(a)As used in this part:
(1)"Corporate trustee" means a Tennessee trust company, a Tennessee bank with trust powers, or a national bank with trust powers and with a physical presence in Tennessee;
(2)"Department" means the department of financial institutions;
(3)"Designated ancestor" means one (1) or more ancestors of the family designated as such in the entity's governing documents. A designated ancestor may be either living or deceased. If two (2) designated ancestors are designated, they must be or have been spouses to each other, and if more than such first two (2) designated ancestors are designated, each such additional designated ancestor must be or have been a spouse of either of the first two (2) designated ancestors;
(4)"Entity" means a corporation or a limited liability co
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(a) As used in this part: (1) "Corporate trustee" means a Tennessee trust company, a Tennessee bank with trust powers, or a national bank with trust powers and with a physical presence in Tennessee; (2) "Department" means the department of financial institutions; (3) "Designated ancestor" means one (1) or more ancestors of the family designated as such in the entity's governing documents. A designated ancestor may be either living or deceased. If two (2) designated ancestors are designated, they must be or have been spouses to each other, and if more than such first two (2) designated ancestors are designated, each such additional designated ancestor must be or have been a spouse of either of the first two (2) designated ancestors; (4) "Entity" means a corporation or a limited liability company organized in this state; (5) (A) "Family member" means a designated ancestor and: (i) An individual within the twelfth degree of lineal kinship of a designated ancestor; (ii) An individual within the eleventh degree of collateral kinship of a designated ancestor; (iii) A spouse or former spouse of a designated ancestor or of an individual defined as a family member in subdivision (a)(5)(A) or (a)(5)(B); and (iv) An individual who is a relative of a spouse or former spouse specified in subdivision (a)(5)(C) who is within the fifth degree of lineal or collateral kinship of the spouse or former spouse; (B) For purposes of determining whether a person is a family member as defined in this subdivision (a)(5): (i) A legally adopted person shall be treated as a natural child of the adoptive parents; (ii) A stepchild shall be treated as a natural child of the individual who is or was the stepparent of that child; (iii) A foster child, or an individual who was a minor when an adult became the individual's legal guardian, shall be treated as a natural child of the adult appointed as foster parent or guardian; (iv) A child of a spouse or former spouse of an individual shall be treated as a natural child of that individual; (v) Degrees are calculated by adding the number of steps from a relevant designated ancestor through each individual to the family member either directly, in case of lineal kinship, or through a designated ancestor, in the case of collateral kinship; and (vi) A person who was a family member at the time of the special purpose entity's engagement as trust protector or trust advisor shall not cease to be a family member solely due to a death, divorce, or other similar event; and (6) "Special purpose entity" means an entity that meets the requirements provided under subsection (b). (b) A special purpose entity shall not be subject to chapters 1 and 2 of title 45 regulating fiduciary activity if: (1) The entity is established for the exclusive purpose of acting as a trust protector or trust advisor as defined by § 35-15-1201 , or any combination of such purposes; (2) The entity is acting in such capacity solely under the terms of trusts in which the grantor or beneficiary is a family member, and under which a corporate trustee is serving as trustee; (3) The entity is not engaged in trust company business as a private trust company under title 45, chapter 2, part 20, or with the general public as a public trust company; (4) The entity does not hold itself out as being in the business of acting as a fiduciary for hire as either a public or private trust company; (5) The entity files an annual report with the secretary of state; (6) The entity agrees to be subject to examination by the department at the discretion of the department solely for the purpose of determining whether the entity satisfies all requirements for qualification under this part; (7) The entity agrees to pay the department the actual expenses of the examination at the time of the examination described in subdivision (b)(6); (8) The entity does not use the word "trust" or "trustee" in the entity's name in any manner; (9) The governing documents of the entity, as such governing documents may be amended from time to time, limit the entity's authorized activities to the functions permitted to a trust protector or trust advisor, or any combination of such functions, and limit the performance of those functions with respect to trusts in which a grantor or beneficiary of such trust is a family member with respect to a designated ancestor specifically named in the entity's governing documents; (10) The entity does not act as a fiduciary other than as provided in this part; and (11) On or before the date that is sixty (60) days after the date on which the entity's initial formation documents are filed with the secretary of state, the entity or the entity's organizers: (A) Provide notice to the department of: (i) The entity's intention to act as a special purpose entity; (ii) The name, address, and telephone number of each organizer of the entity; (iii) The address of the entity's principal office; and (iv) The name of each current and prospective corporate trustee for each separate trust for which such entity is or will be engaged as a trust protector or trust advisor; and (B) Pay a one-time fee of one thousand dollars ($1,000) to the department. (12) [Deleted by 2022 amendment.] (c) An entity that fails to meet any of the requirements set forth in subsection (b) is not a special purpose entity and is not authorized to act as a special purpose entity in this state. (d) Notwithstanding subsection (c), an entity that meets all of the requirements of subsection (b) other than the notice and fee requirements of subdivision (b)(11) is deemed to have satisfied all of the requirements of subsection (b) and is deemed to be a special purpose entity under this section; provided, that the entity provides the notice and fee specified in subdivision (b)(11) to the department on or before August 1, 2022.