Title 45, Banks And Financial Institutions

No oath or bond shall be required of a bank to qualify upon appointment as a fiduciary, unless the instrument creating a fiduciary position expressly provides otherwise.

(a) (1) Any bank or trust company, when acting as a fiduciary, or when holding securities as custodian for a fiduciary, is authorized to deposit, or arrange for the deposit of, with the federal reserve bank in its district, any securities, the principal of and interest on which t…

(a) (1) Notwithstanding any other provision of law, any bank or trust company holding securities as a fiduciary, cofiduciary, agent for a fiduciary or custodian pursuant to § 45-2-1003(a) and (b), is authorized to deposit or arrange for the deposit of the securities in a clearing…

(a) Absent written objection from the commissioner, a bank, trust company or trust department, referred to in this section as the “transferor,” may transfer one (1) or more fiduciary accounts administered by the bank, trust company or trust department to another bank, trust compa…

(a) No bank shall operate any trust office for the purpose of conducting a general banking business, including, but not limited to, receiving deposits, paying checks, making loans, or receiving or discounting bills and notes at any place where it is prohibited from establishing a…

(a) A state trust institution may act as a fiduciary in this or any other state or foreign country, subject to complying with applicable laws of the state or foreign country. (b) In addition, a state trust institution may conduct any activities at any office outside this state th…

An out-of-state trust institution that establishes and maintains one (1) or more offices in this state under this chapter may conduct any activity at each office that would be authorized under the laws of this state for a state trust institution to conduct at the office.

(a) Each state trust company must have and continuously maintain a principal office in this state. (b) A state trust company shall apply to the commissioner to change its location or the location of any of its offices pursuant to § 45-2-218.

(a) A state trust institution may establish or acquire and maintain trust offices anywhere in this state. Any prohibition on the acquisition of an institution that has not been in operation for at least three (3) years shall not apply to trust companies. A state trust institution…

(a) (1) An out-of-state trust institution may act as a fiduciary from a trust office only if it maintains:(A) An office in this state as permitted by this chapter; or(B) A branch in this state.(2) Similar institutions chartered under the laws of Tennessee are permitted to establi…

A state trust company or out-of-state trust institution may use any name in connection with establishing an office in this state pursuant to this chapter, except that the commissioner may determine that a name proposed to be used is potentially misleading to the public and requir…

Any person residing in this state may designate any trust institution to act as a fiduciary on behalf of the person.

(1) Any trust institution that maintains a trust office in this state and its affected clients may designate as the state whose laws shall govern any written agreement between the trust institution and its client or any instrument under which the trust institution acts for a clie…

A state trust company may not invest its funds in trade or commerce by buying, selling, or otherwise dealing in goods or by owning or operating a business not related to its fiduciary business, except as necessary to fulfill a fiduciary obligation to a client.

(a) A state trust company may not pledge or create a lien on any of its assets except:(1) To secure the repayment of money borrowed;(2) As specifically authorized or required by § 45-2-611; or(3) By rules adopted under this chapter. (1) To secure the repayment of money borrowed; …

A state trust company may merge with another trust company or into a depository institution pursuant to the applicable provisions of part 13 of this chapter, or as otherwise permitted. However, any requirement that an institution must be in operation for three (3) years before en…

(a) The board of a state trust company, with the commissioner's approval, may cause a state trust company to sell all or substantially all of its assets, including the right to control accounts established with the trust company, without shareholder approval if the commissioner f…

(a) (1) As used in this section, unless the context otherwise requires:(A) “Bank” means a bank or trust company organized under the laws of this state;(B) “Control” means possession, direct or indirect, of the power to direct or cause the direction of management and policies of a…

Except for taxes on property and the banking fees provided by law, no tax levied by this state, whether privilege, excise, franchise, sales or otherwise, shall be levied upon or be applicable to any bank chartered under the laws of this state, unless and until the same tax may be…

(1) The commissioner may exempt a trust company from any requirement of this chapter or chapter 1 of this title or the rules of the department that would threaten the viability of the corporation, including, but not limited to, capitalization requirements, fees, and procedures th…

(a) The following provisions of this chapter are applicable to state and federal savings and loan associations and savings banks; provided, that in the event of a conflict between the provisions and the provisions of a law on the same subject relating specifically to state or fed…

(a) (1) As used in this subsection (a), unless the context otherwise requires:(A) “Bank” means a company that accepts deposits in this state that are eligible for insurance under the Federal Deposit Insurance Act (12 U.S.C. § 1811 et seq.);(B) “Bank holding company” means a compa…

Any state bank may lend money and discount or purchase evidences of indebtedness and any agreement for the payment of money.

(a) (1) Except as provided in this section, no state bank shall be allowed to lend to any one (1) person, firm or corporation (including loans to a firm or loans to the several members thereof) more than fifteen percent (15%) of its capital, surplus and undivided profits. However…

Compliance with the requirements of 12 U.S.C. §§ 375a, 375b, and 1828(j) and applicable federal regulations shall be deemed compliance with the laws of Tennessee concerning loans to directors and officers of state banks.

(a) (1) A state bank may make a loan secured by not more than fifty percent (50%) of the book value of its own stock upon the approval of a majority of the bank's board of directors; provided, that this subsection (a) shall not permit a purchase money loan for the initial acquisi…

A state bank may participate in a loan with another lender to the extent that its participation does not exceed its legal limit for the type of loan except that participation may not violate § 45-2-1102(c).

(a) In addition to all other powers granted them elsewhere in this chapter and chapter 1 of this title, banks have the power to make installment loans, either secured or unsecured, with repayment in equal, or substantially equal, monthly or other periodic installments over the te…

When an installment loan is made and interest is charged as provided in § 45-2-1106(b)(1)(A) and (B), the lending bank or trust company shall make disclosures of the terms and conditions of the loan that may from time to time be required for the loan under the Federal Consumer Cr…

Notwithstanding any provision to the contrary in this chapter and chapter 1 of this title or elsewhere, state banks have the power to make loans upon the same terms and at the maximum effective interest rates as loans are authorized and credit extended by national banks in this s…

This part shall be known and may be cited as the “Elderly and Vulnerable Adult Financial Exploitation Prevention Act.”

(1) As used in this part, unless the context otherwise requires:(1) “Account” means funds or assets held by a financial service provider, including, but not limited to, a deposit account, savings account, share account, certificate of deposit, trust account, IRA, guardianship or …

(a) If a financial service provider has reasonable cause to suspect that financial exploitation may have occurred, may have been attempted, or is being attempted, the financial service provider may, but is not required to, refuse a financial transaction or delay a financial trans…

(a) A financial service provider may offer to an elderly or vulnerable adult the opportunity to submit and periodically update a list of persons that the elderly or vulnerable adult authorizes the financial service provider to contact when the financial service provider has reaso…

(a) A financial service provider may refuse to accept an acknowledged power of attorney if the financial service provider has reasonable cause to suspect that the principal is or may be the victim or target of financial exploitation by the agent or person acting for or with the a…

It is the intent of the general assembly in adopting this part to allow financial service providers the discretion to take actions to assist in detecting and preventing financial exploitation without liability. The general assembly recognizes that financial service providers are …

(1) As used in this part, unless the context otherwise requires:(1) “Bank” means a state or a national bank;(2) “Continuing bank” means a merging bank the charter of which becomes the charter of the resulting bank;(3) “Converting bank” means a bank converting from a state to a na…

(a) Subject to this chapter and chapter 1 of this title, a state bank may convert into a resulting national bank, or a state or national bank in operation for at least three (3) years shall have the right to merge with any other bank in operation for at least three (3) years in t…

(a) (1) Upon approval by the commissioner:(A) Banks whose principal offices are located in this state and have been in operation for at least three (3) years may be merged to result in a state bank; or(B) A national bank may convert into a state bank, except that the action by a …

(a) The board of directors of each merging state bank shall, by a majority of the entire board, approve a merger agreement, which shall contain:(1) The name of each merging bank and location of each office;(2) With respect to the resulting bank:(A) Its name and the location of th…

(a) To be effective, a merger that is to result in a state bank must be approved by the stockholders of each merging state bank by a majority vote of the outstanding voting stock of each class eligible to vote for the merger; provided, that a greater vote may be required by the c…

(a) A merger that is to result in a state bank shall, unless a later date is specified in the agreement, become effective upon the filing with the commissioner of the executed agreement, together with copies of the resolutions of the stockholders of each merging bank approving it…

(a) Except as provided in § 45-2-1310, a national bank located in this state that follows the procedure prescribed by the laws of the United States to convert into a state bank may be granted a state charter by the commissioner if the commissioner finds that each office of the na…

(a) A resulting state or national bank shall be considered the same business and corporate entity as each merging bank or as the converting bank with all the property rights, powers, duties, fiduciary appointments subject to § 45-2-1310 and obligations of each merging bank or the…

The owners of shares of a state bank shall have dissenters rights as provided by the Tennessee Business Corporation Act, compiled in title 48, ch. 23, part 1, with respect to any plan of merger, merger agreement, plan of conversion, plan of share exchange or any other corporate a…

Where a resulting state bank is not to exercise trust powers, the commissioner shall not approve a merger or conversion until satisfied that adequate provision has been made for successors to fiduciary positions held by the merging banks or the converting bank.