Tennessee Code Title 49. Education § 49-7-1404

(a) The investment pool shall be invested and managed solely in the interest of the participants in the investment pool in a manner consistent with § 35-14-107, the prudent investor rule pursuant to § 35-14-103, the standard of care pursuant to § 35-14-104, and the exercise of reasonable care in delegation of investment and management functions pursuant to § 35-14-111.

(b) All investments purchased belong jointly to the participants in the investment pool and the participants shall share capital gains, income, and losses pro rata.

(c) A participant's principal and income invested in the investment pool shall not constitute the property of the state. The principal and income in the investment pool shall not be commingled with state funds and the state shall have no claim to or against, or interest in such funds. The principal and income in the investment pool shall be preserved, invested, and expended for the benefit of the respective participants.

(d) The state treasurer shall keep a separate account, designated by name and number of each participant. Individual transactions and totals of all investments belonging to each participant shall be recorded in the accounts.

(e) The state treasurer shall report periodically to every participant having a beneficial interest in the investment pool.

(f) The participant shall enter into an agreement with the department of treasury for participation in the investment pool, which shall include fees and expenses assessed by the department against a participant for services related to the investment of the participant's assets.