Tennessee § 6-22-120 - Depositories of municipal funds.
Full text of Tennessee Tennessee Code Annotated § 6-22-120 — Depositories of municipal funds., with citation guidance and answers to common questions.
§ 6-22-120. Depositories of municipal funds.
The board, at a regular meeting, shall adopt a resolution to contract with a bank or banks making the best proposal to become the depository of municipal funds. Before entering into a contract under subdivision (a)(1), the treasurer or an officer appointed by the treasurer shall review and analyze the proposals from the banks and submit an analysis of the proposals to each member of the board at or before the next meeting of the board. The analysis of the proposals should consider the bank or banks proposing the highest interest rate, potential service charges or other fees, factors affecting safety and liquidity of municipal funds, and any other relevant factors. The board shall require any bank that becomes a depository of municipal funds to secure the funds by collateral in the same manner and under the same conditions as state deposits under title 9, chapter 4, parts 1 and 4, or as provided in a collateral pool created under title 9, chapter 4, part 5. Notwithstanding any law to the contrary, at least once every four (4) years, the board shall reevaluate the contracts entered into pursuant to subsection (a). The board shall base its evaluation on proposals obtained from at least two (2) banks. The treasurer or an officer appointed by the treasurer shall prepare a written evaluation of the proposals and preserve the evaluations for at least three (3) years. Acts 1921, ch. 173, art. 11, § 13; Shan. Supp., § 1997a192; Code 1932, § 3590; Acts 1977, ch. 80, § 1; T.C.A. (orig. ed.), § 6-2221; Acts 1989, ch. 175, § 21; 1994, ch. 752, § 5; 2019, ch. 277, § 2. Amendments. The 2019 amendment rewrote this section, which read: “Depositories of the municipal funds shall be designated by ordinance. The board shall require any financial institution that becomes a depository of municipal funds to secure such funds by collateral in the same manner and under the same conditions as state deposits under title 9, chapter 4, parts 1 and 4, or as provided in a collateral pool created under title 9, chapter 4, part 5.” Effective Dates. Acts 2019, ch. 277, § 5. July 1, 2019.
Source: official Tennessee text · Last verified 2026-08-27
Frequently Asked Questions About Tennessee § 6-22-120
What does Tennessee Code Annotated § 6-22-120 cover?
Section 6-22-120 ("Depositories of municipal funds.") is part of the Tennessee Code Annotated, the codified statutory law of Tennessee. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Tennessee § 6-22-120?
A common citation format is "Tennessee Code Annotated § 6-22-120" (Tennessee). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Tennessee law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Tennessee official source linked on this page or consult a licensed Tennessee attorney.
How does Tennessee § 6-22-120 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Tennessee can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Tennessee.