reglab/statecodes huggingface dataset:
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 45-10-102 - Chapter definitions

As used in this chapter, and in any subpoena issued pursuant to this chapter, unless the context otherwise requires:
(1)
"Custodian" means either the "immediate custodian," or any person to whom the "immediate custodian" reports, the auditor or any other person designated by a corporation's board of directors to respond to a subpoena issued pursuant to this chapter. "Immediate custodian" means the person preparing, preserving, using, supervising the using or preparation of the financial records, and also includes any person to whom the person reports who is familiar with the preparation, use and maintenance of the records;
(2)
"Customer" means a depositor, borrower, member, lessee, other person, or the personal or legal representative or estate thereof, who has, has had, or has contemplated a relationship with the financial institution that caused the financial institution to create, obtain, preserve or maintain financial records pertaining to the person or the person's affairs;
(3)
"Financial institution" means a bank, savings and loan association, industrial loan and thrift company, credit union, mortgage broker, mortgage banker, or leasing company accepting deposits, making or arranging loans and making or arranging leases;
(4)
"Financial records" or "records" means any original document, any copy of an original document, or any information contained in the document, other than a customer's name, address, and account number, held by or in the custody of a financial institution, where the document, copy or information is identifiable as pertaining to one (1) or more customers of the institution;
(5)
"Government authority" means an agency or department of the state, or any officer, employee, or agent thereof;
(6)
"Issuer" means any person that causes to be issued a subpoena for the production of records;
(7)
"Person" means any individual, partnership, corporation, association, trust or any other legal entity organized under the laws of this state, including any department or agency of this state, any county or municipal corporation located in this state, and any court of this state or of the United States;
(8)
"Subpoena" means any writ, order, or other writing directed to a financial institution, or an officer thereof, and requiring the production of a financial record or records; and
(9)
"Supervisory agency" means:
(A)
The federal deposit insurance corporation;
(B)
The national credit union administration;
(C)
The federal reserve board;
(D)
The United States comptroller of the currency;
(E)
The department of financial institutions; and
(F)
Any other agency of this state or the United States that is empowered to regulate financial institutions.
Acts 1983, ch. 224, § 2; 1984, ch. 616, §§ 1-3; 1995, ch. 309, §§ 1, 2.
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 45-10-104 - Requisites for disclosure - Effect of disclosure

(a)
Except as provided in §
45-10-103
, a financial institution may not disclose to any person, except to the customer or the customer's agent, any financial records relating to that customer unless:
(1)
The customer has authorized disclosure to that person as provided in §
45-10-105
; or
(2)
The financial records are disclosed in response to a lawful subpoena that meets the requirements of §§
45-10-106
and
45-10-107
.
(b)
Nothing in this chapter shall preclude any financial institution, or any officer, employee, or agent of a financial institution, from notifying a government authority that the institution, or officer, employee, or agent has information that the financial institution or its representative believes may be relevant to a possible violation of any statute or regulation. The information may include the name or other identifying or descriptive information concerning any individual, corporation, or account involved in any suspected illegal activity, and a description of the activity. The information may be disclosed notwithstanding any law or regulation of this state to the contrary. Nothing in this section shall create any duty to provide any information to a governmental authority except in accordance with subsection (a), nor relieve any duty to provide information to a governmental authority when otherwise required by law. Any financial institution, or officer, employee, or agent thereof making a disclosure of information pursuant to this subsection (b), shall not be liable to any person under any law or regulation of this state or political subdivision thereof, for disclosure or for any failure to disclose information required or permitted under this section.
Acts 1983, ch. 224, § 4; 1995, ch. 309, §4; 2003 , ch. 98, § 1.
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 45-10-105 - Authorization by customer

(a)
A customer may authorize disclosure of financial records pertaining to the customer by signing and dating a statement authorizing the disclosure; or, if acceptable to the financial institution, a customer may provide authorization orally. The authorization may specify:
(1)
The name of the person to which disclosure is authorized;
(2)
The financial records that are authorized to be disclosed; and
(3)
The period of time during which the authorization is effective.
(b)
No authorization shall be required by a financial institution as a condition of doing business with the financial institution.
Acts 1983, ch. 224, § 5.
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 45-10-106 - Service of subpoena on financial institution

A subpoena authorizing the production of financial records may be served upon a financial institution only if:
(1)
A copy of the subpoena has been served upon the customer, if the customer is available for service, in the manner provided by law for the service of subpoena, or, in any judicial proceeding in which the customer is a named party, a copy of the subpoena has been served on the customer in the manner provided for the service of pleadings subsequent to the original complaint by the Tennessee Rules of Civil Procedure; and
(2)
The customer, in the case of a judicial subpoena issued in a proceeding in which the customer is not a named party, has not moved to quash the subpoena within ten (10) days after service of a copy of the subpoena on the customer; or in the case of a nonjudicial subpoena, the customer has not notified the issuer, within ten (10) days after service of a copy of the subpoena on the customer, that the customer objects to the subpoena, in which case the issuer must petition an appropriate court and obtain approval of the court before issuing the subpoena. The appropriate court shall be any court of record in the county where the customer is located, if a resident of Tennessee; otherwise the county where the financial institution is located.
Acts 1983, ch. 224, § 6; 1984, ch. 616, § 5; 1995, ch. 309, § 5.
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 45-10-108 - Bond

On motion of any affected party, and for good cause shown, the court may require the person requesting the production of any records of a financial institution in a civil action to execute a bond, with sufficient surety, in an amount deemed sufficient by the court.
Acts 1983, ch. 224, § 8.
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 45-10-109 - Expenses to be taxed as costs

In all judicial proceedings, the reasonable expenses of a financial institution in producing records in response to a subpoena shall be taxed as costs, without regard to the amount of any bond, and in all other instances, the issuer shall pay the financial institution's reasonable expenses incurred in complying with the subpoena. The financial institution shall submit to the issuer, either with the records or within thirty (30) days after delivering the records, a statement as to its charges for preparing and delivering the records. Charges by the financial institution at rates that do not exceed those established by the financial institution's published fee schedule shall be deemed reasonable unless otherwise determined by the appropriate court after notice and a hearing.
Amended by 2017 Tenn. Acts, ch. 264,s 4, eff. 7/1/2017.
Acts 1983, ch. 224, § 9.
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 45-10-110 - Compliance with subpoena duces tecum

Except as hereinafter provided, when a subpoena duces tecum is served upon a custodian of records of any financial institution in an action or proceeding in which the financial institution is not a party, and the subpoena requires the production of all or any part of the records of the financial institution relating to any customer of the financial institution, it shall be sufficient compliance with the subpoena if the custodian within fourteen (14) days after being served with a subpoena duces tecum, files with the court clerk or the issuer, either by personal delivery or certified or registered mail, a true and correct copy, which may be a copy reproduced on film or other reproducing material by microfilming, photographing, photostating or other approximate process, or a facsimile, exemplification or copy of the reproduction or copy of all records specifically described in the subpoena.
Acts 1983, ch. 224, § 10.
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 45-10-111 - Wrapping and delivery of copy of records

The copy of the records shall be separately enclosed in an inner envelope or wrapper, sealed, with the title and number of the action, name of custodian and date of subpoena clearly inscribed on the sealed envelope or wrapper. The sealed envelope or wrapper shall then be enclosed in an outer envelope or wrapper, sealed, and directed as follows:
(1)
If the subpoena directs attendance in court, to the clerk of the court or to the judge of the court;
(2)
If the subpoena directs attendance at a deposition, to the officer before whom the deposition is to be taken, at the place designated in the subpoena for the taking of the deposition or at the officer's place of business; or
(3)
In other cases, to the issuer.
Acts 1983, ch. 224, § 11.
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 45-10-112 - Opening of sealed envelope

Unless the sealed envelope or wrapper is returned to a witness who is to appear personally, the copy of the records shall remain sealed and shall be opened only at the time of trial, deposition, or other hearing, upon the direction of the judge, court, officer, body, tribunal or other issuer conducting the proceeding, in the presence of all parties who have appeared in person or by counsel at the trial, deposition, hearing or other proceeding.
Acts 1983, ch. 224, § 12.
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 45-10-113 - Affidavit of custodian

(a)
The records shall be accompanied by an affidavit of a custodian stating in substance that:
(1)
The affiant is duly authorized custodian of the records and has authority to certify the records;
(2)
The copy is a true copy of all the records described in the subpoena; and
(3)
The records were prepared by the personnel of the financial institution's business at or near the time of the act, condition or event reported therein.
(b)
If the financial institution has none of the records described, or only part of the records, the custodian shall so state in the affidavit and file the affidavit and the records that are available in the manner prescribed in this chapter. The filing of an affidavit with respect to reasonable charges shall be sufficient proof of the expense, which shall be taxed as costs of court.
Acts 1983, ch. 224, § 13.
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 45-10-114 - Copy and affidavit as evidence

The copy of the record shall be admissible in evidence to the same extent as though the original thereof were offered and the custodian had been present and testified to the matters stated in the affidavit. The affidavit shall be admissible in evidence and the matters stated therein shall be presumed true in the absence of a preponderance of evidence to the contrary. When more than one (1) person has knowledge of the facts, more than one (1) affidavit may be made.
Acts 1983, ch. 224, § 14.
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 45-10-115 - Personal attendance of custodian - Form of subpoena

(a)
Where the personal attendance of the custodian is required, the subpoena duces tecum shall contain a clause that reads:
"The procedure authorized pursuant to the Financial Records Privacy Act §§
45-10-110
- 45-10-113 will not be deemed sufficient compliance with this subpoena."
(b)
Where both the personal attendance of the custodian and the production of the original record are required, the subpoena duces tecum shall contain a clause that reads:
"Original records are required, and the procedure authorized pursuant to the Financial Records Privacy Act §§
45-10-110
- 45-10-113 will not be deemed sufficient compliance with this subpoena."
(c)
Where the personal attendance of the custodian is required, the immediate custodian or immediate custodians of the records required shall appear, and the custodian or custodians shall be compensated as witnesses, in addition to the reasonable cost of producing the records being taxed as costs of court.
Acts 1983, ch. 224, § 15.
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 45-10-116 - Substitution of copies for original records

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.
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 45-10-119 - Administrative subpoena for records relevant to financial exploitation

(a)
A financial institution shall provide access to or copies of records that are relevant to suspected actual or attempted financial exploitation, as defined in §
45-2-1202
, in response to an administrative subpoena that satisfies the requirements of §
45-10-103(8)
issued by the department of human services, adult protective services as provided in §
71-6-103(j)(4)(A)
. The records requested pursuant to this subsection (a) must be limited to historical records as well as records relating to the most recent transaction or transactions that may comprise financial exploitation not to exceed thirty (30) calendar days prior to the first transaction that was reported, or thirty (30) calendar days after the last transaction that was reported.
(b)
The administrative subpoena and records provided under this section are exempt from the customer consent and customer notice requirements of §§
45-10-105
and
45-10-106
.
(c)
A financial institution has up to fourteen (14) business days to respond to an administrative subpoena described in subsection (a).
(d)
The department of human services must provide notice to the customer whose records are requested pursuant to subsection (a) not later than thirty (30) days after receipt of the records from the financial institution. However, the department may delay the notice to the customer by seeking a judicial delay pursuant to §
45-10-117
.
Added by 2017 Tenn. Acts, ch. 264,s 3, eff. 7/1/2017.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 11 - FINANCIAL INSTITUTIONS CONVERSION ACT (§§ 45-11-101 — 45-11-110) › Section 45-11-101 - Short title

This chapter shall be known and may be cited as the "Financial Institutions Conversion Act of 1985."
Acts 1985, ch. 174, § 1.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 11 - FINANCIAL INSTITUTIONS CONVERSION ACT (§§ 45-11-101 — 45-11-110) › Section 45-11-102 - Chapter definitions

As used in this chapter, unless the context otherwise requires:
(1)
"Capital stock financial institution" means a financial institution, the ownership of which rests in the holders of shares of capital stock, who may receive dividends on their shares, and who have the sole right to vote on matters affecting the financial institution;
(2)
"Converting institution" means a financial institution converting to another type of financial institution;
(3)
"Financial institution" means a savings and loan association, bank, savings bank, credit union, or trust company organized under the laws of any state or organized under the laws of the United States;
(4)
"Mutual financial institution" means an association or savings bank or credit union, the ownership of which rests in members who receive interest on their deposit accounts, and who have the sole right to vote on all matters affecting the financial institution; and
(5)
"Resulting financial institution" means the financial institution resulting from a conversion and having its principal place of business in this state.
Amended by 2018 Tenn. Acts, ch. 741, Secs.s 1, s 2eff. 4/18/2018.
Acts 1985, ch. 174, § 2; 1991, ch. 33, §§1, 2; 2008 , ch. 968, §§ 1, 2.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 11 - FINANCIAL INSTITUTIONS CONVERSION ACT (§§ 45-11-101 — 45-11-110) › Section 45-11-103 - Scope

This chapter shall not be construed to modify, limit or repeal the provisions of chapter 2, part 13 of this title, or chapter 3, part 11 of this title, except as expressly stated in this chapter.
Acts 1985, ch. 174, § 2.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 11 - FINANCIAL INSTITUTIONS CONVERSION ACT (§§ 45-11-101 — 45-11-110) › Section 45-11-104 - Conversion of charter

Any financial institution may apply to the commissioner for permission to convert its charter in order to do business as another type of financial institution in accordance with the procedures prescribed in this chapter.
Acts 1985, ch. 174, § 2.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 11 - FINANCIAL INSTITUTIONS CONVERSION ACT (§§ 45-11-101 — 45-11-110) › Section 45-11-106 - Approval by stockholders of converting financial institution

(a)
To be effective, a plan of conversion for a stock-owned financial institution must be approved by the stockholders of the converting financial institution by a majority vote of the outstanding voting stock of each class at a meeting called to consider such action, which vote shall constitute the adoption of the charter and bylaws of the resulting financial institution.
(b)
To be effective, a plan of conversion for a mutually-owned financial institution must be approved by a majority vote of those members of the institution qualified to vote in person or by mail ballot at a meeting called to consider such action; provided, however, that a plan of conversion by a credit union shall be approved in accordance with the membership approval process for a federally insured credit union, to the extent such membership approval process is applicable.
(c)
Prior to mailing, notice of the meeting of shareholders or members and the proxy statement or mail ballot form shall be submitted to the commissioner for approval. The commissioner may require changes in the disclosures and the proxy or mail ballot provided to the stockholders or members to assure full and adequate disclosure prior to those documents being mailed to stockholders or members.
(d)
Notice of the meeting and other disclosures shall be mailed to each stockholder or member thirty (30) days prior to the date of the meeting called to consider the conversion.
Acts 1985, ch. 174, §2; 2008 , ch. 968, § 5.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 11 - FINANCIAL INSTITUTIONS CONVERSION ACT (§§ 45-11-101 — 45-11-110) › Section 45-11-107 - Effective date of conversion - Certificate of conversion

(a)
The conversion shall, unless a later date is specified in the plan of conversion, become effective upon the filing with the commissioner of the executed plan of conversion, together with a copy of the resolution of the stockholders or members of the converting financial institution approving it, certified by the financial institution's president or a vice president and a cashier.
(b)
The commissioner shall thereupon approve the proposed charter of the resulting financial institution for filing with the secretary of state and issue to the resulting financial institution a certificate of conversion.
(c)
(1)
The certificate of conversion shall be issued after the following conditions have been met:
(A)
Provisions of the plan of conversion for successors to fiduciary positions held by the converting institution have been implemented; and
(B)
A commitment for federal deposit insurance effective as of the proposed effective date of conversion has been received.
(2)
The certificate shall be conclusive evidence of the conversion and correctness of all proceedings therefor in all courts and places, and shall be recorded in the same manner as is provided for recording of a charter of the institution.
Acts 1985, ch. 174, §2; 2008 , ch. 968, § 6.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 11 - FINANCIAL INSTITUTIONS CONVERSION ACT (§§ 45-11-101 — 45-11-110) › Section 45-11-108 - Continuation of corporate entity

(a)
From and after the effective date of conversion, the resulting institution shall be deemed to be a continuation of the converting institution such that all property of the converting institution, including all right, title and interest in and to all property of whatsoever kind, whether real, personal or mixed, and things and action, and all rights, privileges and interests, and assets of any conceivable value or benefit that are then existing, or pertaining to it, or that would inure to it, shall immediately be vested in and continue to be the property of the resulting institution, by act of law and without any conveyance or transfer or without further act or deed; and the institution shall have, hold and enjoy the property in its own right as fully and to the same extent as the property that was possessed, held and enjoyed by the converting institution; and, as of the effective date of the conversion, the resulting institution shall have and shall succeed to all the rights, obligations and relations of the converting institution.
(b)
If the resulting institution is a savings and loan association or bank or a savings bank, it may continue to operate as branch offices all offices of the converting institution in existence or applications filed for branches pending approval by the appropriate authority. For the purpose of §
45-3-301
and chapter 2 of this title, the date chartered will be the date the converting institution was chartered prior to conversion.
(c)
Any pending action or other judicial proceeding to which the converting institution is a party shall not be deemed to have been abated or to have been discontinued by reason of the conversion but may be prosecuted to a final judgment, order or decree in the same manner as if the action had not been taken; and the institution resulting from the conversion may continue the action in its new name; and any judgment, order or decree may be rendered for or against it that might have been rendered for or against the converting institution previously involved in the judicial proceeding.
(d)
The resulting institution shall be liable for all obligations of the converting institution that existed prior to the action; and the action taken shall not prejudice the right of a creditor of the converting institution to have its debts paid out of the assets throughout, nor shall the creditor be deprived of, or prejudiced in, any action against the officers, directors, incorporators or members of the converting institution for neglect or misconduct.
Acts 1985, ch. 174, § 2; 1985, ch. 268, § 2; 1991, ch. 33, § 3.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 11 - FINANCIAL INSTITUTIONS CONVERSION ACT (§§ 45-11-101 — 45-11-110) › Section 45-11-109 - Fees, commissions or other forms of consideration prohibited

A director, officer, committee member, agent or senior management employee of a credit union, and immediate family members of such individuals shall not, directly or indirectly, receive a fee, commission, or other consideration, other than that person's usual salary or compensation for aiding, promoting, or assisting in a conversion under this chapter.
Acts 2008, ch. 968, § 7.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 11 - FINANCIAL INSTITUTIONS CONVERSION ACT (§§ 45-11-101 — 45-11-110) › Section 45-11-110 - Powers of commissioner - Rules and regulations

The commissioner is granted the power to promulgate substantive and procedural rules and regulations to carry out the purposes of this chapter. The rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
Acts 2008, ch. 968, § 8.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-101 - Short title

This chapter shall be known and may be cited as the "Flexible Credit Act."
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-102 - Chapter definitions

As used in this chapter, unless the context otherwise requires:
(1)
"Commissioner" means the commissioner of financial institutions or the commissioner's designee;
(2)
(A)
"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;
(B)
For purposes of this subdivision (2), 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 subdivision (2), the commissioner may determine whether a person, in fact, controls another person;
(3)
"Controlling person" means any person in control of a licensee;
(4)
"Department" means the department of financial institutions;
(5)
"Flex loan" means a loan made pursuant to a flex loan plan;
(6)
"Flex loan plan" means a written agreement subject to this chapter between a licensee and a customer establishing an open-end credit plan under which the licensee contemplates repeated noncommercial loans for personal, family, or household purposes, that:
(A)
May be unsecured or secured by personal property;
(B)
May be without fixed maturities or limitation as to the length of term; and
(C)
Are subject to prepayment in whole or in part at any time without penalty;
(7)
"Licensee" means a person licensed to offer flex loans pursuant to this chapter; and
(8)
"Person" means an individual, group of individuals, partnership, association, corporation, or any other business unit or legal entity.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-103 - License required to engage in business of making flex loans - Designation of agent for service of process by nonresident licensees

(a)
No person shall engage in the business of making flex loans unless the person is licensed to make flex loans pursuant to this chapter. A person shall be deemed to be engaged in the business of making flex loans in this state if the person induces a consumer, while located in this state, to enter into a flex loan plan in this state through the use of the internet, facsimile, telephone, or other means. A separate license shall be required for each location from which the business of making flex loans is conducted.
(b)
Any nonresident person seeking a license under this chapter shall furnish the commissioner with the name and address of a resident of this state upon whom notices or orders issued by the commissioner, or process affecting a licensee under this chapter, may be served. The nonresident licensee shall promptly notify the commissioner in writing of every change in its designated agent for service of process, and the change shall not become effective until approved by the commissioner.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-104 - Qualifications for licensure - Continuing nature

(a)
To qualify for a license to make flex loans, an applicant shall meet the following requirements:
(1)
The applicant has a tangible net worth that comprises tangible assets less liabilities of not less than fifty thousand dollars ($50,000) 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 competence, experience, integrity and financial ability of any person who is a director, officer, or ten percent (10%) or more shareholder of the applicant or who 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.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-105 - Contents of written application for license

Each application for a license shall be in writing and made under oath or affirmation 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 thereof;
(2)
The location in this state where the registered agent of the applicant shall be located; provided, that "registered agent of the applicant" includes a person designated by the applicant for accepting notices or orders by the commissioner, or process affecting the applicant, pursuant to §
45-12-103
; and
(3)
Other data and information the commissioner may require with respect to the applicant, and its directors, trustees, officers, members, managing employees or agents.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-107 - Investigation of applicants - Issuance of license - Posting of license - Term of license

(a)
Upon the filing of an application in a form prescribed by the commissioner, accompanied by the fee and documents required in §
45-12-106
, the commissioner shall investigate to ascertain whether the requirements prescribed by §
45-12-104
have been satisfied. If the commissioner finds that the requirements have been satisfied, and approves the documents, the commissioner shall issue to the applicant a license to engage in the business of making flex loans in this state.
(b)
The license shall be kept conspicuously posted in the place of business of the licensee.
(c)
A license issued pursuant to this chapter shall remain in force and effective through the remainder of the year ending December 31 after its date of issuance unless earlier surrendered, suspended or revoked pursuant to this chapter.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-108 - Denial of application - Hearing

(a)
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.
(b)
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 a written demand to the commissioner for a hearing before the commissioner on the question of whether the license should be granted.
(c)
Any hearing on the denial of a license 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 a license is subject to review under the Uniform Administrative Procedures Act.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-109 - Expiration of license - Renewal - Fees - Biennial license arrangement - Criminal history records check

(a)
Licenses issued pursuant to this chapter shall expire on December 31. Each license may be renewed for the ensuing twelve-month period upon application by the license holder showing continued compliance with the requirements of §
45-12-104
and the payment to the commissioner annually, between November 1 and December 31, of a license renewal fee of five hundred dollars ($500). If a supervision fee is established pursuant to §
45-1-118
, the commissioner shall require licensees under this chapter to, instead, pay the nonrefundable supervision fee in place of the license renewal fee.
(b)
A licensee making timely and complete application for renewal of its license shall be permitted to continue to operate under its existing license until its application is approved or denied.
(c)
The commissioner may establish a biennial license arrangement for the filing of the application for license renewal, but in no case shall the license fee or supervision fee, if established pursuant to §
45-1-118
, be payable for more than one (1) year at a time.
(d)
(1)
In connection with an application for license renewal, the commissioner may require a licensee to consent to a criminal history records check and to provide with the application fingerprints in a form acceptable to the commissioner. The commissioner may require such consent and fingerprints from an individual who is a director, officer, or ten percent (10%) or more shareholder of the licensee, or who owns or controls the licensee, as well as from any other individual associated with the licensee as is reasonably necessary to meet the purposes of this chapter. Failure to provide the consent and fingerprints within thirty (30) days of the commissioner's request shall constitute grounds for the commissioner to deny the application for license renewal.
(2)
A criminal history records check conducted pursuant to this subsection (d) shall be conducted by the Tennessee bureau of investigation, the federal bureau of investigation, or both, and the results of the criminal history records check shall be forwarded to the commissioner. All costs incurred in conducting the criminal history records check shall be paid by the licensee, in addition to other fees required by this chapter.
Amended by 2015 Tenn. Acts, ch. 438,s 1, eff. 5/18/2015.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-110 - License nontransferable and nonassignable - Change in control of licensee - Notification to department of change in place of business

(a)
A license issued pursuant to this chapter is not transferable or assignable.
(b)
(1)
The prior written approval of the commissioner is required for the continued operation of a flex loan business whenever a change in control of a licensee is proposed. The commissioner may require information deemed necessary to determine whether a new application is required. Reasonable and actual costs incurred by the commissioner in investigating a change of control request shall be paid by the person requesting approval.
(2)
Whenever control is acquired or exercised in violation of this section, the license shall be deemed revoked as of the date of the unlawful acquisition of control. The licensee or its controlling person shall surrender the license to the commissioner on demand.
(c)
A licensee shall notify the department five (5) days before any change in the licensee's principal place of business, branch office or name.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-111 - Interest, fees, and charges

(a)
Notwithstanding any other statutory limitation, a licensee authorized to make flex loans under this chapter may charge and collect interest, fees, and charges in a manner consistent with this section.
(b)
A licensee may charge and collect a periodic interest rate not to exceed twenty-four percent (24%) per annum.
(c)
(1)
In addition to the periodic interest rate authorized under subsection (b), a licensee may also charge and collect a customary fee to defray the ordinary costs of opening, administering, and terminating a flex loan plan, including, but not limited to, costs associated with:
(A)
Underwriting and documenting the account;
(B)
Securing and maintaining account information;
(C)
Validating customer information;
(D)
Offering electronic and phone access to accounts;
(E)
Processing account transactions;
(F)
Responding to customer inquiries;
(G)
Providing periodic billing statements;
(H)
Inspection, verification, and protection of collateral and establishment, perfection, and release of the security interest; and
(I)
All other services or activities conducted by the licensee under the flex loan plan.
(2)
The customary fee shall not be deemed interest for any purpose of law and shall not exceed a daily rate of seven-tenths of one percent (0.7%) of the average daily principal balance in any billing cycle.
(d)
No flex loan plan under this chapter shall have an outstanding principal balance in excess of four thousand dollars ($4,000) at any time.
(e)
Any flex loan plan under this chapter shall require payment on or before the due date of each billing cycle in an amount sufficient to reduce any outstanding principal balance by at least three percent (3%) per calendar month.
(f)
(1)
In the event a customer defaults under the terms of a flex loan plan and the licensee refers the customer's account to an attorney, including a regular salaried employee of the licensee, for collection, the licensee may:
(A)
If the flex loan plan so provides, charge and collect from the customer a reasonable attorney's fee; and
(B)
If the flex loan plan, or in the case of secured plans, the security agreement or similar instrument, so provides, recover from the customer all collection and court costs, including, in the case of secured plans, all costs of enforcing the security agreement or similar instrument actually incurred by the licensee, including those incurred on appeal.
(2)
A licensee may charge and collect interest following default of the customer or judgment in favor of the licensee at the periodic rate permitted by this section.
(3)
Disposition of property after default shall occur in a commercially reasonable manner in accordance with title 47, chapter 9, part 6.
(g)
If a check is returned to a licensee from a payer financial institution due to insufficient funds, no licensee shall have the authority to assess a handling charge against the maker or drawer of the returned check.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-112 - Licensee to provide to prospective customers written explanation of interest, fees, and charges - Requirements for account-opening statement - Billing statements

(a)
A licensee shall provide each prospective customer, before consummation of a flex loan plan, a written explanation, in clear, understandable language, of the interest, fees, and charges to be charged by the licensee. The style, content and method of executing the required written explanation shall comply with federal truth-in-lending laws and shall contain a statement that the customer may prepay the unpaid balance in whole or in part at any time without penalty. The commissioner may promulgate rules establishing additional requirements in order to assure complete and accurate disclosure of the interest, fees, and charges to be charged by a licensee under a flex loan plan.
(b)
The account-opening statement for any flex loan plan shall include, along with other state or federal law requirements:
(1)
A next-business-day customer's right of rescission for any requested draw under the flex loan plan; and
(2)
A notice informing the customer that complaints may be made to the department, including the department's telephone number and address.
(c)
The account-opening statement for any flex loan plan shall not require or provide the licensee the authority to require the customer to draw the full amount of credit available under a flex loan plan at any time.
(d)
A licensee shall provide customers with a periodic billing statement in compliance with federal truth-in-lending laws.
(e)
If two (2) or more customers having the same residence are authorized to obtain extensions of credit under the flex loan plan, the statement of provisions of the plan shall be provided to one (1) of the customers as may be designated in the plan, and the billing statements required by law shall be rendered to such customer.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-113 - Books, accounts and records - Limitations and requirements applicable to operation of business of making flex loans

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