Tennessee Code Annotated

Title 45: Banks and Financial Institutions

Chapter 2: Banking Institutions

Part 19: Credit Card State Banks

TCA 45-2-1901: Part definitions. [Amendments effective until July 1, 2015. See subdivision (3)(C).]

As used in this part, unless the context otherwise requires:

(1) "Control" has the meaning set forth in SC 45-12-102(6) [repealed];

(2) "Credit card state bank" means a state bank chartered under the laws of Tennessee and whose principal office is in this state and the activities of which are limited to those permitted under SC 45-2-1902;

(3) (A) "Domestic holding company" means a company that either:

(i) Controls a domestic or foreign lender and has its principal place of business in this state; or

[Effective until July 1, 2015. See subdivision (3)(C).]

(ii) Is licensed pursuant to chapter 7 of this title and, as of January 1, 2007, has a net worth of not less than twenty-five million dollars ($25,000,000) and has had its principal place of business in this state for at least five (5) consecutive years;

[Effective until July 1, 2015. See subdivision (3)(C.]

(B) "Domestic holding company" also means a company that is under common control with a company described in subdivision (3)(A)(ii). For purposes of this subdivision (3)(B), "under common control" means no less than fifty percent (50%) ownership;

(C) Effective July 1, 2015, subdivisions (3)(A)(ii) and (B) are hereby deleted; however, any company that organized pursuant to subdivision (3)(A)(ii), or subdivision (3)(B), and this part prior to July 1, 2015, and that continues to own or control a credit card state bank after July 1, 2015, shall retain the authority to own or control a credit card state bank under the terms and conditions provided in this part;

(4) "Domestic lender" means any bank, savings and loan association, savings bank, or credit union organized and supervised under the laws of this state or the United States, that has its principal place of business in this state or any other business organization that is authorized by law to accept deposits and make loans and has its principal place of business in this state;

(5) "Foreign lender" means any bank, savings and loan association, savings bank, credit union, organized or chartered under the laws of the United States, or any state other than this state, or the District of Columbia, that has its principal place of business outside this state, or any other business organization that is authorized by law to accept deposits and make commercial loans and has its principal place of business outside this state;

(6) "Holding company" means any company that controls a domestic or foreign lender; and

(7) "Qualifying organization" means a corporation, partnership, or other entity that at all times maintains an office in the state of Tennessee, at which it employs at least one hundred (100) persons residing in this state, and that is directly engaged in providing the following services, either for the qualifying organization or on behalf of other domestic or foreign lenders or credit card state banks:

(A) The distribution of credit cards or other devices designed and effective to access credit card accounts;

(B) The preparation of periodic statements of amounts due under credit card accounts;

(C) The receipt from credit card holders of amounts paid on or with respect to the accounts; and

(D) The maintenance of financial records reflecting the status of the accounts from time to time. "Qualifying organization" also includes any domestic bank or credit card bank satisfying the employment and activities requirements set forth in this subdivision (7)(D).

History: Acts 1993, ch. 447, SC 4; 2007 ch. 6, SCSC 1, 4; 2012, ch. 646, SC 1.