66-24-123 - Security trusts Residence of trustee. - Tennessee Statutes

66-24-123. Security trusts Residence of trustee.

(a)  For the purposes of this section, “security trust” includes a deed of trust, mortgage, bond or other instrument, entered into after July 1, 1990, under which the title to real or personal property, or both, wholly situated in this state, is conveyed, transferred, encumbered or pledged to secure the payment of money or the performance of an obligation. The provisions of this section do not apply to security trusts applying to property partly situated in this state and partly situated outside this state, or to property situated in this state which, together with property situated outside this state, is the security for the performance of an obligation; nor shall such provisions apply to the creation, maintenance or administration of such a trust authorized or required by federal law or regulation relating to the governance, administration or regulation of a financial institution.

(b)  Except as provided in subsection (e):

     (1)  A person not a resident of this state or whose principal place of employment is not in this state; and

     (2)  Any corporation:

          (A)  Not incorporated under the laws of this state or of the United States; and

          (B)  With its principal place of business not in this state;

may in either case be named or act, in person or by agent or attorney, as the trustee of a security trust, either individually or as one (1) of several trustees, regardless whether one (1) or more of such other trustees qualify to serve pursuant to this section, when and only to the extent that the state, territory or District of Columbia in which such individual resides or, with respect to a corporation, when and only to the extent that the state or states, territory or territories, or District of Columbia in which such corporation is organized and has its principal place of business, grants equivalent authority to residents of this state, individuals whose principal place of employment is in this state, and corporations incorporated under the laws of this state and whose principal place of business is within this state.

(c)  (1)  The county, city or town in this state in which such trustee resides shall be sufficient statement of the residence address of such trustee.

     (2)  Notwithstanding any other provisions of this section, if any security trust is admitted by a register of deeds for registration, it shall be conclusively presumed that such security trust complies with all the requirements of this section.

(d)  All deeds of trusts, mortgages, bonds or other instruments registered by the register of deeds without the residence address of the trustee or trustees named in the instrument shall be valid for all purposes as if such address had been named in the instrument, if such registration is otherwise valid according to the law then in force.

(e)  The provisions of this section shall not apply to any person who is the spouse, parent, child, grandchild, brother or sister of the person conveying, transferring, encumbering or pledging title to real or personal property wholly situated in this state to secure the payment of money or the performance of an obligation.

[Acts 1990, ch. 1046, § 1; 1992, ch. 619, § 1; 1992, ch. 708, § 1.]