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2017 Tennessee Code
Title 55 - Motor and Other Vehicles
Chapter 27 - Funds Held in Trust by Dealers, Distributors and Manufacturers
§ 55-27-106. Security interest in funds.
Universal Citation: TN Code § 55-27-106 (2017)
- (a) A party holding trust funds provided for under this chapter and chapter 24 of this title may not grant to any third party any security or other interest in the trust funds.
- (b) Notwithstanding subsection (a), for any manufacturer which, as a result of restructuring or other means, ten percent (10%) or more of the outstanding common stock is or was at any time owned by an entity or agency of the United States government, subsection (a) shall only apply to trust funds owed by such manufacturer to a dealer on or within three hundred ninety-five (395) days prior to the filing by or against that manufacturer of a petition for relief under title 11 of the United States Code; provided, however, that nothing in this subsection (b) shall diminish any rights otherwise afforded by Tennessee common law or other applicable Tennessee authority that existed prior to the enactment of this subsection (b) or any amendment thereto.
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