reglab/statecodes huggingface dataset:
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-136 - Surety bond

(a)
An applicant for a money transmission license shall provide, and a licensee shall maintain at all times, security consisting of a surety bond in a form satisfactory to the commissioner.
(b)
The amount of the required security must be the greater of fifty thousand dollars ($50,000) or an amount equal to one hundred percent (100%) of the licensee's average daily money transmission liability in this state calculated for the most recently completed calendar quarter, up to a maximum of eight hundred thousand dollars ($800,000).
(c)
A licensee that maintains a surety bond in the maximum amount provided for in subsection (b) is not required to calculate its average daily money transmission liability in this state for purposes of this section.
(d)
A licensee may exceed the maximum required bond amount pursuant to §
45-7-138(a)(5)
.
(e)
The surety bond must run to the state of Tennessee for the benefit of any claimants against the licensee to secure the faithful performance of the obligations of the licensee with respect to the receipt, handling, transmission, and payment of money in connection with money transmission. The aggregate liability of the surety bond shall not exceed the principal sum of the bond. Surety bonds must be obtained for a term of not less than one (1) year and evidence of the renewal of the surety bond must be provided to the commissioner not less than thirty (30) days before the bond expiration date. Claimants against the licensee or its authorized delegates may bring suit directly on the security device, or the commissioner may bring suit on behalf of the claimants, either in one (1) action or in successive actions. In the case of an irrevocable letter of credit, licensees shall obtain letters of credit for terms of not less than three (3) years and renew the letters of credit annually.
(f)
The surety bond must remain in effect until cancellation, which may occur only after thirty (30) days' written notice to the commissioner. Cancellation does not affect any liability incurred or accrued during that period.
(g)
The surety bond must remain in place for three (3) years after the licensee ceases money transmission operations in this state. The commissioner may permit a licensee to substitute a letter of credit or other form of security device acceptable to the commissioner for the security device in place at the time the licensee ceases money transmission operations in this state.
Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-137 - Maintenance of permissible investments

(a)
A licensee shall at all times maintain permissible investments that have a market value, computed in accordance with United States generally accepted accounting principles, of not less than the aggregate amount of all of its outstanding money transmission obligations.
(b)
Except for permissible investments under §
45-7-138(a)
, the commissioner, with respect to any licensee, may limit the extent to which a specific investment maintained by a licensee within a class of permissible investments may be considered a permissible investment, if the specific investment represents undue risk to customers, not reflected in the market value of investments.
(c)
Permissible investments, even if commingled with other assets of the licensee, are held in trust for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations in the event of insolvency, the filing of a petition by or against the licensee under the federal Bankruptcy Code (
11 U.S.C. §§ 101-110
) for bankruptcy or reorganization, the filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or an action by a creditor against the licensee who is not a beneficiary of this statutory trust. No permissible investments impressed with a trust pursuant to this subsection (c) are subject to attachment, levy of execution, or sequestration by order of any court, except for a beneficiary of this statutory trust.
(d)
Upon the establishment of a statutory trust in accordance with subsection (c), or when any funds are drawn on a letter of credit pursuant to §
45-7-138(a)(4)
, the commissioner shall notify the applicable regulator of each state in which the licensee is licensed to engage in money transmission, if any, of the establishment of the trust or the funds drawn on the letter of credit, as applicable. Notice is deemed satisfied if performed pursuant to a multistate agreement or through NMLS. Funds drawn on a letter of credit, and any other permissible investments held in trust for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations, are deemed held in trust for the benefit of such purchasers and holders on a pro rata and equitable basis in accordance with statutes pursuant to which permissible investments are required to be held in this state, and other states, as applicable. Any statutory trust established pursuant to this chapter terminates upon extinguishment of all of the licensee's outstanding money transmission obligations.
(e)
The commissioner may allow other types of investments that the commissioner determines are of sufficient liquidity and quality to be a permissible investment.
Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-139 - Suspension and revocation

After notice and an opportunity for a hearing, the commissioner may suspend or revoke a licensee's license if the commissioner finds that:
(1)
A fact or condition exists that, if it had existed at the time when the licensee applied for its license, would have been grounds for denying the application;
(2)
The licensee's net worth becomes inadequate and the licensee, after ten (10) days' written notice from the commissioner, fails to take steps the commissioner deems necessary to remedy the deficiency;
(3)
The licensee violated this chapter or any rule or order validly promulgated or issued by the commissioner under authority of this chapter;
(4)
An authorized delegate or authorized delegates of a licensee violated this chapter or any rule or order validly promulgated or issued by the commissioner under authority of this chapter, without the licensee making reasonable efforts to correct the violations known to the licensee to exist;
(5)
The licensee is conducting business in an unsafe or unsound manner;
(6)
The licensee is insolvent;
(7)
The licensee has demonstrated a pattern of failure or refusal to promptly pay obligations on payment instruments or transmissions of money or has made an assignment for the benefit of its creditors;
(8)
The licensee has applied for an adjudication of bankruptcy, reorganization, arrangement, or other relief under any bankruptcy;
(9)
The licensee refused to permit the commissioner to make any examination authorized by this chapter;
(10)
The licensee willfully failed to make any report or pay any fee required by this chapter;
(11)
The licensee engaged in fraud, intentional misrepresentation, or gross negligence; or
(12)
The licensee made or caused to be made in any application or report filed with the commissioner or any proceeding before the commissioner, any statement that was at the time and in the circumstances under which it was made, false or misleading with respect to any material fact, or has omitted to state in the application or report any material fact that is required to be stated in the application or report.
Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-140 - Suspension and revocation of authorized delegates

(a)
The commissioner may issue an order suspending or barring the authorized delegate from continuing to be or becoming an authorized delegate of any licensee during the period for which the order is in effect, if, after notice and an opportunity for a hearing, the commissioner finds that any authorized delegate of a licensee or any director, officer, employee, or controlling person of the authorized delegate has:
(1)
Violated this chapter or any rule or order issued under this chapter;
(2)
Engaged or participated in any unsafe or unsound act with respect to the business of selling or issuing payment instruments of the licensee or the business of money transmission;
(3)
Refused to permit the commissioner to make any examination authorized by this chapter;
(4)
Engaged in fraud, intentional misrepresentation, or gross negligence;
(5)
Been convicted of a violation of a state or federal anti-money laundering statute; or
(6)
Made or caused to be made in any application or report filed with the commissioner or any proceeding before the commissioner, any statement that was at the time and in the circumstances under which it was made, false or misleading with respect to any material fact, or has omitted to state in the application or report any material fact that is required to be stated in the application or report.
(b)
Upon issuance of the order, the licensee shall terminate its relationship with the authorized delegate according to the terms of the order.
(c)
An authorized delegate to whom an order is issued under this section may apply to the commissioner to modify or rescind the order. The commissioner shall not grant the application unless the commissioner finds that it is in the public interest to do so and that it is reasonable to believe that the person will comply with all applicable provisions of this chapter and any rule or order issued under this title, if and when the person is permitted to resume being an authorized delegate of a licensee.
Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-141 - Consent orders - Emergency orders

(a)
The commissioner may enter consent orders at any time with a person to resolve a matter arising under this chapter. A consent order must be signed by the person to whom it is issued or a duly authorized representative, and must indicate agreement to the terms contained in the order. A consent order may provide that it does not constitute:
(1)
An admission by a person that a provision of this chapter, or a rule or order promulgated or issued pursuant to this chapter, has been violated; or
(2)
A finding by the commissioner that the person has violated a provision of this chapter, or a rule or order promulgated or issued pursuant to this chapter.
(b)
Notwithstanding the issuance of a consent order, the commissioner may seek civil or criminal penalties or compromise civil penalties concerning matters encompassed by the consent order.
(c)
In cases involving extraordinary circumstances requiring immediate action, the commissioner may take an enforcement action authorized by this chapter without providing the opportunity for a prior hearing, but shall promptly afford a subsequent hearing upon an application to rescind the action taken, if the application is filed with the commissioner within twenty (20) days of the receipt of the notice of the commissioner's emergency action.
Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-142 - Criminal penalties - Reports

(a)
A person who knowingly and willfully violates this chapter or any order or rule issued pursuant to this chapter for which a penalty is not specifically provided commits a Class C misdemeanor; provided, that each day the violation occurs constitutes a separate offense.
(b)
A person who knowingly and willfully makes a material, false statement in any document filed or required to be filed under this chapter with the intent to deceive the recipient of the document commits a Class E felony.
(c)
A person who knowingly and willfully fails to file a document required to be filed under this chapter commits a Class E felony.
(d)
A person who carries on an unauthorized money transmitter business commits a Class E felony.
(e)
A person who obstructs or endeavors to obstruct a lawful examination of a licensee or agent commits a Class E felony.
(f)
The commissioner shall submit to the district attorneys general for the respective counties of the state any criminal violation of this chapter known by the commissioner to have occurred in the county. The commissioner shall also report the violation to the appropriate division of the Tennessee bureau of investigation. The commissioner may provide the information to the attorney general and reporter, the appropriate federal authorities, or both, as the commissioner deems proper. Confidential information that is communicated by the commissioner pursuant to this section remains confidential in the hands of the agency to which the information is reported, and does not become a matter of public record by virtue of this communication.
Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-143 - Orders

If, after notice and an opportunity for a hearing, the commissioner finds that a person has violated this chapter or a rule promulgated in accordance with this chapter, the commissioner may order the person to:
(1)
Cease and desist violating the chapter or any rule promulgated in accordance with this chapter;
(2)
Refund, disburse, or disgorge any fees collected in violation of this chapter or a rule promulgated in accordance with this chapter;
(3)
Pay to the commissioner a civil penalty in an amount specified by the commissioner, not to exceed one thousand dollars ($1,000) for each violation or, in the case of a continuing violation, one thousand dollars ($1,000) for each day that the violation continues; or
(4)
Pay the costs and expenses for the investigation and prosecution of the matter, including reasonable attorney's fees.
Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 7 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Part 1 - MONEY TRANSMISSION MODERNIZATION ACT (§§ 45-7-101 — 45-7-144) › Section 45-7-144 - Hearings - Procedures

A hearing or other opportunity to be heard afforded pursuant to this chapter must be conducted in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 8 - SMALL BUSINESS INVESTMENT DEVELOPMENT (§§ 45-8-101 — 45-8-226) › Part 1 - SMALL BUSINESS INVESTMENT COMPANIES (§§ 45-8-101 — 45-8-103) › Section 45-8-101 - Functions and powers - Supervision

Small business investment companies chartered by the secretary of state and licensed by the small business administration shall be authorized to perform all the functions and exercise all the powers in this state and be subject to all the limitations as prescribed by the Small Business Investment Act of 1958, Public Law 85-699, 85th Congress, second session, 72 Stat. 689 (
15 U.S.C. § 661
et seq.), and all rules and regulations promulgated under that act. So long as the company is licensed, regulated, supervised and inspected by the small business administration, it shall not be subject to supervision by agencies of the state, except by the department of commerce and insurance under title 48, chapter 1, part 1.
Acts 1959, ch. 22, § 1 (T.C.A. (Supp.), § 48-827); impl. am. Acts 1971, ch. 137, § 1; T.C.A., § 45-2501.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 8 - SMALL BUSINESS INVESTMENT DEVELOPMENT (§§ 45-8-101 — 45-8-226) › Part 1 - SMALL BUSINESS INVESTMENT COMPANIES (§§ 45-8-101 — 45-8-103) › Section 45-8-102 - Purchase of stock by state banks authorized

State banks under the supervision of the department of financial institutions shall be authorized to purchase stock in a small business investment company in the same manner and subject to the same restrictions and limitations as national banks under the Small Business Investment Act of 1958, Public Law 85-699, 85th Congress, second session, 72 Stat. 689 (
15 U.S.C. § 661
et seq.), including any amendments thereto hereafter adopted.
Acts 1959, ch. 22, § 2 (T.C.A. (Supp.), § 48-828); T.C.A., § 45-2502.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 8 - SMALL BUSINESS INVESTMENT DEVELOPMENT (§§ 45-8-101 — 45-8-226) › Part 1 - SMALL BUSINESS INVESTMENT COMPANIES (§§ 45-8-101 — 45-8-103) › Section 45-8-103 - Purchase of companies' negotiable obligations by authorized companies

Secured negotiable obligations of the small business investment companies and negotiable obligations endorsed with recourse by the companies when adequately secured shall be eligible for purchase by insurance companies, investment companies and industrial development corporations, by the board of trustees administering any employee or profit-sharing trust, by the board of trustees of eleemosynary institutions and corporations, and by trustees and other fiduciaries. The same degree of care shall be exercised in making purchases of the obligations by fiduciaries as is required in making investments under §
35-3-117
.
Acts 1959, ch. 22, § 3 (T.C.A. (Supp.), § 48-829); T.C.A., § 45-2503.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 8 - SMALL BUSINESS INVESTMENT DEVELOPMENT (§§ 45-8-101 — 45-8-226) › Part 2 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS (§§ 45-8-201 — 45-8-226) › Section 45-8-201 - Short title

This part shall be known and may be cited as the "Tennessee BIDCO Act."
Acts 1989, ch. 124, § 1.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 8 - SMALL BUSINESS INVESTMENT DEVELOPMENT (§§ 45-8-101 — 45-8-226) › Part 2 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS (§§ 45-8-201 — 45-8-226) › Section 45-8-202 - Purpose - Construction

(a)
It is determined and declared as a matter of legislative finding by the general assembly that:
(1)
The availability of financial and management assistance is an important resource to small and medium size businesses to locate, remain and expand in the state, which, in time, will result in increased employment opportunities in the state;
(2)
There is a need for financial and management resource alternatives to small and medium size businesses in the state due to a lack of bank financing in situations, including, but not limited to, start-ups, under-collateralization, management problems, and above-average risk projects;
(3)
Many small and medium size businesses, although in a growth mode, do not meet the investment criteria of venture capital firms; and
(4)
In order to increase employment opportunities and commercial transactions in the state, there is a need to encourage the development of resources directed at small and medium size businesses, which will help the businesses locate, remain and expand in the state.
(b)
It is further determined and declared that the purposes of this part shall be to:
(1)
Promote economic development by encouraging the formation of private financial institutions known as BIDCOs to help meet the financing assistance and management assistance needs of growth-oriented small and medium size businesses in the state; and
(2)
Provide for the licensing and regulation of BIDCOs to prevent fraud, conflict of interest, and mismanagement, in order to encourage:
(A)
Private equity investments in BIDCOs; and
(B)
Pension funds, insurance companies, foundations, utilities and other institutions to lend funds to BIDCOs.
(c)
This part shall be liberally construed to accomplish its purpose.
Acts 1989, ch. 124, § 2.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 8 - SMALL BUSINESS INVESTMENT DEVELOPMENT (§§ 45-8-101 — 45-8-226) › Part 2 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS (§§ 45-8-201 — 45-8-226) › Section 45-8-204 - Relation to other acts

A corporation licensed under and pursuant to this part shall be known as a BIDCO, shall be subject to regulation by the commissioner, and shall be deemed subject to the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27, or the Tennessee Nonprofit Corporation Act, compiled in title 48, chapters 51-68, to the extent that the law is not inconsistent with the express provisions of this part.
Acts 1989, ch. 124, § 4.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 8 - SMALL BUSINESS INVESTMENT DEVELOPMENT (§§ 45-8-101 — 45-8-226) › Part 2 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS (§§ 45-8-201 — 45-8-226) › Section 45-8-205 - Corporate names

(a)
Except as otherwise provided in subsection (b), a person transacting business in this state, other than a licensee, shall not use a name or title that indicates that the person is a business and industrial development corporation, including, but not limited to, use of the term "BIDCO," and shall not otherwise represent that the person is a business and industrial development corporation or a licensee.
(b)
Before being issued a license under this part, a Tennessee corporation that proposes to apply for a license or that applies for a license may perform, under a name that indicates that the corporation is a business and industrial development corporation, the acts necessary to apply for and obtain a license and to otherwise prepare to commence transacting business as a licensee. The corporation shall not represent that it is a licensee until after the license has been obtained.
(c)
A BIDCO licensed under this part shall not use a name or title that would indicate that it is a bank or trust company.
Acts 1989, ch. 124, § 5; 1997, ch. 131, § 2.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 8 - SMALL BUSINESS INVESTMENT DEVELOPMENT (§§ 45-8-101 — 45-8-226) › Part 2 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS (§§ 45-8-201 — 45-8-226) › Section 45-8-206 - Authority and powers of commissioner

(a)
The commissioner shall administer this part and shall have supervision responsibility for all BIDCOs incorporated under the laws of this state.
(b)
The commissioner may issue orders and promulgate rules and regulations pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(c)
Whenever the commissioner issues an order or license under this part, the commissioner may impose conditions that are deemed necessary or appropriate to effectuate the purposes of this part.
(d)
Every final order, decision or license action of the commissioner under subsections (b) and (c) is subject to administrative review under the Uniform Administrative Procedures Act.
(e)
In the event a person does not comply with an order issued pursuant to subsections (b) and (c), the commissioner may petition a chancery court having jurisdiction to seek injunctive relief to compel compliance with the order. The power is conferred and the duty is imposed upon the several chancery courts, in all proper cases, to award injunctive relief; provided, that the order issued by the commissioner shall not be reviewable in a proceeding initiated under this subsection (e).
Acts 1989, ch. 124, § 6.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 8 - SMALL BUSINESS INVESTMENT DEVELOPMENT (§§ 45-8-101 — 45-8-226) › Part 2 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS (§§ 45-8-201 — 45-8-226) › Section 45-8-207 - Schedule of fees

The commissioner shall establish by regulation a schedule of fees that the commissioner determines to be reasonable and necessary to effectuate the purposes of this chapter, in connection with the licensing, administration, examination and supervision of BIDCOs. The schedule shall be subject to amendment by the commissioner by regulation from time to time.
Acts 1989, ch. 124, § 7.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 8 - SMALL BUSINESS INVESTMENT DEVELOPMENT (§§ 45-8-101 — 45-8-226) › Part 2 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS (§§ 45-8-201 — 45-8-226) › Section 45-8-209 - Surrender of license

(a)
Upon approval of a two-thirds (2/3) vote of its board of directors and after complying with subsection (b), a licensee may apply to the commissioner to have the commissioner accept the surrender of the license of the licensee. If the commissioner determines that the requirements of this section have been satisfied, the commissioner shall approve the application, unless in the opinion of the commissioner the purpose of the application is to evade a current or prospective action by the commissioner under this part.
(b)
Not less than sixty (60) days before filing an application with the commissioner under subsection (a), a licensee shall notify each of its shareholders of its intention to file an application. Each shareholder shall be notified of the right to file with the licensee an objection to the proposed surrender of the license within the sixty-day period and shall be advised that, if the shareholder files an objection, the shareholder should send a copy of the objection to the commissioner. If shareholders holding twenty percent (20%) or more of the outstanding voting securities of the licensee file objections, the licensee shall not proceed with the application under subsection (a) unless the application is approved by a vote of shareholders holding two-thirds (2/3) of the outstanding voting securities of the licensee.
Acts 1989, ch. 124, § 9.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 8 - SMALL BUSINESS INVESTMENT DEVELOPMENT (§§ 45-8-101 — 45-8-226) › Part 2 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS (§§ 45-8-201 — 45-8-226) › Section 45-8-211 - Offices - Personnel

(a)
A licensee shall maintain not less than one (1) office in the state.
(b)
Each office of a licensee, whether within or outside of the state, shall be located in a place that is reasonably accessible to the public.
(c)
A licensee shall maintain at each of its offices personnel who are competent to conduct the business of the office.
(d)
Upon written notice to and consent from the commissioner, a licensee may establish, relocate or close an office, except that no consent shall be required if the licensee is well capitalized.
Acts 1989, ch. 124, § 11; 1997, ch. 131, § 6.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 8 - SMALL BUSINESS INVESTMENT DEVELOPMENT (§§ 45-8-101 — 45-8-226) › Part 2 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS (§§ 45-8-201 — 45-8-226) › Section 45-8-214 - Merger, acquisition or sale of business assets

(a)
Without the prior approval of the commissioner, a licensee shall not consummate a transaction involving a merger, acquisition of control, or a sale of all or substantially all of its business assets, where the licensee is a principal party to the transaction.
(b)
The commissioner shall not approve the merger of a licensee with another corporation unless:
(1)
The licensee is the surviving corporation; or
(2)
If the licensee is the disappearing corporation, the surviving corporation is also a licensee.
(c)
The commissioner shall approve an application by a licensee for approval of a proposed transaction involving a merger, acquisition of control or a sale of all or substantially all of the licensee's business assets, only upon a finding by the commissioner that:
(1)
The merger, acquisition, or sale will be on a sound financial basis with respect to the acquiring licensee;
(2)
Upon consummation of the merger, acquisition, or sale, it is reasonable to believe that the acquiring licensee will comply with this part; and
(3)
The merger, acquisition, or sale will not have a major detrimental impact upon competition in the providing of financing assistance or management assistance to business firms, or if there will be a major detrimental impact, the merger, acquisition, or sale is necessary in the interests of the financial soundness of any of the parties to the merger, acquisition, or sale, or is otherwise, on balance, in the public interest.
Acts 1989, ch. 124, § 14.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 8 - SMALL BUSINESS INVESTMENT DEVELOPMENT (§§ 45-8-101 — 45-8-226) › Part 2 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS (§§ 45-8-201 — 45-8-226) › Section 45-8-215 - Records and reports

(a)
A licensee shall make and keep books, accounts, and other records in a form and manner that the commissioner may require. The records shall be kept at the place and shall be preserved for the length of time that the commissioner may specify.
(b)
Not more than ninety (90) days after the close of each fiscal year of a licensee, or a longer period if specified by the commissioner, a licensee shall file with the commissioner an audited report containing the following:
(1)
Financial statements, including balance sheet, statement of income or loss, statement of changes in capital accounts, and statement of changes in financial position;
(2)
A report, certificate, or opinion of an independent certified public accountant or independent public accountant who performs the audit, stating that the financial statements were prepared in accordance with generally accepted accounting principles; and
(3)
Other information that the commissioner may require.
(c)
In addition to the audited report required by subsection (b), a licensee shall file with the commissioner other reports and at times that the commissioner may require. Any report required by the commissioner under this section shall be in a form and shall contain information that the commissioner may specify.
Acts 1989, ch. 124, § 15.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 8 - SMALL BUSINESS INVESTMENT DEVELOPMENT (§§ 45-8-101 — 45-8-226) › Part 2 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS (§§ 45-8-201 — 45-8-226) › Section 45-8-216 - Examination by commissioner

(a)
The commissioner shall visit and examine each licensee as frequently as the commissioner deems it necessary or expedient. On the occasion of every visit and examination, the commissioner shall, in company with one (1) or more of the officers of the licensee, if requested by the licensee, be given free access to every part of the office or place of business and to the assets, securities, books, papers and records of the licensee.
(b)
If, in the commissioner's opinion, it is necessary for a thorough examination of a licensee, the commissioner may retain one (1) or more accountants, attorneys, appraisers, or other third parties to assist the commissioner in the examination. Within ten (10) days after receipt of a statement from the commissioner, the licensee shall pay or reimburse the fees, costs and expenses of any third parties retained by the commissioner under this subsection (b).
(c)
The commissioner shall also have the power to examine or cause to be examined subsidiary corporations of BIDCOs subject to the commissioner's supervision under this part.
(d)
Any examination under this section may be made by any person or persons designated by the commissioner, and in that case, all the powers vested in the commissioner by this section shall be possessed by the person or persons so designated. The commissioner shall furnish to each examiner a commission under the signature of the commissioner and official seal of the department, which the examiner shall exhibit to the officer or officers of the BIDCO proposed to be examined as the examiner's authority for making the examination.
Acts 1989, ch. 124, § 16.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 8 - SMALL BUSINESS INVESTMENT DEVELOPMENT (§§ 45-8-101 — 45-8-226) › Part 2 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS (§§ 45-8-201 — 45-8-226) › Section 45-8-217 - Investigations

(a)
The commissioner may make the investigations within or without the state as the commissioner may consider necessary or appropriate for determining whether to approve an application filed with the commissioner under this part, or for determining whether a licensee or other person has violated or is about to violate this part, to aid in the enforcement of this part, or to aid in issuing an order or promulgating a rule or regulation pursuant to this part.
(b)
Any investigation under this section may be made by any person or persons designated by the commissioner, and in that case, all the powers vested in the commissioner by this section shall be possessed by the person or persons so designated. When the investigation is made without the presence of the commissioner, the commissioner shall furnish to the person or persons conducting the investigation a commission under the signature of the commissioner and official seal of the department, which shall be exhibited to any person contacted in the course of the investigation.
(c)
For purposes of an investigation under this section, the commissioner may administer oaths and affirmations, subpoena witnesses, including, but not limited to, the officers, directors, trustees, partners, managers and employees of any entity being examined, compel the attendance of witnesses, take evidence, and require the production of books, papers, correspondence, memoranda, agreements, or other documents or records that the commissioner considers relevant to the investigation.
(d)
If any person fails to comply with a subpoena or subpoena duces tecum issued by the commissioner under this section or fails to testify with respect to a matter concerning which the person may be lawfully questioned, the chancery court, upon application of the commissioner, may issue an order requiring the attendance of the person and the giving of testimony or production of evidence.
Acts 1989, ch. 124, § 17.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 8 - SMALL BUSINESS INVESTMENT DEVELOPMENT (§§ 45-8-101 — 45-8-226) › Part 2 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS (§§ 45-8-201 — 45-8-226) › Section 45-8-218 - Issuance of orders - Notice - Hearings

(a)
The commissioner may issue an order, setting forth an appropriate remedy, including, but not limited to, a cease-and-desist order, an order removing any person from office with a licensee, or prohibiting any person from further participating in any manner in the conduct of the business of the licensee, upon a finding by the commissioner that the licensee, subject person or other person:
(1)
Has violated, is violating, or is about to violate any provision of this part or other applicable law, rule or regulation;
(2)
Has engaged or participated, or is engaging or participating, or is about to engage or participate, detrimentally with respect to the business of the licensee;
(3)
Has been indicted or convicted for a crime involving dishonesty or breach of trust; or
(4)
Is conducting acts that threaten the interests of the licensee or may threaten to impair public confidence in the licensee.
(b)
Notice and hearing shall be provided in advance of any action authorized in subsection (a). In cases involving extraordinary circumstances requiring immediate action, the commissioner may take the action, but shall promptly afford a subsequent hearing upon application to rescind the action taken.
(c)
The licensee, subject person or other person to whom an order is issued under subsection (a), is entitled to an administrative review of the order pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
Acts 1989, ch. 124, § 18.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 8 - SMALL BUSINESS INVESTMENT DEVELOPMENT (§§ 45-8-101 — 45-8-226) › Part 2 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS (§§ 45-8-201 — 45-8-226) › Section 45-8-219 - Civil penalties

(a)
Should the commissioner find that any person has violated this part or has violated an order issued pursuant to §
45-8-218
, the commissioner may order the person to pay to the state a civil penalty in an amount that the commissioner may specify. However, the amount of the civil penalty shall not exceed ten thousand dollars ($10,000) for each violation, or in the case of a continuing violation, ten thousand dollars ($10,000) for each day for which the violation continues. In determining the amount of the penalty, the commissioner shall consider the appropriateness of the penalty with respect to the size of the financial resources and good faith of the person charged, the gravity of the violation and other matters as justice may require.
(b)
A person assessed a penalty under subsection (a) shall be afforded an opportunity for a hearing upon request within ten (10) days of the issuance of the notice of assessment. The commissioner's decision after a hearing or otherwise shall constitute a final order and may be reviewed as provided in the Uniform Administrative Procedures Act, compiled in title 4, chapter 5; provided, that the original order shall not be reviewable in a proceeding initiated under this subsection (b).
(c)
Subsection (a) is in addition to, and not an alternative to, other provisions of this part that authorize the commissioner to issue orders or to take other action on account of a violation of this part.
(d)
Subsection (a) is in addition to, and not an alternative to, any criminal penalties that may be available under §
45-8-223
or any other criminal laws.
Acts 1989, ch. 124, § 19.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 8 - SMALL BUSINESS INVESTMENT DEVELOPMENT (§§ 45-8-101 — 45-8-226) › Part 2 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS (§§ 45-8-201 — 45-8-226) › Section 45-8-220 - Show cause order - Appointment of receiver

(a)
If the commissioner finds that a licensee is insolvent, or the licensee is transacting business without authority or in violation of this part or any other law, or it is contrary to the purposes of this part for the licensee to continue business, the commissioner shall communicate the facts to the attorney general and reporter who shall file in the chancery court, in any county where the licensee is doing business, a complaint setting forth the facts and applying for an order requiring the licensee to show cause why its business should not be closed.
(b)
In a proper case made, the chancery court shall have the power to appoint a receiver to take charge of, settle and wind up the affairs of a licensee under the direction of the court, to enjoin the licensee from doing business, or to make other orders or decrees as the circumstances warrant and the court deems proper.
Acts 1989, ch. 124, § 20.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 8 - SMALL BUSINESS INVESTMENT DEVELOPMENT (§§ 45-8-101 — 45-8-226) › Part 2 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS (§§ 45-8-201 — 45-8-226) › Section 45-8-223 - Intentional violators - Penalties

(a)
A person who knowingly commits an act that violates §
45-8-222
commits a Class A misdemeanor.
(b)
This section does not apply to an act committed or omitted in good faith in conformity with an order or rule of the commissioner, notwithstanding that order or rule is later amended, rescinded, or repealed, or determined by judicial or other authority to be invalid for any reason.
(c)
Nothing in this part limits the power of the state to punish a person for an act that constitutes a crime under any statute.
Acts 1989, ch. 124, § 23; 1989, ch. 591, § 1.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 8 - SMALL BUSINESS INVESTMENT DEVELOPMENT (§§ 45-8-101 — 45-8-226) › Part 2 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS (§§ 45-8-201 — 45-8-226) › Section 45-8-224 - Report of criminal violations

It is the duty of the BIDCO to submit to the commissioner a report of any apparent criminal violation known by it to have occurred. The commissioner shall submit to the district attorneys general of the respective judicial districts reports of apparent violations of laws. The commissioner shall also report the violation to the appropriate division of the Tennessee bureau of investigation.
Acts 1989, ch. 124, § 24.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 8 - SMALL BUSINESS INVESTMENT DEVELOPMENT (§§ 45-8-101 — 45-8-226) › Part 2 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS (§§ 45-8-201 — 45-8-226) › Section 45-8-225 - Report of accomplishments

The commissioner shall publish annually and provide to the governor and to each member of the general assembly a report that summarizes the department's accomplishments under this part in promoting economic development in this state. At the minimum, the information shall include aggregate statistics on each of the following:
(1)
The number and dollar amount of provisions of financing assistance made by licensees to business firms;
(2)
The number and dollar amount of provisions of financing assistance made by licensees to business firms classified in broad categories of industry such as divisions of the standard industrial classification manual;
(3)
The number and dollar amount of provisions of financing assistance made by licensees to minority owned business firms and to female owned business firms; and
(4)
Estimates of the number of jobs created or retained.
Acts 1989, ch. 124, § 26.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 8 - SMALL BUSINESS INVESTMENT DEVELOPMENT (§§ 45-8-101 — 45-8-226) › Part 2 - BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS (§§ 45-8-201 — 45-8-226) › Section 45-8-226 - Inapplicability of Section 45-8-212 to well capitalized licensee

The requirements of §
45-8-212
shall not be applicable to a well capitalized licensee; provided, that within thirty (30) days of ceasing to be well capitalized, a licensee must apply for commissioner approval in order to retain any business acquired without the commissioner's prior approval.
Acts 1997 , ch. 131, § 8.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 9 - INTERNATIONAL BANKING (§§ 45-9-101 — 45-9-105) › Section 45-9-101 - Legislative intent

The general assembly declares that it is the purpose of this chapter to provide for the establishment of international banking and financial corporations chartered and operating under Tennessee law with powers sufficiently broad to enable them to compete effectively with similar institutions organized under other jurisdictions and laws, specifically institutions organized under § 25(a) of the Federal Reserve Act.
Acts 1983, ch. 104, § 2.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 9 - INTERNATIONAL BANKING (§§ 45-9-101 — 45-9-105) › Section 45-9-102 - Certificate of authority by commissioner

The commissioner of financial institutions (hereinafter "the commissioner") may grant a certificate of authority to any Tennessee corporation organized under this chapter for the purpose of engaging in international or foreign banking or other international or foreign financial operations; provided, that the corporation's charter is sufficiently limited so that no corporation organized under this chapter may carry on any part of its business in Tennessee or in the United States, except business that, in the opinion of the commissioner, is incidental to its international or foreign business.
Acts 1983, ch. 104, § 3; impl. am., 1983, ch. 216, §§ 1-9.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 9 - INTERNATIONAL BANKING (§§ 45-9-101 — 45-9-105) › Section 45-9-103 - Corporate charter

To the extent that the charter of a corporation organized under this chapter is more limited or restrictive than this chapter otherwise permits, the corporation shall be bound by the terms of its charter until such time or times as that charter is amended, subject to the approval and acceptance of the commissioner, to incorporate any other provision or provisions permitted by this chapter.
Acts 1983, ch. 104, § 4.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 9 - INTERNATIONAL BANKING (§§ 45-9-101 — 45-9-105) › Section 45-9-104 - Applicability of other laws

(a)
Chapters 1 and 2 of this title apply to any corporation organized under this chapter unless and to the extent the commissioner, exercising discretion, deems the provision or provisions or part of the provisions to be inconsistent with the purpose or purposes of this chapter or otherwise inapplicable to corporations organized under this chapter.
(b)
All other laws of Tennessee, except to the extent expressly inconsistent herewith, shall apply to corporations organized under this chapter.
Acts 1983, ch. 104, § 5.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 9 - INTERNATIONAL BANKING (§§ 45-9-101 — 45-9-105) › Section 45-9-105 - Rules and regulations

The commissioner has the authority to issue rules and regulations that the commissioner, who has sole discretion with regard to the rules and regulations, deems necessary to carry out the purpose or purposes of this chapter.
Acts 1983, ch. 104, § 6.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 10 - FINANCIAL RECORDS PRIVACY ACT (§§ 45-10-101 — 45-10-119) › Section 45-10-101 - Short title

This chapter shall be known and may be cited as the "Financial Records Privacy Act."
Acts 1983, ch. 224, § 1.