HOUSE BILL NO. 796

By Representative Rhinehart

Substituted for: Senate Bill No. 353

By Senator Cooper

AN ACT to amend Tennessee Code Annotated, Title 45, Chapter 15, relative to title pledge lenders liens.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. Tennessee Code Annotated, Section 45-15-115, is amended by adding the following as a new subdivision to be appropriately designated:

( ) Enter into a pledge agreement unless the title pledgor presents clear title to titled personal property at the time that the loan is made and such title is retained in the physical possession of the title pledge lender, except as required to comply with the provisions of Tennessee Code Annotated, Section 45-15-110. If the title pledge lender files a lien against such property without possession of a clear title to such property, the resulting lien shall be void.

SECTION 2. This act shall take effect upon becoming a law, the public welfare requiring it.