Chapter Definitions

1. Law
2. Tennessee Code
3. Banks and Financial Institutions
4. Flexible Credit Act
5. Chapter Definitions

As used in this chapter, unless the context otherwise requires:

1. “Commissioner” means the commissioner of financial institutions or the commissioner's designee;
2. 1. “Control” means possession, direct or indirect, of the power to direct or cause the direction of management and policies of a person, whether through the ownership of voting securities by contract or otherwise; provided, that no individual shall be deemed to control a person solely on account of being a director, officer, or employee of the person;
   2. For purposes of this subdivision (2), a person who, directly or indirectly, owns, controls, holds the power to vote, or holds proxies representing twenty-five percent (25%) or more of the then outstanding voting securities issued by another person, is presumed to control the other person. For purposes of this subdivision (2), the commissioner may determine whether a person, in fact, controls another person;
3. “Controlling person” means any person in control of a licensee;
4. “Department” means the department of financial institutions;
5. “Flex loan” means a loan made pursuant to a flex loan plan;
6. “Flex loan plan” means a written agreement subject to this chapter between a licensee and a customer establishing an open-end credit plan under which the licensee contemplates repeated noncommercial loans for personal, family, or household purposes, that:
   1. May be unsecured or secured by personal property;
   2. May be without fixed maturities or limitation as to the length of term; and
   3. Are subject to prepayment in whole or in part at any time without penalty;
7. “Licensee” means a person licensed to offer flex loans pursuant to this chapter; and
8. “Person” means an individual, group of individuals, partnership, association, corporation, or any other business unit or legal entity.

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