(a)

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Terms Used In Tennessee Code 9-1-107

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • 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.
(1) Counties, municipalities, districts, and other public or quasi-public corporations and public officials, boards, agencies, or other public or quasi-public entities, other than the state, are expressly authorized and empowered to invest or deposit funds held by them, including sinking funds and pension and retirement funds in accounts of federal savings banks, whose deposits are insured by the federal deposit insurance corporation.
(2)

(A) Deposits in excess of the limits of insurance on such accounts are authorized where the collateral given is eligible collateral, as defined in § 9-4-103, or where the collateral given is an irrevocable letter of credit issued by a federal savings bank.
(B) If the security is released, or if the value of the security is impaired, the bank shall promptly substitute collateral meeting the requirements of this section sufficient to cover the deposits to be secured.
(C) Deposits in excess of the limits of insurance are, as to each bank, limited to no more than five percent (5%) of the assets of such bank with respect to each depositor, and are limited to no more than ten percent (10%) of the assets of such association with respect to all depositors.
(b) Counties, municipalities, districts and other public or quasi-public entities are authorized to deposit or invest funds in the local government investment pool under chapter 4, part 7 of this title. The governing body of such local government may delegate revocable investment authority to the financial officer charged with custody of the funds of the local government, who shall thereafter assume full responsibility for transactions with the local government investment pool.
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