# Tenn. Code Ann. § 34-5-114: Investment of funds > Tennessee · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T34_C5_S34-5-114 ## Section - **Citation:** Tenn. Code Ann. § 34-5-114 - **Heading:** Investment of funds - **Jurisdiction:** Tennessee - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** TN Code / Title 34 / Chapter 5 / Section 34-5-114 ## Text Every guardian shall invest the corpus of all funds of the guardian's ward, coming into the guardian's hands, only in the following types of securities in which the guardian shall have no interest, directly or indirectly: (1) The direct bonds and obligations of the United States, or in mutual fund shares of a registered investment company or common trust funds which are invested only in direct bonds and obligations of the United States, or obligations issued separately or collectively by or for federal land banks, federal intermediate credit banks and banks for cooperatives under the act of Congress known as the Farm Credit Act of 1971, 85 Stat. 583, 12 U.S.C. § 2001 and amendments to that act, or Home Owners' Loan Corporation bonds, guaranteed in principal and interest by the United States government, procuring them always at the best possible salable or market price obtainable in the interest of the ward; bonds and/or debentures issued by any Federal Home Loan Bank organized under the Federal Home Loan Bank Act of the United States; (2) The bonds of the state of Tennessee, procuring the bonds always at the best possible salable or market price obtainable in the interest of the ward; (3) The bonds of any county in this state having a population of fifteen thousand (15,000) by the last federal census next preceding the date of the investment, that has not defaulted within twenty (20) years preceding the investment for more than thirty (30) days in the payment of any part either of principal or interest of any bond, note or other evidence of indebtedness, procuring the bonds always at the best possible salable or market price obtainable in the interest of the ward; provided, that before investment is made in the county bonds as authorized in this subdivision (3), there has been filed with the clerk of the court having jurisdiction of the guardianship a certificate by the chief financing officer, or treasurer of the county, certifying to the prerequisites as provided in this subdivision (3) regarding population and status of the bonds; (4) The bonds or notes of any city or town in this state that has a population as shown by the last federal census next preceding the investment of not less than forty-five thousand (45,000) and has not defaulted within twenty (20) years preceding the investment for more than thirty (30) days in the payment of any part either of principal or interest of any bond, note or other evidence of indebtedness, procuring the bonds or notes always at the best possible salable or market price obtainable in the interest of the ward; provided, that before investment is made in city bonds as authorized in this subdivision (4), there has been filed with the clerk of the court having jurisdiction of the guardianship a certificate by the chief financing officer or treasurer of the city certifying to the prerequisites as provided in this subdivision (4) regarding population and status of the bonds; (5) First mortgage or trust deed on real estate situated in the county of the guardianship, the amount lent not to exceed one-half (1/2) of the actual cash value of the real estate mortgaged; provided, that the real estate has been appraised and reported as to its cash market value by three (3) disinterested persons appointed for that purpose by the chancery or probate court of the county in which the land lies, upon application to the court to that end, and approved by the court; (6) Certificates of deposit, time deposits, savings deposits, and any other accounts, issued and accepted by any state or national bank that has insured its accounts with the federal deposit insurance corporation, up to the maximum amount insured by the federal deposit insurance corporation; and (7) Any type of savings account or deposits (including certificates of deposit) in an amount that is insured with an insurer approved by the commissioner of commerce and insurance. Amended by 2014 Tenn. Acts, ch. 829, s 3, eff. 4/29/2014 k that has insured its accounts with the federal deposit insurance corporation, up to the maximum amount insured by the federal deposit insurance corporation; and (7) Any type of savings account or deposits (including certificates of deposit) in an amount that is insured with an insurer approved by the commissioner of commerce and insurance. Amended by 2014 Tenn. Acts, ch. 829, s 3, eff. 4/29/2014. Acts 1943, ch. 90, § 13; C. Supp. 1950, § 8558.14 (Williams, § 8552); modified; Acts 1969, ch. 23, § 1; 1969, ch. 150, § 1; 1976, ch. 585, § 1; 1978, ch. 708, § 6.02; T.C.A. (orig. ed.), § 34-914; Acts 1987, ch. 322, § 18. Every guardian shall invest the corpus of all funds of the guardian's ward, coming into the guardian's hands, only in the following types of securities in which the guardian shall have no interest, directly or indirectly: (1) The direct bonds and obligations of the United States, or in mutual fund shares of a registered investment company or common trust funds which are invested only in direct bonds and obligations of the United States, or obligations issued separately or collectively by or for federal land banks, federal intermediate credit banks and banks for cooperatives under the act of Congress known as the Farm Credit Act of 1971, 85 Stat. 583, 12 U.S.C. § 2001 and amendments to that act, or Home Owners' Loan Corporation bonds, guaranteed in principal and interest by the United States government, procuring them always at the best possible salable or market price obtainable in the interest of the ward; bonds and/or debentures issued by any Federal Home Loan Bank organized under the Federal Home Loan Bank Act of the United States; (2) The bonds of the state of Tennessee, procuring the bonds always at the best possible salable or market price obtainable in the interest of the ward; (3) The bonds of any county in this state having a population of fifteen thousand (15,000) by the last federal census next preceding the date of the investment, that has not defaulted within twenty (20) years preceding the investment for more than thirty (30) days in the payment of any part either of principal or interest of any bond, note or other evidence of indebtedness, procuring the bonds always at the best possible salable or market price obtainable in the interest of the ward; provided, that before investment is made in the county bonds as authorized in this subdivision (3), there has been filed with the clerk of the court having jurisdiction of the guardianship a certificate by the chief financing officer, or treasurer of the county, certifying to the prerequisites as provided in this subdivision (3) regarding population and status of the bonds; (4) The bonds or notes of any city or town in this state that has a population as shown by the last federal census next preceding the investment of not less than forty-five thousand (45,000) and has not defaulted within twenty (20) years preceding the investment for more than thirty (30) days in the payment of any part either of principal or interest of any bond, note or other evidence of indebtedness, procuring the bonds or notes always at the best possible salable or market price obtainable in the interest of the ward; provided, that before investment is made in city bonds as authorized in this subdivision (4), there has been filed with the clerk of the court having jurisdiction of the guardianship a certificate by the chief financing officer or treasurer of the city certifying to the prerequisites as provided in this subdivision (4) regarding population and status of the bonds; able in the interest of the ward; provided, that before investment is made in city bonds as authorized in this subdivision (4), there has been filed with the clerk of the court having jurisdiction of the guardianship a certificate by the chief financing officer or treasurer of the city certifying to the prerequisites as provided in this subdivision (4) regarding population and status of the bonds; (5) First mortgage or trust deed on real estate situated in the county of the guardianship, the amount lent not to exceed one-half (1/2) of the actual cash value of the real estate mortgaged; provided, that the real estate has been appraised and reported as to its cash market value by three (3) disinterested persons appointed for that purpose by the chancery or probate court of the county in which the land lies, upon application to the court to that end, and approved by the court; (6) Certificates of deposit, time deposits, savings deposits, and any other accounts, issued and accepted by any state or national bank that has insured its accounts with the federal deposit insurance corporation, up to the maximum amount insured by the federal deposit insurance corporation; and (7) Any type of savings account or deposits (including certificates of deposit) in an amount that is insured with an insurer approved by the commissioner of commerce and insurance. Amended by 2014 Tenn. Acts, ch. 829, s 3, eff. 4/29/2014. Acts 1943, ch. 90, § 13; C. Supp. 1950, § 8558.14 (Williams, § 8552); modified; Acts 1969, ch. 23, § 1; 1969, ch. 150, § 1; 1976, ch. 585, § 1; 1978, ch. 708, § 6.02; T.C.A. (orig. ed.), § 34-914; Acts 1987, ch. 322, § 18. ## Nearby sections - [Tenn. Code Ann. § 34-5-101 Short title](https://www.frixlaw.com/law-library/statutes/STATE_TN_T34_C5_S34-5-101.md) - [Tenn. Code Ann. § 34-5-102 Chapter definitions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T34_C5_S34-5-102.md) - [Tenn. Code Ann. § 34-5-103 Administrator as party in interest](https://www.frixlaw.com/law-library/statutes/STATE_TN_T34_C5_S34-5-103.md) - [Tenn. Code Ann. § 34-5-104 Appointment of guardian when necessary prior to payment of benefits](https://www.frixlaw.com/law-library/statutes/STATE_TN_T34_C5_S34-5-104.md) - [Tenn. Code Ann. § 34-5-105 Limitation on number of wards](https://www.frixlaw.com/law-library/statutes/STATE_TN_T34_C5_S34-5-105.md) - [Tenn. Code Ann. § 34-5-106 Petition for appointment of guardian](https://www.frixlaw.com/law-library/statutes/STATE_TN_T34_C5_S34-5-106.md) - [Tenn. Code Ann. § 34-5-107 Evidence of necessity for guardian of minor](https://www.frixlaw.com/law-library/statutes/STATE_TN_T34_C5_S34-5-107.md) - [Tenn. Code Ann. § 34-5-108 Evidence of necessity for guardian for incompetent](https://www.frixlaw.com/law-library/statutes/STATE_TN_T34_C5_S34-5-108.md) - [Tenn. Code Ann. § 34-5-109 Notice of petition for appointment](https://www.frixlaw.com/law-library/statutes/STATE_TN_T34_C5_S34-5-109.md) - [Tenn. Code Ann. § 34-5-110 Bond of guardian](https://www.frixlaw.com/law-library/statutes/STATE_TN_T34_C5_S34-5-110.md) - [Tenn. Code Ann. § 34-5-111 Accounts - Certificate of examination of securities or investments - Copies sent to veterans administration office - Notice of hearing - Property derived from other sources](https://www.frixlaw.com/law-library/statutes/STATE_TN_T34_C5_S34-5-111.md) - [Tenn. Code Ann. § 34-5-112 Failure to account or furnish copies - Penalty](https://www.frixlaw.com/law-library/statutes/STATE_TN_T34_C5_S34-5-112.md) - [Tenn. Code Ann. § 34-5-113 Compensation of guardians](https://www.frixlaw.com/law-library/statutes/STATE_TN_T34_C5_S34-5-113.md) - [Tenn. Code Ann. § 34-5-114 Investment of funds](https://www.frixlaw.com/law-library/statutes/STATE_TN_T34_C5_S34-5-114.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TN_T34_C5_S34-5-114. Check the current official text before relying on it. Not legal advice.