(a) A Tennessee corporation may apply to the commissioner for a license to form and conduct business as a BIDCO. A person other than a Tennessee corporation may not apply for the license.
Terms Used In Tennessee Code 45-8-208
Applicant: means a Tennessee corporation that has submitted an application for a license under this part. See Tennessee Code 45-8-203
Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
BIDCO: means a business and industrial development corporation licensed under this part. See Tennessee Code 45-8-203
Capital: means equity investments evidenced by stock, paid-in capital (amounting to, but not less than, fifty percent (50%) of its stock) and undivided profits. See Tennessee Code 45-8-203
controlling person: means a person or any combination of persons acting in concert, owning or controlling, directly or indirectly, a twenty percent (20%) or greater equity interest. See Tennessee Code 45-8-203
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.
License: means a license issued under this part authorizing a Tennessee corporation to transact business as a BIDCO. See Tennessee Code 45-8-203
Licensee: means a Tennessee corporation that is licensed under this part. See Tennessee Code 45-8-203
Officer: means : (A) If used with respect to a corporation, a person appointed or designated as an officer of the corporation by or pursuant to applicable law or the charter or bylaws of the corporation, or a person who performs, with respect to the corporation, functions usually performed by an officer of a corporation. See Tennessee Code 45-8-203
Person: includes an individual, proprietorship, joint venture, partnership, trust, business trust, syndicate, association, joint stock company, corporation, cooperative, government, agency of a government, or any other entity or organization. See Tennessee Code 45-8-203
Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
(b) An application filed with the commissioner under this part shall be in the form and contain the information that the commissioner may require, but shall contain, at a minimum, the following:
(1) A detailed business plan setting forth the services to be provided by the proposed BIDCO to business firms located within or outside of the state;(2) A summary of the geographical business markets of the proposed BIDCO;(3) Information concerning the experience of the management of the proposed BIDCO and how the experience relates to the execution of the business plan referred to in subdivision (b)(1);(4) Location of the proposed main office of the BIDCO and any branch offices, or the vicinity thereof;(5) A detailed summary of how the management of the proposed BIDCO intends to implement a reasonable and prudent policy for conserving and investing the capital of the BIDCO;(6) A summary of the types of business firms to be assisted by the proposed BIDCO; and(7) Three (3) years of detailed financial projections.(c) After a review of an application and receipt and review of any additional or supplemental information requested by the commissioner, the commissioner shall approve the application for a license under this part if the commissioner determines that:
(1) The applicant has, or has firm financing commitments from equity investors or debt sources for, cash or similar liquid assets sufficient to demonstrate that prior to the time the applicant is authorized to transact business as a BIDCO, the applicant will have liquid assets available to provide financing assistance to business firms in an amount adequate for the applicant to transact business as a BIDCO;(2)(A) Each director, officer, and controlling person of the applicant is of good character and sound financial standing;(B) Each director and officer of the applicant is competent to perform the director’s functions with respect to the applicant; and(C) The directors and officers of the applicant are collectively able to manage the business of the applicant as a BIDCO;(3) It is reasonable to believe that the applicant, if licensed, will comply with this part; and(4) The applicant has reasonable prospects of being a viable, ongoing BIDCO and of satisfying the basic objectives of its business plan.(d) The commissioner shall require a BIDCO to have a capital structure that the commissioner deems necessary for the transaction of business, but not less than one million dollars ($1,000,000).(e)(1) If an application for a license under this part is approved and all conditions precedent to the issuance of the license are fulfilled, the commissioner shall issue a license to the applicant.(2) A licensee shall post the license, or a copy thereof, in a conspicuous place in each of the main and branch offices of the licensee.(3) A license shall not be transferable or assignable.(4) Each license shall expire on December 31 of each year, and be subject to an annual renewal.(f) If the commissioner denies an application, the commissioner shall provide the applicant with a written statement explaining the basis for the denial.
