Tennessee § 47-24-102 Nature of transaction

Tennessee Statutes

§ 47-24-102 — Nature of transaction

Tennessee § 47-24-102

Title47

This text of Tennessee § 47-24-102 (Nature of transaction) is published on Counsel Stack Legal Research, covering Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tenn. Code Ann. § 47-24-102 (2026).

Text

(a)A lender has the right to participate in the borrower's enterprise or venture to such extent as may be set forth in a written agreement between the lender and the borrower; provided, that the original principal amount of the funds advanced to the borrower pursuant to the loan transaction shall be not less than five hundred thousand dollars ($500,000), or, alternatively, that there shall be contemplated to be a series of advances of money aggregating not less than five hundred thousand dollars ($500,000).

(b)The consideration or value received by the lender in any such participation, as distinct from interest received pursuant to the loan transaction, shall not be deemed to be interest, loan charges, commitment fees, or brokerage commissions for purposes of chapter 14 of this title, no

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(a) A lender has the right to participate in the borrower's enterprise or venture to such extent as may be set forth in a written agreement between the lender and the borrower; provided, that the original principal amount of the funds advanced to the borrower pursuant to the loan transaction shall be not less than five hundred thousand dollars ($500,000), or, alternatively, that there shall be contemplated to be a series of advances of money aggregating not less than five hundred thousand dollars ($500,000). (b) The consideration or value received by the lender in any such participation, as distinct from interest received pursuant to the loan transaction, shall not be deemed to be interest, loan charges, commitment fees, or brokerage commissions for purposes of chapter 14 of this title, notwithstanding the fact that the parties may describe such consideration or value to be interest or other such charges in a written agreement between the parties. (c) Nothing herein shall be construed to limit, modify, or otherwise affect rights which the lender may have, including, but not limited to, foreclosure rights, pursuant to the loan transaction. (d) The lender shall not be deemed to be a partner or joint venturer with the borrower, or otherwise jointly liable as to the financing with the borrower, as a result of such participation, unless the agreement between the lender and borrower shall expressly make the lender so liable.