(a) A bank may pledge its assets only:

Terms Used In Tennessee Code 45-2-611

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Bank: means any person, as hereinafter defined, doing a banking business subject to the laws of this or any other jurisdiction and, for the purposes of supervision, examination and liquidation, includes industrial investment companies and industrial banks authorized by chapter 5 of this title. See Tennessee Code 45-1-103
  • Commissioner: means the commissioner of financial institutions. See Tennessee Code 45-1-103
  • Person: means an individual, corporation, firm, trust, estate, partnership, joint venture, or association. See Tennessee Code 45-1-103
  • 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) To enable it to act as an agent for the sale of obligations of the United States;
(2) To secure borrowed funds;
(3) To secure the public funds of a governmental entity; and
(4) For other purposes that are approved by the commissioner.
(b) As used in this section, unless the context otherwise requires:

(1) “Governmental entity” means:

(A)

(i) The United States government or any agency thereof; or
(ii) Any instrumentality of the United States the funds of which are required by law to be secured; and
(B) The state of Tennessee or any other state, counties, incorporated municipalities and their political subdivisions or any utility district organized under the laws of a state or an interstate compact; and
(2) “Public funds” means:

(A) Funds in which the entire beneficial interest is owned by a governmental entity; or
(B) Funds held in the name of a public official charged with the duty to receive or administer funds and acting in the person‘s official capacity.
(c) A financial institution authorized to secure public funds of any governmental entity shall do so in the same manner and under the same conditions as state deposits under title 9, chapter 4, or as provided in a collateral pool as provided in title 9, chapter 4, part 5.
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