56-37-112 - Perfection of security interest. - Tennessee Statutes

56-37-112. Perfection of security interest.

A seller, a building or savings and loan association, bank, trust company, industrial loan and thrift company or credit union authorized to do business in this state that finances insurance premiums in connection with a sale or extension of credit, shall be deemed to have a perfected security interest in any premiums financed with the sale or extension of credit if the buyer or borrower signs a written agreement assigning a security interest to the seller, seller's assignee or lender. No filing of the premium finance agreement shall be necessary to perfect the validity of the agreement as a secured transaction as against creditors, subsequent purchasers, pledgees, encumbrancers, trustees in bankruptcy or any other insolvency proceeding under any law or anyone having the status or power of the aforementioned or their successors or assigns.

[Acts 1980, ch. 920, § 12; 1981, ch. 414, § 3.]