TN Code § 45-8-222 (2021)
2021 Tennessee Code|Title 45 - Banks and Financial Institutions|Chapter 8 - Small Business Investment Development|Part 2 - Business and Industrial Development Corporations|§ 45-8-222. Prohibited Acts

  For the purposes of this section:  A person who is in a relationship referred to in this section within six (6) months before or after a licensee provides financing assistance shall be considered to be in that relationship as of the date that licensee provides that financing assistance; and   If a licensee, in order to protect its interest, designates a person to serve as a director of, officer of, or in any capacity in the management of a business firm to which that licensee provides financing assistance, that person shall not, on that account, be considered to have a relationship with that business firm.     A person shall not willfully make an untrue statement of a material fact in an application or report filed with the commissioner under this part, or willfully omit to state in the application or report a material fact required to be stated in the application or report.   A person having custody of any of the books, accounts, or other records of a licensee shall not willfully refuse to allow the commissioner, upon request, to inspect or make copies of any of those books, accounts or other records.   A person shall not, with intent to deceive a director, officer, employee, auditor or attorney of a licensee, the commissioner, or a governmental agency:  Make a false entry in the books, accounts or other records of the licensee;   Omit to make an entry in those books, accounts or other records that the person is required to make; or   Alter, conceal, or destroy any of those books, accounts or other records.     A licensee shall not provide, directly or indirectly, financing assistance to an associate of the licensee.   A licensee shall not provide, directly or indirectly, financing assistance to discharge, or to free other money for use in discharging, in whole or in part, an obligation to an associate of that licensee. This subsection (f) does not apply to a transaction effected by an associate of a licensee in the normal course of that associate's business involving a line of credit or short-term financing assistance.   It is unlawful for any person to serve as an officer or director of a BIDCO who:  Has been convicted of an offense constituting a violation of the BIDCO laws, a felony or a breach of trust in the jurisdiction where the judgment was rendered;   Is indebted to the BIDCO for more than thirty (30) days upon a judgment that has become final.     It is unlawful for an affiliate of a BIDCO, or for an officer, director or employee of a BIDCO or affiliate of a BIDCO, to willfully and knowingly and without authority from the board of directors or governing body of the BIDCO, to receive, consent to receive, or agree to receive, any commission, emolument, gratuity, or reward, or any promise of any commission, emolument, or reward, property or thing of value or of personal advantage, for procuring or endeavoring to procure for any person a loan or any other investment by the BIDCO.   Any director of a BIDCO who concurs in any vote or act of the directors of the BIDCO by which it is intended to:  Make a dividend except from the surplus profits arising from the business of the BIDCO;   Divide, withdraw or in any manner pay to the stockholders or any of them any part of the stock of the BIDCO, or to reduce the stock except in pursuance of law;   Discount or receive any note, or other evidence of debt in payment of stock required to be paid or with intention to provide the means of making the payment;   Receive or discount any note or other evidence of debt with the intent to enable any stockholder to withdraw any part of the money paid in as consideration for the purchase of stock; or   Apply any portion of the funds of the BIDCO except as allowed by law, directly or indirectly, to the purchase of shares of its own stock.