Tennessee § 66-34-703 - Applicability of chapter.

§ 66-34-703. Applicability of chapter.

This chapter does not apply to any bank, savings bank, savings and loan association, industrial loan and thrift company, other regulated financial institution, or insurance company. Notwithstanding subsection (a), if a bank, savings bank, savings and loan association, industrial loan and thrift company, other regulated financial institution, or insurance company acts in the capacity of an original owner in the event of building its own structure or assumes a project due to its debtor's default and proceeds with completion of the project, then the entity is subject to this chapter, except for §§ 66-34-104(c) and (j); however, the retained amount may be deposited in an account within the entity's own institution. Notwithstanding subsection (a) or any other provision of this chapter to the contrary: A bank, savings and loan association, industrial loan and thrift company, other regulated financial institution, or insurance company shall pay any sums held in trust pursuant to § 66-34-205 in accordance with an order of any court issued pursuant to § 66-34-602; and A bank, savings and loan association, industrial loan and thrift company, other regulated financial institution, or insurance company is not liable for damages pursuant to § 66-34-104(c) based on the failure of an owner to place retainage in a separate interest-bearing, escrow account as required by § 66-34-104(a). Acts 1991, ch. 443, § 1; 2020, ch. 749, § 33. Compiler's Notes. Acts 2020, ch. 749, § 42 provided that the act, which amended this section, applies to actions occurring and contracts entered into, amended, or renewed on or after July 1, 2020. Amendments. The 2020 amendment deleted “, the Prompt Pay Act of 1991, as enacted by Acts 1991, chapter 45,” following “This chapter” in (a); and added (b) and (c). Effective Dates. Acts 2020, ch. 749, § 42. July 1, 2020.