Tennessee § 45-2-1701 - Unauthorized conduct of banking or fiduciary activity — Violation a criminal offense.

§ 45-2-1701. Unauthorized conduct of banking or fiduciary activity — Violation a criminal offense.

It is unlawful for any person not so authorized to carry on a banking business under this chapter and chapter 1 of this title, falsely and with intent to defraud, to act as a bank, or to represent that the person is or is acting for a bank, or to use an artificial or corporate name that is the name of a bank. The right to receive money on deposit and the right to pay out money on checks are declared to be the exclusive privileges of the banking business. No trust company hereafter may be incorporated or be qualified to act as a fiduciary unless it is incorporated under this chapter and chapter 1 of this title, or the laws governing national banking associations. The foregoing, however, shall not be deemed to restrict the activity of a foreign bank or trust company acting as a trustee under § 35-50-107; nor shall it be deemed to restrict the fiduciary activity of any other class of regulated financial institutions that may now have, or hereafter acquire, fiduciary powers; provided, that nothing herein shall be construed to increase the powers of other classes of regulated financial institutions. A violation of this section is a Class C misdemeanor. Acts 1969, ch. 36, § 1 (3.601); T.C.A., § 45-1101; Acts 1980, ch. 620, § 4; 1989, ch. 591, § 113. Compiler's Notes. Section 5 of Acts 1980, ch. 620 reads: “The existence and operation of any trust company formed prior to the effective date of this act shall not be impaired by the enactment of this act.” Cross-References. Negotiable instruments, title 47, ch. 3. Penalty for Class C misdemeanor, § 40-35-111 . Textbooks. Tennessee Jurisprudence, 5 Tenn. Juris., Banks and Banking, § 23. Law Reviews. A Realistic Duty of Care for Outside Bank Directors, 51 Tenn. L. Rev. 569 (1984).