Skip to main content
Find a Lawyer

Tennessee Code Title 45. Banks and Financial Institutions § 45-2-611

Current as of January 02, 2024 | Updated by Findlaw Staff

(a) A bank may pledge its assets only:

(1) To enable it to act as an agent for the sale of obligations of the United States;

(2) To secure borrowed funds;

(3) To secure the public funds of a governmental entity; and

(4) For other purposes that are approved by the commissioner.

(b) As used in this section, unless the context otherwise requires:

(1) “Governmental entity” means:

(A)(i) The United States government or any agency thereof; or

(ii) Any instrumentality of the United States the funds of which are required by law to be secured; and

(B) The state of Tennessee or any other state, counties, incorporated municipalities and their political subdivisions or any utility district organized under the laws of a state or an interstate compact; and

(2) “Public funds” means:

(A) Funds in which the entire beneficial interest is owned by a governmental entity; or

(B) Funds held in the name of a public official charged with the duty to receive or administer funds and acting in the person's official capacity.

(c) A financial institution authorized to secure public funds of any governmental entity shall do so in the same manner and under the same conditions as state deposits under title 9, chapter 4, or as provided in a collateral pool as provided in title 9, chapter 4, part 5.

Previous Part of Code Next Part of Code
Back to Chapter List

Cite this article: FindLaw.com - Tennessee Code Title 45. Banks and Financial Institutions § 45-2-611 - last updated January 02, 2024 | https://codes.findlaw.com/tn/title-45-banks-and-financial-institutions/tn-code-sect-45-2-611/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

Was this helpful?

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw’s Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About The Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to Find an Attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

Copied to clipboard