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Terms Used In Tennessee Code 45-2-1902

  • Bank: means a credit card state bank established and operated in accordance with §. See Tennessee Code 45-2-1903
  • Commissioner: means the commissioner of financial institutions. See Tennessee Code 45-1-103
  • Contract: A legal written agreement that becomes binding when signed.
  • Control: has the meaning set forth in 12 U. See Tennessee Code 45-2-1901
  • 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 §. See Tennessee Code 45-2-1901
  • Domestic holding company: means a company or other affiliate, that either:
    (i) Controls a domestic or foreign lender and has its principal place of business in this state. See Tennessee Code 45-2-1901
  • 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. See Tennessee Code 45-2-1901
  • 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. See Tennessee Code 45-2-1901
  • Holding company: means any company that controls a domestic or foreign lender. See Tennessee Code 45-2-1901
  • Qualifying organization: means a corporation, partnership, or other entity that at all times maintains an office in this state, 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. See Tennessee Code 45-2-1901
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • State bank: means any bank chartered by this state. See Tennessee Code 45-1-103
  • Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105
(1) Subject to this chapter and to the approval of the commissioner, any domestic lender, foreign lender, or holding company may organize, own, and control a credit card state bank on the terms and conditions provided in this part. Notwithstanding § 45-2-607(11), a state bank may own up to one hundred percent (100%) of the shares of a credit card state bank.
(2) Effective July 1, 2020, the language “, including a domestic holding company,” in subdivision (a)(1) is hereby deleted. However, any company that organized pursuant to such language, § 45-2-1901(3)(A)(ii) or (3)(B), and this part prior to July 1, 2020, and that continues to own or control a credit card state bank after July 1, 2020, shall retain authority to own or control a credit card state bank under the terms and conditions provided in this part.
(b) If the credit card bank is to be organized under the laws of this state, the bank shall be organized as provided in this chapter, and the commissioner shall supervise, regulate, examine, and exercise enforcement authority as provided for in this chapter and chapter 1 of this title, and all applicable rules and regulations, to the extent the commissioner deems applicable to the entities. The credit card state bank shall at all times maintain capital stock and paid-in surplus of not less than two million dollars ($2,000,000).
(c) In connection with the application to organize, own, and control a credit card state bank, the applicant shall pay a filing fee in an amount determined by rule by the commissioner.
(d) A credit card state bank shall:

(1)

(A) Engage only in credit card operations or the making of loans;
(B) Effective July 1, 2020, the language “or debit, including prepaid debit,” in subdivision (d)(1)(A) is hereby deleted. However, any company that organized pursuant to such language, § 45-2-1901(3)(A)(ii) or (3)(B), and this part prior to July 1, 2020, and that continues to own or control a credit card state bank after July 1, 2020, shall retain authority to own or control a credit card state bank under the terms and conditions provided in this part;
(2) Not accept demand deposits or deposits that the depositor may withdraw by check or similar means for payment to third parties or others;
(3) Not accept any savings or time deposits of less than one hundred thousand dollars ($100,000);
(4) Maintain only one (1) office that accepts deposits; and
(5)

(A) If in existence on May 17, 1999, not engage in the business of making commercial loans, unless the charter is amended to include a provision electing to engage in commercial lending; or
(B) If organized on or after May 17, 1999, not engage in the business of making commercial loans, unless the charter contains a provision or is subsequently amended to include a provision electing to engage in commercial lending.
(e) A credit card state bank, unless the subsidiary of a domestic lender or domestic holding company, shall either:

(1) Have, within one (1) year of the date it commences operations, fifty (50) employees located in this state devoted to the credit card activities contemplated by this part; or
(2) Contract with a qualifying organization for the performance of the services.
(f) A credit card state bank may issue credit in accordance with §§ 45-2-1903 – 45-2-1908.
(g) A domestic lender is not required to establish a credit card state bank in order to issue credit cards, create credit card accounts and make loans, but may itself issue credit cards, create credit card accounts and make loans in accordance with §§ 45-2-1903 – 45-2-1908, or as otherwise permitted by law.
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