§ 45-7-123 — Reports of certain events

(a) A licensee shall file a report with the commissioner, describing the event and its expected impact on the licensee's activities in the state, within three (3) days after the occurrence of any of the following events: (1) The filing of a petition by or against the licensee under the United States Bankruptcy Code ( 11 U.S.C. §§ 101 - 110 ), as amended or recodified from time to time, for bankruptcy or reorganization; (2) The filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or the making of a general assignment for the benefit of its creditors; (3) The commencement of a proceeding to revoke or suspend its license in a state or country in which the licensee engages in business or is licensed; (4) A charge or conviction of the licensee or of a key individual or person in control of the licensee for a felony; (5) A charge or conviction of an authorized delegate for a felony; (6) The occurrence of any computer security incident; or (7) Other events the commissioner may determine. (b) Each authorized delegate shall report to the licensee the theft or loss of payment instruments valued at five thousand dollars ($5,000) or more within twenty-four (24) hours from the time the authorized delegate knew or should have known of the theft or loss. Upon the receipt of the report, the licensee shall immediately provide the information to the commissioner. (c) As used in this section, "computer security incident" means any event that results in actual harm to the confidentiality, integrity, or availability of an information system or the information that the system processes, stores, or transmits and that has disrupted or degraded, or is reasonably likely to disrupt or degrade, a licensee's: (1) Ability to carry out operations, activities, or processes, or to deliver products and services to a material portion of its customer base, in the ordinary course of business; (2) Business lines, including associated operations, services, functions, and support, that upon failure would result in a material loss of revenue, profit, or franchise value; or (3) Operations, including associated services, functions, and support, as applicable, the failure or discontinuance of which would pose a threat to the financial stability of the United States.

Legislative History

Amended by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024. Acts 1994, ch. 715, § 1; T.C.A., §45-7-223.