(a) The University of Tennessee has express authority and power to act as trustee of charitable trusts, including annuity trusts, unitrusts and pooled income funds as defined in the Federal Tax Reform Act of 1969, heretofore or hereafter created pursuant to an agreement between the university and a donor or donors, by deed of gift to the university, or by a will, under or by which the university is a beneficiary or trustee of a charitable trust.

Attorney's Note

Under the Tennessee Code, punishments for crimes depend on the classification. In the case of this section:
ClassPrisonFine
class C misdemeanorup to 30 daysup to $50
For details, see Tenn. Code § 40-35-111
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Terms Used In Tennessee Code 49-9-107

  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Donor: The person who makes a gift.
  • Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
  • Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
  • 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
  • Trustee: A person or institution holding and administering property in trust.
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(b)

(1) Any endowment fund of the University of Tennessee containing assets with a fair market value in excess of one million dollars ($1,000,000) and representing contributions from nongovernmental sources to or for the use of the University of Tennessee may, at the written request of the donor or donors of the fund, be treated in all respects as trust funds.
(2) Separate accounting may be set up to assure that the assets of the funds are at all times used in accordance with the deeds of gift accepted by the University of Tennessee or the contracts entered into by the University of Tennessee with respect to the funds.
(3) All transactions between donors and the University of Tennessee shall be on an arm’s length basis; and no assets shall be diverted directly or indirectly from the trust funds, either by application or transfer to other University of Tennessee uses or purposes or to other University of Tennessee funds, that are not in accordance with the written gift instrument, will or other document except at fair cash market value based on qualified appraisals of disinterested parties.
(4) Where funds in a trust so established are specifically earmarked for the benefit of activities or branches of the University of Tennessee in a designated county of this state, the cash and assets of the fund will be recorded in separate accounts and accounted for in such a manner that the intent and purpose or purposes of such a trust will be accomplished.
(5) Anyone refusing or neglecting to comply with this subsection (b) commits a Class C misdemeanor.
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