Tennessee Code Title 47. Commercial Instruments and Transactions § 47-16-103

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

(a)(1) A litigation financier or commercial litigation financier shall not engage in a litigation financing transaction or commercial litigation financing transaction in this state unless it is registered as a litigation financier or commercial litigation financier in this state.

(2) A litigation financier or commercial litigation financier that is a business entity or partnership is registered in this state if:

(A) It is in compliance with the bond requirements of subsection (b);

(B) It has a status of active and in good standing as reflected in the records of the secretary of state; and

(C) Its charter, articles of organization, certificate of limited partnership, or other organizational document, or, if a foreign entity, its application for a certificate of authority in this state, contains a statement that it will be designated as a litigation financier or commercial litigation financier pursuant to this chapter.

(3) A litigation financier or commercial litigation financier that is not a business entity or partnership is registered in this state if:

(A) It is in compliance with the bond requirements of subsection (b); and

(B) It files an application for registration as a litigation financier or commercial litigation financier on a form prescribed by the secretary of state, along with a filing fee of one hundred dollars ($100), that contains the following:

(i) The applicant's full legal name;

(ii) The business name of the applicant, if any;

(iii) The physical street address and mailing address of the applicant;

(iv) A telephone number through which the applicant can be reached;

(v) The name, physical street address, mailing address, and telephone number for a registered agent in this state that is appointed to accept service of process on behalf of the applicant;

(vi) A statement that the applicant will be designated as a litigation financier or commercial litigation financier pursuant to this chapter; and

(vii) Any other information the secretary of state deems necessary.

(b)(1) Each litigation financier or commercial litigation financier shall file and have approved by the secretary of state a surety bond in the amount of fifty thousand dollars ($50,000).

(2) The bond must be payable to this state for the use of the attorney general and reporter and any person who may have a cause of action against the obligor of the bond for a violation of this chapter. The bond must continue in effect so long as a litigation financier or commercial litigation financier is designated as a litigation financier or commercial litigation financier in the records of the secretary of state.

(c) A litigation financier or commercial litigation financier shall amend its registration with the secretary of state within thirty (30) days whenever the information contained in the record changes or becomes inaccurate or incomplete. A litigation financier or commercial litigation financier that is not a business entity or partnership may amend or withdraw its registration with the secretary of state by filing a form prescribed by the secretary of state, along with a filing fee of twenty dollars ($20.00).

(d) All documents filed pursuant to this section are public record.

(e) The secretary of state shall collect a fee of twenty dollars ($20.00) for copying all filed documents pursuant to this chapter. All such copies must be certified or validated by the secretary of state.

(f) The secretary of state, as appropriate, may promulgate rules in implementing this chapter, including the adoption of fees to cover administrative costs relating to administering this chapter.

(g) A person shall not register as a litigation financier or a commercial litigation financier, or engage in litigation financing or commercial litigation financing in this state if the person is, in any capacity directly or indirectly related to such person's litigation financing or commercial litigation financing business, affiliated with a foreign person, foreign principal, or sovereign wealth fund of a foreign government or foreign nongovernment person designated by the United States secretary of commerce as a foreign adversary pursuant to 15 CFR 791.4.

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Cite this article: FindLaw.com - Tennessee Code Title 47. Commercial Instruments and Transactions § 47-16-103 - last updated January 02, 2024 | https://codes.findlaw.com/tn/title-47-commercial-instruments-and-transactions/tn-code-sect-47-16-103/

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