reglab/statecodes huggingface dataset:
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 3 - INVESTMENT OF TRUST FUNDS (§§ 35-3-101 — 35-3-124) › Section 35-3-116 - Courts empowered to authorize retention of original investments

(a)
Any guardian, personal representative, trustee or other fiduciary may make, in the county in which appointed, application to the chancery court, or to any other court therein having concurrent jurisdiction, for permission to retain and hold in unchanged form any security or investment originally forming a part of the estate, and the court shall have the authority and power to authorize the guardian, personal representative, trustee or other fiduciary, to retain and hold in unchanged form any security or investment originally forming a part of the estate, upon it being made to appear to the court that retention of the security or investment is to the manifest interest of the estate. The authority to retain securities or investments, when granted to the fiduciary by the instrument under which the fiduciary is acting, is not affected by the foregoing provisions.
(b)
The application in every such case shall be made by bill or petition, and the beneficiaries be made the defendants and served with process, and the cause shall be conducted and heard in the same manner as other suits in chancery.
(c)
A guardian ad litem shall be appointed for all defendants under disability, and the decree of the court authorizing the retention of the securities or investments shall set out fully the reasons and object moving the court in granting to the fiduciary the authority so to do.
(d)
It is not intended to impose upon a fiduciary any duty or obligation in addition to those arising under previously existing law, nor is it intended to change, modify or alter any investment statute of the state, except insofar as variations from those statutes may be made through proceedings authorized by this section.
Acts 1945, ch. 53, §§ 1-4; mod. C. Supp. 1950, §§9596.5-9596.7 (Williams, §§ 9596.9-9596.11); T.C.A. (orig. ed.), §§ 35-316 -- 35-318.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 3 - INVESTMENT OF TRUST FUNDS (§§ 35-3-101 — 35-3-124) › Section 35-3-118 - Stocks or bonds held by fiduciary in nominee's name

(a)
Trustees, guardians and other fiduciaries owning stocks or registered bonds may hold them in the name of a nominee without mention of the fiduciary relationship in the stock certificates, stock registration books, or registered bond or bond registry; provided, that:
(1)
The records and all reports and accounts rendered by the fiduciary clearly show the ownership of the stock or bond by the fiduciary, and the facts regarding its holding; and
(2)
The nominee deposits with the fiduciary a signed statement showing the fiduciary ownership, either endorses the stock certificate or registered bond in blank, or signs a transfer power in blank, and attach it to the certificate or bond, and does not have possession of or access to the stock certificate or bond, except under the immediate supervision of the fiduciary.
(b)
The fiduciary shall be personally liable for any loss resulting from any act of the nominee in connection with the securities so held.
(c)
This section shall apply to all such fiduciary relationships.
Acts 1953, ch. 165, §§ 1, 3 (Williams, § 9596.8b); 1957, ch. 49, § 1; T.C.A. (orig. ed.), § 35-325.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 3 - INVESTMENT OF TRUST FUNDS (§§ 35-3-101 — 35-3-124) › Section 35-3-119 - Tennessee Valley authority obligations

Notwithstanding any restrictions on investments contained in any laws of this state, the state and all public officers, municipal corporations, political subdivisions, and public bodies, all banks, bankers, trust companies, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, and other persons carrying on a banking business, all insurance companies, insurance associations and other persons carrying on an insurance business, and all executors, administrators, guardians, trustees and other fiduciaries may legally invest any sinking funds, moneys or other funds belonging to them or within their control in any bonds or other obligations issued by the Tennessee Valley authority pursuant to the Tennessee Valley Authority Act of 1933 (
16 U.S.C. § 831
), and any amendment to that act, and the bonds and other obligations shall be authorized security for all public deposits, it being the purpose of this section to authorize any persons, firms, corporations, associations, political subdivisions, bodies and officers, public or private, to use any funds owned or controlled by them, including, but not limited to, sinking, insurance, investment, retirement, compensation, pension and trust funds, and funds held on deposit, for the purchase of any such bonds or other obligations. Nothing contained in this section shall be construed as relieving any person, firm or corporation from any duty of exercising reasonable care in selecting securities.
Acts 1961, ch. 128, § 1; T.C.A., § 35-326.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 3 - INVESTMENT OF TRUST FUNDS (§§ 35-3-101 — 35-3-124) › Section 35-3-120 - Federally guaranteed loans and investments

(a)
Banks, trust companies, insurance companies, building and loan associations, credit unions, trustees and others acting in a fiduciary capacity, trust funds, pension and profit-sharing funds, real estate investment trusts, and other financial institutions, originating mortgagee institutions, and other institutions approved as mortgagees and otherwise meeting the requirements of the federal housing administration or veterans administration to act as mortgagees under the programs of these agencies may:
(1)
Make loans and advances of credit and purchases of obligations representing loans and advances of credit that are eligible for credit insurance by the federal housing commissioner, and may obtain that insurance;
(2)
Make loans secured by real property or leasehold, that the federal housing commissioner insures or makes a commitment to insure, and may obtain that insurance;
(3)
Invest their funds, eligible for investment, in notes or bonds secured by mortgage or trust deed insured by the federal housing commissioner, and in debentures issued by the federal housing commissioner, and also in securities issued by the Federal National Mortgage Association; and
(4)
Make any loans and advances of credit and purchases of obligations representing loans and advances of credit that are eligible to be guaranteed or insured in whole or in part by the veterans administration or administrator of veterans affairs, or secured by real property or leasehold as the administrator of veterans affairs makes a commitment to guarantee or insure.
(b)
No law of this state, requiring security upon which loans or investments may be made, or prescribing the nature, amount or form of the security, or prescribing or limiting interest rates upon loans or investments, or limiting investments of capital or deposits, or prescribing or limiting the period for which loans or investments may be made, shall apply to loans or investments made pursuant to this section.
Acts 1961, ch. 43, §§ 1, 2; T.C.A., §§ 35-327, 35-328.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 3 - INVESTMENT OF TRUST FUNDS (§§ 35-3-101 — 35-3-124) › Section 35-3-121 - Investments in securities by banks or trust companies

Unless the governing instrument, court order, or a statute specifically directs otherwise, a bank or trust company serving as trustee, guardian, agent, or in any other fiduciary capacity may invest in any security authorized by this chapter even if that fiduciary or an affiliate of that fiduciary, as defined in [former] §
35-3-117(d)
[repealed], participates or has participated as a member of a syndicate underwriting the security, if:
(1)
The fiduciary does not purchase the security from itself or its affiliate; and
(2)
The fiduciary does not purchase the security from another syndicate member or an affiliate, pursuant to an implied or express agreement between the fiduciary or its affiliate and a selling member or its affiliate, to purchase all or part of each other's underwriting commitments.
Acts 1983, ch. 60, § 1; T.C.A., § 35-329.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 3 - INVESTMENT OF TRUST FUNDS (§§ 35-3-101 — 35-3-124) › Section 35-3-122 - Liability of fiduciaries for losses

Whenever an instrument under which a fiduciary is acting reserves to the settlor or vests an advisory or investment committee or in any other person or persons including one (1) or more other fiduciaries, to the exclusion of the fiduciary or to the exclusion of one (1) or more of several fiduciaries, authority to direct the making or retention of any investment, or to perform any other act in the management or administration of the fiduciary account, the excluded fiduciary or fiduciaries shall not be liable, either individually or as a fiduciary, for any loss resulting from the making or retention of any investment or other act pursuant to that direction.
Acts 1987, ch. 89, § 2.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 3 - INVESTMENT OF TRUST FUNDS (§§ 35-3-101 — 35-3-124) › Section 35-3-123 - Trustee liability - Action upon written directions

(a)
A trustee of a revocable, irrevocable or testamentary trust is not liable to any beneficiary for any act performed or omitted pursuant to written directions from the person holding the power to revoke, terminate or amend the trust.
(b)
A trustee of a revocable, irrevocable or testamentary trust is not liable for any investment action performed or omitted pursuant to written directions from the person to whom the power to direct the investment or management of the account is delegated by the trustor.
Acts 1989, ch. 288, § 3.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 3 - INVESTMENT OF TRUST FUNDS (§§ 35-3-101 — 35-3-124) › Section 35-3-124 - Investment in tuition units

Notwithstanding any other law to the contrary, trustees and others acting in a fiduciary capacity, including governmental agencies such as court clerks, may invest funds held in trust for a minor through the purchase of tuition units on behalf of the minor under the Tennessee College Savings Trust Act, compiled in title 49, chapter 7, part 8.
Amended by 2017 Tenn. Acts, ch. 400,s 2, eff. 7/1/2017.
Acts 1997, ch. 64, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 4 - UNIFORM COMMON TRUST FUNDS ACT (§§ 35-4-101 — 35-4-105) › Section 35-4-101 - Short title

This chapter shall be known and may be cited as the "Uniform Common Trust Fund Act."
Acts 1953, ch. 148, § 4 (Williams, § 9596.35); T.C.A. (orig. ed.), § 35-401.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 4 - UNIFORM COMMON TRUST FUNDS ACT (§§ 35-4-101 — 35-4-105) › Section 35-4-102 - Bank or trust company establishing common trust funds - Investing in trust funds

Any bank or trust company qualified to act as fiduciary in this state may establish common trust funds for the purpose of furnishing investments to itself as fiduciary, or to itself and others as cofiduciaries, or to another bank or trust company which may, as such fiduciary or cofiduciary, invest funds that it lawfully holds for investment in interests in the common trust funds, if this investment is not prohibited by the instrument, judgment, decree or order creating the fiduciary relationship, and if, in the case of cofiduciaries, the bank or trust company procures the consent of its cofiduciaries to the investment.
Acts 1953, ch. 148, § 1 (Williams, § 9596.32); 1973, ch. 378, §1; T.C.A. (orig. ed.), § 35-402.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 4 - UNIFORM COMMON TRUST FUNDS ACT (§§ 35-4-101 — 35-4-105) › Section 35-4-103 - Accounting for trust funds - Chancery court approval

(a)
Unless ordered by a court of competent jurisdiction, the bank or trust company operating the common trust funds is not required to render a court accounting with regard to the funds, but it may, by application to the chancery court, secure approval of such an accounting on such conditions as the court may establish.
(b)
When an accounting of a common trust fund is presented to a court for approval, the court shall assign a date and place for hearing and order notice thereof by:
(1)
Publication once a week for three (3) weeks, the first publication to be not less than twenty (20) days prior to the date of hearing, of a notice in a newspaper having a circulation in the county in which the bank or trust company or branch thereof operating the common trust fund is located;
(2)
Mailing not less than fourteen (14) days prior to the date of the hearing a copy of the notice to all beneficiaries of the trusts participating in the common trust fund whose names are known to the bank or trust company from the records kept by it in the regular course of business in the administration of the trusts, directed to them at the addresses shown by those records; and
(3)
Such further notice if any as the court may order.
Acts 1953, ch. 148, § 2 (Williams, § 9596.33); T.C.A. (orig. ed.), § 35-403.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 4 - UNIFORM COMMON TRUST FUNDS ACT (§§ 35-4-101 — 35-4-105) › Section 35-4-104 - Uniformity of construction and interpretation

This chapter shall be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states that enact it.
Acts 1953, ch. 148, § 3 (Williams § 9596.34); T.C.A. (orig. ed.), § 35-404.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 4 - UNIFORM COMMON TRUST FUNDS ACT (§§ 35-4-101 — 35-4-105) › Section 35-4-105 - Fiduciary relationships to which chapter applicable

This chapter applies to fiduciary relationships in existence on April 8, 1953, or established after that date.
Acts 1953, ch. 148, § 7; T.C.A. (orig. ed.), § 35-405.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 5 - JUDICIAL OR TRUST SALES (§§ 35-5-101 — 35-5-118) › Section 35-5-102 - Notice in newspaper not required

If no newspaper is published in the county in which the land is to be sold, the advertisement in a newspaper is dispensed with, unless ordered by court.
Code 1858, § 2147 (deriv. Acts 1855-1856, ch. 83, § 2); Shan., §3840; Code 1932, § 7795; T.C.A. (orig. ed.), § 35-502.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 5 - JUDICIAL OR TRUST SALES (§§ 35-5-101 — 35-5-118) › Section 35-5-103 - Posting written notices

Whenever the advertisement cannot be made in a newspaper, the officer shall make publication of the sale for thirty (30) days by written notices posted in at least five (5) of the most public places in the county, one (1) of which shall be the courthouse door, and another in the neighborhood of the defendant; if of realty, in the civil district where the land lies.
Code 1858, § 2148 (deriv. Acts 1855-1856, ch. 83, § 3); Shan., §3841; Code 1932, § 7796; Acts 1943, ch. 123, § 2; C. Supp. 1950, § 7796; T.C.A. (orig. ed.), § 35-503.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 5 - JUDICIAL OR TRUST SALES (§§ 35-5-101 — 35-5-118) › Section 35-5-105 - Notice in writing if printer refuses

If the printer will not make the publication for the rates provided in §
8-21-1301
, the officer or person conducting the sale shall make publication by written notices as provided in §§
35-5-103
and
35-5-104
.
Code 1858, § 2151 (deriv. Acts 1855-1856, ch. 83, § 3); Shan., §3844; Code 1932, § 7799; T.C.A. (orig. ed.), § 35-506.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 5 - JUDICIAL OR TRUST SALES (§§ 35-5-101 — 35-5-118) › Section 35-5-106 - Sale without advertisement is not void

Should the officer, or other person making the sale, proceed to sell without pursuing the provisions of this chapter, the sale shall not, on that account, be either void or voidable.
Code 1858, § 2152 (deriv. Acts 1855-1856, ch. 83, § 4); Shan., §3845; Code 1932, § 7800; T.C.A. (orig. ed.), § 35-507.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 5 - JUDICIAL OR TRUST SALES (§§ 35-5-101 — 35-5-118) › Section 35-5-107 - Effect of noncompliance with chapter

Any officer, or other person, referenced in §
35-5-106
who fails to comply with this chapter commits a Class C misdemeanor and is, moreover, liable to the party injured by the noncompliance, for all damages resulting from the failure.
Code 1858, § 2153 (deriv. Acts 1855-1856, ch. 83, § 5); Shan., §3846; Code 1932, § 7801; T.C.A. (orig. ed.), § 35-508; Acts 1989, ch. 591, § 113.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 5 - JUDICIAL OR TRUST SALES (§§ 35-5-101 — 35-5-118) › Section 35-5-108 - Plan of division of land - Sale of portion of land

At any time before ten o'clock a.m. (10:00 a.m.) on the day of sale, the defendant or other person whose property is to be sold may deliver to the officer or person making the sale, a plan of division of the lands to be sold, subscribed by the defendant or other person, bearing a date subsequent to the date of advertisement, in which case so much of the land as may be necessary to satisfy the debt and costs, and no more, shall be sold according to the plan furnished. If no such plan is furnished, the land may be sold without division.
Code 1858, § 2154 (deriv. Acts 1799, ch. 14, § 3); Shan., § 3847; Code 1932, § 7802; T.C.A. (orig. ed.), § 35-509.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 5 - JUDICIAL OR TRUST SALES (§§ 35-5-101 — 35-5-118) › Section 35-5-109 - Published ending time and published start time for auctions

The published ending time for auctions conducted under this chapter on an internet-based bidding platform and the published start time for an in-person auction must be between the hours of nine o'clock a.m. (9:00 a.m.) and seven o'clock p.m. (7:00 p.m.) of the day fixed in the notice or advertisement. The day fixed may be any day Monday through Saturday, but must not be fixed on a state or federal legal holiday. However, this section does not apply to sales of parcels pursuant to title 67, chapter 5.
Amended by 2019 Tenn. Acts, ch. 471,s 1, eff. 7/1/2019.
Amended by 2017 Tenn. Acts, ch. 187,s 2, eff. 4/19/2017.
Amended by 2015 Tenn. Acts, ch. 414,s 1, eff. 5/8/2015.
Amended by 2014 Tenn. Acts, ch. 912,s 3, eff. 7/1/2014.
Code 1858, § 2155 (deriv. Acts 1807, ch. 99, § 1); Shan., § 3848; Code 1932, § 7803; T.C.A. (orig. ed.), § 35-510.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 5 - JUDICIAL OR TRUST SALES (§§ 35-5-101 — 35-5-118) › Section 35-5-110 - Bidding on land sales may be reopened by clerks - Court's power not abridged

In all sales of land made under orders, and decrees of the circuit, probate, chancery, appeals and supreme courts where an advance bid of as much as ten percent (10%) of the original bid is made, the clerk, or clerk and master, of the court is empowered, at no additional fee, commission or cost, to accept the advance bid and reopen the biddings on the sale, and to receive additional bids, and to hold the sale open for advance bids to some day by the officer designated, and give the purchaser and the parties, or their attorneys of record, notice of the reopening of the biddings, and to report this action to the court for confirmation without any order or decree of the court authorizing the reopening first being had, unless the court's order or decree for the sale of the land specifically prohibits the acceptance of an advance bid; provided, that nothing in this section shall be construed as abridging the rights and jurisdiction of the court to reopen the biddings on such terms as the court may deem right.
Amended by 2014 Tenn. Acts, ch. 930,s 1, eff. 5/16/2014.
Acts 1899, ch. 37, § 1; Shan., § 3848a1; mod. Code 1932, §7804; T.C.A. (orig. ed.), § 35-511.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 5 - JUDICIAL OR TRUST SALES (§§ 35-5-101 — 35-5-118) › Section 35-5-111 - State may bid at execution or judicial sales

Whenever the state is interested in the proceeds of any execution sale or any judicial sale, to any extent whatsoever, the state, acting through its attorney general and reporter, may bid on and buy in property either real or personal, at that sale, to the same extent as any natural person might do. Any sums due and payable on behalf of the state, as costs of sale or as a part of the purchase price of the property so bid in and paid by the state, shall be paid out of the general fund of the state treasury upon the warrant of the governor.
Acts 1943, ch. 11, § 1; C. Supp. 1950, § 7804.1; T.C.A. (orig. ed.), § 35-512.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 5 - JUDICIAL OR TRUST SALES (§§ 35-5-101 — 35-5-118) › Section 35-5-112 - Auctioneer services and fee - Manner and method of sale of real property at discretion of court

(a)
Whenever real or personal property is to be sold at public sale under any order or decree of any court in this state, the court, judge or chancellor under whose jurisdiction the sale is to be made has the discretionary authority to secure the services of an auctioneer licensed in this state to conduct the public sale and to fix the auctioneer's fee, the fee to be not more than eight percent (8%) of the sale price on sales of real property and not more than ten percent (10%) of the sale price on sales of personal property, these fees not to include the expenses of sales, and to order the fee to be paid out of the proceeds of the sale.
(b)
Whenever real property is sold at a public sale conducted by an auctioneer, the manner and method of sale is at the discretion of the court. As used in this section, "public sale" includes auctions on internet-based bidding platforms, in-person, on-site, or off-site auctions, and other accepted auction methods, so long as the auctions are open for participation by the public at large. The court, in its discretion, may impose additional conditions or procedures upon the sale of property as are reasonably necessary.
(c)
If the clerk of the court or clerk and master is also a licensed auctioneer, then the clerk or clerk and master shall receive fees in that person's capacity as clerk, or clerk and master, or special commissioner, and shall not receive any extra fee as a licensed auctioneer.
Amended by 2019 Tenn. Acts, ch. 471, s 2, eff. 7/1/2019.
Amended by 2015 Tenn. Acts, ch. 414, s 2, eff. 5/8/2015.
Acts 1975, ch. 334, §§ 1, 2; 1976, ch. 772, § 1; 1978, ch. 769, §1; T.C.A., §§35-513, 35-514; 2011 , ch. 320, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 5 - JUDICIAL OR TRUST SALES (§§ 35-5-101 — 35-5-118) › Section 35-5-113 - Auction sales in divorce proceedings

The provisions and procedures of this chapter apply to all auction sales of property ordered by a court pursuant to §
36-4-121
, to accomplish the equitable division of property in divorce cases. The court, in its discretion, may impose any additional conditions or procedures upon the sale of property in divorce cases as are reasonably designed to ensure that the property is sold for its fair market value.
Acts 1986, ch. 722, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 5 - JUDICIAL OR TRUST SALES (§§ 35-5-101 — 35-5-118) › Section 35-5-115 - Discovery proceedings for nonresidents

(a)
(1)
IF a nonresident creditor holds indebtedness secured by residential real property that is located in this state and owned by a state resident, OR
(2)
IF a nonresident trustee or agent is involved in foreclosure proceedings relative to residential real property that is located in this state and owned by a resident,
(3)
THEN all discovery proceedings, including, but not limited to, the production of requested documents and the deposition of witnesses, shall be conducted in the county in which the residential real estate is located or in which the litigation is pending.
(b)
The court in which such litigation is pending may make orders consistent with the purposes of this section to prevent undue burden on any party.
Acts 2003, ch. 174, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 5 - JUDICIAL OR TRUST SALES (§§ 35-5-101 — 35-5-118) › Section 35-5-116 - Trustee as necessary party

(a)
Any trustee named in a suit or proceeding, as related to a sale of real property under a trust deed or mortgage, may plead in the answer that the trustee is not a necessary party by a verified denial, stating the basis for the trustee's reasonable belief that the trustee was named as a party solely in the capacity as a trustee under a deed of trust, contract lien, or security instrument.
(b)
Within thirty (30) days after the filing of the trustee's verified denial, a verified response is due from all parties to the suit or proceeding setting forth all matters, whether in law or fact, that rebut the trustee's verified denial.
(c)
If a party has no objection or fails to file a timely verified response to the trustee's verified denial, the trustee shall be dismissed from the suit or proceeding without prejudice.
(d)
If a respondent files a timely verified response to the trustee's verified denial, the matter shall be set for hearing. The court shall dismiss the trustee from the suit or proceeding without prejudice, if the court determines that the trustee is not a necessary party.
(e)
A dismissal of the trustee pursuant to subsections (c) and (d) shall not prejudice a party's right to seek injunctive relief to prevent the trustee from proceeding with a foreclosure sale.
(f)
A trustee shall not be liable for any good faith error resulting from reliance on any information in law or fact provided by the borrower or secured party or their respective attorney, agent, or representative or other third party.
Acts 2006, ch. 811, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 5 - JUDICIAL OR TRUST SALES (§§ 35-5-101 — 35-5-118) › Section 35-5-117 - Deficiency judgment sufficient to fully satisfy indebtedness on real property after trustee's or foreclosure sale

(a)
In an action brought by a creditor to recover a balance still owing on an indebtedness after a trustee's or foreclosure sale of real property secured by a deed of trust or mortgage, the creditor shall be entitled to a deficiency judgment in an amount sufficient to satisfy fully the indebtedness.
(b)
In all such actions, absent a showing of fraud, collusion, misconduct, or irregularity in the sale process, the deficiency judgment shall be for the total amount of indebtedness prior to the sale plus the costs of the foreclosure and sale, less the fair market value of the property at the time of the sale. The creditor shall be entitled to a rebuttable prima facie presumption that the sale price of the property is equal to the fair market value of the property at the time of the sale.
(c)
To overcome the presumption set forth in subsection (b), the debtor must prove by a preponderance of the evidence that the property sold for an amount materially less than the fair market value of property at the time of the foreclosure sale. If the debtor overcomes the presumption, the deficiency shall be the total amount of the indebtedness prior to the sale plus the costs of the foreclosure and sale, less the fair market value of the property at the time of the sale as determined by the court.
(d)
(1)
Any action for a deficiency judgment under this section shall be brought not later than the earlier of:
(A)
Two (2) years after the date of the trustee's or foreclosure sale, exclusive of any period of time in which a petition for bankruptcy is pending; or
(B)
The time for enforcing the indebtedness as provided for under §§
28-1-102
and
28-2-111
.
(2)
Nothing contained in this section shall be construed as limiting a person entitled to bring such action from electing to sue on an indebtedness in lieu of, prior to, or contemporaneously with enforcement of a deed of trust or mortgage.
Acts 2010 , ch. 834, § 1; 2011 , ch. 122, §§ 1- 4; repealed by Acts 2011 , ch. 122, § 4, effective 1/1/2013.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 5 - JUDICIAL OR TRUST SALES (§§ 35-5-101 — 35-5-118) › Section 35-5-118 - Applicability of Sections 35-5-101 (e)

The requirements of §§
35-5-101(e)
,
35-5-104(a)(4) and (5)
, and
35-5-104(b)
shall not be applicable to sales of parcels pursuant to title 67, chapter 5.
Acts 2010 , ch. 1001, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 6 - UNIFORM PRINCIPAL AND INCOME ACT (§§ 35-6-101 — 35-6-602) › Part 1 - DEFINITIONS AND FIDUCIARY DUTIES (§§ 35-6-101 — 35-6-109) › Section 35-6-101 - Short title

This chapter shall be known and may be cited as the "Uniform Principal and Income Act".
Acts 2000, ch. 829, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 6 - UNIFORM PRINCIPAL AND INCOME ACT (§§ 35-6-101 — 35-6-602) › Part 1 - DEFINITIONS AND FIDUCIARY DUTIES (§§ 35-6-101 — 35-6-109) › Section 35-6-102 - Chapter definitions

As used in this chapter, unless the context otherwise requires:
(1)
"Accounting period" means a calendar year unless another twelve-month period is selected by a fiduciary. The term includes a portion of a calendar year or other twelve-month period that begins when an income interest begins or ends when an income interest ends;
(2)
"Beneficiary" includes, in the case of a decedent's estate, an heir, legatee, and devisee and, in the case of a trust, an income beneficiary and a remainder beneficiary;
(3)
"Fiduciary" means a personal representative or a trustee. The term includes an executor, administrator, successor personal representative, special administrator, and a person performing substantially the same function;
(4)
"Income" means money or property that a fiduciary receives as current return from a principal asset. The term includes a portion of receipts from a sale, exchange, or liquidation of a principal asset, to the extent provided in part 4 of this chapter;
(5)
"Income beneficiary" means a person to whom net income of a trust is or may be payable;
(6)
"Income interest" means the right of an income beneficiary to receive all or part of net income, whether the terms of the trust require it to be distributed or authorize it to be distributed in the trustee's discretion;
(7)
"Mandatory income interest" means the right of an income beneficiary to receive net income that the terms of the trust require the fiduciary to distribute;
(8)
"Net income" means the total receipts allocated to income during an accounting period minus the disbursements made from income during the period, plus or minus transfers under this chapter to or from income during the period;
(9)
"Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency or instrumentality, public corporation, or any other legal or commercial entity;
(10)
"Principal" means property held in trust for distribution to a remainder beneficiary when the trust terminates;
(11)
"Remainder beneficiary" means a person entitled to receive principal when an income interest ends;
(12)
"Terms of a trust" means the manifestation of the intent of a settlor or decedent with respect to the trust, expressed in a manner that admits of its proof in a judicial proceeding, whether by written or spoken words or by conduct;
(13)
"Trustee" includes an original, additional, or successor trustee, whether or not appointed or confirmed by a court.
Acts 2000, ch. 829, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 6 - UNIFORM PRINCIPAL AND INCOME ACT (§§ 35-6-101 — 35-6-602) › Part 1 - DEFINITIONS AND FIDUCIARY DUTIES (§§ 35-6-101 — 35-6-109) › Section 35-6-103 - Fiduciary duties - General principles

(a)
In allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of title 35, chapter 6, a fiduciary:
(1)
Shall administer a trust or estate in accordance with the terms of the trust or the will, even if there is a different provision in this chapter;
(2)
May administer a trust or estate by the exercise of a discretionary power of administration given to the fiduciary by the terms of the trust or the will, even if the exercise of the power produces a result different from a result required or permitted by this chapter;
(3)
Shall administer a trust or estate in accordance with this chapter if the terms of the trust or the will do not contain a different provision or do not give the fiduciary a discretionary power of administration; and
(4)
Shall add a receipt or charge a disbursement to principal to the extent that the terms of the trust and this chapter do not provide a rule for allocating the receipt or disbursement to or between principal and income.
(b)
In exercising the power to adjust under §
35-6-104(a)
or a discretionary power of administration regarding a matter within the scope of this chapter, whether granted by the terms of a trust, or will or this chapter, a fiduciary shall administer a trust or estate impartially, based on what is fair and reasonable to all of the beneficiaries, considering any terms of the trust or the will manifesting the trustors' or testators' intention that the fiduciary shall or may favor one (1) or more of the beneficiaries. A determination in accordance with this chapter is presumed to be fair and reasonable to all of the beneficiaries.
Acts 2000, ch. 829, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 6 - UNIFORM PRINCIPAL AND INCOME ACT (§§ 35-6-101 — 35-6-602) › Part 1 - DEFINITIONS AND FIDUCIARY DUTIES (§§ 35-6-101 — 35-6-109) › Section 35-6-106 - Remedy

With respect to a trustee's exercise or nonexercise of the power to make an adjustment under §
35-5-104
, the sole remedy is to direct, deny, or revise an adjustment between principal and income.
Acts 2000, ch. 829, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 6 - UNIFORM PRINCIPAL AND INCOME ACT (§§ 35-6-101 — 35-6-602) › Part 1 - DEFINITIONS AND FIDUCIARY DUTIES (§§ 35-6-101 — 35-6-109) › Section 35-6-107 - Records

A trustee who elects to exercise any power or not to exercise any power under this chapter shall maintain only such records that may be necessary or appropriate in the discretion of the trustee to support such determination at the time the determination is made and shall not be required to maintain records not necessary for the administration of the trust.
Acts 2000, ch. 829, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 6 - UNIFORM PRINCIPAL AND INCOME ACT (§§ 35-6-101 — 35-6-602) › Part 2 - DECEDENT'S ESTATE OR TERMINATING INCOME INTEREST (§§ 35-6-201 — 35-6-202) › Section 35-6-202 - Distribution to residuary and remainder beneficiaries

(a)
Each beneficiary described in §
35-6-201(4)
is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in undistributed principal assets, using values as of the distribution date. If a fiduciary makes more than one (1) distribution of assets to beneficiaries to whom this section applies, each beneficiary, including one who does not receive part of the distribution, is entitled, as of each distribution date, to the net income the fiduciary has received after the date of death or terminating event or earlier distribution date but has not distributed as of the current distribution date.
(b)
In determining a beneficiary's share of net income, the following rules apply:
(1)
The beneficiary is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in the undistributed principal assets immediately before the distribution date, including assets that later may be sold to meet principal obligations;
(2)
The beneficiary's fractional interest in the undistributed principal assets must be calculated without regard to property specifically given to a beneficiary and property required to pay pecuniary amounts not in trust;
(3)
The beneficiary's fractional interest in the undistributed principal assets must be calculated on the basis of the aggregate value of those assets as of the distribution date without reducing the value by any unpaid principal obligation;
(4)
The distribution date for purposes of this section may be the date as of which the fiduciary calculates the value of the assets if that date is reasonably near the date on which assets are actually distributed.
(c)
If a fiduciary does not distribute all of the collected but undistributed net income to each person as of a distribution date, the fiduciary shall maintain appropriate records showing the interest of each beneficiary in that net income.
(d)
A fiduciary may apply the rules in this section, to the extent that the fiduciary considers it appropriate, to net gain or loss realized after the date of death or terminating event or earlier distribution date from the disposition of a principal asset if this section applies to the income from the asset.
Acts 2000, ch. 829, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 6 - UNIFORM PRINCIPAL AND INCOME ACT (§§ 35-6-101 — 35-6-602) › Part 3 - APPORTIONMENT AT BEGINNING AND END OF INCOME INTEREST (§§ 35-6-301 — 35-6-303) › Section 35-6-301 - When right to income begins and ends

(a)
An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to a trust or successive income interest.
(b)
An asset becomes subject to a trust:
(1)
On the date it is transferred to the trust in the case of an asset that is transferred to a trust during the transferor's life;
(2)
On the date of a testator's death in the case of an asset that becomes subject to a trust by reason of a will, even if there is an intervening period of administration of the testator's estate; or
(3)
On the date of an individual's death in the case of an asset that is transferred to a fiduciary by a third party because of the individual's death.
(c)
An asset becomes subject to a successive income interest on the day after the preceding income interest ends, as determined under subsection (d), even if there is an intervening period of administration to wind up the preceding income interest.
(d)
An income interest ends on the day before an income beneficiary dies or another terminating event occurs, or on the last day of a period during which there is no beneficiary to whom a trustee may distribute income.
Acts 2000, ch. 829, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 6 - UNIFORM PRINCIPAL AND INCOME ACT (§§ 35-6-101 — 35-6-602) › Part 3 - APPORTIONMENT AT BEGINNING AND END OF INCOME INTEREST (§§ 35-6-301 — 35-6-303) › Section 35-6-302 - Apportionment of receipts and disbursements when decedent dies or income interest begins

(a)
A trustee shall allocate an income receipt or disbursement other than one to which §
35-6-201(1)
applies to principal if its due date occurs before a decedent dies in the case of an estate or before an income interest begins in the case of a trust or successive income interest.
(b)
A trustee shall allocate an income receipt or disbursement to income if its due date occurs on or after the date on which a decedent dies or an income interest begins and it is a periodic due date. An income receipt or disbursement must be treated as accruing from day to day if its due date is not periodic or it has no due date. The portion of the receipt or disbursement accruing before the date on which a decedent dies or an income interest begins must be allocated to principal and the balance must be allocated to income.
(c)
An item of income or an obligation is due on the date the payer is required to make a payment. If a payment date is not stated, there is no due date for the purposes of this chapter. Distributions to shareholders or other owners from an entity to which §
35-6-401
applies are deemed to be due on the date fixed by the entity for determining who is entitled to receive the distribution or, if no date is fixed, on the declaration date for the distribution. A due date is periodic for receipts or disbursements that must be paid at regular intervals under a lease or an obligation to pay interest or if an entity customarily makes distributions at regular intervals.
Acts 2000, ch. 829, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 6 - UNIFORM PRINCIPAL AND INCOME ACT (§§ 35-6-101 — 35-6-602) › Part 3 - APPORTIONMENT AT BEGINNING AND END OF INCOME INTEREST (§§ 35-6-301 — 35-6-303) › Section 35-6-303 - Apportionment when income interest ends

(a)
In this section, "undistributed income" means net income received before the date on which an income interest ends. Undistributed income does not include an item of income or expense that is due or accrued or net income that has been added or is required to be added to principal under the terms of the trust.
(b)
When a mandatory income interest ends, the trustee shall pay to a mandatory income beneficiary who survives that date, or the estate of a deceased mandatory income beneficiary whose death causes the interest to end, the beneficiary's share of the undistributed income that is not disposed of under the terms of the trust unless the beneficiary has an unqualified power to revoke more than five percent (5%) of the trust immediately before the income interest ends. In the latter case, the undistributed income from the portion of the trust that may be revoked must be added to principal.
(c)
When a trustee's obligation to pay a fixed annuity or a fixed fraction of the value of the trust's assets ends, the trustee shall prorate the final payment if and to the extent required by applicable law to accomplish a purpose of the trust or its settlor relating to income, gift, estate, or other tax requirements.
Acts 2000, ch. 829, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 6 - UNIFORM PRINCIPAL AND INCOME ACT (§§ 35-6-101 — 35-6-602) › Part 4 - ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST (§§ 35-6-401 — 35-6-415) › RECEIPTS FROM ENTITIES (§§ 35-6-401 — 35-6-403) › Section 35-6-401 - Character of receipts

(a)
In this section, "entity" means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a trustee has an interest other than a trust or estate to which §
35-6-402
applies, a business or activity to which §
35-6-403
applies, or an asset-backed security to which §
35-6-415
applies.
(b)
Except as otherwise provided in this section, a trustee shall allocate to income money received from an entity.
(c)
A trustee shall allocate the following receipts from an entity to principal:
(1)
Property other than money;
(2)
Money received in one (1) distribution or a series of related distributions in exchange for part or all of a trust's interest in the entity;
(3)
Money received in total or partial liquidation of the entity; and
(4)
Money received from an entity that is a regulated investment company or a real estate investment trust if the money distributed is a capital gain dividend for federal income tax purposes.
(d)
Money is received in partial liquidation:
(1)
To the extent that the entity, at or near the time of a distribution, indicates that it is a distribution in partial liquidation; or
(2)
If the total amount of money and property received in a distribution or series of related distributions is greater than twenty percent (20%) of the entity's gross assets, as shown by the entity's year-end financial statements or by an attestation by an officer of the entity's gross assets immediately preceding the initial receipt. If the total amount of money and property received in a distribution or series of related distributions is equal to or less than twenty percent (20%) of an entity's gross assets, then it is not a partial liquidation.
(e)
Money is not received in partial liquidation, nor may it be taken into account under subdivision (d)(2), to the extent that it does not exceed the amount of income tax that a trustee or beneficiary must pay on taxable income of the entity that distributes the money.
(f)
A trustee may rely upon a statement made by an entity about the source or character of a distribution if the statement is made at or near the time of distribution by the entity's board of directors or other person or group of persons authorized to exercise powers to pay money or transfer property comparable to those of a corporation's board of directors.
Amended by 2021 Tenn. Acts, ch. 420, s 1, eff. 7/1/2021.
Acts 2000, ch. 829, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 6 - UNIFORM PRINCIPAL AND INCOME ACT (§§ 35-6-101 — 35-6-602) › Part 4 - ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST (§§ 35-6-401 — 35-6-415) › RECEIPTS FROM ENTITIES (§§ 35-6-401 — 35-6-403) › Section 35-6-402 - Distribution from trust or estate

A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distribution of principal from such a trust or estate. If a trustee purchases an interest in a trust that is an investment entity, or a decedent or donor transfers an interest in such a trust to a trustee, §
35-6-401
or §
35-6-415
applies to a receipt from the trust.
Acts 2000, ch. 829, § 1.