Tennessee Code Title 45. Banks and Financial Institutions § 45-7-137

(a) A licensee shall at all times maintain permissible investments that have a market value, computed in accordance with United States generally accepted accounting principles, of not less than the aggregate amount of all of its outstanding money transmission obligations.

(b) Except for permissible investments under § 45-7-138(a), the commissioner, with respect to any licensee, may limit the extent to which a specific investment maintained by a licensee within a class of permissible investments may be considered a permissible investment, if the specific investment represents undue risk to customers, not reflected in the market value of investments.

(c) Permissible investments, even if commingled with other assets of the licensee, are held in trust for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations in the event of insolvency, the filing of a petition by or against the licensee under the federal Bankruptcy Code (11 U.S.C. §§ 101-110) for bankruptcy or reorganization, the filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or an action by a creditor against the licensee who is not a beneficiary of this statutory trust. No permissible investments impressed with a trust pursuant to this subsection (c) are subject to attachment, levy of execution, or sequestration by order of any court, except for a beneficiary of this statutory trust.

(d) Upon the establishment of a statutory trust in accordance with subsection (c), or when any funds are drawn on a letter of credit pursuant to § 45-7-138(a)(4), the commissioner shall notify the applicable regulator of each state in which the licensee is licensed to engage in money transmission, if any, of the establishment of the trust or the funds drawn on the letter of credit, as applicable. Notice is deemed satisfied if performed pursuant to a multistate agreement or through NMLS. Funds drawn on a letter of credit, and any other permissible investments held in trust for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations, are deemed held in trust for the benefit of such purchasers and holders on a pro rata and equitable basis in accordance with statutes pursuant to which permissible investments are required to be held in this state, and other states, as applicable. Any statutory trust established pursuant to this chapter terminates upon extinguishment of all of the licensee's outstanding money transmission obligations.

(e) The commissioner may allow other types of investments that the commissioner determines are of sufficient liquidity and quality to be a permissible investment.