55-27-102 - Funds held in trust by a dealer. - Tennessee Statutes

55-27-102. Funds held in trust by a dealer.

All funds received by a dealer in a transaction involving the purchase or trade-in, or both, of a motor vehicle intended by the parties to the transaction to be used to:

     (1)  Satisfy obligations secured by a lien or other security interest in a motor vehicle or other tangible personal property taken by the dealer as a trade-in in partial or complete consideration for the purchase of a motor vehicle;

     (2)  Pay to the taxing authorities the sales or use tax collected by the dealer on the sale of a motor vehicle; or

     (3)  Pay the fees imposed for the transfer of title, registration and licensing of the vehicle;

are trust funds held in trust by the dealer for the benefit of the purchaser and/or the holder of the obligations secured by the lien or other security interest and/or the taxing authorities and registration officials, as their respective interests may appear.

[Acts 2009, ch. 322, § 2.]