# Tenn. Code Ann. § 45-20-106: Actions prohibited to avoid application or provisions of chapter - Open-end credit plan

> Tennessee · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C20_S45-20-106

## Section

- **Citation:** Tenn. Code Ann. § 45-20-106
- **Heading:** Actions prohibited to avoid application or provisions of chapter - Open-end credit plan
- **Jurisdiction:** Tennessee
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** TN Code / Title 45 / Chapter 20 / Section 45-20-106

## Text

(a) No person shall, with the intent to avoid the application or provisions of this chapter: (1) Divide a loan transaction into separate parts; (2) Structure a loan transaction as an open-end credit plan for the purpose and with the intent of evading this chapter, when the loan would have been a high-cost home loan if the loan had been structured as a closed-end loan; or (3) Engage in any other subterfuge. (b) For purposes of this section, "open-end credit plan" means "open-end loan" as defined in 12 CFR 226.2(a)(20) , and as used in the official staff commentary of the board of governors of the federal reserve system. (c) For open-end credit plan, "points and fees" means "points and fees" as defined in 12 CFR 226.32 , and as used in the official staff commentary of the board of governors of the federal reserve system that are known at or before closing, plus the minimum additional fees the borrower would be required to pay to draw down an amount equal to the total credit line. Acts 2006, ch. 801, § 6.
(a) No person shall, with the intent to avoid the application or provisions of this chapter: (1) Divide a loan transaction into separate parts; (2) Structure a loan transaction as an open-end credit plan for the purpose and with the intent of evading this chapter, when the loan would have been a high-cost home loan if the loan had been structured as a closed-end loan; or (3) Engage in any other subterfuge.
(1) Divide a loan transaction into separate parts;
(2) Structure a loan transaction as an open-end credit plan for the purpose and with the intent of evading this chapter, when the loan would have been a high-cost home loan if the loan had been structured as a closed-end loan; or
(3) Engage in any other subterfuge.
(b) For purposes of this section, "open-end credit plan" means "open-end loan" as defined in 12 CFR 226.2(a)(20) , and as used in the official staff commentary of the board of governors of the federal reserve system.
(c) For open-end credit plan, "points and fees" means "points and fees" as defined in 12 CFR 226.32 , and as used in the official staff commentary of the board of governors of the federal reserve system that are known at or before closing, plus the minimum additional fees the borrower would be required to pay to draw down an amount equal to the total credit line.
Acts 2006, ch. 801, § 6.

## Nearby sections

- [Tenn. Code Ann. § 45-20-101 Short title](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C20_S45-20-101.md)
- [Tenn. Code Ann. § 45-20-102 Chapter definitions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C20_S45-20-102.md)
- [Tenn. Code Ann. § 45-20-103 Prohibited acts and practices](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C20_S45-20-103.md)
- [Tenn. Code Ann. § 45-20-104 Cure of default - Foreclosure](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C20_S45-20-104.md)
- [Tenn. Code Ann. § 45-20-105 Purchaser or assignee of loan subject to all claims and defenses of the borrower - Relief granted - Due diligence](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C20_S45-20-105.md)
- [Tenn. Code Ann. § 45-20-106 Actions prohibited to avoid application or provisions of chapter - Open-end credit plan](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C20_S45-20-106.md)
- [Tenn. Code Ann. § 45-20-107 Penalties - Punitive damages - Remedies - Limitations - Frivolous or harassment actions - Notice of action](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C20_S45-20-107.md)
- [Tenn. Code Ann. § 45-20-108 Compliance failure](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C20_S45-20-108.md)
- [Tenn. Code Ann. § 45-20-109 Commissioner's powers - Rules and regulations - Examinations and investigations - Injunctions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C20_S45-20-109.md)
- [Tenn. Code Ann. § 45-20-110 Restrictions on local regulation](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C20_S45-20-110.md)
- [Tenn. Code Ann. § 45-20-111 Application](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C20_S45-20-111.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C20_S45-20-106. Check the current official text before relying on it. Not legal advice.