2018 Tennessee Code
Title 47 - Commercial Instruments and Transactions
Chapter 25 - Trade Practices
Part 10 - Consignment of Art
§ 47-25-1005. Nature of trust.

Universal Citation: TN Code § 47-25-1005 (2018)
  • (a) A work of art received as a consignment shall remain trust property, notwithstanding the subsequent purchase thereof by the consignee directly or indirectly for the consignee's own account, until the price is paid in full to the consignor. If such work is thereafter resold to a bona fide purchaser before the consignor has been paid in full, the proceeds of the resale received by the consignee shall constitute funds held in trust for the benefit of the consignor to the extent necessary to pay any balance still due to the consignor, and such trusteeship shall continue until the fiduciary obligation of the consignee with respect to such transaction is discharged in full.

  • (b) No such trust property or trust funds shall be or become subject or subordinate to any claims, liens, or security interests of any kind or nature whatsoever, of the consignee's creditors, anything in the Uniform Commercial Code, § 47-2-326, or any other provision of the Uniform Commercial Code to the contrary notwithstanding.

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