Affiliate: means , if used with respect to a specified person other than a natural person, a person controlling or controlled by the specified person, or a person controlled by a person who also controls the specified person. See Tennessee Code 45-8-203
Associate: means , if used with respect to a licensee:(A) A controlling person, director, officer, agent, or advisor of that licensee. See Tennessee Code 45-8-203
BIDCO: means a business and industrial development corporation licensed under this part. See Tennessee Code 45-8-203
Business firm: means a person that transacts business on a regular basis, or that proposes to transact business on a regular and continual basis. See Tennessee Code 45-8-203
Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
Licensee: means a Tennessee corporation that is licensed under this part. See Tennessee Code 45-8-203
Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
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
Order: includes an approval, authorization, consent, exemption, denial, prohibition, or other official act taken by the commissioner. 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
(1) A person who is in a relationship referred to in this section within six (6) months before or after a licensee provides financing assistance shall be considered to be in that relationship as of the date that licensee provides that financing assistance; and(2) If a licensee, in order to protect its interest, designates a person to serve as a director of, officer of, or in any capacity in the management of a business firm to which that licensee provides financing assistance, that person shall not, on that account, be considered to have a relationship with that business firm.(b) A person shall not willfully make an untrue statement of a material fact in an application or report filed with the commissioner under this part, or willfully omit to state in the application or report a material fact required to be stated in the application or report.(c) A person having custody of any of the books, accounts, or other records of a licensee shall not willfully refuse to allow the commissioner, upon request, to inspect or make copies of any of those books, accounts or other records.(d) A person shall not, with intent to deceive a director, officer, employee, auditor or attorney of a licensee, the commissioner, or a governmental agency:
(1) Make a false entry in the books, accounts or other records of the licensee;(2) Omit to make an entry in those books, accounts or other records that the person is required to make; or(3) Alter, conceal, or destroy any of those books, accounts or other records.(e) A licensee shall not provide, directly or indirectly, financing assistance to an associate of the licensee.(f) A licensee shall not provide, directly or indirectly, financing assistance to discharge, or to free other money for use in discharging, in whole or in part, an obligation to an associate of that licensee. This subsection (f) does not apply to a transaction effected by an associate of a licensee in the normal course of that associate’s business involving a line of credit or short-term financing assistance.(g) It is unlawful for any person to serve as an officer or director of a BIDCO who:
(1) Has been convicted of an offense constituting a violation of the BIDCO laws, a felony or a breach of trust in the jurisdiction where the judgment was rendered;(2) Is indebted to the BIDCO for more than thirty (30) days upon a judgment that has become final.(h) It is unlawful for an affiliate of a BIDCO, or for an officer, director or employee of a BIDCO or affiliate of a BIDCO, to willfully and knowingly and without authority from the board of directors or governing body of the BIDCO, to receive, consent to receive, or agree to receive, any commission, emolument, gratuity, or reward, or any promise of any commission, emolument, or reward, property or thing of value or of personal advantage, for procuring or endeavoring to procure for any person a loan or any other investment by the BIDCO.(i) Any director of a BIDCO who concurs in any vote or act of the directors of the BIDCO by which it is intended to:
(1) Make a dividend except from the surplus profits arising from the business of the BIDCO;(2) Divide, withdraw or in any manner pay to the stockholders or any of them any part of the stock of the BIDCO, or to reduce the stock except in pursuance of law;(3) Discount or receive any note, or other evidence of debt in payment of stock required to be paid or with intention to provide the means of making the payment;(4) Receive or discount any note or other evidence of debt with the intent to enable any stockholder to withdraw any part of the money paid in as consideration for the purchase of stock; or(5) Apply any portion of the funds of the BIDCO except as allowed by law, directly or indirectly, to the purchase of shares of its own stock.
