AN ACT to amend Tennessee Code Annotated, Section 47-9-102, relative to secured transactions.
Impact
The changes introduced by SB2110 have significant implications for financial regulations within the state of Tennessee. By providing a more precise definition of deposit accounts, the bill seeks to streamline the understanding and enforcement of laws related to secured transactions. This may enhance the ability of lenders to secure interests in deposit accounts, thereby influencing lending practices and potentially affecting credit availability for individuals and businesses.
Summary
Senate Bill 2110 aims to amend Section 47-9-102 of the Tennessee Code Annotated, which deals with secured transactions. The bill seeks to redefine the term 'deposit account' to include various types of accounts maintained with a bank while excluding investment property, United States central bank digital currency, certificates of deposit, and certain financial instruments. This clarification in terminology is crucial for the purposes of secured transactions, lending clarity to financial and legal relationships involving these accounts.
Contention
Discussion around SB2110 may focus on the extent to which the bill integrates modern financial practices into existing legal frameworks. The exclusion of contemporary financial instruments, like central bank digital currencies, from the definition of deposit accounts may raise questions about the adaptability of Tennessee's financial regulations. Stakeholders may have differing opinions on the implications of this exclusions, particularly in relation to the evolving nature of banking and secured transactions in the digital age.