Title 45, Banks And Financial Institutions

(a) Before a foreign credit union, defined as a credit union chartered and operating under the laws of another state, may open an office in Tennessee for the purpose of serving its members residing or working in Tennessee, the credit union shall procure from the commissioner a ce…

(a) At an annual meeting, the members shall elect a board of directors. The directors shall be members of the credit union. All members of the board of directors and all officers shall hold their several offices for the terms that may be provided in the bylaws. (b) Upon their ele…

(1) The board of directors has the duty of general management of the affairs, funds and records of the corporation, and shall meet as often as may be necessary, but in no event less than monthly. Unless the bylaws shall specifically reserve any or all of the duties to members, it…

(a) The board of directors shall determine whether the credit union shall have a credit committee. If the board determines that the credit union shall not have a credit committee, the board of directors shall appoint one (1) or more loan officers, and the loan officer or officers…

(a) No member of the credit or supervisory committee shall receive any compensation for services as a member of the committee. (b) As an alternative to the reimbursement for members of the board of directors in subsection (c), each member of the board of directors may be compensa…

(a) In addition to other powers conferred by this chapter, the commissioner may:(1) Restrict the withdrawal of shares or accounts from any state credit union when the commissioner finds circumstances make the restriction necessary for the proper protection of the members' interes…

(a) It is unlawful for an officer, director, employee or agent of a credit union to:(1) Maintain or authorize the maintenance of any account of the credit union in a manner that, to the person's knowledge, does not conform to the requirements prescribed by chapter 4 of this title…

(a) Any person responsible for an act or omission expressly declared to be a criminal offense by chapter 4 of this title commits:(1) A Class A misdemeanor; and(2) If the act or omission was intended to defraud, a Class E felony. (1) A Class A misdemeanor; and (2) If the act or om…

(a) The membership shall consist of incorporators and persons, societies, associations, copartnerships and corporations that have been duly elected to membership and have subscribed to one (1) or more shares and have paid for the same in whole or in part, with the entrance fee as…

(a) At any regularly called meeting, the members, by a two-thirds (⅔) vote of those present, may expel from the corporation any member. A member may withdraw from a credit union or a nonmember may withdraw members' special accounts, as provided in this section, by filing a writte…

Credit union shares shall in no event be sold at a premium by any credit union to its members.

Shares may be issued in the name of a minor and in trust in a way and manner that the bylaws may provide.

Fully paid-up shares of a credit union may be transferred to any person upon election to membership, upon terms that the bylaws may provide.

Investment or other deposit accounts maintained in any credit union in the names of two (2) or more persons shall be governed by § 45-2-703.

(a) Notwithstanding § 30-2-317, where no executor or administrator of a deceased shareholder or depositor has qualified and given notice of the qualifications of the executor or administrator to the credit union, it may, in its discretion and at any time after thirty (30) days fr…

(1) The following provisions of chapter 2 of this title are applicable to credit unions:(1) Section 45-2-704 relating to contracts for “payable-on-death” share accounts and share deposits in trust;(2) Section 45-2-707 relating to powers of attorney; and(3) Sections 45-2-711 and 4…

(1) A credit union has the following powers:(1) It may receive the savings of its members through the purchase of various classes of share accounts, including general or regular shares, share certificates, special accounts, share draft accounts or members' special accounts, savin…

(a) A credit union has the power to borrow from any source, but the total of borrowing shall at no time exceed fifty percent (50%) of the member accounts and surplus of the borrowing credit union. (b) A central credit union, as defined in § 45-4-101, has the power to borrow from …

(a) (1) Subject to the limitations contained in subsection (e), a credit union may declare dividends at rates it deems appropriate for periods and classes of accounts that the board of directors may establish.(2) A credit union may establish higher dividend rates for shares held …

A credit union may change its chief place of business on written notice to the commissioner of financial institutions.

(a) Any credit union organized under this chapter shall, prior to commencing its operations, obtain and thereafter maintain insurance of its share and deposit balances by membership in the National Credit Union Association, unless otherwise determined by the commissioner pursuant…

(a) As used in this part, unless the context otherwise requires:(1) “Installment loan” means a loan repayable in installments, whether the payments are regular or irregular, whether the payments are in substantially equal amounts or otherwise, whether the payments are made on clo…

(a) A credit union may lend to its members at a maximum effective rate of interest, which shall not be in excess of the greater of:(1) The applicable formula rate; or(2) The rate of interest permitted to be charged by credit unions chartered by the federal government. (1) The app…

In addition to the charging and collecting of interest as provided in § 45-4-602, a credit union shall be entitled to charge and collect from its members loan charges that are fair and reasonable compensation for some expense incurred or to be suffered by the credit union, or som…

(a) The funds of credit unions shall be used first for loans to members. (b) Funds of credit unions not required for loans to members may be invested as otherwise provided by law. (c) If available funds do not permit all loans to be made that have been approved by the credit comm…

A credit union may loan to its members, as provided, for the purposes and upon the security that the bylaws may provide and the credit committee shall approve.

A member who needs funds with which to purchase necessary supplies for growing crops may receive a loan in fixed monthly installments instead of one (1) sum.

A borrower may repay the whole or any part of the loan on any day on which the office of the corporation is open for the transaction of business.

Subject to the limitations on loans contained in § 45-4-203 and as specified in written loan policies established by the board of directors, a director or member of the credit or supervisory committee shall be allowed to borrow from the corporation.

(a) A credit union shall have a lien on the shares of any member and on the dividends payable thereon for and to the extent of any loan made to the member and of any dues and fines payable by the member. (b) A credit union may, upon the resignation or expulsion of a member, cance…

Subject to the limitations on maximum effective rates of interest and service charges contained in §§ 45-4-601 — 45-4-604, a credit union chartered by the state of Tennessee has the power to make loans upon the same terms and conditions as permitted credit unions chartered by the…

Notwithstanding another law to the contrary, a credit union with a state charter may purchase a participation interest in a loan from a bank, another credit union, or another eligible organization as provided in 12 CFR 701.22, without requiring membership of the borrower of the l…

The capital of the credit union shall consist of the payments that have been made to it by the several members thereof on shares.

All entrance fees, transfer fees and charges shall, after the payment of the organization expenses, be known as reserve income and shall be added to the reserve fund of the credit union.

(a) (1) A regular reserve fund, belonging to the credit union, shall be maintained for contingencies. It shall not be distributed to the members except upon dissolution of the credit union. This fund shall be built up to and held at one thousand dollars ($1,000) or five percent (…

(a) A credit union may transfer a dormant account to the regular reserve within thirty (30) days after written notice to the credit union member, at the credit union member's last known address as shown upon the records of the credit union, stating the credit union's intention to…

At the time of incorporation, every credit union shall pay the secretary of state a fee of ten dollars ($10.00).

Except for taxes on property and the credit union 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 credit union chartered under the laws of this state unless and until the sam…

(a) A majority of the entire membership of any credit union may vote to dissolve the credit union at a regular or special meeting called for that expressly stated purpose. (b) Any member, within twenty (20) days of the date of the mailing of notice of the meeting, may vote on the…

(a) A credit union under order to liquidate or in the course of dissolution or liquidation shall continue in existence for the purpose of discharging its debts, collecting and distributing its assets, and doing all acts required in order to wind up its business, and may sue and b…

(a) Any credit union may, with the approval of the commissioner of financial institutions, merge with any other credit union under the existing charter of the other credit union, pursuant to any plan approved by the board of directors of each credit union joining in the merger, a…

(a) This chapter is adopted for the purpose of revising and restating the Industrial Loan and Thrift Companies Act, to the end that the people of this state may have available the facilities and resources of regulated lending institutions to meet their needs for loans at rates an…

(1) As used in this chapter, unless the context otherwise requires:(1) “Actuarial method” means the method of allocating payments made on a debt between the principal and interest pursuant to which payment is applied first to accumulated interest and any remainder is subtracted f…

(a) Except as otherwise provided by this chapter, no person shall engage in business as an industrial loan and thrift company or industrial bank or industrial investment company without obtaining from the commissioner a certificate of registration as herein provided. (b) A separa…

This chapter applies only to persons engaged in business as industrial loan and thrift companies or industrial banks or industrial investment companies. Neither the requirement of registration nor any other provision of this chapter shall apply to any state or national bank, othe…

Any person holding a certificate of registration under this chapter as of May 16, 1983, shall be deemed, as of that date, to be registered as an industrial loan and thrift company hereunder, without the necessity of reapplying or paying any additional fees.