Tennessee § 66-32-128 - Protection of nondefaulting purchasers.
Full text of Tennessee Tennessee Code Annotated § 66-32-128 — Protection of nondefaulting purchasers., with citation guidance and answers to common questions.
§ 66-32-128. Protection of nondefaulting purchasers.
The developer whose project is subject to an underlying blanket lien or encumbrance shall protect nondefaulting purchasers from foreclosure by the lienholder by obtaining from the lienholder a nondisturbance clause, subordination agreement or partial release of the lien as the time-share intervals are sold. In the alternative, the developer may obtain the agreement of the lienholder to take the project, in the event of default by the developer, subject to the rights of the nondefaulting purchasers by posting a bond, equal to fifty percent (50%) of the amount owed to the lienholder, making an assignment of receivables equal to one hundred twenty-five percent (125%) of the principal amounts due to the lienholder, pledging collateral security equal to one hundred percent (100%) of the amount owed to the lienholder or entering into any other financing plan or escrow agreement acceptable to the lienholder. Acts 1981, ch. 372, § 29; T.C.A., § 64-3229.
Source: official Tennessee text · Last verified 2026-08-27
Frequently Asked Questions About Tennessee § 66-32-128
What does Tennessee Code Annotated § 66-32-128 cover?
Section 66-32-128 ("Protection of nondefaulting purchasers.") 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 § 66-32-128?
A common citation format is "Tennessee Code Annotated § 66-32-128" (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 § 66-32-128 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.