Tennessee BIDCO Act

The act establishes a licensing framework for BIDCOs — companies whose business is providing financing assistance and management assistance to other business firms. It sets who may hold a license and on what terms, covering application and denial, minimum net worth, standards for directors, officers, and controlling persons, and the non-transferability, display, and surrender of the license, and it regulates the licensee's ongoing conduct: the permitted forms and terms of financing and management assistance, participation in government programs, restrictions on dividends and share buy-backs, business practice and reserve standards, and limits on holding control of the businesses it assists. Potential conflicts of interest must be disclosed and are subject to conditions, and any acquisition of control of a licensee — whether by merger, purchase, or sale — requires approval from the administering department, which also carries out the act.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.