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TITLE 66
PROPERTY
CHAPTER 28
UNIFORM RESIDENTIAL LANDLORD AND TENANT ACT
Part 1
General Provisions.

Short title.
This chapter shall be known and may be cited as the "Uniform Residential Landlord and Tenant Act." Title 66, Chap. 28, 66-28-101

Application.
(a)
(1)  Except as provided in subdivision (a)(2), the provisions of this chapter are applicable only in counties having a population of more than sixty-eight thousand (68,000) according to the 1970 federal census or any subsequent federal census.

(2) The provisions of this chapter do not apply in counties having a population according to the 1990 federal census or any subsequent federal census, of:
not less than                                           nor more than
------------                                            -------------
        80,000                                                 83,000
        92,200                                                 92,500
       118,400                                                118,700
       140,000                                                145,000

(b)  This chapter applies to rental agreements entered into or extended or renewed after July 1, 1975. Transactions entered into before July 1, 1975, and not extended or renewed after that date, and the rights, duties and interests flowing from them remain valid and may be terminated, completed, consummated, or enforced as required or permitted by any statute or other law amended or repealed by this chapter as though the amendment or repeal has not occurred.

(c)  Unless created to avoid the application of this chapter, the following arrangements are not governed by this chapter:
(1) Residence at an institution, public or private, if incidental to detention or the provision of medical, geriatric, educational, counseling, religious, or similar service;

(2) Occupancy under a contract of sale of a dwelling unit or the property of which it is a part, if the occupant is the purchaser or a person who succeeds to the purchaser's interest;

(3) Transient occupancy in a hotel, or motel or lodgings subject to city, state, transient lodgings or room occupancy under the Excise Tax Act;

(4) Occupancy by an owner of a condominium unit or a holder of a proprietary lease in a cooperative; or

(5) Occupancy under a rental agreement covering premises used by the occupant primarily for agricultural purposes.
Title 66, Chap. 28, 66-28-102.

Purposes - Rules of construction.
(a)  This chapter shall be liberally construed and applied to promote its underlying purposes and policies.

(b)  Underlying purposes and policies of this chapter are to:
(1) Simplify, clarify, modernize and revise the law governing the rental of dwelling units and the rights and obligations of landlord and tenant;

(2) Encourage landlord and tenant to maintain and improve the quality of housing;

(3) Promote equal protection to all parties; and

(4) Make uniform the law in Tennessee.
(c)  Unless displaced by the provisions of this chapter, the principles of law and equity, including the law relating to capacity to contract, health, safety and fire prevention, estoppel, fraud, misrepresentation, duress, coercion, mistake, bankruptcy, or other validating or invalidating cause supplement its provisions.

(d)  This chapter being a general chapter intended as a unified coverage of its subject matter, no part of it is to be construed as impliedly repealed by subsequent legislation if that construction can reasonably be avoided.
Title 66, Chap. 28, 66-28-103.

Definitions.
Subject to additional definitions contained in this chapter, which apply to specific portions thereof, and unless the context otherwise requires, in this chapter:
(1) "Action" includes recoupment, counterclaim, set-off, suit in equity, and any other proceeding in which rights are determined, including an action for possession;

(2) "Building and housing codes" includes any law, ordinance, or governmental regulation concerning fitness for habitation, or the construction, maintenance, operation, occupancy, use, or appearance of any premises, or dwelling unit;

(3) "Dwelling unit" means a structure or the part of a structure that is used as a home, residence, or sleeping place by one (1) person who maintains a household or by two (2) or more persons who maintain a common household;

(4) "Good faith" means honesty in fact in the conduct of the transaction concerned;

(5) "Landlord" means the owner, lessor, or sublessor of the dwelling unit or the building of which it is a part, and it also means a manager of the premises who fails to disclose as required by 66-28-302;

(6) "Organization" includes a corporation, government, governmental subdivision or agency, business trust, estate, trust, partnership or association, two (2) or more persons having a joint or common interest, and any other legal or commercial entity;

(7) (A) "Owner" means one (1) or more persons, jointly or severally, in whom is vested:
(i) All or part of the legal title to property; or
(ii) All or part of the beneficial ownership and a right to the present use and enjoyment of the premises;
(B) "Owner" also includes a mortgagee in possession.

(8) "Person" includes an individual or organization;

(9) "Premises" means a dwelling unit and the structure of which it is a part and facilities and appurtenances therein and grounds, areas and facilities held out for the use of tenants generally or whose use is promised to the tenant;

(10) "Rental agreement" means all agreements, written or oral, and valid rules and regulations adopted under 66-28-402 embodying the terms and conditions concerning the use and occupancy of a dwelling unit and premises;

(11) "Rents" means all payments to be made to the landlord under the rental agreement;

(12) (A) "Security deposit" means an escrow payment made to the landlord
under the rental agreement for the purpose of securing the landlord against financial loss due to damage to the premises occasioned by the tenant's occupancy other than ordinary wear and tear; and (B) "Security deposit" does not include advance rentals;

(13) "Tenant" means a person entitled under a rental agreement to occupy a dwelling unit to the exclusion of others;

(14) "Nuisance vehicle" means any vehicle that is incapable of operating under its own power and is detrimental to the health, welfare or safety of persons in the community;

(15) "Unauthorized vehicle" means a vehicle that is not registered to a tenant, an occupant or a tenant's known guest, and has remained for more than seven (7) consecutive days on real property leased or rented by a landlord for residential purposes; and

(16) "Vehicle" means any device for carrying passengers, livestock, goods or equipment that moves on wheels and/or runners.
Title 66, Chap. 28, 66-28-104

Jurisdiction and service of process.
(a)  The general sessions and circuit courts of this state shall exercise original jurisdiction over any landlord or tenant with respect to any conduct in this state governed by this chapter. In addition to any other method provided by rule or by statute, personal jurisdiction over the parties may be acquired in a civil action or proceeding instituted in law or equity by service of process in the manner provided by law.

(b)  A landlord who is not a resident of this state or is a corporation not authorized to do business in this state and engages in a transaction subject to this chapter may designate an agent upon whom service of process may be made in this state. The agent shall be a resident of this state or a corporation authorized to do business in this state. The designation shall be in writing, filed with the secretary of state, and must set forth the name and street address (including zip code) of the agent, the name and street address (including zip code) of the landlord and be accompanied by a ten dollar ($10.00) filing fee. If no designation is made and filed or if process cannot be served in this state upon the designated agent, process may be served upon the secretary of state forthwith by mailing a copy of the process and pleading by registered or certified mail to the defendant or respondent at that party's last known address. Such process must be accompanied by a ten dollar ($10.00) fee and specify the address of the defendant. An affidavit of service shall be filed by the secretary of state with the clerk of the court on or before the return day of the process. Title 66, Chap. 28, 66-28-105.

Notice.
(a)  Either party has notice of a fact if such person:
(1) Has actual knowledge of it; or
(2) Has been given written notice.
(b)  All parties must give written notice to the last known or designated address contained in the lease agreement.  Title 66, Chap. 28, 66-28-106.

                              PART 2
                          RENTAL AGREEMENTS

Terms and conditions.
(a)  The landlord and tenant may include in a rental agreement, terms and conditions not prohibited by this chapter or other rule of law including rent, term of the agreement, and other provisions governing the rights and obligations of parties. A rental agreement cannot provide that the tenant agrees to waive or forego rights or remedies under this chapter. The landlord or the landlord's agent shall advise in writing that the landlord is not responsible for, and will not provide, fire or casualty insurance for the tenant's personal property.

(b)  In absence of a lease agreement, the tenant shall pay the reasonable value for the use and occupancy of the dwelling unit.

(c)  Rent shall be payable without demand at the time and place agreed upon by the parties. Notice is specifically waived upon the nonpayment of rent by the tenant only if such a waiver is provided for in a written rental agreement. Unless otherwise agreed, rent is payable at the dwelling unit and periodic rent is payable at the beginning of any term of one (1) month or less and otherwise in equal monthly installments at the beginning of each month. Upon agreement, rent shall be uniformly apportionable from day to day.

(d)  The landlord shall not charge a tenant for the late payment of rent due unless more than five (5) days have elapsed since the rent was due. Any charge or fee, however described, which is charged by the landlord for the late payment of rent shall not exceed ten percent (10%) of the amount of rent past due.

(e) (1)  No charge or fee for the late payment of rent due from a tenant in a public housing project shall exceed five dollars ($5.00) per month. No late charge or fee shall be assessed such tenant unless more than fifteen (15) days have elapsed since the rent was due. (2) The provisions of this subsection shall apply only to counties with a population between two hundred fifty thousand (250,000) and three hundred thousand (300,000) according to the 1980 federal census or any subsequent census.  Title 66, Chap. 28 66-28-201.

Effect of unsigned or undelivered agreement.
(a)  If the landlord does not sign a written rental agreement, acceptance of rent without reservation by the landlord binds the parties on a month to month tenancy.

(b)  Any person or persons taking possession without payment and failing to sign a written rental agreement delivered to them by the landlord or who enter without oral agreement are deemed to be trespassers and will be evicted forthwith.  Title 66, Chap. 28, 66-28-202.

Prohibited provisions.
(a)  No rental agreement may provide that the tenant:
(1) Authorizes any person to confess judgment on a claim arising out of the rental agreement;
(2) Agrees to the exculpation or limitation of any liability of the landlord to the tenant arising under law or to indemnify the landlord for that liability or the costs connected with such liability.
(b)  A provision prohibited by subsection (a) included in an agreement is unenforceable. Should a landlord willfully provide a rental agreement containing provisions known by the landlord to be prohibited by this chapter, the tenant may recover actual damages sustained. The tenant cannot agree to waive or forego rights or remedies under this chapter.  Title 66, Chap. 28, 66-28-203.

Unconscionability.
(a)  If the court, as a matter of law, finds:
(1) A rental agreement or any provision thereof was unconscionable when made, the court shall enforce the remainder of the agreement without the unconscionable provision, or limit the application of any unconscionable provision to avoid an unconscionable result; or
(2) A settlement in which a party waives or agrees to forego a claim or right under this chapter or under a rental agreement was unconscionable at the time it was made, the court shall enforce the remainder of the settlement without the unconscionable provision, or limit the application of any unconscionable provision to avoid the unconscionable result.
(b)  If unconscionability is put into issue by a party or by the court upon its own motion, the parties shall be afforded a reasonable opportunity to present evidence as to the setting, purpose, and effect of the rental agreement or settlement to aid the court in making the determination.  Title 66, Chap. 28, 66-28-204.
 

                                 PART 3
                        LANDLORD OBLIGATIONS

Security deposits.
(a)  All landlords of residential property requiring security deposits prior to occupancy are required to deposit all tenants' security deposits in an account used only for that purpose, in any bank or other lending institution subject to regulation by the state of Tennessee or any agency of the United States government. Prospective tenants shall be informed of the location of the separate account.

(b)  Within three (3) business days of the termination of occupancy but prior to any repairs or cleanup of the premises, the landlord shall inspect the premises and compile a comprehensive listing of any damage to the unit which is the basis for any charge against the security deposit and the estimated dollar cost of repairing such damage. The tenant shall then have the right to inspect the premises to ascertain the accuracy of such listing. The landlord and the tenant shall sign such listing, which signatures shall be conclusive evidence of the accuracy of such listing. If the tenant refuses to sign such listing, the tenant shall state specifically in writing the items on the list to which the tenant dissents, and shall sign such statement of dissent. If the tenant has moved or is otherwise inaccessible to the landlord, the landlord shall mail a copy of the listing of damages and estimated cost of repairs to the tenant at the tenant's last known mailing address.

(c)  No landlord shall be entitled to retain any portion of a security deposit if the security deposit was not deposited in a separate account as required by subsection (a) and if the final damage listing required by subsection (b) is not provided.

(d)  A tenant who disputes the accuracy of the final damage listing given pursuant to subsection (b)may bring an action in a circuit or general sessions court of competent jurisdiction of this state. The tenant's claim shall be limited to those items from which the tenant specifically dissented in accordance with the listing or specifically dissented in accordance with subsection (b); otherwise the tenant shall not be entitled to recover any damages under this section.

(e)  Should a tenant vacate the premises with unpaid rent due and owing, and without making a demand for return of deposit, the landlord may, after thirty (30) days, remove the deposit from the account and apply the moneys to the unpaid debt.

(f)  In the event the tenant leaves not owing rent and having any refund due, the landlord shall send notification to the last known or reasonable determinable address, of the amount of any refund due the tenant. In the event the landlord shall not have received a response from the tenant within sixty (60) days from the sending of such notification, the landlord may remove the deposit from the account and retain it free from any claim of the tenant or any person claiming in the tenant's behalf.

(g)  This section does not preclude the landlord or tenant from recovering other damages to which such landlord or tenant may be entitled under this chapter.

(h) (1)Notwithstanding the provisions of subsection (a), all landlords of residential property shall be required to notify their tenants at the time such persons sign the lease and submit the security deposit, of the location of the separate account required to be maintained pursuant to this section, but shall not be required to provide the account number to such persons, nor shall they be required to provide such information to a person who is a prospective tenant.  (2) The provisions of subdivision (h)(1) do not apply in counties having a population according to the 1990 federal census or any subsequent federal census, of:
not less than                                           nor more than
------------                                            -------------
        80,000                                                 83,000
        92,200                                                 92,500
       118,400                                                118,700
       140,000                                                145,000
Title 66, Chap. 28, 66-28-301.

Address of landlord or agent.
(a)  The landlord or any person authorized to enter into a rental agreement on the landlord's behalf shall disclose to the tenant in writing at or before the commencement of the tenancy the name and address of:
(1) The agent authorized to manage the premises; and
(2) An owner of the premises or a person or agent authorized to act for and on behalf of the owner for the acceptance of service of process and for receipt of notices and demands.
(b)  The information required to be furnished by this section shall be kept current and this section extends to and is enforceable against any successor landlord, owner or manager.

(c)  A person who fails to comply with subsection (a) becomes an agent of each person who is a landlord for the purpose of service of process and receiving and receipting for notices and demands.  Title 66, Chap. 28, 66-28-302.

Possession of dwelling.
At the commencement of the terms, the landlord shall deliver possession of the premises to the tenant in compliance with the rental agreement and 66-28-304. The landlord may bring an action for possession against any person wrongfully in possession and may recover the damages provided in 66-28-512(c).  Title 66, Chap. 28, 66-28-303.

Maintenance by landlord.
(a)  The landlord shall:
(1) Comply with requirements of applicable building and housing codes materially affecting health and safety;
(2) Make all repairs and do whatever is necessary to put and keep the premises in a fit and habitable condition;
(3) Keep all common areas of the premises in a clean and safe condition; and
(4) In multi-unit complexes of four (4) or more units, provide and maintain appropriate receptacles and conveniences for the removal of ashes, garbage, rubbish and other waste from common points of collection subject to 66-28-401(3).
(b)  If the duty imposed by subdivision (a)(1) is greater than any duty imposed by any other paragraph of this subsection, the landlord's duty shall be determined by reference to subdivision (a)(1).
(c)  The landlord and tenant may agree in writing that the tenant perform specified repairs, maintenance tasks, alterations, and remodeling, but only if the transaction is entered into in good faith and not for the purpose of evading the obligations of the landlord.
(d)  The landlord may not treat performance of the separate agreement described in subsection (c) as a condition to any obligation or performance of any rental agreement.
Title 66, Chap. 28, 66-28-304.

Limitation of landlord's liability.
Unless otherwise agreed, a landlord who conveys premises that include a dwelling unit subject to a rental agreement in good faith sale to a bona fide purchaser, landlord and/or agent is relieved of liability under the rental agreement and this chapter as to events occurring subsequent to written notice to the tenant of the conveyance. However, the landlord remains jointly liable to the tenant for any property and money to which the tenant is entitled under 66-28-301.  Title 66, Chap. 28, 66-28-305.
 

                                  PART 4
                          TENANT OBLIGATIONS

General maintenance and conduct obligations.
The tenant shall:
(1) Comply with all obligations primarily imposed upon tenants by applicable provisions of building and housing codes materially affecting health and safety;

(2) Keep that part of the premises that the tenant occupies and uses as clean and safe as the condition of the premises when the tenant took possession;

(3) Dispose from the tenant's dwelling unit all ashes, rubbish, garbage, and other waste to the designated collection areas and into receptacles;

(4) Not deliberately or negligently destroy, deface, damage, impair or remove any part of the premises or permit any person to do so; and shall not engage in any illegal conduct on the premises; and

(5) Act and require other persons on the premises with the tenant's consent to act in a manner that will not disturb the neighbors' peaceful enjoyment of the premises.
Title 66, Chap. 28, 66-28-401.

Rules and regulations.
(a)  A landlord, from time to time, may adopt rules or regulations, however described, concerning the tenant's use and occupancy of the premises. It is enforceable against the tenant only if:
(1) Its purpose is to promote the convenience, safety, or welfare of the tenants in the premises, preserve the landlord's property from abusive use, or make a fair distribution of services and facilities held out for the tenants generally;
(2) It is reasonably related to the purpose for which it is adopted;
(3) It applies to all tenants in the premises;
(4) It is sufficiently explicit in its prohibition, direction, or limitation of the tenant's conduct to fairly inform the tenant of what the tenant must or must not do to comply;
(5) It is not for the purpose of evading the obligations of the landlord; and
(6) The tenant has notice of it at the time the tenant enters into the rental agreement.
(b)  A rule or regulation adopted after the tenant enters into the rental agreement is enforceable against the tenant if reasonable notice of its adoption is given to the tenant and it does not work a substantial modification of the rental agreement.
Title 66, Chap. 28, 66-28-402.

Access by landlord.
(a)  The tenant shall not unreasonably withold consent to the landlord to enter into the dwelling unit in order to inspect the premises, make necessary or agreed repairs, decorations, alterations, or improvements, supply necessary or agreed services, or exhibit the dwelling unit to prospective or actual purchasers, mortgagees, tenants, workers or contractors.

(b)  The landlord may enter the dwelling unit without consent of the tenant in case of emergency. "Emergency" means a sudden, generally unexpected occurrence or set of circumstances demanding immediate action.

(c)  The landlord shall not abuse the right of access or use it to harass the tenant.

(d)  The landlord has no right of access except:
(1) By court order;
(2) As permitted by 66-28-506 and 66-28-507(b);
(3) If the tenant has abandoned or surrendered the premises; or
(4) If the tenant is deceased, incapacitated or incarcerated.
Title 66, Chap. 28, 66-28-403.

Use and occupation by tenant.
Unless otherwise agreed, the tenant shall occupy the dwelling unit only as a dwelling unit. The rental agreement may require that the tenant notify the landlord of any anticipated extended absence from the premises in excess of seven (7) days. Notice shall be given on or before the first day of any extended absence.  Title 66, Chap. 28, 66-28-404.

Abandonment.
The tenant's unexplained and/or extended absence from the premises for thirty (30) days or more without payment of rent as due shall be prima facie evidence of abandonment. The landlord is then expressly authorized to enter, remove and store all personal items belonging to tenant. If tenant does not claim such personalty within an additional thirty (30) days, landlord may sell or dispose of the personalty and apply the proceeds of the sale to the unpaid rents, damages, storage fees, sale costs and attorney's fees. Any balances are to be held by the landlord for a period of six (6) months after the sale.  Title 66, Chap. 28, 66-28-405.
                                  PART 5
                      ENFORCEMENT AND REMEDIES

Noncompliance with rental agreement by landlord.
(a)  Except as provided in this chapter, the tenant may recover damages, obtain injunctive relief and recover reasonable attorney's fees for any noncompliance by the landlord with the rental agreement or any section of this chapter upon giving fourteen (14) days' written notice.

(b)  If the rental agreement is terminated for noncompliance after sufficient notice, the landlord shall return all prepaid rent and security deposits recoverable by the tenant under 66-28-301.  Title 66, Chap. 28, 66-28-501.

Failure to supply essential services.
(a) (1)  If the landlord deliberately or negligently fails to supply essential services, the tenant shall give written notice to the landlord specifying the breach and may do one (1) of the following:
(A) Procure essential services during the period of the landlord's noncompliance and deduct their actual and reasonable costs from the rent;
(B) Recover damages based upon the diminution in the fair rental value of the dwelling unit, provided tenant continues to occupy premises; or
(C) Procure reasonable substitute housing during the period of the landlord's noncompliance, in which case the tenant is excused from paying rent for the period of the landlord's noncompliance.
(2) In addition to the remedy provided in subdivision (a)(1)(C), the tenant may recover the actual and reasonable value of the substitute housing and in any case under this subsection, reasonable attorney's fees.

(3) "Essential services" means utility services, including gas, heat, electricity, and any other obligations imposed upon the landlord which materially affect the health and safety of the tenant.

(b)  A tenant who proceeds under this section may not proceed under 66-28-501 or 66-28-503 as to that breach.

(c)  The rights under this section do not arise until the tenant has given written notice to the landlord and has shown that the condition was not caused by the deliberate or negligent act or omission of the tenant, a member of the tenant's family, or other person on the premises with the tenant's consent.  Title 66, Chap. 28, 66-28-502.

Fire or casualty damage.
(a)  If the dwelling unit or premises are damaged or destroyed by fire or casualty to an extent that the use of the dwelling unit is substantially impaired, the tenant:
(1) May immediately vacate the premises; and
(2) Shall notify the landlord in writing within fourteen (14) days thereafter of the tenant's intention to terminate the rental agreement, in which case the rental agreement terminates as of the date of vacating.
(b)  If the rental agreement is terminated, the landlord shall return all prepaid rent and security deposits recoverable under 66-28-301. Accounting for rent in the event of termination or apportionment is to occur as of the date of the casualty.
Title 66, Chap. 28, 66-28-503.
[Acts 1975, ch. 245, 4.103; T.C.A., 64-2843.]
 

Unlawful ouster, exclusion, or diminution of service.
If the landlord unlawfully removes or excludes the tenant from the premises or willfully diminishes services to the tenant by interrupting essential services as provided in the rental agreement to the tenant, the tenant may recover possession or terminate the rental agreement and, in either case, recover actual damages sustained by the tenant, and punitive damages when appropriate, plus a reasonable attorney's fee. If the rental agreement is terminated under this section, the landlord shall return all prepaid rent and security deposits.  Title 66, Chap. 28, 66-28-504.

Noncompliance by tenant - Failure to pay rent.
(a)  Except as provided in this chapter, if there is a material noncompliance by the tenant with the rental agreement or a noncompliance with 66-28-401 materially affecting health and safety, the landlord may deliver a written notice to the tenant specifying the acts and omissions constituting the breach, and that the rental agreement will terminate upon a date not less than thirty (30) days after receipt of the notice. If the breach is not remedied in fourteen (14) days, the rental agreement shall terminate as provided in the notice, subject to the following. If the breach is remediable by repairs or the payment of damages or otherwise and the tenant adequately remedies the breach prior to the date specified in the notice, the rental agreement will not terminate. If substantially the same act or omission which constituted a prior noncompliance of which notice was given recurs within six (6) months, the landlord may terminate the rental agreement upon at least fourteen (14) days' written notice specifying the breach and the date of termination of the rental agreement.

(b)  If rent is unpaid when due and the tenant fails to pay, written notice by the landlord of nonpayment is required unless otherwise specifically waived in a written rental agreement. The rental agreement is enforceable for collection of rent for the remaining term of the rental agreement.

(c)  Except as provided in this chapter, the landlord may recover damages and obtain injunctive relief for any noncompliance by the tenant with the rental agreement or 66-28-401. The landlord may recover reasonable attorney's fees for breach of contract and nonpayment of rent as provided in the rental agreement.

(d)  The landlord may recover punitive damages for willful destruction of property.  Title 66, Chap. 28, 66-28-505.

Failure of tenant to maintain dwelling.
If there is noncompliance by the tenant with 66-28-401 materially affecting health and safety that can be remedied by repair, replacement of a damaged item or cleaning, and the tenant fails to comply as promptly as conditions require in case of emergency or within fourteen (14) days after written notice by the landlord specifying the breach and requesting that the tenant remedy it within that period of time, the landlord may enter the dwelling unit and cause the work to be done in a workmanlike manner and submit an itemized bill for the actual and reasonable cost or the fair and reasonable value thereof as rent on the next date when periodic rent is due, or if the rental agreement has terminated, for immediate payment.  Title 66, Chap. 28, 66-28-506.

Absence, nonuse or abandonment by tenant.
(a)  If the rental agreement requires the tenant to give notice to the landlord of an anticipated extended absence in excess of seven (7) days as required in 66-28-404 and the tenant willfully fails to do so, the landlord may recover actual damages from the tenant.

(b)  During any absence of the tenant in excess of seven (7) days, the landlord may enter the dwelling unit at times reasonably necessary.

(c)  If the tenant abandons the dwelling unit, the landlord shall use reasonable efforts to rerent the dwelling unit at a fair rental. If the landlord rents the dwelling unit for a term beginning prior to the expiration of the rental agreement, the rental agreement is terminated as of the date of the new tenancy. If the tenancy is from month-to-month, or week-to-week, the term of the rental agreement for this purpose shall be deemed to be a month or a week, as the case may be.  Title 66, Chap. 28, 66-28-507.

Waiver of landlord's right to terminate.
If the landlord accepts rent without reservation and with knowledge of a tenant default, the landlord by such acceptance condones the default and thereby waives such landlord's right and is estopped from terminating the rental agreement as to that breach.  Title 66, Chap. 28, 66-28-508.

Landlord liens.
A contracted lien or security interest on behalf of the landlord in the tenant's household goods shall not be enforceable unless perfected by a Uniform Commercial Code filing with the secretary of state. All other liens are hereby expressly prohibited under this chapter. The landlord shall be responsible for releasing lien at expiration or termination of the lease.  Title 66, Chap. 28, 66-28-509.

Landlord's remedy after termination.
If the rental agreement is terminated, the landlord may have a claim for possession and for rent and a separate claim for actual damages for breach of the rental agreement and reasonable attorney's fees.  Title 66, Chap. 28, 66-28-510.

Recovery of possession by landlord limited.
A landlord may not recover or take possession of the dwelling unit by action or otherwise, including willful diminution of services to the tenant by interrupting or causing the interruption of electric, gas, water or other essential service to the tenant, except in case of abandonment, surrender, or as permitted in this chapter.
Title 66, Chap. 28, 66-28-511.

Termination of periodic tenancy - Holdover remedies.
(a)  The landlord or the tenant may terminate a week-to-week tenancy by a written notice given to the other at least ten (10) days prior to the termination date specified in the notice.

(b)  The landlord or the tenant may terminate a month-to-month tenancy by a written notice given to the other at least thirty (30) days prior to the periodic rental date specified in the notice.

(c)  If the tenant remains in possession without the landlord's consent
after expiration of the term of the rental agreement or its termination, the landlord may bring an action for possession and if the tenant's holdover is willful and not in good faith, the landlord, in addition, may recover actual damages sustained by the landlord, plus reasonable attorney's fees. If the landlord consents to the
tenant's continued occupancy, 66-28-201(c) applies.  Title 66, Chap. 28, 66-28-512.

Remedies for abuse of access.
(a)  If the tenant refuses to allow lawful access, the landlord may obtain injunctive relief to compel access, or terminate the rental agreement. In either case, the landlord may recover actual damages and reasonable attorney's fees.

(b)  If the landlord makes an unlawful entry or a lawful entry in an unreasonable manner or makes repeated demands for entry otherwise lawful but which have the effect of unreasonably harassing the tenant, the tenant may obtain injunctive relief to prevent the recurrence of the conduct, or terminate the rental agreement. In either case, the tenant may recover actual damages and reasonable attorney's fees.
Title 66, Chap. 28, 66-28-513.

Retaliatory conduct prohibited.
(a)  Except as provided in this section, a landlord may not retaliate by increasing rent or decreasing services or by bringing or threatening to bring an action for possession because the tenant:
(1) Has complained to the landlord of a violation under 66-28-301; or
(2) Has made use of remedies provided under this chapter.
(b) (1)  Notwithstanding subsection (a), a landlord may bring action for possession if:
(A) The violation of the applicable building or housing code was caused primarily by lack of reasonable care by the tenant or other person in the tenant's household or upon the premises with the tenant's consent;
(B) The tenant is in default in rent; or
(C) Compliance with the applicable building or housing code requires alteration, remodeling, or demolition which would effectively deprive the tenant of use of the dwelling unit.
(2) The maintenance of the action does not release the landlord from liability under 66-28-501(b).
Title 66, Chap. 28, 66-28-514.

Administration of remedies - Enforcement.
(a)  The remedies provided by this chapter shall be so administered that the aggrieved party may recover lawful damages. The aggrieved party has an obligation and duty to mitigate damages.

(b)  Any right or obligation declared by this chapter is enforceable by legal action unless the provision declaring it specifies a different and limited effect.  Title 66, Chap. 28, 66-28-515.

Obligation of good faith.
Every duty under this chapter and every act which must be performed as a condition precedent to the exercise of a right or remedy under this chapter imposes an obligation of good faith in its performance or enforcement.  Title 66, Chap. 28, 66-28-516.

Termination by landlord for violence or threats to health, safety, or welfare of
persons or property.
(a)  A landlord may terminate a rental agreement within three (3) days from the date written notice is delivered to the tenant if the tenant or any other person on the premises with the tenant's consent willfully or intentionally commits a violent act or behaves in a manner which constitutes or threatens to be a real and present danger to the health, safety or welfare of the life or property of other tenants or persons on the premises.

(b)  The notice required by this section shall specifically detail the violation which has been committed and shall be effective only from the date of receipt of the notice by the tenant.

(c)  Upon receipt of such written notice, the tenant shall be entitled to immediate access to any court of competent jurisdiction for the purpose of obtaining a temporary or permanent injunction against such termination by the landlord.

(d)  Nothing in this section shall be construed to allow a landlord to recover or take possession of the dwelling unit by action or otherwise including willful diminution of services to the tenant by interrupting or causing interruption of electric, gas or other essential service to the tenant except in the case of abandonment or surrender.

(e)  If the landlord's action in terminating the lease under this provision is willful and not in good faith, the tenant may in addition recover actual damages sustained by the tenant plus reasonable attorney's fees.

(f)  The failure to bring an action for or to obtain an injunction may not be used as evidence in any action to recover possession of the dwelling unit.
Title 66, Chap. 28, 66-28-517.

Towing of unauthorized vehicles.
(a)  A landlord may have an unauthorized vehicle towed or otherwise removed from real property leased or rented by such landlord for residential purposes, upon giving ten (10) days written notice by posting the same upon the subject vehicle.

(b)  A landlord may have a tenant's, occupant's, tenant's guest's, or trespasser's vehicle immediately towed or otherwise removed from such real property, without notice, if and when such person fails to comply with the landlord's permit parking policy as defined in the landlord's posted signage.

(c)  A landlord may have a tenant's, occupant's, tenant's guest's, or trespasser's vehicle immediately towed or otherwise removed from such real property, without notice, for such person's failure to comply with the landlord's posted signage relative to traffic and parking restrictions, including, but not limited to, traffic lanes, fire lanes, fire hydrants, handicapped areas, and/or the blocking of trash receptacles.

(d)  The owner or lessee of a vehicle that has been removed pursuant to this section may make application to take possession of such vehicle and remove such vehicle from the place to which it has been removed or stored by paying the costs of removing such vehicle, plus the accrued towing and storage charges.  Title 66, Chap. 28, 66-28-518.

Towing of vehicles.
A landlord may have the following vehicles towed or otherwise removed from real property leased or rented by such landlord for residential purposes, upon giving a ten-day written notice by posting the same upon the subject vehicle:
(1) A vehicle with one (1) or more flat or missing tires;
(2) A vehicle unable to operate under its own power;
(3) A vehicle with a missing or broken windshield or more than one (1) broken or missing window;
(4) A vehicle with one (1) or more missing fenders or bumpers; or
(5) A motor vehicle that has not been in compliance with all applicable local or state laws relative to titling, licensing, operation, and registration for more than thirty (30) days.  Title 66, Chap. 28, 66-28-519.

Towing of nuisance vehicles.
Any nuisance vehicle located on or about the premises of real property that has been leased or rented for residential purposes may be towed or otherwise removed from such premises by the landlord upon giving twenty-four (24) hours written notice by posting the same upon the subject vehicle.  Title 66, Chap. 28, 66-28-520.
 
 

 CHAPTER 29
 ABANDONED OR UNCLAIMED PROPERTY
PART 1
UNIFORM DISPOSITION OF UNCLAIMED
(PERSONAL) PROPERTY ACT







Short title.
This part shall be known as the "Uniform Disposition of Unclaimed Property Act."
Title 66, Chap. 29, 66-29-101.

Definitions.
As used in this part, unless the context otherwise requires:
(1) "Banking organization" means any national bank or state bank, trust company, savings bank, industrial bank, land bank, safe deposit company, or private banker;
(2) "Business association" means any corporation (other than a public corporation), joint stock company, business trust, partnership cooperative, or any association for business purposes of two (2) or more individuals;
(3) "Financial organization" means any savings and loan association, building and loan association, credit union, cooperative bank, or investment company;
(4) "Holder" means any person in possession of property subject to this chapter belonging to another, or who is trustee in case of a trust, or is indebted to another on an obligation subject to this part;
(5) "Life insurance corporation" means any association or corporation transacting the business of insurance on the lives of persons or insurance appertaining thereto, including, but not by way of limitation, endowments and annuities;
(6) "Local government" means any municipality or county located in Tennessee;
(7) "Owner" means a depositor in case of a deposit, a beneficiary in case of a trust, a creditor, claimant, or payee in case of other choses in action, or any person having a legal or equitable interest in property subject to this part, or the legal representative of such person;
(8) "Person" means any individual, business association, government or political subdivision, public corporation, public authority, estate, trust, two (2) or more persons having a joint or common interest, or any other legal or commercial entity, whether such person is acting in such person's own right or in a representative or fiduciary capacity;
(9) "Property" means tangible personalty located in this state and all intangible personalty;
(10) "Treasurer" means the state treasurer; and
(11) "Utility" means any person who owns or operates for public use, any plant, equipment, property, franchise, or license for the transmission of communications or the production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam, or gas.  Title 66, Chap. 29, 66-29-102.

General rules for taking custody of intangible unclaimed property.
Unless otherwise provided in this part or by other statute of this state, intangible property is subject to the custody of this state as unclaimed property if the conditions raising a presumption of abandonment under this section or 66-29-104 - 66-29-111 are satisfied and:
(1) The last known address, as shown on the records of the holder, of the apparent owner is in this state;

(2) The records of the holder do not reflect the identity of the person entitled to the property and it is established that the last known address of the person entitled to the property is in this state;

(3) The records of the holder do not reflect the last known address of the apparent owner, and it is established that:
(A) The last known address of the person entitled to the property is in this state; or
(B) The holder is a domiciliary or a government or governmental subdivision or agency of this state and has not previously paid or delivered the property to the state of the last known address of the apparent owner or other person entitled to the property;
(4) The last known address, as shown on the records of the holder, of the apparent owner is in a state that does not provide by law for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property and the holder is a domiciliary or a government or governmental subdivision or agency of this state;

(5) The last known address, as shown on the records of the holder, of the apparent owner is in a foreign nation and the holder is a domiciliary or a government or governmental subdivision or agency of this state; or

(6) The transaction out of which the property arose occurred in this state; and
(A) (i) The last known address of the apparent owner or other person entitled to the property is unknown; or
(ii) The last known address of the apparent owner or other person entitled to the property is in a state that does not provide by law for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property; and
(B) The holder is a domiciliary of a state that does not provide by law for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property.  Title 66, Chap. 29, 66-29-103.

Property held by banking or financial organizations or by business associations.
The following property held or owing by a banking or financial organization or by a business association is presumed abandoned:
(1) Any demand, savings, or matured time deposit made with a banking organization, together with any interest or dividend thereon, excluding any charges that may lawfully be withheld, unless the owner has, within five (5) years:
(A) Increased or decreased the amount of the deposit, or presented the passbook or other similar evidence of the deposit for the crediting of interest;
(B) Corresponded in writing with the banking organization concerning the deposit; or
(C) Otherwise indicated an interest in the deposit as evidenced by a memorandum on file with the banking organization, providing such memorandum is one which is routinely kept according to customary banking practices;
(2) Any funds paid toward the purchase of shares or other interest in a financial organization or any deposit made therewith, and any interest or dividends thereon excluding any charges that may lawfully be withheld, unless the owner has within five (5) years:
(A) Increased or decreased the amount of the funds or deposit or presented an appropriate record for the crediting of interest or dividends;
(B) Corresponded in writing with the financial organization concerning the funds or deposit; or
(C) Otherwise indicated an interest in the funds or deposit as evidenced by a memorandum on file with the financial organization;
(3)A) Any sum payable on checks certified or on written instruments issued on which a banking or financial organization or business association is directly liable, including, by way of illustration but not of limitation, certificates of deposit, drafts, money orders and traveler's checks, that, with the exception of money orders and traveler's checks, has been outstanding for more than five (5) years from the date it was payable, or from the date of its issuance if payable on demand, unless the owner has within the time period corresponded in writing with the banking or financial organization or business association concerning it, or otherwise indicated an interest as evidenced by a memorandum on file with the banking or financial organization or business association.  Any sum payable on money orders that has been outstanding for more than seven (7) years after its issuance, or any sum payable on traveler's checks that has been outstanding for more than fifteen (15) years from the date of its issuance, unless the owner has within the time period corresponded in writing with the banking or financial organization or business association concerning it, or otherwise indicated an interest as evidenced by a memorandum on file with the banking or financial organization or business association;

(B) No sum payable on a traveler's check, money order or similar written instrument, other than a third-party bank check, may be subjected to the custody of the state as unclaimed property unless:
(i) The records of the issuer show that the traveler's check, money order or similar written instrument was purchased in this state;
(ii) The issuer has its principal place of business in this state and the records of the issuer do not show the state in which the traveler's check, money order or similar written instrument was purchased; or
(iii) The issuer has its principal place of business in this state and the records of the issuer show the state in which the traveler's check, money order or similar written instrument was purchased and the laws of the state of purchase do not provide for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property;
(4) (A) Any surplus amount resulting from the sale or disposal of safe deposit box contents by banking institutions pursuant to 45-2-907, if the proceeds cannot be credited to an existing customer account upon sale, and any unsold contents.  Any credit of these proceeds to a customer account will not be considered as account activity under subdivisions (1) and (2);
(B) For any person, other than a bank, savings and loan association or savings bank, any funds or other personal property removed from a safe deposit box or any other safekeeping repository or agency or collateral deposit box on which the lease or rental period has expired due to nonpayment of rental charges or other reasons that have been unclaimed by the owner for more than two (2) years from the date on which the lease or rental period expired; or any surplus amount arising from the sale thereof pursuant to law that has been unclaimed by the owner for one (1) year; and

(5) Property described above, without regard to any activity or inactivity within specified abandonment periods, whose owner is known to the holder to have died and left no one to take the property by will and no one to take the property by intestate succession.  Title 66, Chap. 29, 66-29-104.

Unclaimed funds held by life insurance corporations.
(a)  Unclaimed funds held and owing by a life insurance corporation shall be presumed abandoned if the provisions of this section and 66-29-103 are satisfied. If a person other than the insured or annuitant is entitled to the funds and no address of such person is known to the corporation or if it is not definite and certain from the records of the corporation what person is entitled to the funds,it is presumed that the last known address of the person entitled to the funds is the same as the last known address of the insured or annuitant according to the records of the corporation.

(b) (1)  "Unclaimed funds," as used in this section, means all moneys held and owing by any life insurance corporation unclaimed and unpaid for more than five (5) years after the moneys became due and payable as established from the records of the corporation under any life or endowment insurance policy or annuity contract which has matured or terminated. A life insurance policy not matured by actual proof of the death of the insured is deemed to be matured and the proceeds thereof are deemed to be due and payable if such policy was in force when the insured attained the limiting age under the mortality table on which the reserve is based, unless the person appearing entitled thereto has within the preceding five (5) years:
(A) Assigned, readjusted, or paid premiums on the policy, or subjected the policy to loan; or
(B) Corresponded in writing with the life insurance corporation concerning the policy. Moneys otherwise payable according to the records of the corporation are deemed due and payable although the policy or contract has not been surrendered as required.
(2) "Unclaimed funds" includes all moneys held and owing by any life insurance corporation under this subdivision to any owner who is known to the company to have died and left no one to take such moneys by will and no one to take such moneys by intestate succession. Title 66, Chap. 29, 66-29-105.

Undistributed assets and obligations of business associations and utilities.
(a)  The following funds held or owing by any business association or by any utility are presumed abandoned:
(1) Any deposit made by a subscriber with a utility to secure payment, any sum overpaid, or any sum paid in advance for utility services to be furnished, less any lawful deductions, that has remained unclaimed by the person appearing on the records of the utility entitled thereto for more than two (2) years after the termination of the services for which the deposit, overpayment, or advance payment was made;
(2) Any sum that a utility or a business association has been ordered to refund by a court or administrative agency, together with any interest thereon, less any lawful deductions, which has remained unclaimed by the owner for more than two (2) years after it became payable in accordance with the final determination or order providing for the refund, whether or not the final determination or order requires any person entitled to a refund to make a claim for it; and
(3) Property described above, without regard to any activity or inactivity within specified abandonment periods, whose owner is known to the holder to have died and left no one to take the property by will and no one to take the property by intestate succession.
(b)  Any utility which possesses a deposit or other sum which is subject to be presumed abandoned pursuant to the provisions of subsection (a) shall make a reasonable attempt to notify the subscriber who is entitled to such deposit or sum of such possession within one hundred twenty (120) days of the commencement of the two-year period pursuant to subsection (a).  Title 66, Chap. 29, 66-29-106.

Undistributed dividends and distributions of business associations.
Any stock or other certificate of ownership, or any dividend, profit, distribution, interest, payment on principal, or other sum held or owing by a business association for or to a shareholder, certificate holder, member, bondholder, or other security holder, or a participating patron of a cooperative, who has not claimed it, or corresponded in writing with the business association concerning it, within five (5) years after the date prescribed for payment or delivery is presumed abandoned. Property described above, without regard to any activity or inactivity within the past five (5) years, shall also be presumed abandoned if the owner thereof is known to the holder to have died and left no one to take the property by will and no one to take the property by intestate succession.  Title 66, Chap. 29, 66-29-107.

Property of business associations and banking or financial organizations held
in course of dissolution.
All intangible personal property distributable in the course of a voluntary or involuntary dissolution or liquidation of a business association, banking organization, or financial organization that is unclaimed by the owner after the date for final distribution or liquidation is presumed abandoned.  Title 66, Chap. 28, 66-29-108.

Property held by fiduciaries.
All property and any income or increment thereon held in a fiduciary capacity for the benefit of another person is presumed abandoned unless the owner has, within five (5) years after it becomes payable or distributable, increased or decreased the principal, accepted payment of principal or income, corresponded in writing concerning the property, or otherwise indicated an interest as evidenced by a memorandum on file with the fiduciary. Property described above, without regard to any activity or inactivity within the past five (5) years, shall also be presumed abandoned if the owner thereof is known to the holder to have died and left no one to take the property by will and no one to take the property by intestate succession.
Title 66, Chap. 28, 66-29-109.

Property held by courts, public officers and agencies.
All property held for the owner by any court, including a federal court, public corporation, public authority or agency, or public officer, or a political subdivision, including, but not limited to, the state of Tennessee or any of its departments or agencies, that has remained unclaimed by the owner for more than one (1) year is presumed abandoned, except property in the custody or control of any state or federal court in any pending action. Notwithstanding the provisions of this section, all property held for the owner by any institution or entity governed by the board of trustees of the University of Tennessee or the state board of regents shall be presumed abandoned within the abandonment periods applicable to private universities and colleges. Property described above, without regard to any activity or inactivity within the past one (1) year, shall also be presumed abandoned if the owner thereof is known to the holder to have died and left no one to take the property by will and no one to take the property by intestate succession.  Title 66, Chap. 29, 66-29-110.

Property held by federal government.
All property, including choses in action in sums certain, and all debts owed, entrusted funds, or other property held by the federal government, or any agency, officer or appointee thereof, is presumed abandoned if the property has been unclaimed for at least one (1) year. The federal government or a government officer or appointee thereof may deduct from the amount paid or delivered to the state treasurer the proportionate share of the actual and necessary cost of examining such records and reporting such information. This state shall hold the federal government harmless to the extent of the value of any property so paid or delivered from any claim which then exists or which thereafter may arise or be made in respect to property delivered to the state treasurer by the federal government. Property described above, without regard to any activity or inactivity within the past one (1) year, shall also be presumed abandoned if the owner thereof is known to the holder to have died and left no one to take the property by will and no one to take the property by intestate succession. Title 66, Chap. 29, 66-29-111.

Miscellaneous property held for another person.
All property, not otherwise covered by this part, including any income or increment thereon and deducting any lawful charges, that is held or owing in the ordinary  course of the holder's business and has remained unclaimed by the owner for more than five (5) years after it became payable or distributable is presumed abandoned. A layaway account of any retail business association shall not be considered as miscellaneous property held for another person and such accounts shall not be regulated by this part. Property described above, without regard to any activity or inactivity within the past five (5) years, shall also be presumed abandoned if the owner thereof is known to the holder to have died and left no one to take the property by will and no one to take the property by intestate succession.  Title 66, Chap. 29, 66-29-112.

Report of abandoned property.
(a)  Every person holding funds or other property, tangible or intangible, presumed abandoned under this part shall report to the treasurer with respect to the property as hereinafter provided.

(b)  The report shall be verified and shall include:
(1) Except with respect to traveler's checks and money orders, the name, if known, and last known address, if any, of each person appearing from the records of the holder to be the owner of any property of the value of fifty dollars ($50.00) or more presumed abandoned under this part;
(2) In case of unclaimed funds of a life insurance corporation, the full name of the insured or annuitant and that person's last known address according to the life insurance corporation's records;
(3) The nature and identifying number, if any, or description of the property and the amount appearing from the records to be due, except that items of value under fifty dollars ($50.00) each may be reported in aggregate;
(4) Except for property reported in the aggregate, the date when the property became payable, demandable, or returnable, and the date of the last transaction with the owner with respect to the property; and
(5) Other information which the treasurer prescribes by rule as necessary for the administration of this part.
(c)  If the person holding property presumed abandoned is a successor to other persons who previously held the property for the owner, or if the holder had a change of name while holding the property, that person shall file with the report all prior known names and addresses of each holder of the property.

(d)  The report shall be filed before May 1 of each year, reporting property held as of the previous December 31. The treasurer may postpone the reporting date upon written request by any person required to file a report.

(e)  Not more than one hundred twenty (120) days before filing the report required by this section, the holder in possession of property presumed abandoned and subject to custody as unclaimed property under this part shall send written notice to the apparent owner at such person's last known address, informing such person that the holder is in possession of property subject to this part, if the holder has in its records an address for the apparent owner which the holder's records do not disclose to be inaccurate and the property has a value of fifty dollars ($50.00) or more. The holder shall exercise due diligence to ascertain the whereabouts of the owner. The treasurer shall promulgate rules and regulations to clarify the provisions of this subsection with respect to the duties of holders.

(f)  Verification, if made by a partnership, shall be executed by a partner; if made by an unincorporated association or private corporation, by an officer; and if made by a public corporation, by its chief fiscal officer.

(g)  The treasurer shall keep a record of all reports submitted to such treasurer.

(h)  Every holder required to file a report under this section as to any property for which it has obtained the last known address of the owner shall maintain a record of the name and last known address of the owner for ten (10) years after the property becomes reportable.  Title 66, Chap. 29, 66-29-113.

Notice and publication of lists of abandoned property.
(a)  The treasurer shall have notice published of the names and last known addresses of the apparent owners of property in a manner designed to inform owners that property has been reported under the law and is in the protective custody of the treasurer to whom claims to the property may be directed.

(b)  The treasurer may set a minimum dollar value for items to be advertised which takes into consideration the cost of advertising and the interests of the owners of property. Property which is not advertised shall be accumulated in an organized fashion and shall be made available to the public.

(c)  Within the calendar year next following the year in which unclaimed property has been paid or delivered to the treasurer, the treasurer shall mail a notice to each person having an address reported who appears to be entitled to property of the value of fifty dollars ($50.00) or more presumed abandoned under this part.

(d)  The mailed notice shall contain:
(1) A statement that, according to a report filed with the treasurer, property is being held to which the addressee appears entitled; and
(2) A statement that the property is in the custody of the treasurer and will be held for the owner until satisfactory proof of claim is presented.
(e)  This section is not applicable to sums payable on traveler's checks or money orders presumed abandoned under 66-29-103. Title 66, Chap. 29, 66-29-114.

Payment or delivery of abandoned property.
(a)  Every person filing a report under 66-29-113 shall, at the time of filing such report and with that report, pay or deliver to the state treasurer all unclaimed funds and intangible property specified therein. Notwithstanding the foregoing, any unclaimed checks held by the state which were derived from one hundred percent (100%) federal funding need not be delivered to the state treasurer pursuant to this part if such delivery would render the state ineligible for future federal funding.  Upon written request showing good cause, the state treasurer may postpone the payment or delivery upon such terms or conditions as the state treasurer deems necessary and appropriate.

(b)  Tangible property shall not be delivered to the state treasurer at the time of filing the report. Instead, the state treasurer shall review the report of such property and be given an opportunity to decline to receive any such property reported which the state treasurer deems to have a value less than the cost of giving notice and holding sale, or may, if the state treasurer deems it desirable because of the small sum involved, postpone taking possession until a sufficient sum accumulates. Unless the holder of such property is notified to the contrary within one hundred twenty (120) days after filing the report required under   66-29-113, the state treasurer shall be deemed to have elected to receive custody of the property and the holder thereof shall, at the end of such one hundred twenty-day period, pay or deliver such property to the state treasurer.

(c)  Notwithstanding anything in subsections (a) and (b) to the contrary, contents removed from any safe deposit box or any other safekeeping repository or agency or collateral deposit box described in 66-29-104(4)(B) shall be sold or disposed of by the holder in accordance with the procedures set forth in   45-2-907, or pursuant to instructions received from the state treasurer, and the proceeds, less reasonable costs of sale and storage, shall be remitted within sixty (60) days of sale.
(d)  Property paid or delivered to the state treasurer shall include all interest, dividends, increments, and accretions due, payable, or distributable on the day that the property is paid or delivered to the state treasurer.  Title 66, Chap. 29, 66-29-115.

Relief from liability by payment or delivery.
Upon the payment or delivery of abandoned property to the treasurer, the state shall assume custody of such property and shall be responsible for its safekeeping. Any person who pays or delivers abandoned property to the treasurer under this chapter is relieved of all liability to the extent of the value of the property so paid or delivered for any claim which then exists or which thereafter may arise or be made in respect to the property. Any holder who has paid moneys to the treasurer pursuant to this part may make payment to any person appearing to such holder to be entitled thereto, and upon proof of such payment and proof that the payee was entitled thereto, the treasurer shall forthwith reimburse the holder for the payment.  Title 66, Chap. 29, 66-29-116.

Income accruing after payment or delivery.
(a)  When noninterest-bearing property is paid or delivered to the treasurer under this part, the owner is not entitled to receive income or other increments accruing thereafter.

(b)  When interest-bearing property is paid or delivered to the treasurer under this part, the owner is entitled to receive interest accruing thereafter under the following conditions:
(1) Interest will be paid at the stated rate the property was earning at the time it was turned over to the treasurer; and
(2) Interest will be computed by the treasurer at the time a valid claim is established by the owner. The interest will be compounded annually. Title 66, Chap. 29, 66-29-117.

Periods of limitation not a bar.
The expiration of any period of time specified by statute or court order, during which an action or proceeding may be commenced or enforced to obtain payment of a claim for money or recovery of property, shall not prevent the money or property from being presumed abandoned property, nor affect any duty to file a report required by this part or to pay or deliver abandoned property to the treasurer.  Title 66, Chap. 29, 66-29-118.

Sale of abandoned property.
(a)  All abandoned property delivered to the treasurer under this part other than money or property of a type customarily sold in a recognized market, or of a type which is the subject of widely distributed price quotations, may be sold by the treasurer, in accordance with procedures approved by the attorney general and reporter, to the highest bidder at public sale at whatever place affords, in the judgment of the attorney general and reporter, the most favorable price for the property involved, or may be disposed of by the treasurer pursuant to 12-2-112 if real property, or the State Surplus Personal Property Act of 1976, compiled in title 12, chapter 2, part 4. United States government savings bonds and United States war bonds shall be presented to the United States for payment.

(b)  Property of a type customarily sold in a recognized market, or a type which is the subject of widely distributed price quotations, shall, within the calendar year next following the year of delivery, be sold by the treasurer in accordance with the customs prevailing for the sale of such property at the price considered most advantageous by the treasurer.

(c)  Any sale of abandoned property, other than property sold under subsection (b), held by the treasurer under this section shall be preceded by a single publication of notice thereof at least three (3) weeks in advance of the sale, in a newspaper having general circulation in the county where the property is sold.

(d)  The purchaser at any sale conducted by the treasurer pursuant to this part shall receive title to the property purchased free from all claims of the owner or prior holder thereof, and of all persons claiming under or through them. The treasurer or the treasurer's duly designated agent shall execute all documents necessary to complete the transfer of title.  Title 66, Chap. 29, 66-29-119.

Disposition of property having no commercial value.
Any property delivered to the treasurer pursuant to this part which has no apparent commercial value shall be retained by the treasurer until such time as the treasurer determines to destroy or otherwise dispose of it. Prior to the destruction or disposal of any such property, the determination of the treasurer shall be approved by the commissioner of general services and the attorney general and reporter. Once the destruction or disposition of the property has been approved, the treasurer may at any time thereafter destroy or otherwise dispose of such property, and in that event, no action or proceeding shall be brought or maintained against the state or any officer thereof for or on account of any action taken by the treasurer pursuant to this part with respect to such property.  Title 66, Chap. 29, 66-29-120.
 

Disposition of funds.
(a)  Except as provided in subsection (c), all funds received under this part, including the proceeds from the sale of abandoned property under 66-29-119, shall be available to the state treasurer to permit the prompt payment of claims duly allowed by the state treasurer as hereinafter provided and to meet all costs of administering the program, including, but not limited to, any costs in connection with the acquisition or sale of abandoned property and any cost of mailing and publication in connection with any abandoned property. Of the funds not required for these purposes, in fiscal year 1998-1999, an amount not to exceed two million dollars ($2,000,000) shall be credited to the health access incentive account created by 66-29-151 and the remaining amount shall be deposited by the state treasurer in the general funds of the state. In fiscal years 1999-2000, 2000-2001, 2001-2002, and 2002-2003, an amount not to exceed two million five hundred thousand dollars ($2,500,000), three million dollars ($3,000,000), three million five hundred thousand dollars ($3,500,000) and four million dollars ($4,000,000), respectively, shall be credited to the health access incentive account, subject to appropriation. During each of these fiscal years, any amounts not credited to the health access incentive account shall be deposited by the state treasurer in the general funds of the state. Nothing in this section or 66-29-151 shall be implemented or construed to reduce the amount of funds to be credited at the end of each fiscal year to the health access incentive account below the two million dollar ($2,000,000) cap established in Acts 1995, ch. 445. Before making the deposits, the treasurer shall record the name and last known address of each person appearing from the holders' reports to be entitled to the abandoned property and the name and last known address of each insured person or annuitant, and with respect to each policy or contract listed in the report of a life insurance corporation, its number, the name of the corporation, and the amount due. The record shall be available for public inspection at all reasonable business hours.

(b)  In any fiscal year in which the state treasurer determines, with the concurrence of the commissioner of finance and administration, that claims and administrative costs during such fiscal year exceed funds received under this part during such fiscal year, a sum sufficient shall be appropriated from the general funds of the state to the state treasurer for the payment of such claims and costs.

(c)  For funds received under this part for the report year ending December 31, 1985, and thereafter, the treasurer shall determine each June 30 the amount of such funds remitted by or on behalf of each local government of the state and its agencies which have remained unclaimed for a minimum of eighteen (18) months following their delivery to the treasurer. If the aggregate unclaimed balance exceeds one hundred dollars ($100), the treasurer upon request of the local government shall pay an amount equal to the aggregate unclaimed balance, less a proportionate share of the cost of administering the program as determined by the treasurer, to the local government, together with a report of the accounts represented by the funds. These funds shall be placed in the local government's general fund, except the local government shall maintain to the extent necessary a sufficient amount of the total unclaimed property accounts to ensure prompt payment as hereinafter provided.  Title  66, Chap. 29, 66-29-121.

Agreements to locate reported property.
(a)  The treasurer shall approve all contracts entered between two (2) or more persons whereby one (1) party to the contract agrees to furnish the other party with information concerning property reported to the treasurer under this part; provided, that no contract shall be approved until the property that is the subject of such contract has been held by the treasurer for a period of one (1) year from the date advertised by the treasurer.

(b)  In all instances where the treasurer is not a party to the contract, the agreed upon fee in such other contracts shall not exceed ten percent (10%) of the value of the recoverable property or fifty dollars ($50.00), whichever is greater.

(c)  Nothing in this section shall be construed to prevent an owner from asserting at any time that an agreement to locate property is based upon an excessive or unjust consideration.  Title 66, Chap. 29, 66-29-122.

Claims for abandoned property paid or delivered - Determination.
(a)  Except as provided in subsection (d), any person claiming an interest in any property delivered to the state under this part may file a claim thereto or to the proceeds from the sale thereof on the form prescribed by the treasurer.

(b)  The treasurer shall consider any claim filed under this part within ninety (90) days and may hold a hearing and receive evidence concerning it. If a hearing is held, the treasurer shall prepare a finding and a decision in writing on each claim filed, stating the substance of any evidence heard by the treasurer and the reasons for the decision. The decision shall be a public record.

(c)  If the claim is allowed, the treasurer shall make payment forthwith. The claim shall be paid without deduction for costs of notices or sale or for service charges.

(d)  Any person claiming an interest in any property for which funds have been delivered by the treasurer to a local government pursuant to 66-29-121 may file a claim thereto with the local government in receipt of the funds. If the claim is allowed, the local government shall make payment forthwith, without deduction for administrative cost or service charges. Any person aggrieved by a finding of the local government may appeal to the treasurer in accordance with subsection (b). If the treasurer finds the claim to be valid, the local government shall issue payment forthwith. The local government shall submit an annual report of claims received on a form prescribed by the treasurer. This report shall be filed before September 1, reporting claims received as of the previous June 30.  Title 66, Chap. 66, 66-29-123.

Claim of another state to recover property - Procedure.
(a)  At any time after property has been paid or delivered to the treasurer under this part, another state may recover the property if:
(1) The property was subjected to custody by this state because the records of the holder did not reflect the last known address of the apparent owner when the property was presumed abandoned under this part, and the other state establishes that the last known address of the apparent owner or other person entitled to the property was in that state and under the laws of that state the property escheated to or was subject to a claim of abandonment by that state;
(2) The last known address of the apparent owner or other person entitled to the property, as reflected by the records of the holder, is in the other state and under the laws of that state the property has escheated to or become subject to a claim of abandonment by that state;
(3) The records of the holder were erroneous in that they did not accurately reflect the actual owner of the property and the last known address of the actual owner is in the other state and, under the laws of that state, the property escheated to or was subject to a claim of abandonment by that state;
(4) The property was subjected to custody by this state under 66-29-103(6) and under the laws of the state of domicile of the holder the property has escheated to or become subject to a claim of abandonment by that state; or
(5) The property is the sum payable on a traveler's check, money order, or other similar instrument that was subjected to custody by this state under 66-29-103 and the instrument was purchased in the other state and, under the laws of that state, the property escheated to or became subject to a claim of abandonment by that state.
(b)  The claim of another state to recover escheated or abandoned property must be presented in a form prescribed by the treasurer who shall decide the claim within ninety (90) days after it is presented. If the treasurer determines that the other state is entitled to the abandoned property under subsection (a), the claim shall be allowed.

(c)  The treasurer shall require a state, before recovering property under this section, to agree to indemnify this state and its officers and employees against any liability on a claim for the property.  Title 66, Chap. 29, 66-29-124.

Judicial action upon determinations.
Any person aggrieved by a finding of the treasurer under 66-29-123 or upon whose claim the treasurer has failed to act upon ninety (90) days after the filing thereof, may file a complaint to establish such claim in the chancery court for Davidson County, naming the treasurer as a defendant and joining any other persons who may have an interest in the subject property. The suit shall be brought within ninety (90) days after the decision of the treasurer, or within one hundred eighty (180) days from the date of the filing of the claim, if the treasurer fails to act within such ninety (90) days. A copy of the complaint shall also be served on the attorney general and reporter. The suit shall be tried without a jury. If a decree is rendered against the treasurer, the treasurer shall make payment in accordance therewith as provided in 66-29-123. Any aggrieved party may appeal the decision.  Title 66, Chap. 29, 66-29-125.

66-29-126. [Repealed.]

Examination of records.
(a)  The treasurer may at reasonable times and upon reasonable notice examine the records of any person if the treasurer has reason to believe that such person has failed to report property that should have been reported pursuant to this part.

(b)  The comptroller of the treasury and the various regulatory and taxing agencies of this state shall report to the treasurer any property presumed to be abandoned under this part, held by any person subject to their supervision, regulation or examination, and discovered by them during the course of such supervision, regulation, or examination.  Title 66, Chap. 29, 66-29-127.

Proceedings to compel delivery of abandoned property.
If any person refuses to deliver property to the treasurer as required under this part, the treasurer shall bring an action in a court of appropriate jurisdiction to enforce such delivery. Title 66, Chap. 29, 66-29-128.

Penalties - Reconsideration by treasurer - Complaint.
(a)  Should the treasurer find that any person who has received notice that such person is subject to this part, as reflected on the records of the treasurer, has failed to render any report or perform other duties required under this part, the treasurer shall order such person to pay to the treasurer a civil penalty of twenty-five dollars ($25.00) for each day the report is withheld or for each day the duties are not performed; provided, that the amount of such civil penalty shall not exceed one thousand dollars ($1,000).

(b)  Should the treasurer find that any person has refused to pay or deliver abandoned property to the treasurer as required under this part, the treasurer shall order such person to pay to the treasurer a civil penalty equal to twenty-five percent (25%) of the value of the property that should have been paid or delivered.

(c)  A person assessed a penalty under subsection (a) or (b) shall be afforded an opportunity to have the assessment reconsidered by the treasurer upon written request within ten (10) days of the issuance of the notice of assessment.  Any person aggrieved by a finding of the treasurer after such reconsideration may file a complaint as provided in 66-29-125.  Title 66, Chap. 29, 66-29-129.

Rules and regulations.
The treasurer is hereby authorized to make necessary rules and regulations to carry out the provisions of this part. Title 66, Chap. 29, 66-29-130.

Effect of laws of other states.
This part shall not apply to any property that has been presumed abandoned or escheated under the laws of another state prior to March 6, 1978.  Title 66, Chap. 29, 66-29-131.

Effect on other Tennessee statutes.
(a)  In the event that the provisions of this Uniform Disposition of Unclaimed Property Act are in conflict with other provisions of state law, the provisions contained herein will prevail so as to effectuate the intent of this part. In the event the provisions of this part are in conflict with the provisions of title 55, chapter 16, the provisions contained in title 55, chapter 16 will prevail, it being the intent of the general assembly that title 55, chapter 16 will continue to govern unclaimed or abandoned motor vehicles.

(b)  Specific note has been taken of the provisions of 31-822 - 31-829 [repealed], and it is the intent of the general assembly that these sections will continue to govern the disposition of unclaimed real property.

(c)  Title 55, chapter 16, governing unclaimed or abandoned motor vehicles, is hereby considered, ratified, and affirmed as if specifically reenacted.  Title 66, Chap. 29, 66-29-132.

Uniformity of interpretation.
This part shall be so construed as to effectuate its general purpose to make uniform the law of those states which enact it. Nothing in this part shall be construed as superseding any of the provisions of title 55, chapter 16.  Title  66, Chap. 29, 66-29-133.

Agents for enforcement of chapter.
The treasurer may appoint agents within this state or outside this state for the purpose of carrying out the provisions of this part.  Title 66, Chap. 29, 66-29-134.

Gift certificates.
(a)  A gift certificate issued in the ordinary course of an issuer's business which remains unclaimed by the owner for more than five (5) years after becoming payable or distributable is presumed abandoned.  The amount presumed abandoned is the price paid by the purchaser for the gift certificate.

(b)  Property described above, without regard to any activity or inactivity within the past five (5) years, shall also be presumed abandoned if the owner thereof is known to the holder to have died and left no one to take such property by will and no one to take such property by intestate succession.  Title 66, Chap. 29, 66-29-135.

Wages.
Unpaid wages, including wages represented by unpresented payroll checks, owing in the ordinary course of the holder's business, which remain unclaimed by the owner for more than one (1) year after becoming payable are presumed abandoned. Property described above, without regard to any activity or inactivity within the past one (1) year, shall also be presumed abandoned if the owner thereof is known to the holder to have died and left no one to take such property by will and no one to take such property by intestate succession.  Title 66, Chap. 29, 66-29-136.

Agreements to ascertain whereabouts of property's owner.
Any holder of property not yet abandoned pursuant to this part may enter into such agreements as may be necessary to ascertain the whereabouts of the owner; provided, that no costs associated with such agreements shall be deducted from the property nor charged to the owner.  Title 66, Chap. 29, 66-29-137.

66-29-138  -  66-29-150. [Reserved.]

Health access incentive account - Program for locating practitioners.
(a)  There is hereby created within the state treasury a special account to be known as the "health access incentive account." Money shall be deposited to the account pursuant to 66-29-121 and as may be otherwise provided by law and shall be invested for the benefit of the account pursuant to 9-4-603. Amounts in the account shall not revert to the general fund of the state but shall, together with interest income credited to the account, remain available for appropriation by the general assembly for the purpose set forth in subsection (b). Notwithstanding any language in this section to the contrary, an amount equal to the corpus which remained in the health access account on June 30, 1994, shall be transferred to the general fund. In the event the corpus funds available at the time of transfer are less than the aforementioned 1994 balance, then the total amount of the corpus and the health access incentive account balance, not to exceed $26,152,543.47 shall be transferred. Notwithstanding any language in this section to the contrary, the sum of one million six hundred thousand dollars ($1,600,000) which remained in the health access incentive account on June 30, 1996, shall be transferred to the general fund.

(b)  The commissioner of health shall develop, subject to the approval of the commissioner of finance and administration, programs designed to enhance health access or by identifying appropriate practitioners of health care to provide services or locate practices in areas of the state designated by the commissioner of health as health resource shortage areas. Such programs may include, but not be limited to, recruitment incentives, community initiatives, service-linked training opportunities, support for high technology/telecommunications efforts and other strategies to expand primary, obstetric and dental health care services in underserved areas. Pursuant to a finding of need by the commissioner, the health access program may also address the lack of adequate access in underserved areas to other health care providers and health care services such as emergency medicine, mental health care and prevention treatment services for low income, pregnant substance abusers. Programs developed to meet these purposes shall be submitted by the commissioner of health for review by the regional health council designated by the department of health. No funds from the health access incentive account may be expended for such programs
until the commissioner of health receives the written comments of the regional health council. Nothing in this section shall be construed as creating a continuing obligation to provide salary supplements for practitioners of health care services.

(c)  The commissioner of health is authorized to promulgate rules and regulations to  carry out the commissioner's responsibilities under this section.  Title 66, Chap. 29, 66-29-151.

Lawful charges or deductions - Notice.
(a)  Charges or deductions described in 66-29-104, 66-29-106 and 66-29-112 shall be deemed "lawful" if:
(1) The holder has given prior constructive or actual notice to the owner that such charges or deductions may be imposed. Actual notice is given if the holder obtained written consent to the charges or deductions from the owner. Constructive notice is given if the holder implements a new charge or deduction policy or increases the amount of the charge or deduction after the holder takes possession of the owner's property and the holder sent correspondence in writing to the owner by first class or superior mailing disclosing the new charge or deduction policy or increase, and such correspondence was not returned by the post office;
(2) The charges or deductions are not imposed retroactively in order to reduce the value of or eliminate the property after the property is presumed abandoned; and
(3) The charges or deductions are not routinely refunded or cancelled when the property is claimed by the owner.
(b)  Charges or deductions described in subdivisions (a)(1) and (2)  shall not be unlawful for purposes of this section if such charges or deductions were withheld prior to April 25, 1991.  Title 66, Chap. 29, 66-29-152.

Unclaimed moneys held by Tennessee temporary joint underwriting association and state reserve fund.
Unclaimed moneys held by the Tennessee temporary joint underwriting association and the stabilization reserve fund shall be deemed abandoned under the provisions of 66-29-108, and shall be delivered to the state treasurer with a list of the policyholders' names, last known addresses, and the amount due to each policyholder.  The delivery of such unclaimed moneys shall be made on or before the end of the one-year "wind-down" period, or June 30, 1992.  Upon compliance with this authorization, the Tennessee temporary underwriting association, the stabilization reserve fund, and their officers and directors, shall be discharged and relieved of any and all further responsibility for such moneys.  The state treasurer shall receive such funds and otherwise proceed under the provisions of this chapter.  Title 66, Chap. 29, 66-29-153.
 

                                  PART 2
                    ABANDONED CULTURAL PROPERTY

Short title.
This part shall be known and may be cited as the "Abandoned Cultural Property Act."  Title 66, Chap. 29, 66-29-201.

Definitions.
As used in this part, unless the context otherwise requires:
(1) "Abandoned cultural property" means cultural property meeting the following three (3) conditions:
(A) The property shall have been deposited with a museum, historical society, or similar not-for-profit institution for a period of at least twenty (20) years; or the property shall have been deposited with a museum, historical society, or similar not-for-profit institution for a definite term which has been expired for at least twenty (20) years;
(B) The museum, historical society, or similar not-for-profit institution has been unable to contact the original depositor by certified mail; and
(C) The original depositor or such depositor's heirs or assigns have not contacted the museum, historical society, or similar not-for-profit institution for at least twenty (20) years;
(2) "Cultural property" means any work of art, regardless of the medium; any work of decorative art; any craft work; photographs; documents; costumes; weapons; the tools and equipment of the various trades and professions; archaeological and geological specimens; zoological and botanical specimens; historical postage and currency; silverware; objects associated with historical persons or events; and in general, any object which, when exhibited, serves to further the educational goals of the exhibiting institution; and

(3) "Museum" means those museums and art galleries owned or operated by the state of Tennessee or any political subdivision of the state, and those museums, historical societies, and art galleries owned and operated by not-for-profit corporations.  Title 66, Chap. 29, 66-29-202.

Abandonment - Notice - Vesting of title in museum.
(a)  Any abandoned cultural property held by a museum to which no person has made claim shall be deemed to be abandoned.

(b)  A museum holding abandoned cultural property shall publish in at least one (1) newspaper of general circulation in the county in which the institution is located at least once a week for two (2) consecutive weeks a notice and listing of the property. The notice shall contain:
(1) The name and last known address, if any, of the last known owner of the property;
(2) A description of the property; and
(3) A statement that if proof of claim is not presented by the owner to the museum and if the owner's right to receive that property is not established to the museum's satisfaction within sixty-five (65) days from the date of the second published notice, the property will be deemed abandoned and shall become the property of the museum.
(c)  If no claim has been made to the abandoned cultural property within sixty-five (65) days from the date of the second published notice, title to the property shall vest in the museum, free from all claims of the owner and of all persons claiming through or under the owner.  Title 66, Chap. 29, 66-29-203.
[Acts 1984, ch. 862, 3.]

Exclusivity of provisions.
The provisions of this part shall control the procedure and disposition of any property to which it applies in lieu of any other procedure prescribed by law including the provisions of part 1 of this chapter.  Title 66, Chap. 29, 66-29-204.                                                          

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