(a) A licensee shall file a report with the commissioner, describing the event and its expected impact on the licensee’s activities in the state, within three (3) days after the occurrence of any of the following events:

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Terms Used In Tennessee Code 45-7-123

  • Authorized delegate: means a person that a licensee designates to engage in money transmission on behalf of the licensee. See Tennessee Code 45-7-103
  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Code: includes the Tennessee Code and all amendments and revisions to the code and all additions and supplements to the code. See Tennessee Code 1-3-105
  • Commissioner: means the commissioner of financial institutions. See Tennessee Code 45-7-103
  • Control: means the power to:
    (i) Vote, directly or indirectly, at least twenty-five percent (25%) of the outstanding voting shares or voting interests of a licensee or person in control of a licensee. See Tennessee Code 45-7-103
  • Conviction: A judgement of guilt against a criminal defendant.
  • Individual: means a natural person. See Tennessee Code 45-7-103
  • Licensee: means a person licensed under this chapter. See Tennessee Code 45-7-103
  • Person: means any individual, general partnership, limited partnership, limited liability company, corporation, trust, association, joint stock corporation, or other corporate entity identified by the commissioner. See Tennessee Code 45-7-103
  • 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
  • United States: includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(1) The filing of a petition by or against the licensee under the United States Bankruptcy Code (11 U.S.C. §§ 101-110), as amended or recodified from time to time, for bankruptcy or reorganization;
(2) The filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or the making of a general assignment for the benefit of its creditors;
(3) The commencement of a proceeding to revoke or suspend its license in a state or country in which the licensee engages in business or is licensed;
(4) A charge or conviction of the licensee or of a key individual or person in control of the licensee for a felony;
(5) A charge or conviction of an authorized delegate for a felony;
(6) The occurrence of any computer security incident; or
(7) Other events the commissioner may determine.
(b) Each authorized delegate shall report to the licensee the theft or loss of payment instruments valued at five thousand dollars ($5,000) or more within twenty-four (24) hours from the time the authorized delegate knew or should have known of the theft or loss. Upon the receipt of the report, the licensee shall immediately provide the information to the commissioner.
(c) As used in this section, “computer security incident” means any event that results in actual harm to the confidentiality, integrity, or availability of an information system or the information that the system processes, stores, or transmits and that has disrupted or degraded, or is reasonably likely to disrupt or degrade, a licensee’s:

(1) Ability to carry out operations, activities, or processes, or to deliver products and services to a material portion of its customer base, in the ordinary course of business;
(2) Business lines, including associated operations, services, functions, and support, that upon failure would result in a material loss of revenue, profit, or franchise value; or
(3) Operations, including associated services, functions, and support, as applicable, the failure or discontinuance of which would pose a threat to the financial stability of the United States.
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