or owns or controls the applicant; and (C) Any record on the part of the applicant, or any person referred to in subdivision (a)(2)(B), of any criminal activity, any fraud or other act of personal dishonesty, any act, omission or practice that constitutes a breach of a fiduciary duty, or any suspension, removal or administrative action by any agency or department of the United States or any state, from participation in the conduct of any business.
(A) The relevant business records and the capital adequacy of the applicant;
(B) The financial responsibility, financial condition, business experience, character, and general fitness of any person who is a director, officer, a shareholder who owns five percent (5%) or more of the applicant, or owns or controls the applicant; and
(C) Any record on the part of the applicant, or any person referred to in subdivision (a)(2)(B), of any criminal activity, any fraud or other act of personal dishonesty, any act, omission or practice that constitutes a breach of a fiduciary duty, or any suspension, removal or administrative action by any agency or department of the United States or any state, from participation in the conduct of any business.
(b) The requirements set forth in subsection (a) are continuing in nature.
(c) Each application for a license shall be in writing and under oath to the commissioner, in a form prescribed by the commissioner, and shall include the following: (1) The legal name, residence and business address of the applicant, and, if the applicant is a partnership, association, or corporation, of every member, officer, managing employee and director of the applicant; (2) The location in Tennessee at which the registered officer of the applicant shall be located; and (3) Other data and information the commissioner may require with respect to the applicant, its directors, trustees, officers, members, managing employees or agents.
(1) The legal name, residence and business address of the applicant, and, if the applicant is a partnership, association, or corporation, of every member, officer, managing employee and director of the applicant;
(2) The location in Tennessee at which the registered officer of the applicant shall be located; and
(3) Other data and information the commissioner may require with respect to the applicant, its directors, trustees, officers, members, managing employees or agents.
(d) Each application for a license shall be accompanied by: (1) A nonrefundable supervision fee, as provided in § 45-1-118(i) . The supervision fee shall be applicable to each location; (2) A balance sheet and income statement for the immediately preceding fiscal year end, prepared in accordance with generally accepted accounting principles by a certified public accountant or public accounting firm not affiliated with the applicant. For a newly created entity, the commissioner may accept only a balance sheet prepared by a certified public accountant or public accounting firm not affiliated with the applicant, accompanied by a projected income statement demonstrating that the title pledge lender will have adequate capital after payment of start-up costs; and (3) A surety bond, issued by an insurer regulated under title 56 and not affiliated with the applicant, in the amount of twenty-five thousand dollars ($25,000) for each location. However, in no event shall the aggregate amount of the surety bond required for a single title pledge lender exceed two hundred thousand dollars ($200,000). In lieu of the surety bond, the applicant shall file an irrevocable letter of credit, in the amount of the surety bond, issued by any federally insured bank, savings bank or credit union not affiliated with the applicant. The surety bond or irrevocable letter of credit shall be in a form satisfactory to the commissioner, and shall be payable to the commissioner for the benefit of any person who is injured pursuant to a title pledge or property pledge transaction by the fraud, misrepresentation, breach of contract, financial failure or violation of any provision of this chapter by a title pledge lender. In the case of a bond, the aggregate liability of the surety, in no event, shall exceed the principal sum of the surety bond. In the case of an irrevocable letter of credit, title pledge lenders shall obtain letters of credit for terms of not less than three (3) years and renew the letters of credit annually. If the title pledge lender fails to pay a person or the commissioner as required by this chapter, then a person may bring suit against the title pledge lender directly on the surety bond or irrevocable letter of credit in any court of competent jurisdiction, or the commissioner may bring suit in the chancery court of Davidson County, on behalf of those persons, either in one (1) or successive actions. The surety bond or irrevocable letter of credit shall be maintained by the title pledge lender for not less than three (3) years, following the expiration, revocation, suspension, or surrender of the license.
(1) A nonrefundable supervision fee, as provided in § 45-1-118(i) . The supervision fee shall be applicable to each location;
(2) A balance sheet and income statement for the immediately preceding fiscal year end, prepared in accordance with generally accepted accounting principles by a certified public accountant or public accounting firm not affiliated with the applicant. For a newly created entity, the commissioner may accept only a balance sheet prepared by a certified public accountant or public accounting firm not affiliated with the applicant, accompanied by a projected income statement demonstrating that the title pledge lender will have adequate capital after payment of start-up costs; and
(3) A surety bond, issued by an insurer regulated under title 56 and not affiliated with the applicant, in the amount of twenty-five thousand dollars ($25,000) for each location. However, in no event shall the aggregate amount of the surety bond required for a single title pledge lender exceed two hundred thousand dollars ($200,000). In lieu of the surety bond, the applicant shall file an irrevocable letter of credit, in the amount of the surety bond, issued by any federally insured bank, savings bank or credit union not affiliated with the applicant. The surety bond or irrevocable letter of credit shall be in a form satisfactory to the commissioner, and shall be payable to the commissioner for the benefit of any person who is injured pursuant to a title pledge or property pledge transaction by the fraud, misrepresentation, breach of contract, financial failure or violation of any provision of this chapter by a title pledge lender. In the case of a bond, the aggregate liability of the surety, in no event, shall exceed the principal sum of the surety bond. In the case of an irrevocable letter of credit, title pledge lenders shall obtain letters of credit for terms of not less than three (3) years and renew the letters of credit annually. If the title pledge lender fails to pay a person or the commissioner as required by this chapter, then a person may bring suit against the title pledge lender directly on the surety bond or irrevocable letter of credit in any court of competent jurisdiction, or the commissioner may bring suit in the chancery court of Davidson County, on behalf of those persons, either in one (1) or successive actions. The surety bond or irrevocable letter of credit shall be maintained by the title pledge lender for not less than three (3) years, following the expiration, revocation, suspension, or surrender of the license.
(e) Upon the filing of an application in a form prescribed by the commissioner, accompanied by the fee and documents required in this section, the commissioner shall investigate to ascertain whether the qualifications prescribed by this section have been satisfied. If the commissioner finds that the qualifications have been satisfied, and approves the documents, the commissioner shall issue to the applicant a license to engage in the title pledge lending business in Tennessee. A license issued pursuant to this subsection (e) shall remain in force and effect through December 31 in the year it was issued, unless earlier surrendered, suspended or revoked pursuant to this chapter.
(f) If the commissioner determines that an applicant is not qualified to receive a license, the commissioner shall notify the applicant in writing that the application has been denied, stating the basis for denial. If the commissioner denies an application, or if the commissioner fails to act on an application within ninety (90) days after the filing of a properly completed application, the applicant may make written demand to the commissioner for a hearing before the commissioner on the question of whether the license should be granted. Any hearing shall be conducted pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. In the hearing, the burden of proving that the applicant is entitled to a license shall be on the applicant. A decision of the commissioner following any hearing on the denial of license is subject to review under the Uniform Administrative Procedures Act.
(g) The license shall be kept conspicuously posted in the place of business of the title pledge lender.
(h) The license is not transferable or assignable.
(i) Licenses issued pursuant to this chapter expire on December 31. A license may be renewed for the ensuing twelve-month period upon application by the license holder showing continued compliance with the requirements of this section and the payment of the nonrefundable supervision fee, as provided in § 45-1-118(i) . A licensee making timely and complete application for renewal of its license may continue to operate under its existing license until its application is approved or denied. The completed renewal application and the payment of the annual supervision fee must be sent to the department on or before December 31, but no earlier than November 1, of each year.
(j) The commissioner may establish a biennial licensing arrangement for the filing of the application for license renewal, but in no case shall the supervision fee be payable for more than one (1) year at a time.
(k) (1) A change in control of a title pledge lender shall require thirty-day prior written notice to the commissioner. In the case of a publicly traded corporation, notification shall be made in writing, within thirty (30) days of a change or acquisition of control of a title pledge lender. (2) Upon notification of a change in control, the commissioner may require information deemed necessary to determine whether an application for license is required. The commissioner may waive the filing of an application, if, in the commissioner's discretion, the change of control does not pose any risk to the interests of the public. (3) Costs incurred by the commissioner in investigating a change of control notification shall be paid by the person requesting approval, subject to limitations set forth in § 45-15-108(b) . (4) Whenever control of a title pledge lender is acquired or exercised in violation of this subsection (k), the license of the title pledge lender shall be deemed revoked as of the date of the unlawful acquisition of control. The title pledge lender, or its controlling person, shall surrender the license to the commissioner on demand.
(1) A change in control of a title pledge lender shall require thirty-day prior written notice to the commissioner. In the case of a publicly traded corporation, notification shall be made in writing, within thirty (30) days of a change or acquisition of control of a title pledge lender.
(2) Upon notification of a change in control, the commissioner may require information deemed necessary to determine whether an application for license is required. The commissioner may waive the filing of an application, if, in the commissioner's discretion, the change of control does not pose any risk to the interests of the public.
(3) Costs incurred by the commissioner in investigating a change of control notification shall be paid by the person requesting approval, subject to limitations set forth in § 45-15-108(b) .
(4) Whenever control of a title pledge lender is acquired or exercised in violation of this subsection (k), the license of the title pledge lender shall be deemed revoked as of the date of the unlawful acquisition of control. The title pledge lender, or its controlling person, shall surrender the license to the commissioner on demand.
Amended by 2017 Tenn. Acts, ch. 122,s 5, eff. 7/1/2017.
Amended by 2014 Tenn. Acts, ch. 736,Secs.s14, s15, s16 eff. 7/1/2015.
Amended by 2014 Tenn. Acts, ch. 736,s 13, eff. 7/1/2015.
Acts 1995, ch. 186, § 13; 2005, ch. 440, § 5.
Tenn. Code Ann. § 45-4-1112 — TN Code / Title 45 / Chapter 4 / Section 45-4-1112
Examination of credit unions by corporation - Effect of failure to pay assessments
Status: in_force

(a) The commissioner of financial institutions shall promptly forward to the corporation copies of all examination reports of all member credit unions. The cost of furnishing these copies shall be paid by the corporation. (b) The corporation, in addition, may require independent audits and investigations of any member credit union in order to learn of the financial condition of the credit union as it relates to share insurance. The audits shall be at the corporation's expense; provided, that the member credit union shall pay the expense of an annual audit as required by the corporation; provided, that the foregoing proviso shall not conflict with the rules of the commissioner. (c) If the corporation ascertains evidence of carelessness, unsound practices or mismanagement of any member credit union that appears to adversely affect the solvency or liquidity of the credit union or threaten undue loss to the corporation, the corporation may order that corrective actions be taken, or after due notice and hearing, as provided in the bylaws, revoke the credit union's membership in the corporation. The corporation may also recommend to the commissioner or the supervisory agency of the state of each credit union that becomes a member under § 45-4-1107(c) or (d) , that the credit union be liquidated. (d) If any member credit union fails to pay any assessment lawfully required under this part, the corporation shall notify the commissioner or the supervisory agency of the state of each credit union that becomes a member under § 45-4-1107(c) or (d) , and the commissioner or the supervisory agency shall forthwith notify the credit union in writing. The failure of the credit union to make the payment within fifteen (15) days after the written notice may subject the credit union to the sanctions set forth in subsection (c). Acts 1974, ch. 577, § 12; T.C.A., § 45-1846; Acts 1981, ch. 89, § 4; 1983, ch. 93, § 4.
(a) The commissioner of financial institutions shall promptly forward to the corporation copies of all examination reports of all member credit unions. The cost of furnishing these copies shall be paid by the corporation.
(b) The corporation, in addition, may require independent audits and investigations of any member credit union in order to learn of the financial condition of the credit union as it relates to share insurance. The audits shall be at the corporation's expense; provided, that the member credit union shall pay the expense of an annual audit as required by the corporation; provided, that the foregoing proviso shall not conflict with the rules of the commissioner.
(c) If the corporation ascertains evidence of carelessness, unsound practices or mismanagement of any member credit union that appears to adversely affect the solvency or liquidity of the credit union or threaten undue loss to the corporation, the corporation may order that corrective actions be taken, or after due notice and hearing, as provided in the bylaws, revoke the credit union's membership in the corporation. The corporation may also recommend to the commissioner or the supervisory agency of the state of each credit union that becomes a member under § 45-4-1107(c) or (d) , that the credit union be liquidated.
(d) If any member credit union fails to pay any assessment lawfully required under this part, the corporation shall notify the commissioner or the supervisory agency of the state of each credit union that becomes a member under § 45-4-1107(c) or (d) , and the commissioner or the supervisory agency shall forthwith notify the credit union in writing. The failure of the credit union to make the payment within fifteen (15) days after the written notice may subject the credit union to the sanctions set forth in subsection (c).
Acts 1974, ch. 577, § 12; T.C.A., § 45-1846; Acts 1981, ch. 89, § 4; 1983, ch. 93, § 4.
Tenn. Code Ann. § 45-2-614 — TN Code / Title 45 / Chapter 2 / Section 45-2-614
Branch banking
Status: in_force

(a) Any Tennessee-chartered bank may establish or otherwise acquire and maintain branch offices, branch banks and other branch facilities for the conduct of its banking business at any location in Tennessee and, except as may be prohibited by applicable law of other jurisdictions, at any other location. (b) No branch, branch office or other facility at which deposits may be accepted shall be established until approved by the commissioner. Notwithstanding the above, the commissioner shall provide by regulation that a bank with a regulatory rating of 1 or 2 may, in lieu of an application, file a written notification for a branch office with the commissioner providing the information as the commissioner may require, including, but not limited to, proof of public notice. Unless objected to by the commissioner with a request for additional information, the notice shall be deemed sufficient and approved at the expiration of the public notice comment period as established by regulation. For an application from any other bank, the application shall be deemed to have been approved by the commissioner unless disapproved within ninety (90) calendar days after the submission of the application. In the event the notification or application to open a branch bank is disapproved and the bank feels aggrieved, the bank may petition for a review by certiorari as provided in title 27, chapter 9. For purposes of this subsection (b), "regulatory rating" means a confidential regulatory rating established, assigned or accepted, pursuant to agreement with a federal regulatory agency, by the department to assess the condition of the bank. The rating shall at all times remain confidential. (c) Any other laws to the contrary notwithstanding, any branch bank presently located in any county may be incorporated as a bank, with all of the rights and powers granted to a bank under this title, and without restriction on the acquisition or ownership of its stock by a bank holding company, as defined in the Federal Bank Holding Company Act of 1956, that owns controlling interest in the principal bank. The commissioner shall grant a charter and forthwith issue a certificate of authority to the bank if the charter is in the form prescribed by § 45-2-204 , the proposed officers and directors are qualified under § 45-2-205 , the proposed capital structure is adequate under § 45-2-207 and the conditions of § 45-2-214 have been satisfied, other requirements of this title relative to the initial organization of a bank not being applicable. (d) (1) A branch office, branch bank, or other branch facility shall not be established or acquired in Tennessee by any bank, except: (A) A Tennessee-charted bank; (B) A national bank that has its main office located in this state; (C) A bank that merges or consolidates with a bank described in subdivision (d)(1)(A) or (d)(1)(B); or (D) An out-of-state bank that acquires a branch in accordance with § 45-2-1412 . (2) Subdivision (d)(1) shall not be construed to prohibit the surviving or resulting bank following a merger or consolidation referenced in subdivision (d)(1)(C) or the out-of-state bank acquiring a branch referenced in subdivision (d)(1)(D) from establishing and acquiring additional branch offices, branch banks, and other branch facilities in this state. (e) No Tennessee bank or branch office or facility of a Tennessee bank that conducts the following transactions as an agent on behalf of another Tennessee bank, whether or not the Tennessee banks are affiliated through common control or otherwise, and no bank that is a subsidiary of a bank holding company or branch office or facility of a bank holding company that conducts the following transaction on behalf of another bank that is a subsidiary of the same bank holding company, shall be deemed a branch of the principal bank: receipt of deposits, renewal of time deposits, closing of loans, servicing of loans, and receipt of payments on loans and other obligations. The commissioner may establish by rule additional types of agency transactions, the performance of which shall not cause the agent bank to be deemed a branch of the principal bank. With respect to the agency relationships to which a Tennessee-chartered bank is to be a party, the commissioner may establish rules requiring receipt of notification, or approval, by the commissioner before the agency transactions are conducted. For the purposes of this subsection (e), "Tennessee bank" and "bank holding company" have the meanings set forth in § 45-2-1402 . Acts 1969, ch. 36, § 1 (3.249); 1973, ch. 294, § 6; 1974, ch. 463, § 1; 1977, ch. 172, § 1; T.C.A., § 45-443; Acts 1980, ch. 510, § 6; 1984, ch. 570, § 1; 1985, ch. 165, § 1; 1987, ch. 119, § 1; 1989, ch. 85, § 1; 1990, ch. 644, §§ 1, 2; 1995, ch. 165, §§ 3, 4; 1996, ch. 768, §§ 20, 21; 1998, ch. 742, § 3; 2001, ch. 54, §§ 14, 15.
(a) Any Tennessee-chartered bank may establish or otherwise acquire and maintain branch offices, branch banks and other branch facilities for the conduct of its banking business at any location in Tennessee and, except as may be prohibited by applicable law of other jurisdictions, at any other location.
(b) No branch, branch office or other facility at which deposits may be accepted shall be established until approved by the commissioner. Notwithstanding the above, the commissioner shall provide by regulation that a bank with a regulatory rating of 1 or 2 may, in lieu of an application, file a written notification for a branch office with the commissioner providing the information as the commissioner may require, including, but not limited to, proof of public notice. Unless objected to by the commissioner with a request for additional information, the notice shall be deemed sufficient and approved at the expiration of the public notice comment period as established by regulation. For an application from any other bank, the application shall be deemed to have been approved by the commissioner unless disapproved within ninety (90) calendar days after the submission of the application. In the event the notification or application to open a branch bank is disapproved and the bank feels aggrieved, the bank may petition for a review by certiorari as provided in title 27, chapter 9. For purposes of this subsection (b), "regulatory rating" means a confidential regulatory rating established, assigned or accepted, pursuant to agreement with a federal regulatory agency, by the department to assess the condition of the bank. The rating shall at all times remain confidential.
(c) Any other laws to the contrary notwithstanding, any branch bank presently located in any county may be incorporated as a bank, with all of the rights and powers granted to a bank under this title, and without restriction on the acquisition or ownership of its stock by a bank holding company, as defined in the Federal Bank Holding Company Act of 1956, that owns controlling interest in the principal bank. The commissioner shall grant a charter and forthwith issue a certificate of authority to the bank if the charter is in the form prescribed by § 45-2-204 , the proposed officers and directors are qualified under § 45-2-205 , the proposed capital structure is adequate under § 45-2-207 and the conditions of § 45-2-214 have been satisfied, other requirements of this title relative to the initial organization of a bank not being applicable.
(d) (1) A branch office, branch bank, or other branch facility shall not be established or acquired in Tennessee by any bank, except: (A) A Tennessee-charted bank; (B) A national bank that has its main office located in this state; (C) A bank that merges or consolidates with a bank described in subdivision (d)(1)(A) or (d)(1)(B); or (D) An out-of-state bank that acquires a branch in accordance with § 45-2-1412 . (2) Subdivision (d)(1) shall not be construed to prohibit the surviving or resulting bank following a merger or consolidation referenced in subdivision (d)(1)(C) or the out-of-state bank acquiring a branch referenced in subdivision (d)(1)(D) from establishing and acquiring additional branch offices, branch banks, and other branch facilities in this state.
(1) A branch office, branch bank, or other branch facility shall not be established or acquired in Tennessee by any bank, except: (A) A Tennessee-charted bank; (B) A national bank that has its main office located in this state; (C) A bank that merges or consolidates with a bank described in subdivision (d)(1)(A) or (d)(1)(B); or (D) An out-of-state bank that acquires a branch in accordance with § 45-2-1412 .
(A) A Tennessee-charted bank;
(B) A national bank that has its main office located in this state;
(C) A bank that merges or consolidates with a bank described in subdivision (d)(1)(A) or (d)(1)(B); or
(D) An out-of-state bank that acquires a branch in accordance with § 45-2-1412 .
(2) Subdivision (d)(1) shall not be construed to prohibit the surviving or resulting bank following a merger or consolidation referenced in subdivision (d)(1)(C) or the out-of-state bank acquiring a branch referenced in subdivision (d)(1)(D) from establishing and acquiring additional branch offices, branch banks, and other branch facilities in this state.
(e) No Tennessee bank or branch office or facility of a Tennessee bank that conducts the following transactions as an agent on behalf of another Tennessee bank, whether or not the Tennessee banks are affiliated through common control or otherwise, and no bank that is a subsidiary of a bank holding company or branch office or facility of a bank holding company that conducts the following transaction on behalf of another bank that is a subsidiary of the same bank holding company, shall be deemed a branch of the principal bank: receipt of deposits, renewal of time deposits, closing of loans, servicing of loans, and receipt of payments on loans and other obligations. The commissioner may establish by rule additional types of agency transactions, the performance of which shall not cause the agent bank to be deemed a branch of the principal bank. With respect to the agency relationships to which a Tennessee-chartered bank is to be a party, the commissioner may establish rules requiring receipt of notification, or approval, by the commissioner before the agency transactions are conducted. For the purposes of this subsection (e), "Tennessee bank" and "bank holding company" have the meanings set forth in § 45-2-1402 .
Acts 1969, ch. 36, § 1 (3.249); 1973, ch. 294, § 6; 1974, ch. 463, § 1; 1977, ch. 172, § 1; T.C.A., § 45-443; Acts 1980, ch. 510, § 6; 1984, ch. 570, § 1; 1985, ch. 165, § 1; 1987, ch. 119, § 1; 1989, ch. 85, § 1; 1990, ch. 644, §§ 1, 2; 1995, ch. 165, §§ 3, 4; 1996, ch. 768, §§ 20, 21; 1998, ch. 742, § 3; 2001, ch. 54, §§ 14, 15.
Tenn. Code Ann. § 45-20-108 — TN Code / Title 45 / Chapter 20 / Section 45-20-108
Compliance failure
Status: in_force

(a) A lender or servicer, as applicable, of a high-cost home loan who, when acting in good faith, fails to comply with § 45-20-103 , § 45-20-104 , or § 45-20-106 shall not be deemed to have violated the section, if the lender or servicer establishes that either: (1) Within thirty (30) days of discovery and prior to the institution of any action under this chapter: (A) The borrower is notified of the compliance failure; (B) The lender or servicer has made appropriate restitution to the borrower; (C) With respect to the violations identified in § 45-20-107(a)(1) , the lender or servicer makes whatever adjustments are necessary to the loan to either, at the choice of the borrower, make the loan satisfy the requirements of § 45-20-103 , or change the terms of the loan in a manner beneficial to the borrower, so that the loan will no longer be considered a high-cost home loan subject to this chapter; and (D) With respect to the violations identified in § 45-20-107(a)(2) , the lender or servicer makes whatever adjustments or refunds and/or takes action necessary to cure the violation, by affording the borrower the rights and benefits provided under this chapter; (2) The compliance failure was not intentional and resulted from a bona fide error, notwithstanding the maintenance of procedures reasonably adapted to avoid the errors, and within sixty (60) days after the discovery of the compliance failure and prior to the institution of any action under this chapter or the receipt of written notice of the compliance failure: (A) The borrower is notified of the compliance error; (B) The lender makes appropriate restitution to the borrower; (C) With respect to the violations identified in § 45-20-107(a)(1) , the lender or servicer makes whatever adjustments are necessary to the loan to either, at the choice of the borrower, make the loan satisfy the requirements of § 45-20-103 , or change the terms of the loan in a manner beneficial to the borrower, so that the loan will no longer be considered a high-cost home loan subject to this chapter; and (D) With respect to the violations identified in § 45-20-107(a)(2) , the lender or servicer makes whatever adjustments or refunds and/or takes action necessary to cure the violation, by affording the borrower the rights and benefits provided under this chapter. (b) Examples of a bona fide error include, but are not limited to, clerical, calculation, computer malfunction and programming, and printing errors. (c) For purposes of this section, "appropriate restitution" means the reimbursement by the lender of any points and fees, interest, or other charges made by the lender and received from the borrower necessary to put the borrower in the same position as the borrower would have been had the loan, as adjusted, in accordance with subdivisions (a)(1) and (2), been originally made. Acts 2006, ch. 801, § 8.
(a) A lender or servicer, as applicable, of a high-cost home loan who, when acting in good faith, fails to comply with § 45-20-103 , § 45-20-104 , or § 45-20-106 shall not be deemed to have violated the section, if the lender or servicer establishes that either: (1) Within thirty (30) days of discovery and prior to the institution of any action under this chapter: (A) The borrower is notified of the compliance failure; (B) The lender or servicer has made appropriate restitution to the borrower; (C) With respect to the violations identified in § 45-20-107(a)(1) , the lender or servicer makes whatever adjustments are necessary to the loan to either, at the choice of the borrower, make the loan satisfy the requirements of § 45-20-103 , or change the terms of the loan in a manner beneficial to the borrower, so that the loan will no longer be considered a high-cost home loan subject to this chapter; and (D) With respect to the violations identified in § 45-20-107(a)(2) , the lender or servicer makes whatever adjustments or refunds and/or takes action necessary to cure the violation, by affording the borrower the rights and benefits provided under this chapter; (2) The compliance failure was not intentional and resulted from a bona fide error, notwithstanding the maintenance of procedures reasonably adapted to avoid the errors, and within sixty (60) days after the discovery of the compliance failure and prior to the institution of any action under this chapter or the receipt of written notice of the compliance failure: (A) The borrower is notified of the compliance error; (B) The lender makes appropriate restitution to the borrower; (C) With respect to the violations identified in § 45-20-107(a)(1) , the lender or servicer makes whatever adjustments are necessary to the loan to either, at the choice of the borrower, make the loan satisfy the requirements of § 45-20-103 , or change the terms of the loan in a manner beneficial to the borrower, so that the loan will no longer be considered a high-cost home loan subject to this chapter; and (D) With respect to the violations identified in § 45-20-107(a)(2) , the lender or servicer makes whatever adjustments or refunds and/or takes action necessary to cure the violation, by affording the borrower the rights and benefits provided under this chapter.
(1) Within thirty (30) days of discovery and prior to the institution of any action under this chapter: (A) The borrower is notified of the compliance failure; (B) The lender or servicer has made appropriate restitution to the borrower; (C) With respect to the violations identified in § 45-20-107(a)(1) , the lender or servicer makes whatever adjustments are necessary to the loan to either, at the choice of the borrower, make the loan satisfy the requirements of § 45-20-103 , or change the terms of the loan in a manner beneficial to the borrower, so that the loan will no longer be considered a high-cost home loan subject to this chapter; and (D) With respect to the violations identified in § 45-20-107(a)(2) , the lender or servicer makes whatever adjustments or refunds and/or takes action necessary to cure the violation, by affording the borrower the rights and benefits provided under this chapter;
(A) The borrower is notified of the compliance failure;
(B) The lender or servicer has made appropriate restitution to the borrower;
(C) With respect to the violations identified in § 45-20-107(a)(1) , the lender or servicer makes whatever adjustments are necessary to the loan to either, at the choice of the borrower, make the loan satisfy the requirements of § 45-20-103 , or change the terms of the loan in a manner beneficial to the borrower, so that the loan will no longer be considered a high-cost home loan subject to this chapter; and
(D) With respect to the violations identified in § 45-20-107(a)(2) , the lender or servicer makes whatever adjustments or refunds and/or takes action necessary to cure the violation, by affording the borrower the rights and benefits provided under this chapter;
(2) The compliance failure was not intentional and resulted from a bona fide error, notwithstanding the maintenance of procedures reasonably adapted to avoid the errors, and within sixty (60) days after the discovery of the compliance failure and prior to the institution of any action under this chapter or the receipt of written notice of the compliance failure: (A) The borrower is notified of the compliance error; (B) The lender makes appropriate restitution to the borrower; (C) With respect to the violations identified in § 45-20-107(a)(1) , the lender or servicer makes whatever adjustments are necessary to the loan to either, at the choice of the borrower, make the loan satisfy the requirements of § 45-20-103 , or change the terms of the loan in a manner beneficial to the borrower, so that the loan will no longer be considered a high-cost home loan subject to this chapter; and (D) With respect to the violations identified in § 45-20-107(a)(2) , the lender or servicer makes whatever adjustments or refunds and/or takes action necessary to cure the violation, by affording the borrower the rights and benefits provided under this chapter.
(A) The borrower is notified of the compliance error;
(B) The lender makes appropriate restitution to the borrower;
(C) With respect to the violations identified in § 45-20-107(a)(1) , the lender or servicer makes whatever adjustments are necessary to the loan to either, at the choice of the borrower, make the loan satisfy the requirements of § 45-20-103 , or change the terms of the loan in a manner beneficial to the borrower, so that the loan will no longer be considered a high-cost home loan subject to this chapter; and
(D) With respect to the violations identified in § 45-20-107(a)(2) , the lender or servicer makes whatever adjustments or refunds and/or takes action necessary to cure the violation, by affording the borrower the rights and benefits provided under this chapter.
(b) Examples of a bona fide error include, but are not limited to, clerical, calculation, computer malfunction and programming, and printing errors.
(c) For purposes of this section, "appropriate restitution" means the reimbursement by the lender of any points and fees, interest, or other charges made by the lender and received from the borrower necessary to put the borrower in the same position as the borrower would have been had the loan, as adjusted, in accordance with subdivisions (a)(1) and (2), been originally made.
Acts 2006, ch. 801, § 8.
Tenn. Code Ann. § 45-2-611 — TN Code / Title 45 / Chapter 2 / Section 45-2-611
Pledge of assets
Status: in_force

(a) A bank may pledge its assets only: (1) To enable it to act as an agent for the sale of obligations of the United States; (2) To secure borrowed funds; (3) To secure the public funds of a governmental entity; and (4) For other purposes that are approved by the commissioner. (b) As used in this section, unless the context otherwise requires: (1) "Governmental entity" means: (A) (i) The United States government or any agency thereof; or (ii) Any instrumentality of the United States the funds of which are required by law to be secured; and (B) The state of Tennessee or any other state, counties, incorporated municipalities and their political subdivisions or any utility district organized under the laws of a state or an interstate compact; and (2) "Public funds" means: (A) Funds in which the entire beneficial interest is owned by a governmental entity; or (B) Funds held in the name of a public official charged with the duty to receive or administer funds and acting in the person's official capacity. (c) A financial institution authorized to secure public funds of any governmental entity shall do so in the same manner and under the same conditions as state deposits under title 9, chapter 4, or as provided in a collateral pool as provided in title 9, chapter 4, part 5. Acts 1969, ch. 36, § 1 (3.246); 1973, ch. 294, § 6; T.C.A., § 45-440; Acts 1990, ch. 1043, § 3.
(a) A bank may pledge its assets only: (1) To enable it to act as an agent for the sale of obligations of the United States; (2) To secure borrowed funds; (3) To secure the public funds of a governmental entity; and (4) For other purposes that are approved by the commissioner.
(1) To enable it to act as an agent for the sale of obligations of the United States;
(2) To secure borrowed funds;
(3) To secure the public funds of a governmental entity; and
(4) For other purposes that are approved by the commissioner.
(b) As used in this section, unless the context otherwise requires: (1) "Governmental entity" means: (A) (i) The United States government or any agency thereof; or (ii) Any instrumentality of the United States the funds of which are required by law to be secured; and (B) The state of Tennessee or any other state, counties, incorporated municipalities and their political subdivisions or any utility district organized under the laws of a state or an interstate compact; and (2) "Public funds" means: (A) Funds in which the entire beneficial interest is owned by a governmental entity; or (B) Funds held in the name of a public official charged with the duty to receive or administer funds and acting in the person's official capacity.
(1) "Governmental entity" means: (A) (i) The United States government or any agency thereof; or (ii) Any instrumentality of the United States the funds of which are required by law to be secured; and (B) The state of Tennessee or any other state, counties, incorporated municipalities and their political subdivisions or any utility district organized under the laws of a state or an interstate compact; and
(A) (i) The United States government or any agency thereof; or (ii) Any instrumentality of the United States the funds of which are required by law to be secured; and
(i) The United States government or any agency thereof; or
(ii) Any instrumentality of the United States the funds of which are required by law to be secured; and
(B) The state of Tennessee or any other state, counties, incorporated municipalities and their political subdivisions or any utility district organized under the laws of a state or an interstate compact; and
(2) "Public funds" means: (A) Funds in which the entire beneficial interest is owned by a governmental entity; or (B) Funds held in the name of a public official charged with the duty to receive or administer funds and acting in the person's official capacity.
(A) Funds in which the entire beneficial interest is owned by a governmental entity; or
(B) Funds held in the name of a public official charged with the duty to receive or administer funds and acting in the person's official capacity.
(c) A financial institution authorized to secure public funds of any governmental entity shall do so in the same manner and under the same conditions as state deposits under title 9, chapter 4, or as provided in a collateral pool as provided in title 9, chapter 4, part 5.
Acts 1969, ch. 36, § 1 (3.246); 1973, ch. 294, § 6; T.C.A., § 45-440; Acts 1990, ch. 1043, § 3.
Tenn. Code Ann. § 45-3-707 — TN Code / Title 45 / Chapter 3 / Section 45-3-707
Department to service loans - Service charge
Status: in_force

(a) (1) Associations are authorized, directed, and required to provide for and maintain a department to service the loans and properties securing the loans, including among other things: (A) Services in reference to investigating the financial standing of applicants for loans; (B) The enforcement of all contractual requirements of borrowers, including insurance, maintenance, repairs, delinquencies, defaults, and continuing security; and (C) Taxes, assessments and other governmental levies; (2) (A) In their contracts with borrowers, the associations are authorized to provide for and collect a service fee, the amount of which shall in no event exceed two and one-half percent (2½%) per annum of the unpaid balance of the loan, to be used in defraying the expense of providing and maintaining the service department, including the portion of the association's overhead expense that is fairly incurred by and in connection with the maintenance of the department; provided, that the service fee shall be in addition to legal interest and the actual expenses incurred in making, securing, and closing the loan, and shall not be collected as interest or compensation for the use of the money loaned, but shall be used in defraying the expense of maintaining the department and in servicing the loans, as contemplated herein; and provided further, that the service fee shall not be collected from borrowers who make deposit account loans. (B) The service fee may be made payable in periodic installments running throughout the life of the loan or at the initial closing of the loan. Any service charge collected at the time the loan is closed may be retained regardless of when the loan is paid. (C) The service fee payable in periodic installments may be retained in the following manner: (i) If the loan is paid within one (1) year from the date same is made, the service fee may be retained or collected for the full year; or (ii) Where the loan is paid after the period of one (1) year, the service fee shall be retained or collected only to the date of payment. (b) It is the duty of the commissioner, at the time of making annual examinations of associations making real estate loans, to determine whether associations making real estate loans, as herein authorized, are charging fees in excess of the amount reasonably required to defray the expense of servicing loans and in maintaining the service department contemplated herein; and, in the event it is found that the provisions herein are being violated, it shall be the duty of the commissioner to take necessary action, under the law, to prevent the associations from continuing the illegal acts. Acts 1978, ch. 708, § 2.30; T.C.A., § 45-1430.
(a) (1) Associations are authorized, directed, and required to provide for and maintain a department to service the loans and properties securing the loans, including among other things: (A) Services in reference to investigating the financial standing of applicants for loans; (B) The enforcement of all contractual requirements of borrowers, including insurance, maintenance, repairs, delinquencies, defaults, and continuing security; and (C) Taxes, assessments and other governmental levies; (2) (A) In their contracts with borrowers, the associations are authorized to provide for and collect a service fee, the amount of which shall in no event exceed two and one-half percent (2½%) per annum of the unpaid balance of the loan, to be used in defraying the expense of providing and maintaining the service department, including the portion of the association's overhead expense that is fairly incurred by and in connection with the maintenance of the department; provided, that the service fee shall be in addition to legal interest and the actual expenses incurred in making, securing, and closing the loan, and shall not be collected as interest or compensation for the use of the money loaned, but shall be used in defraying the expense of maintaining the department and in servicing the loans, as contemplated herein; and provided further, that the service fee shall not be collected from borrowers who make deposit account loans. (B) The service fee may be made payable in periodic installments running throughout the life of the loan or at the initial closing of the loan. Any service charge collected at the time the loan is closed may be retained regardless of when the loan is paid. (C) The service fee payable in periodic installments may be retained in the following manner: (i) If the loan is paid within one (1) year from the date same is made, the service fee may be retained or collected for the full year; or (ii) Where the loan is paid after the period of one (1) year, the service fee shall be retained or collected only to the date of payment.
(1) Associations are authorized, directed, and required to provide for and maintain a department to service the loans and properties securing the loans, including among other things: (A) Services in reference to investigating the financial standing of applicants for loans; (B) The enforcement of all contractual requirements of borrowers, including insurance, maintenance, repairs, delinquencies, defaults, and continuing security; and (C) Taxes, assessments and other governmental levies;
(A) Services in reference to investigating the financial standing of applicants for loans;
(B) The enforcement of all contractual requirements of borrowers, including insurance, maintenance, repairs, delinquencies, defaults, and continuing security; and
(C) Taxes, assessments and other governmental levies;
(2) (A) In their contracts with borrowers, the associations are authorized to provide for and collect a service fee, the amount of which shall in no event exceed two and one-half percent (2½%) per annum of the unpaid balance of the loan, to be used in defraying the expense of providing and maintaining the service department, including the portion of the association's overhead expense that is fairly incurred by and in connection with the maintenance of the department; provided, that the service fee shall be in addition to legal interest and the actual expenses incurred in making, securing, and closing the loan, and shall not be collected as interest or compensation for the use of the money loaned, but shall be used in defraying the expense of maintaining the department and in servicing the loans, as contemplated herein; and provided further, that the service fee shall not be collected from borrowers who make deposit account loans. (B) The service fee may be made payable in periodic installments running throughout the life of the loan or at the initial closing of the loan. Any service charge collected at the time the loan is closed may be retained regardless of when the loan is paid. (C) The service fee payable in periodic installments may be retained in the following manner: (i) If the loan is paid within one (1) year from the date same is made, the service fee may be retained or collected for the full year; or (ii) Where the loan is paid after the period of one (1) year, the service fee shall be retained or collected only to the date of payment.
(A) In their contracts with borrowers, the associations are authorized to provide for and collect a service fee, the amount of which shall in no event exceed two and one-half percent (2½%) per annum of the unpaid balance of the loan, to be used in defraying the expense of providing and maintaining the service department, including the portion of the association's overhead expense that is fairly incurred by and in connection with the maintenance of the department; provided, that the service fee shall be in addition to legal interest and the actual expenses incurred in making, securing, and closing the loan, and shall not be collected as interest or compensation for the use of the money loaned, but shall be used in defraying the expense of maintaining the department and in servicing the loans, as contemplated herein; and provided further, that the service fee shall not be collected from borrowers who make deposit account loans.
(B) The service fee may be made payable in periodic installments running throughout the life of the loan or at the initial closing of the loan. Any service charge collected at the time the loan is closed may be retained regardless of when the loan is paid.
(C) The service fee payable in periodic installments may be retained in the following manner: (i) If the loan is paid within one (1) year from the date same is made, the service fee may be retained or collected for the full year; or (ii) Where the loan is paid after the period of one (1) year, the service fee shall be retained or collected only to the date of payment.
(i) If the loan is paid within one (1) year from the date same is made, the service fee may be retained or collected for the full year; or
(ii) Where the loan is paid after the period of one (1) year, the service fee shall be retained or collected only to the date of payment.
(b) It is the duty of the commissioner, at the time of making annual examinations of associations making real estate loans, to determine whether associations making real estate loans, as herein authorized, are charging fees in excess of the amount reasonably required to defray the expense of servicing loans and in maintaining the service department contemplated herein; and, in the event it is found that the provisions herein are being violated, it shall be the duty of the commissioner to take necessary action, under the law, to prevent the associations from continuing the illegal acts.
Acts 1978, ch. 708, § 2.30; T.C.A., § 45-1430.
Tenn. Code Ann. § 45-3-1201 — TN Code / Title 45 / Chapter 3 / Section 45-3-1201
Commissioner's authority to take possession
Status: in_force

(a) Requirements for Possession. (1) The commissioner in the commissioner's discretion may take possession of the books, records, and assets of every kind and character of any association subject to this chapter for any of the purposes enumerated in subsection (b) if it appears from reports or other information received by the commissioner or from any examination conducted pursuant to this chapter that: (A) The association is in an impaired condition; (B) The business of the association is being conducted in a fraudulent, unlawful, or unsafe manner; (C) The association is unable to continue normal operation; (D) Any examination conducted pursuant to this chapter is being or has been obstructed or impeded; or (E) The insurance of deposit accounts of the association has been or will be cancelled. (2) Unless the commissioner finds that an emergency exists that may result in loss to depositors or other creditors and that requires that the commissioner take immediate possession, the commissioner first shall send written notice by certified mail to the home office of the association, specifying the conditions criticized and stating a reasonable time within which correction shall be made. The notice shall also provide that the association shall have the opportunity to request a hearing in accordance with this chapter. (b) Purposes of Taking Possession. The purposes of taking possession of an association may be examination, further examination, conserving of its assets, restoration of impaired condition, reorganization, or liquidation. (c) Procedures for Possession; Power of Commissioner. (1) The commissioner shall take possession by posting upon the premises of the association a notice reciting that the commissioner is assuming possession pursuant to this section and the time, not earlier than the posting of the notice, when the commissioner's possession shall be deemed to commence. A copy of the notice shall be filed in a court of general jurisdiction in the county in which the home office is located. The commissioner shall notify the insurer insuring the deposit accounts of the association immediately upon commencing any action to assume possession. (2) When the commissioner has taken possession of an association, the commissioner shall be vested with the full and exclusive powers of management and control, including the power to continue or to discontinue the business, to stop or to limit the payment of its obligations, to employ any necessary assistants, to execute any instrument in the name of the association to commence, defend, and conduct in its name any action or proceeding in which it may be a party, to terminate the commissioner's possession by restoring the association to its board of directors and to reorganize or liquidate the association in accordance with this chapter. The commissioner may borrow money on behalf of and in the name of the association and may pledge, transfer, or otherwise utilize its assets to secure the loan. As soon as practicable after taking possession, the commissioner shall make an inventory of the assets and file a copy thereof with the court in which the notice of possession was filed. (3) When the commissioner has taken possession, there shall be a postponement until six (6) months after the commencement of possession of the date upon which any period of limitation fixed by a statute or agreement would otherwise expire on a claim or right of action of the association or upon which an appeal must be taken or a pleading or other document must be filed by the association in any pending action or proceeding. (d) Powers of Commissioner in Emergencies. (1) If, in the opinion of the commissioner, an emergency exists that will result in loss to depositors or other creditors, the commissioner may take immediate possession of an association without a prior hearing. Any person aggrieved by this action of the commissioner may seek review of the action by proceedings in accordance with title 27, chapter 9. (2) If the commissioner determines to liquidate the association, the commissioner shall send written notice of the determination to the association and to the directors, officers, stockholders, or members, depositors, and other known creditors thereof, together with a notice of the opportunity for any of them to request a hearing in accordance with this chapter. (3) If the commissioner shall determine to reorganize the association, the commissioner shall be required to afford a hearing to all interested parties, which hearing shall be conducted pursuant to the applicable provisions of this chapter. After the hearing, the commissioner shall enter an order proposing a reorganization plan. A copy of the plan shall be sent to each depositor and other creditor who will not receive payment of claim in full under the plan, together with notice that, unless within sixty (60) days the plan is disapproved in writing by persons holding one-third (1/3) or more of the aggregate amount of the claims, the commissioner will proceed to effect the reorganization in accordance with the plan. A department, agency, or political subdivision of this state holding a claim that will not be paid in full is authorized to participate as any other creditor. (e) Judgments; Liens; Preferences. No judgment, lien, garnishment, or attachment shall be executed upon any asset of the association while it is in the possession of the commissioner. Upon the election of the commissioner in connection with the liquidation or reorganization: (1) Any lien, garnishment, or attachment, other than an attorney's or mechanic's lien, obtained upon any asset of the association during the commissioner's possession or within four (4) months prior to commencement thereof shall be vacated, except liens created by the commissioner while in possession; and (2) Any transfer of an asset of the association made after or in contemplation of its impaired condition with intent to effect a preference shall be voided. (f) Expenses of Possession. All necessary and reasonable expenses of the commissioner's possession of an association and of its reorganization or liquidation shall be defrayed from the assets of the association. Acts 1978, ch. 708, § 5.01; T.C.A., § 45-1701.
(a) Requirements for Possession. (1) The commissioner in the commissioner's discretion may take possession of the books, records, and assets of every kind and character of any association subject to this chapter for any of the purposes enumerated in subsection (b) if it appears from reports or other information received by the commissioner or from any examination conducted pursuant to this chapter that: (A) The association is in an impaired condition; (B) The business of the association is being conducted in a fraudulent, unlawful, or unsafe manner; (C) The association is unable to continue normal operation; (D) Any examination conducted pursuant to this chapter is being or has been obstructed or impeded; or (E) The insurance of deposit accounts of the association has been or will be cancelled. (2) Unless the commissioner finds that an emergency exists that may result in loss to depositors or other creditors and that requires that the commissioner take immediate possession, the commissioner first shall send written notice by certified mail to the home office of the association, specifying the conditions criticized and stating a reasonable time within which correction shall be made. The notice shall also provide that the association shall have the opportunity to request a hearing in accordance with this chapter.
(1) The commissioner in the commissioner's discretion may take possession of the books, records, and assets of every kind and character of any association subject to this chapter for any of the purposes enumerated in subsection (b) if it appears from reports or other information received by the commissioner or from any examination conducted pursuant to this chapter that: (A) The association is in an impaired condition; (B) The business of the association is being conducted in a fraudulent, unlawful, or unsafe manner; (C) The association is unable to continue normal operation; (D) Any examination conducted pursuant to this chapter is being or has been obstructed or impeded; or (E) The insurance of deposit accounts of the association has been or will be cancelled.
(A) The association is in an impaired condition;
(B) The business of the association is being conducted in a fraudulent, unlawful, or unsafe manner;
(C) The association is unable to continue normal operation;
(D) Any examination conducted pursuant to this chapter is being or has been obstructed or impeded; or
(E) The insurance of deposit accounts of the association has been or will be cancelled.
(2) Unless the commissioner finds that an emergency exists that may result in loss to depositors or other creditors and that requires that the commissioner take immediate possession, the commissioner first shall send written notice by certified mail to the home office of the association, specifying the conditions criticized and stating a reasonable time within which correction shall be made. The notice shall also provide that the association shall have the opportunity to request a hearing in accordance with this chapter.
(b) Purposes of Taking Possession. The purposes of taking possession of an association may be examination, further examination, conserving of its assets, restoration of impaired condition, reorganization, or liquidation.
(c) Procedures for Possession; Power of Commissioner. (1) The commissioner shall take possession by posting upon the premises of the association a notice reciting that the commissioner is assuming possession pursuant to this section and the time, not earlier than the posting of the notice, when the commissioner's possession shall be deemed to commence. A copy of the notice shall be filed in a court of general jurisdiction in the county in which the home office is located. The commissioner shall notify the insurer insuring the deposit accounts of the association immediately upon commencing any action to assume possession. (2) When the commissioner has taken possession of an association, the commissioner shall be vested with the full and exclusive powers of management and control, including the power to continue or to discontinue the business, to stop or to limit the payment of its obligations, to employ any necessary assistants, to execute any instrument in the name of the association to commence, defend, and conduct in its name any action or proceeding in which it may be a party, to terminate the commissioner's possession by restoring the association to its board of directors and to reorganize or liquidate the association in accordance with this chapter. The commissioner may borrow money on behalf of and in the name of the association and may pledge, transfer, or otherwise utilize its assets to secure the loan. As soon as practicable after taking possession, the commissioner shall make an inventory of the assets and file a copy thereof with the court in which the notice of possession was filed. (3) When the commissioner has taken possession, there shall be a postponement until six (6) months after the commencement of possession of the date upon which any period of limitation fixed by a statute or agreement would otherwise expire on a claim or right of action of the association or upon which an appeal must be taken or a pleading or other document must be filed by the association in any pending action or proceeding.
(1) The commissioner shall take possession by posting upon the premises of the association a notice reciting that the commissioner is assuming possession pursuant to this section and the time, not earlier than the posting of the notice, when the commissioner's possession shall be deemed to commence. A copy of the notice shall be filed in a court of general jurisdiction in the county in which the home office is located. The commissioner shall notify the insurer insuring the deposit accounts of the association immediately upon commencing any action to assume possession.
(2) When the commissioner has taken possession of an association, the commissioner shall be vested with the full and exclusive powers of management and control, including the power to continue or to discontinue the business, to stop or to limit the payment of its obligations, to employ any necessary assistants, to execute any instrument in the name of the association to commence, defend, and conduct in its name any action or proceeding in which it may be a party, to terminate the commissioner's possession by restoring the association to its board of directors and to reorganize or liquidate the association in accordance with this chapter. The commissioner may borrow money on behalf of and in the name of the association and may pledge, transfer, or otherwise utilize its assets to secure the loan. As soon as practicable after taking possession, the commissioner shall make an inventory of the assets and file a copy thereof with the court in which the notice of possession was filed.
(3) When the commissioner has taken possession, there shall be a postponement until six (6) months after the commencement of possession of the date upon which any period of limitation fixed by a statute or agreement would otherwise expire on a claim or right of action of the association or upon which an appeal must be taken or a pleading or other document must be filed by the association in any pending action or proceeding.
(d) Powers of Commissioner in Emergencies. (1) If, in the opinion of the commissioner, an emergency exists that will result in loss to depositors or other creditors, the commissioner may take immediate possession of an association without a prior hearing. Any person aggrieved by this action of the commissioner may seek review of the action by proceedings in accordance with title 27, chapter 9. (2) If the commissioner determines to liquidate the association, the commissioner shall send written notice of the determination to the association and to the directors, officers, stockholders, or members, depositors, and other known creditors thereof, together with a notice of the opportunity for any of them to request a hearing in accordance with this chapter. (3) If the commissioner shall determine to reorganize the association, the commissioner shall be required to afford a hearing to all interested parties, which hearing shall be conducted pursuant to the applicable provisions of this chapter. After the hearing, the commissioner shall enter an order proposing a reorganization plan. A copy of the plan shall be sent to each depositor and other creditor who will not receive payment of claim in full under the plan, together with notice that, unless within sixty (60) days the plan is disapproved in writing by persons holding one-third (1/3) or more of the aggregate amount of the claims, the commissioner will proceed to effect the reorganization in accordance with the plan. A department, agency, or political subdivision of this state holding a claim that will not be paid in full is authorized to participate as any other creditor.
(1) If, in the opinion of the commissioner, an emergency exists that will result in loss to depositors or other creditors, the commissioner may take immediate possession of an association without a prior hearing. Any person aggrieved by this action of the commissioner may seek review of the action by proceedings in accordance with title 27, chapter 9.
(2) If the commissioner determines to liquidate the association, the commissioner shall send written notice of the determination to the association and to the directors, officers, stockholders, or members, depositors, and other known creditors thereof, together with a notice of the opportunity for any of them to request a hearing in accordance with this chapter.
(3) If the commissioner shall determine to reorganize the association, the commissioner shall be required to afford a hearing to all interested parties, which hearing shall be conducted pursuant to the applicable provisions of this chapter. After the hearing, the commissioner shall enter an order proposing a reorganization plan. A copy of the plan shall be sent to each depositor and other creditor who will not receive payment of claim in full under the plan, together with notice that, unless within sixty (60) days the plan is disapproved in writing by persons holding one-third (1/3) or more of the aggregate amount of the claims, the commissioner will proceed to effect the reorganization in accordance with the plan. A department, agency, or political subdivision of this state holding a claim that will not be paid in full is authorized to participate as any other creditor.
(e) Judgments; Liens; Preferences. No judgment, lien, garnishment, or attachment shall be executed upon any asset of the association while it is in the possession of the commissioner. Upon the election of the commissioner in connection with the liquidation or reorganization: (1) Any lien, garnishment, or attachment, other than an attorney's or mechanic's lien, obtained upon any asset of the association during the commissioner's possession or within four (4) months prior to commencement thereof shall be vacated, except liens created by the commissioner while in possession; and (2) Any transfer of an asset of the association made after or in contemplation of its impaired condition with intent to effect a preference shall be voided.
(1) Any lien, garnishment, or attachment, other than an attorney's or mechanic's lien, obtained upon any asset of the association during the commissioner's possession or within four (4) months prior to commencement thereof shall be vacated, except liens created by the commissioner while in possession; and
(2) Any transfer of an asset of the association made after or in contemplation of its impaired condition with intent to effect a preference shall be voided.
(f) Expenses of Possession. All necessary and reasonable expenses of the commissioner's possession of an association and of its reorganization or liquidation shall be defrayed from the assets of the association.
Acts 1978, ch. 708, § 5.01; T.C.A., § 45-1701.
Tenn. Code Ann. § 45-2-2001 — TN Code / Title 45 / Chapter 2 / Section 45-2-2001
Private trust company
Status: in_force

(a) A private trust company acting as a fiduciary in this state is a company that does not transact a trust business with the general public. The company shall comply with this chapter and chapter 1 of this title, and the rules of this chapter and chapter 1 of this title applicable to a public trust company unless expressly exempted therefrom in writing by the commissioner pursuant to this part or by rule adopted by the department. (b) (1) A private trust company or proposed private trust company may request in writing that it be exempted from any provision of the Banking Act or the rules thereof. The commissioner may grant the exemption in whole or in part if the commissioner finds that the private trust company does not and will not transact business with the general public. (2) As used in this part, unless the context requires otherwise: (A) "Collateral kinship" means a relationship that is not lineal, but stems from a common ancestor; (B) "Designated ancestor" means one (1) or more ancestors of the family designated as such in the application submitted under this part. A designated ancestor may be either living or deceased. If two (2) designated ancestors are designated, they must be or have been spouses to each other, and if more than such first two (2) designated ancestors are designated, each such additional designated ancestor must be or have been a spouse of either of the first two (2) designated ancestors; (C) "Family affiliate" means a company or other entity in which one (1) or more family members, directly or indirectly, through ownership of voting securities or equity, by contract, through power of direction, through beneficial or other ownership in one (1) or more other entities, or otherwise: (i) Owns a majority interest; or (ii) May direct or cause the direction of the management and policies of the company or other entity, whether alone or in combination with others; (D) "Family client" means: (i) A family member; (ii) An organization, foundation, or trust: (a) Whose primary purpose is not-for-profit or charitable, whether or not tax-qualified; and (b) Of which one (1) or more family clients is an organizer, incorporator, officer, member of the governing board, trustee, or donor, alone or in combination with other family clients, of a substantial portion of its assets; (iii) The officers, directors, individual trustees and managers of the entity defined in subdivision (b)(2)(D)(ii), and their immediate family; (iv) An estate of a family client; (v) An inter vivos or testamentary trust established by one (1) or more family clients, whether or not in combination with a third party; (vi) An inter vivos or testamentary trust if the noncharitable beneficiaries with vested interests consist of one (1) or more family clients; (vii) A family affiliate, its directors, officers, managers, or trustees and their immediate family; (viii) A family services provider; and (ix) A maximum of thirty-five (35) individuals designated by the private trust company if each individual is a full-time employee of a family affiliate. Any individual described in subdivisions (b)(2)(D)(i)-(viii) does not count against the maximum number of individuals established by this subdivision (b)(2)(D)(ix); (E) "Family member" means a designated ancestor and: (i) An individual within the twelfth degree of lineal kinship of a designated ancestor; (ii) An individual within the eleventh degree of collateral kinship of a designated ancestor; (iii) A spouse or former spouse of a designated ancestor or of an individual defined as a family member in subdivision (b)(2)(E)(i) or (ii); and (iv) An individual who is a relative of a spouse or former spouse specified in subdivision (b)(2)(E)(iii) who is within the fifth degree of lineal or collateral kinship of the spouse or former spouse; (F) "Family services provider" means: (i) A full-time employee of the private trust company; or (ii) A full-time employee of a family member providing personal services to the family member, including, but not limited to, household, legal, or accounting services; (G) "Foster child" means an individual raised or being raised by someone who is not the individual's natural or adoptive parent; (H) "Immediate family" means an individual's spouse or former spouse, any descendant of that individual, and any relative living in the same residence as that individual; (I) "Lineal kinship" means the direct ancestors and descendants of an individual; and (J) "Transact a trust business with the general public" means any sale, solicitation, arrangement, agreement, or transaction to provide fiduciary services as described in § 45-2-1002 , whether or not for a fee, commission, or any other type of remuneration, with any client that is not a family client. (3) For purposes of this part: (A) A legally adopted person shall be treated as a natural child of the adoptive parents; (B) A stepchild shall be treated as a natural child of the individual who is or was the stepparent of that child; (C) A foster child, or an individual who was a minor when an adult became the individual's legal guardian, shall be treated as a natural child of the adult appointed as foster parent or guardian; (D) A child of a spouse or former spouse of an individual shall be treated as a natural child of that individual; (E) Degrees are calculated by adding the number of steps from a relevant designated ancestor through each individual to the family member either directly, in case of lineal kinship, or through a designated ancestor, in the case of collateral kinship; and (F) A person who was a family client at the time of becoming a client of the private trust company shall not cease to be a family client solely due to a death, divorce, retirement, or other similar event. (c) At the expense of the private trust company, the commissioner may examine or investigate the private trust company in connection with an application for exemption. Unless the application presents novel or unusual questions, the commissioner shall approve the application for exemption not later than the sixty-first day after the date the commissioner considers the application complete and accepted for filing. Otherwise, the application shall be deemed approved unless the commissioner extends the time for review by requiring the submission of additional information as considered necessary to an informed decision. (d) Any exemption granted under this section may be made subject to conditions or limitations imposed by the commissioner consistent with this chapter. (e) The department may adopt rules defining other circumstances that do not constitute transaction of business with the public, specifying the provisions of the Banking Act that are subject to an exemption request, and establishing procedures and requirements for obtaining, maintaining, or revoking exempt status. Amended by 2020 Tenn. Acts, ch. 581, s 2, eff. 3/19/2020. Amended by 2018 Tenn. Acts, ch. 632, s 1, eff. 7/1/2018. Amended by 2016 Tenn. Acts, ch. 714, Secs.s 1, s 2 eff. 4/6/2016. Acts 1999, ch. 112, § 18; 2011 , ch. 26, § 1; 2012 , ch. 793, §§ 1, 2.
(a) A private trust company acting as a fiduciary in this state is a company that does not transact a trust business with the general public. The company shall comply with this chapter and chapter 1 of this title, and the rules of this chapter and chapter 1 of this title applicable to a public trust company unless expressly exempted therefrom in writing by the commissioner pursuant to this part or by rule adopted by the department.
(b) (1) A private trust company or proposed private trust company may request in writing that it be exempted from any provision of the Banking Act or the rules thereof. The commissioner may grant the exemption in whole or in part if the commissioner finds that the private trust company does not and will not transact business with the general public. (2) As used in this part, unless the context requires otherwise: (A) "Collateral kinship" means a relationship that is not lineal, but stems from a common ancestor; (B) "Designated ancestor" means one (1) or more ancestors of the family designated as such in the application submitted under this part. A designated ancestor may be either living or deceased. If two (2) designated ancestors are designated, they must be or have been spouses to each other, and if more than such first two (2) designated ancestors are designated, each such additional designated ancestor must be or have been a spouse of either of the first two (2) designated ancestors; (C) "Family affiliate" means a company or other entity in which one (1) or more family members, directly or indirectly, through ownership of voting securities or equity, by contract, through power of direction, through beneficial or other ownership in one (1) or more other entities, or otherwise: (i) Owns a majority interest; or (ii) May direct or cause the direction of the management and policies of the company or other entity, whether alone or in combination with others; (D) "Family client" means: (i) A family member; (ii) An organization, foundation, or trust: (a) Whose primary purpose is not-for-profit or charitable, whether or not tax-qualified; and (b) Of which one (1) or more family clients is an organizer, incorporator, officer, member of the governing board, trustee, or donor, alone or in combination with other family clients, of a substantial portion of its assets; (iii) The officers, directors, individual trustees and managers of the entity defined in subdivision (b)(2)(D)(ii), and their immediate family; (iv) An estate of a family client; (v) An inter vivos or testamentary trust established by one (1) or more family clients, whether or not in combination with a third party; (vi) An inter vivos or testamentary trust if the noncharitable beneficiaries with vested interests consist of one (1) or more family clients; (vii) A family affiliate, its directors, officers, managers, or trustees and their immediate family; (viii) A family services provider; and (ix) A maximum of thirty-five (35) individuals designated by the private trust company if each individual is a full-time employee of a family affiliate. Any individual described in subdivisions (b)(2)(D)(i)-(viii) does not count against the maximum number of individuals established by this subdivision (b)(2)(D)(ix); (E) "Family member" means a designated ancestor and: (i) An individual within the twelfth degree of lineal kinship of a designated ancestor; (ii) An individual within the eleventh degree of collateral kinship of a designated ancestor; (iii) A spouse or former spouse of a designated ancestor or of an individual defined as a family member in subdivision (b)(2)(E)(i) or (ii); and (iv) An individual who is a relative of a spouse or former spouse specified in subdivision (b)(2)(E)(iii) who is within the fifth degree of lineal or collateral kinship of the spouse or former spouse; (F) "Family services provider" means: (i) A full-time employee of the private trust company; or (ii) A full-time employee of a family member providing personal services to the family member, including, but not limited to, household, legal, or accounting services; (G) "Foster child" means an individual raised or being raised by someone who is not the individual's natural or adoptive parent; (H) "Immediate family" means an individual's spouse or former spouse, any descendant of that individual, and any relative living in the same residence as that individual; (I) "Lineal kinship" means the direct ancestors and descendants of an individual; and (J) "Transact a trust business with the general public" means any sale, solicitation, arrangement, agreement, or transaction to provide fiduciary services as described in § 45-2-1002 , whether or not for a fee, commission, or any other type of remuneration, with any client that is not a family client. (3) For purposes of this part: (A) A legally adopted person shall be treated as a natural child of the adoptive parents; (B) A stepchild shall be treated as a natural child of the individual who is or was the stepparent of that child; (C) A foster child, or an individual who was a minor when an adult became the individual's legal guardian, shall be treated as a natural child of the adult appointed as foster parent or guardian; (D) A child of a spouse or former spouse of an individual shall be treated as a natural child of that individual; (E) Degrees are calculated by adding the number of steps from a relevant designated ancestor through each individual to the family member either directly, in case of lineal kinship, or through a designated ancestor, in the case of collateral kinship; and (F) A person who was a family client at the time of becoming a client of the private trust company shall not cease to be a family client solely due to a death, divorce, retirement, or other similar event.
(1) A private trust company or proposed private trust company may request in writing that it be exempted from any provision of the Banking Act or the rules thereof. The commissioner may grant the exemption in whole or in part if the commissioner finds that the private trust company does not and will not transact business with the general public.
(2) As used in this part, unless the context requires otherwise: (A) "Collateral kinship" means a relationship that is not lineal, but stems from a common ancestor; (B) "Designated ancestor" means one (1) or more ancestors of the family designated as such in the application submitted under this part. A designated ancestor may be either living or deceased. If two (2) designated ancestors are designated, they must be or have been spouses to each other, and if more than such first two (2) designated ancestors are designated, each such additional designated ancestor must be or have been a spouse of either of the first two (2) designated ancestors; (C) "Family affiliate" means a company or other entity in which one (1) or more family members, directly or indirectly, through ownership of voting securities or equity, by contract, through power of direction, through beneficial or other ownership in one (1) or more other entities, or otherwise: (i) Owns a majority interest; or (ii) May direct or cause the direction of the management and policies of the company or other entity, whether alone or in combination with others; (D) "Family client" means: (i) A family member; (ii) An organization, foundation, or trust: (a) Whose primary purpose is not-for-profit or charitable, whether or not tax-qualified; and (b) Of which one (1) or more family clients is an organizer, incorporator, officer, member of the governing board, trustee, or donor, alone or in combination with other family clients, of a substantial portion of its assets; (iii) The officers, directors, individual trustees and managers of the entity defined in subdivision (b)(2)(D)(ii), and their immediate family; (iv) An estate of a family client; (v) An inter vivos or testamentary trust established by one (1) or more family clients, whether or not in combination with a third party; (vi) An inter vivos or testamentary trust if the noncharitable beneficiaries with vested interests consist of one (1) or more family clients; (vii) A family affiliate, its directors, officers, managers, or trustees and their immediate family; (viii) A family services provider; and (ix) A maximum of thirty-five (35) individuals designated by the private trust company if each individual is a full-time employee of a family affiliate. Any individual described in subdivisions (b)(2)(D)(i)-(viii) does not count against the maximum number of individuals established by this subdivision (b)(2)(D)(ix); (E) "Family member" means a designated ancestor and: (i) An individual within the twelfth degree of lineal kinship of a designated ancestor; (ii) An individual within the eleventh degree of collateral kinship of a designated ancestor; (iii) A spouse or former spouse of a designated ancestor or of an individual defined as a family member in subdivision (b)(2)(E)(i) or (ii); and (iv) An individual who is a relative of a spouse or former spouse specified in subdivision (b)(2)(E)(iii) who is within the fifth degree of lineal or collateral kinship of the spouse or former spouse; (F) "Family services provider" means: (i) A full-time employee of the private trust company; or (ii) A full-time employee of a family member providing personal services to the family member, including, but not limited to, household, legal, or accounting services; (G) "Foster child" means an individual raised or being raised by someone who is not the individual's natural or adoptive parent; (H) "Immediate family" means an individual's spouse or former spouse, any descendant of that individual, and any relative living in the same residence as that individual; (I) "Lineal kinship" means the direct ancestors and descendants of an individual; and (J) "Transact a trust business with the general public" means any sale, solicitation, arrangement, agreement, or transaction to provide fiduciary services as described in § 45-2-1002 , whether or not for a fee, commission, or any other type of remuneration, with any client that is not a family client.
(A) "Collateral kinship" means a relationship that is not lineal, but stems from a common ancestor;
(B) "Designated ancestor" means one (1) or more ancestors of the family designated as such in the application submitted under this part. A designated ancestor may be either living or deceased. If two (2) designated ancestors are designated, they must be or have been spouses to each other, and if more than such first two (2) designated ancestors are designated, each such additional designated ancestor must be or have been a spouse of either of the first two (2) designated ancestors;
(C) "Family affiliate" means a company or other entity in which one (1) or more family members, directly or indirectly, through ownership of voting securities or equity, by contract, through power of direction, through beneficial or other ownership in one (1) or more other entities, or otherwise: (i) Owns a majority interest; or (ii) May direct or cause the direction of the management and policies of the company or other entity, whether alone or in combination with others;
(i) Owns a majority interest; or
(ii) May direct or cause the direction of the management and policies of the company or other entity, whether alone or in combination with others;
(D) "Family client" means: (i) A family member; (ii) An organization, foundation, or trust: (a) Whose primary purpose is not-for-profit or charitable, whether or not tax-qualified; and (b) Of which one (1) or more family clients is an organizer, incorporator, officer, member of the governing board, trustee, or donor, alone or in combination with other family clients, of a substantial portion of its assets; (iii) The officers, directors, individual trustees and managers of the entity defined in subdivision (b)(2)(D)(ii), and their immediate family; (iv) An estate of a family client; (v) An inter vivos or testamentary trust established by one (1) or more family clients, whether or not in combination with a third party; (vi) An inter vivos or testamentary trust if the noncharitable beneficiaries with vested interests consist of one (1) or more family clients; (vii) A family affiliate, its directors, officers, managers, or trustees and their immediate family; (viii) A family services provider; and (ix) A maximum of thirty-five (35) individuals designated by the private trust company if each individual is a full-time employee of a family affiliate. Any individual described in subdivisions (b)(2)(D)(i)-(viii) does not count against the maximum number of individuals established by this subdivision (b)(2)(D)(ix);
(i) A family member;
(ii) An organization, foundation, or trust: (a) Whose primary purpose is not-for-profit or charitable, whether or not tax-qualified; and (b) Of which one (1) or more family clients is an organizer, incorporator, officer, member of the governing board, trustee, or donor, alone or in combination with other family clients, of a substantial portion of its assets;
(a) Whose primary purpose is not-for-profit or charitable, whether or not tax-qualified; and
(b) Of which one (1) or more family clients is an organizer, incorporator, officer, member of the governing board, trustee, or donor, alone or in combination with other family clients, of a substantial portion of its assets;
(iii) The officers, directors, individual trustees and managers of the entity defined in subdivision (b)(2)(D)(ii), and their immediate family;
(iv) An estate of a family client;
(v) An inter vivos or testamentary trust established by one (1) or more family clients, whether or not in combination with a third party;
(vi) An inter vivos or testamentary trust if the noncharitable beneficiaries with vested interests consist of one (1) or more family clients;
(vii) A family affiliate, its directors, officers, managers, or trustees and their immediate family;
(viii) A family services provider; and
(ix) A maximum of thirty-five (35) individuals designated by the private trust company if each individual is a full-time employee of a family affiliate. Any individual described in subdivisions (b)(2)(D)(i)-(viii) does not count against the maximum number of individuals established by this subdivision (b)(2)(D)(ix);
(E) "Family member" means a designated ancestor and: (i) An individual within the twelfth degree of lineal kinship of a designated ancestor; (ii) An individual within the eleventh degree of collateral kinship of a designated ancestor; (iii) A spouse or former spouse of a designated ancestor or of an individual defined as a family member in subdivision (b)(2)(E)(i) or (ii); and (iv) An individual who is a relative of a spouse or former spouse specified in subdivision (b)(2)(E)(iii) who is within the fifth degree of lineal or collateral kinship of the spouse or former spouse;
(i) An individual within the twelfth degree of lineal kinship of a designated ancestor;
(ii) An individual within the eleventh degree of collateral kinship of a designated ancestor;
(iii) A spouse or former spouse of a designated ancestor or of an individual defined as a family member in subdivision (b)(2)(E)(i) or (ii); and
(iv) An individual who is a relative of a spouse or former spouse specified in subdivision (b)(2)(E)(iii) who is within the fifth degree of lineal or collateral kinship of the spouse or former spouse;
(F) "Family services provider" means: (i) A full-time employee of the private trust company; or (ii) A full-time employee of a family member providing personal services to the family member, including, but not limited to, household, legal, or accounting services;
(i) A full-time employee of the private trust company; or
(ii) A full-time employee of a family member providing personal services to the family member, including, but not limited to, household, legal, or accounting services;
(G) "Foster child" means an individual raised or being raised by someone who is not the individual's natural or adoptive parent;
(H) "Immediate family" means an individual's spouse or former spouse, any descendant of that individual, and any relative living in the same residence as that individual;
(I) "Lineal kinship" means the direct ancestors and descendants of an individual; and
(J) "Transact a trust business with the general public" means any sale, solicitation, arrangement, agreement, or transaction to provide fiduciary services as described in § 45-2-1002 , whether or not for a fee, commission, or any other type of remuneration, with any client that is not a family client.
(3) For purposes of this part: (A) A legally adopted person shall be treated as a natural child of the adoptive parents; (B) A stepchild shall be treated as a natural child of the individual who is or was the stepparent of that child; (C) A foster child, or an individual who was a minor when an adult became the individual's legal guardian, shall be treated as a natural child of the adult appointed as foster parent or guardian; (D) A child of a spouse or former spouse of an individual shall be treated as a natural child of that individual; (E) Degrees are calculated by adding the number of steps from a relevant designated ancestor through each individual to the family member either directly, in case of lineal kinship, or through a designated ancestor, in the case of collateral kinship; and (F) A person who was a family client at the time of becoming a client of the private trust company shall not cease to be a family client solely due to a death, divorce, retirement, or other similar event.
(A) A legally adopted person shall be treated as a natural child of the adoptive parents;
(B) A stepchild shall be treated as a natural child of the individual who is or was the stepparent of that child;
(C) A foster child, or an individual who was a minor when an adult became the individual's legal guardian, shall be treated as a natural child of the adult appointed as foster parent or guardian;
(D) A child of a spouse or former spouse of an individual shall be treated as a natural child of that individual;
(E) Degrees are calculated by adding the number of steps from a relevant designated ancestor through each individual to the family member either directly, in case of lineal kinship, or through a designated ancestor, in the case of collateral kinship; and
(F) A person who was a family client at the time of becoming a client of the private trust company shall not cease to be a family client solely due to a death, divorce, retirement, or other similar event.
(c) At the expense of the private trust company, the commissioner may examine or investigate the private trust company in connection with an application for exemption. Unless the application presents novel or unusual questions, the commissioner shall approve the application for exemption not later than the sixty-first day after the date the commissioner considers the application complete and accepted for filing. Otherwise, the application shall be deemed approved unless the commissioner extends the time for review by requiring the submission of additional information as considered necessary to an informed decision.
(d) Any exemption granted under this section may be made subject to conditions or limitations imposed by the commissioner consistent with this chapter.
(e) The department may adopt rules defining other circumstances that do not constitute transaction of business with the public, specifying the provisions of the Banking Act that are subject to an exemption request, and establishing procedures and requirements for obtaining, maintaining, or revoking exempt status.
Amended by 2020 Tenn. Acts, ch. 581, s 2, eff. 3/19/2020.
Amended by 2018 Tenn. Acts, ch. 632, s 1, eff. 7/1/2018.
Amended by 2016 Tenn. Acts, ch. 714, Secs.s 1, s 2 eff. 4/6/2016.
Acts 1999, ch. 112, § 18; 2011 , ch. 26, § 1; 2012 , ch. 793, §§ 1, 2.
Tenn. Code Ann. § 45-15-107 — TN Code / Title 45 / Chapter 15 / Section 45-15-107
Suspension or revocation of license
Status: in_force

(a) The commissioner may, after notice and opportunity for a hearing, suspend or revoke any license, if the commissioner finds that the title pledge lender has knowingly or through lack of due care: (1) Engaged in conduct of a manner that would warrant the denial of an application; (2) Refused to permit the commissioner to make any examination authorized by this chapter; (3) Failed to pay any fees or assessments imposed by the commissioner under the authority of this chapter; (4) Committed any fraud, engaged in any dishonest activities or made any misrepresentations; (5) Made a false statement in the application for the license or failed to give a true reply to a question in the application; (6) Demonstrated incompetency or untrustworthiness to act as a title pledge lender; or (7) Violated any provisions of this chapter or any administrative regulation issued pursuant to this chapter, or has violated any other law in the course of the title pledge lender's dealings as a title pledge lender. (b) If the reason for revocation or suspension of a title pledge lender's license at any one (1) location is of general application to all locations operated by a title pledge lender, the commissioner may revoke or suspend all licenses issued to a title pledge lender. (c) A hearing shall be held on written notice given at least twenty (20) days prior to the date of the hearing, and shall be conducted in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. Amended by 2014 Tenn. Acts, ch. 736,s 17, eff. 7/1/2015. Acts 1995, ch. 186, § 13; 2005, ch. 440, § 6.
(a) The commissioner may, after notice and opportunity for a hearing, suspend or revoke any license, if the commissioner finds that the title pledge lender has knowingly or through lack of due care: (1) Engaged in conduct of a manner that would warrant the denial of an application; (2) Refused to permit the commissioner to make any examination authorized by this chapter; (3) Failed to pay any fees or assessments imposed by the commissioner under the authority of this chapter; (4) Committed any fraud, engaged in any dishonest activities or made any misrepresentations; (5) Made a false statement in the application for the license or failed to give a true reply to a question in the application; (6) Demonstrated incompetency or untrustworthiness to act as a title pledge lender; or (7) Violated any provisions of this chapter or any administrative regulation issued pursuant to this chapter, or has violated any other law in the course of the title pledge lender's dealings as a title pledge lender.
(1) Engaged in conduct of a manner that would warrant the denial of an application;
(2) Refused to permit the commissioner to make any examination authorized by this chapter;
(3) Failed to pay any fees or assessments imposed by the commissioner under the authority of this chapter;
(4) Committed any fraud, engaged in any dishonest activities or made any misrepresentations;
(5) Made a false statement in the application for the license or failed to give a true reply to a question in the application;
(6) Demonstrated incompetency or untrustworthiness to act as a title pledge lender; or
(7) Violated any provisions of this chapter or any administrative regulation issued pursuant to this chapter, or has violated any other law in the course of the title pledge lender's dealings as a title pledge lender.
(b) If the reason for revocation or suspension of a title pledge lender's license at any one (1) location is of general application to all locations operated by a title pledge lender, the commissioner may revoke or suspend all licenses issued to a title pledge lender.
(c) A hearing shall be held on written notice given at least twenty (20) days prior to the date of the hearing, and shall be conducted in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
Amended by 2014 Tenn. Acts, ch. 736,s 17, eff. 7/1/2015.
Acts 1995, ch. 186, § 13; 2005, ch. 440, § 6.
Tenn. Code Ann. § 45-13-105 — TN Code / Title 45 / Chapter 13 / Section 45-13-105
Chapter definitions
Status: in_force

As used in this chapter, unless the context otherwise requires: (1) "Branch manager" means the individual whose principal office is physically located in, who is in charge of and who is responsible for the business operations of a branch office of a mortgage lender or mortgage loan broker licensed under this chapter; (2) "Branch office" means an office of a licensed mortgage lender or mortgage loan broker that is separate and distinct from the licensee's principal place of business; (3) "Commissioner" means the commissioner of financial institutions or the commissioner's designated representative; (4) "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; (5) "Depository institution" has the same meaning as in § 3 of the Federal Deposit Insurance Act ( 12 U.S.C. § 1813 ), and includes any credit union; (6) "Federal banking agencies" means the board of governors of the federal reserve system, the comptroller of the currency, the director of the office of thrift supervision, the national credit union administration and the federal deposit insurance corporation; (7) "Immediate family member" means a spouse, child, sibling, parent, grandparent or grandchild. This includes stepparents, stepchildren, stepsiblings and adoptive relationships; (8) "Individual" means a natural person; (9) "License" means a license issued to a mortgage lender, mortgage loan broker, mortgage loan servicer or mortgage loan originator under this chapter, as applicable; (10) "Licensee" means a person to whom a license has been issued under this chapter, whether a mortgage lender, mortgage loan broker, mortgage loan servicer or mortgage loan originator, as applicable, but "licensee" also applies to any person holding a certificate of registration on July 31, 2009, for so long as the certificate is still valid; (11) (A) In general, "loan processor or underwriter" means an individual who performs clerical or support duties as an employee at the direction of and subject to the supervision and instruction of a person licensed or exempt from licensing under § 45-13-201 ; (B) For purposes of subdivision (11)(A), "clerical or support duties" includes, subsequent to the receipt of an application: (i) The receipt, collection, distribution and analysis of information common for the processing or underwriting of a residential mortgage loan; and/or (ii) Communicating with a consumer to obtain the information necessary for the processing or underwriting of a 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; (12) "Loss mitigation specialist" means an individual employed by a mortgage lender or mortgage loan servicer licensed under this chapter, or by a registrant authorized to make residential mortgage loans under the Industrial Loan and Thrift Companies Act, compiled in chapter 5 of this title, whose activities are confined to the negotiation of terms of an existing residential mortgage loan owned or being serviced by that licensee or registrant for purposes of modifying the terms of the loan, such as by reducing the interest rate or extending the term of the loan, when the modification is done for purposes of avoiding or curing default; provided, that "negotiates terms of an existing residential mortgage loan" as used in this subdivision (12) shall not include the negotiation of the refinancing of the loan; (13) "Managing principal" means an individual who agrees to be primarily responsible for the operations of a licensed mortgage lender or mortgage loan broker; (14) "Mortgage lender" means any person who makes a residential mortgage loan or holds the person out as able to make a residential mortgage loan; (15) "Mortgage loan broker" means any person who for compensation or other gain, paid directly or indirectly, or in expectation of compensation or other gain, solicits, places, negotiates or originates a residential mortgage loan for another person or offers to solicit, place, negotiate or originate a residential mortgage loan for another person or who closes a residential mortgage loan that may be in the mortgage loan broker's own name with funds provided by another person and which loan is thereafter assigned to the person providing the funding of the loan, regardless of whether the acts are done directly or indirectly, through contact by telephone, by electronic means, by mail or in person with the borrower or borrowers or potential borrower or borrowers; (16) (A) In general, "mortgage loan originator": (i) Means an individual who for compensation or gain or in the expectation of compensation or gain: (a) Takes a residential mortgage loan application; or (b) Offers or negotiates terms of a residential mortgage loan; (ii) Does not include an individual engaged solely as a loan processor or underwriter except as otherwise provided in § 45-13-301(d) ; (iii) Does not include a person or entity that only performs real estate brokerage activities and is licensed or registered in accordance with Tennessee law, unless the person or entity is compensated by a mortgage lender, mortgage loan broker, or other mortgage loan originator or by any agent of the mortgage lender, mortgage loan broker or other mortgage loan originator; and (iv) Does not include a person or entity solely involved in extensions of credit relating to timeshare plans, as defined in 11 U.S.C. § 101(53D) ; (B) For purposes of subdivision (16)(A), "real estate brokerage activities" means any activity that involves offering or providing real estate brokerage services to the public, including: (i) Acting as a real estate agent or real estate broker for a buyer, seller, lessor or lessee of real property; (ii) Bringing together parties interested in the sale, purchase, lease, rental or exchange of real property; (iii) Negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental or exchange of real property, other than in connection with providing financing with respect to the transaction; (iv) Engaging in any activity for which a person engaged in the activity is required to be registered or licensed as a real estate agent or real estate broker under any applicable law; and (v) Offering to engage in any activity, or act in any capacity, described in subdivision (16)(B)(i), (16)(B)(ii), (16)(B)(iii) or (16)(B)(iv); (17) "Mortgage loan servicer" means any person who, in the regular course of business, assumes responsibility for servicing and accepting payments for a residential mortgage loan; (18) "Mortgagor" means any person who grants a mortgage, deed of trust or other equivalent consensual security interest pursuant to a residential mortgage loan transaction; (19) "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; (20) "Nontraditional mortgage product" means any mortgage product other than a thirty-year fixed rate residential mortgage loan; (21) "Origination services" means the activities of a mortgage loan originator performed with regard to a residential mortgage loan; (22) "Person" means an individual, sole proprietorship, corporation, limited liability company, partnership, trust, association or any other legal entity, however organized; (23) "Registered mortgage loan originator" means any individual who: (A) Meets the definition of mortgage loan originator and is an employee of: (i) A depository institution; (ii) A subsidiary that is: (a) Owned and controlled by a depository institution; and (b) Regulated by a federal banking agency; or (iii) An institution regulated by the farm credit administration; and (B) Is registered with, and maintains a unique identifier through, the Nationwide Mortgage Licensing System and Registry; (24) "Registrant" has the same meaning as defined in § 45-5-102 of the Industrial Loan and Thrift Companies Act, compiled in chapter 5 of this title; (25) "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; (26) "Residential real estate" means any real property located in this state, upon which is constructed or intended to be constructed a dwelling; and (27) "Unique identifier" means a number or other identifier assigned by protocols established by the Nationwide Mortgage Licensing System and Registry. Acts 2009, ch. 499, § 8.
As used in this chapter, unless the context otherwise requires:
(1) "Branch manager" means the individual whose principal office is physically located in, who is in charge of and who is responsible for the business operations of a branch office of a mortgage lender or mortgage loan broker licensed under this chapter;
(2) "Branch office" means an office of a licensed mortgage lender or mortgage loan broker that is separate and distinct from the licensee's principal place of business;
(3) "Commissioner" means the commissioner of financial institutions or the commissioner's designated representative;
(4) "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;
(5) "Depository institution" has the same meaning as in § 3 of the Federal Deposit Insurance Act ( 12 U.S.C. § 1813 ), and includes any credit union;
(6) "Federal banking agencies" means the board of governors of the federal reserve system, the comptroller of the currency, the director of the office of thrift supervision, the national credit union administration and the federal deposit insurance corporation;
(7) "Immediate family member" means a spouse, child, sibling, parent, grandparent or grandchild. This includes stepparents, stepchildren, stepsiblings and adoptive relationships;
(8) "Individual" means a natural person;
(9) "License" means a license issued to a mortgage lender, mortgage loan broker, mortgage loan servicer or mortgage loan originator under this chapter, as applicable;
(10) "Licensee" means a person to whom a license has been issued under this chapter, whether a mortgage lender, mortgage loan broker, mortgage loan servicer or mortgage loan originator, as applicable, but "licensee" also applies to any person holding a certificate of registration on July 31, 2009, for so long as the certificate is still valid;
(11) (A) In general, "loan processor or underwriter" means an individual who performs clerical or support duties as an employee at the direction of and subject to the supervision and instruction of a person licensed or exempt from licensing under § 45-13-201 ; (B) For purposes of subdivision (11)(A), "clerical or support duties" includes, subsequent to the receipt of an application: (i) The receipt, collection, distribution and analysis of information common for the processing or underwriting of a residential mortgage loan; and/or (ii) Communicating with a consumer to obtain the information necessary for the processing or underwriting of a 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 at the direction of and subject to the supervision and instruction of a person licensed or exempt from licensing under § 45-13-201 ;
(B) For purposes of subdivision (11)(A), "clerical or support duties" includes, subsequent to the receipt of an application: (i) The receipt, collection, distribution and analysis of information common for the processing or underwriting of a residential mortgage loan; and/or (ii) Communicating with a consumer to obtain the information necessary for the processing or underwriting of a 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 a residential mortgage loan; and/or
(ii) Communicating with a consumer to obtain the information necessary for the processing or underwriting of a 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;
(12) "Loss mitigation specialist" means an individual employed by a mortgage lender or mortgage loan servicer licensed under this chapter, or by a registrant authorized to make residential mortgage loans under the Industrial Loan and Thrift Companies Act, compiled in chapter 5 of this title, whose activities are confined to the negotiation of terms of an existing residential mortgage loan owned or being serviced by that licensee or registrant for purposes of modifying the terms of the loan, such as by reducing the interest rate or extending the term of the loan, when the modification is done for purposes of avoiding or curing default; provided, that "negotiates terms of an existing residential mortgage loan" as used in this subdivision (12) shall not include the negotiation of the refinancing of the loan;
(13) "Managing principal" means an individual who agrees to be primarily responsible for the operations of a licensed mortgage lender or mortgage loan broker;
(14) "Mortgage lender" means any person who makes a residential mortgage loan or holds the person out as able to make a residential mortgage loan;
(15) "Mortgage loan broker" means any person who for compensation or other gain, paid directly or indirectly, or in expectation of compensation or other gain, solicits, places, negotiates or originates a residential mortgage loan for another person or offers to solicit, place, negotiate or originate a residential mortgage loan for another person or who closes a residential mortgage loan that may be in the mortgage loan broker's own name with funds provided by another person and which loan is thereafter assigned to the person providing the funding of the loan, regardless of whether the acts are done directly or indirectly, through contact by telephone, by electronic means, by mail or in person with the borrower or borrowers or potential borrower or borrowers;
(16) (A) In general, "mortgage loan originator": (i) Means an individual who for compensation or gain or in the expectation of compensation or gain: (a) Takes a residential mortgage loan application; or (b) Offers or negotiates terms of a residential mortgage loan; (ii) Does not include an individual engaged solely as a loan processor or underwriter except as otherwise provided in § 45-13-301(d) ; (iii) Does not include a person or entity that only performs real estate brokerage activities and is licensed or registered in accordance with Tennessee law, unless the person or entity is compensated by a mortgage lender, mortgage loan broker, or other mortgage loan originator or by any agent of the mortgage lender, mortgage loan broker or other mortgage loan originator; and (iv) Does not include a person or entity solely involved in extensions of credit relating to timeshare plans, as defined in 11 U.S.C. § 101(53D) ; (B) For purposes of subdivision (16)(A), "real estate brokerage activities" means any activity that involves offering or providing real estate brokerage services to the public, including: (i) Acting as a real estate agent or real estate broker for a buyer, seller, lessor or lessee of real property; (ii) Bringing together parties interested in the sale, purchase, lease, rental or exchange of real property; (iii) Negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental or exchange of real property, other than in connection with providing financing with respect to the transaction; (iv) Engaging in any activity for which a person engaged in the activity is required to be registered or licensed as a real estate agent or real estate broker under any applicable law; and (v) Offering to engage in any activity, or act in any capacity, described in subdivision (16)(B)(i), (16)(B)(ii), (16)(B)(iii) or (16)(B)(iv);
(A) In general, "mortgage loan originator": (i) Means an individual who for compensation or gain or in the expectation of compensation or gain: (a) Takes a residential mortgage loan application; or (b) Offers or negotiates terms of a residential mortgage loan; (ii) Does not include an individual engaged solely as a loan processor or underwriter except as otherwise provided in § 45-13-301(d) ; (iii) Does not include a person or entity that only performs real estate brokerage activities and is licensed or registered in accordance with Tennessee law, unless the person or entity is compensated by a mortgage lender, mortgage loan broker, or other mortgage loan originator or by any agent of the mortgage lender, mortgage loan broker or other mortgage loan originator; and (iv) Does not include a person or entity solely involved in extensions of credit relating to timeshare plans, as defined in 11 U.S.C. § 101(53D) ;
(i) Means an individual who for compensation or gain or in the expectation of compensation or gain: (a) Takes a residential mortgage loan application; or (b) Offers or negotiates terms of a residential mortgage loan;
(a) Takes a residential mortgage loan application; or
(b) Offers or negotiates terms of a residential mortgage loan;
(ii) Does not include an individual engaged solely as a loan processor or underwriter except as otherwise provided in § 45-13-301(d) ;
(iii) Does not include a person or entity that only performs real estate brokerage activities and is licensed or registered in accordance with Tennessee law, unless the person or entity is compensated by a mortgage lender, mortgage loan broker, or other mortgage loan originator or by any agent of the mortgage lender, mortgage loan broker or other mortgage loan originator; and
(iv) Does not include a person or entity solely involved in extensions of credit relating to timeshare plans, as defined in 11 U.S.C. § 101(53D) ;
(B) For purposes of subdivision (16)(A), "real estate brokerage activities" means any activity that involves offering or providing real estate brokerage services to the public, including: (i) Acting as a real estate agent or real estate broker for a buyer, seller, lessor or lessee of real property; (ii) Bringing together parties interested in the sale, purchase, lease, rental or exchange of real property; (iii) Negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental or exchange of real property, other than in connection with providing financing with respect to the transaction; (iv) Engaging in any activity for which a person engaged in the activity is required to be registered or licensed as a real estate agent or real estate broker under any applicable law; and (v) Offering to engage in any activity, or act in any capacity, described in subdivision (16)(B)(i), (16)(B)(ii), (16)(B)(iii) or (16)(B)(iv);
(i) Acting as a real estate agent or real estate broker for a buyer, seller, lessor or lessee of real property;
(ii) Bringing together parties interested in the sale, purchase, lease, rental or exchange of real property;
(iii) Negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental or exchange of real property, other than in connection with providing financing with respect to the transaction;
(iv) Engaging in any activity for which a person engaged in the activity is required to be registered or licensed as a real estate agent or real estate broker under any applicable law; and
(v) Offering to engage in any activity, or act in any capacity, described in subdivision (16)(B)(i), (16)(B)(ii), (16)(B)(iii) or (16)(B)(iv);
(17) "Mortgage loan servicer" means any person who, in the regular course of business, assumes responsibility for servicing and accepting payments for a residential mortgage loan;
(18) "Mortgagor" means any person who grants a mortgage, deed of trust or other equivalent consensual security interest pursuant to a residential mortgage loan transaction;
(19) "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;
(20) "Nontraditional mortgage product" means any mortgage product other than a thirty-year fixed rate residential mortgage loan;
(21) "Origination services" means the activities of a mortgage loan originator performed with regard to a residential mortgage loan;
(22) "Person" means an individual, sole proprietorship, corporation, limited liability company, partnership, trust, association or any other legal entity, however organized;
(23) "Registered mortgage loan originator" means any individual who: (A) Meets the definition of mortgage loan originator and is an employee of: (i) A depository institution; (ii) A subsidiary that is: (a) Owned and controlled by a depository institution; and (b) Regulated by a federal banking agency; or (iii) An institution regulated by the farm credit administration; and (B) Is registered with, and maintains a unique identifier through, the Nationwide Mortgage Licensing System and Registry;
(A) Meets the definition of mortgage loan originator and is an employee of: (i) A depository institution; (ii) A subsidiary that is: (a) Owned and controlled by a depository institution; and (b) Regulated by a federal banking agency; or (iii) An institution regulated by the farm credit administration; and
(i) A depository institution;
(ii) A subsidiary that is: (a) Owned and controlled by a depository institution; and (b) Regulated by a federal banking agency; or
(a) Owned and controlled by a depository institution; and
(b) Regulated by a federal banking agency; or
(iii) An institution regulated by the farm credit administration; and
(B) Is registered with, and maintains a unique identifier through, the Nationwide Mortgage Licensing System and Registry;
(24) "Registrant" has the same meaning as defined in § 45-5-102 of the Industrial Loan and Thrift Companies Act, compiled in chapter 5 of this title;
(25) "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;
(26) "Residential real estate" means any real property located in this state, upon which is constructed or intended to be constructed a dwelling; and
(27) "Unique identifier" means a number or other identifier assigned by protocols established by the Nationwide Mortgage Licensing System and Registry.
Acts 2009, ch. 499, § 8.
Tenn. Code Ann. § 45-8-201 — TN Code / Title 45 / Chapter 8 / Section 45-8-201
Short title
Status: in_force

This part shall be known and may be cited as the "Tennessee BIDCO Act." Acts 1989, ch. 124, § 1.
This part shall be known and may be cited as the "Tennessee BIDCO Act."
Acts 1989, ch. 124, § 1.
Tenn. Code Ann. § 45-6-210 — TN Code / Title 45 / Chapter 6 / Section 45-6-210
Rate of interest - Other charges permitted
Status: in_force

In connection with and for a pawn or pawn transaction, no pawnbroker shall demand and receive a rate of interest greater than two percent (2%) per month of the amount of the loan advance under the pawn or pawn transaction, and no other charge of any description, for any purpose whatsoever, shall be made by the pawnbroker; except that the pawnbroker may charge, contract for and receive a fee not to exceed one-fifth (1/5) of the amount of the loan advance under the pawn or pawn transaction for investigating the title, storage, insuring the pledged goods, closing the loan, making daily reports to local law enforcement officers and for other expenses, losses of every nature whatsoever and for all other services. The fee when made and collected shall not be deemed interest for any purpose of law. The interest and fee shall be deemed to be earned, due and owing as of the date of the pawn transaction and a like sum shall be deemed earned, due and owing on the same day of each subsequent month. Acts 1988, ch. 724, § 10; 1995, ch. 186, § 7.
In connection with and for a pawn or pawn transaction, no pawnbroker shall demand and receive a rate of interest greater than two percent (2%) per month of the amount of the loan advance under the pawn or pawn transaction, and no other charge of any description, for any purpose whatsoever, shall be made by the pawnbroker; except that the pawnbroker may charge, contract for and receive a fee not to exceed one-fifth (1/5) of the amount of the loan advance under the pawn or pawn transaction for investigating the title, storage, insuring the pledged goods, closing the loan, making daily reports to local law enforcement officers and for other expenses, losses of every nature whatsoever and for all other services. The fee when made and collected shall not be deemed interest for any purpose of law. The interest and fee shall be deemed to be earned, due and owing as of the date of the pawn transaction and a like sum shall be deemed earned, due and owing on the same day of each subsequent month.
Acts 1988, ch. 724, § 10; 1995, ch. 186, § 7.
Tenn. Code Ann. § 45-14-112 — TN Code / Title 45 / Chapter 14 / Section 45-14-112
Revocation of charter - Grounds
Status: in_force

(a) The commissioner may revoke any savings bank charter issued under this chapter if the commissioner finds, after notice and an opportunity for a hearing, that the savings bank willfully and consistently has been conducting its business in a manner that is substantially and materially inconsistent with the objective of this chapter, or if in violation of this chapter or any regulations promulgated thereunder. (b) The commissioner shall revoke any savings bank charter issued under this chapter if the commissioner finds, after notice and an opportunity for a hearing, that the savings bank is violating § 45-14-103(g) . (c) The commissioner shall issue regulations providing for the voluntary surrender of savings bank charters issued under this chapter. Acts 1991, ch. 177, § 13.
(a) The commissioner may revoke any savings bank charter issued under this chapter if the commissioner finds, after notice and an opportunity for a hearing, that the savings bank willfully and consistently has been conducting its business in a manner that is substantially and materially inconsistent with the objective of this chapter, or if in violation of this chapter or any regulations promulgated thereunder.
(b) The commissioner shall revoke any savings bank charter issued under this chapter if the commissioner finds, after notice and an opportunity for a hearing, that the savings bank is violating § 45-14-103(g) .
(c) The commissioner shall issue regulations providing for the voluntary surrender of savings bank charters issued under this chapter.
Acts 1991, ch. 177, § 13.
Tenn. Code Ann. § 45-3-817 — TN Code / Title 45 / Chapter 3 / Section 45-3-817
Commissioner's power to act in certain instances
Status: in_force

(a) Insufficient Reserves. If the reserves of an association fall below the level specified by this chapter or by the rules and regulations of the commissioner, the commissioner shall require the association to increase its reserves, within the time and manner prescribed by the commissioner, so as to bring the sum of the reserves to the level so required, and shall, in addition and to the extent that the commissioner deems it necessary to protect the association and the public, require the association to take any one (1) or more of the actions set forth in subsection (c). (b) Unsound Business Practices. In addition to the powers conferred upon the commissioner by any other provision of this chapter, if the commissioner determines that the association is engaging or has engaged in unsound and imprudent business practices that have caused or may cause the association to be in an impaired condition, the commissioner shall have the power to take any one (1) or more of the actions set forth in subsection (c). (c) Powers of Commissioner. In the event that subsections (a) or (b) are applicable to any association, the commissioner may require the association to do any one (1) or more of the following: (1) Increase its liquid assets and maintain the increased liquid assets at a level prescribed by the commissioner; (2) Cease accepting all deposit accounts, cease accepting particular classes or categories of deposit accounts or limit the amounts of particular classes or categories of deposit accounts to be accepted; (3) Cease all lending, lending in a particular area, or making a particular type or category of loan; (4) Cease or limit the purchase of loans or other investments; (5) Cease or limit promotional expenditures; (6) Convene a meeting of the board of directors of the association with the commissioner or the commissioner's delegate in attendance to accomplish the purpose of this section; and (7) Take other steps the commissioner deems necessary to safeguard the interests of the association and the public. Acts 1978, ch. 708, § 3.17; T.C.A., § 45-1524.
(a) Insufficient Reserves. If the reserves of an association fall below the level specified by this chapter or by the rules and regulations of the commissioner, the commissioner shall require the association to increase its reserves, within the time and manner prescribed by the commissioner, so as to bring the sum of the reserves to the level so required, and shall, in addition and to the extent that the commissioner deems it necessary to protect the association and the public, require the association to take any one (1) or more of the actions set forth in subsection (c).
(b) Unsound Business Practices. In addition to the powers conferred upon the commissioner by any other provision of this chapter, if the commissioner determines that the association is engaging or has engaged in unsound and imprudent business practices that have caused or may cause the association to be in an impaired condition, the commissioner shall have the power to take any one (1) or more of the actions set forth in subsection (c).
(c) Powers of Commissioner. In the event that subsections (a) or (b) are applicable to any association, the commissioner may require the association to do any one (1) or more of the following: (1) Increase its liquid assets and maintain the increased liquid assets at a level prescribed by the commissioner; (2) Cease accepting all deposit accounts, cease accepting particular classes or categories of deposit accounts or limit the amounts of particular classes or categories of deposit accounts to be accepted; (3) Cease all lending, lending in a particular area, or making a particular type or category of loan; (4) Cease or limit the purchase of loans or other investments; (5) Cease or limit promotional expenditures; (6) Convene a meeting of the board of directors of the association with the commissioner or the commissioner's delegate in attendance to accomplish the purpose of this section; and (7) Take other steps the commissioner deems necessary to safeguard the interests of the association and the public.
(1) Increase its liquid assets and maintain the increased liquid assets at a level prescribed by the commissioner;
(2) Cease accepting all deposit accounts, cease accepting particular classes or categories of deposit accounts or limit the amounts of particular classes or categories of deposit accounts to be accepted;
(3) Cease all lending, lending in a particular area, or making a particular type or category of loan;
(4) Cease or limit the purchase of loans or other investments;
(5) Cease or limit promotional expenditures;
(6) Convene a meeting of the board of directors of the association with the commissioner or the commissioner's delegate in attendance to accomplish the purpose of this section; and
(7) Take other steps the commissioner deems necessary to safeguard the interests of the association and the public.
Acts 1978, ch. 708, § 3.17; T.C.A., § 45-1524.
Tenn. Code Ann. § 45-3-512 — TN Code / Title 45 / Chapter 3 / Section 45-3-512
Accounts of incompetents
Status: in_force

When an account is held in any association by a person who becomes incompetent and an adjudication of incompetency has been made by a court of competent jurisdiction, the association may pay or deliver the withdrawal value of the account and any interest that may have accrued on the account to the guardian or conservator for the person upon proof of the appointment and qualification of the guardian or conservator; provided, that if the association has received no written notice and is not on actual notice that the depositor has been adjudicated incompetent, it may pay or deliver the funds to the depositor in accordance with the account contract, and the receipt or acquittance of the depositor shall be a valid and sufficient release and discharge of the association for the payment or delivery so made. Acts 1978, ch. 708, § 2.12; T.C.A., § 45-1412.
When an account is held in any association by a person who becomes incompetent and an adjudication of incompetency has been made by a court of competent jurisdiction, the association may pay or deliver the withdrawal value of the account and any interest that may have accrued on the account to the guardian or conservator for the person upon proof of the appointment and qualification of the guardian or conservator; provided, that if the association has received no written notice and is not on actual notice that the depositor has been adjudicated incompetent, it may pay or deliver the funds to the depositor in accordance with the account contract, and the receipt or acquittance of the depositor shall be a valid and sufficient release and discharge of the association for the payment or delivery so made.
Acts 1978, ch. 708, § 2.12; T.C.A., § 45-1412.