(a)

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Terms Used In Tennessee Code 49-4-108

  • Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
  • Commissioner: means the commissioner of commerce and insurance. See Tennessee Code 49-4-101
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Corporation: means a corporation or association not for profit authorized to administer a plan in the state. See Tennessee Code 49-4-101
  • Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Member: means any person who is accepted as a member by the plan and who may later become eligible for a scholarship as provided in the charter and bylaws of the plan. See Tennessee Code 49-4-101
  • Plan: means any educational cooperative plan or scholarship plan subject to this part. See Tennessee Code 49-4-101
  • Scholarship: means educational benefits payable pursuant to a plan which shall not be deemed to be distribution of income to a member of a corporation. See Tennessee Code 49-4-101
  • Trustee: A person or institution holding and administering property in trust.
(1) All scholarship funds shall be deposited in special funds or trust funds established for the purpose of depositing all funds, contributions, donations, pledged earnings, interest, income and dividends, except enrollment fees and dues as set forth in § 49-4-103(b)(2), to be used exclusively and solely for scholarships and educational benefits for members found eligible and uses set out in the plan.
(2) The deposits or payments into the special funds or trust funds, and disbursements out of the funds, shall not be subject to levy, attachment or garnishment on account of any debts or liabilities of the corporation or of any member, trustee of member or recipient.
(3) The special fund is to be deposited in and managed by an insured bank or banks having trust powers, as trustees.
(b) The trustees shall be selected or appointed by the corporation and approved by the commissioner.
(c) The commissioner is authorized to adopt regulations respecting such security by the depository that is necessary for the protection of the funds and to assure their availability for the purposes set forth in the plan or plans under which the moneys are received.
(d) Operating capital of the corporation shall not be deemed trust funds. Operating capital shall consist of enrollment fees and annual dues of members. Advancements to the corporation for working capital shall be deemed operating capital repayable from the fees and dues only.
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