# Tenn. Code Ann. § 49-4-103: Regulation of plans

> Tennessee · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T49_C4_S49-4-103

## Section

- **Citation:** Tenn. Code Ann. § 49-4-103
- **Heading:** Regulation of plans
- **Jurisdiction:** Tennessee
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** TN Code / Title 49 / Chapter 4 / Section 49-4-103

## Text

(a) The commissioner is authorized to regulate the operation and administration of any plan or plans, as provided in this section, and to adopt and promulgate reasonable regulations as necessary to the exercise of the powers vested in the commissioner. In the adoption of regulations, the commissioner shall give paramount consideration to the safeguarding of funds and the protection of scholarship recipients. (b) No plan shall be approved by the commissioner that does not comply with regulations relating to the following: (1) Rights to withdrawal of principal investment; (2) Enrollment fees and dues in an amount reasonably necessary to administer the plan as determined by the commissioner and pursuant to recommendation of the board of directors of the nonprofit corporation; (3) Incorporation and qualification with the secretary of state by a corporation; (4) Security of funds for scholarships; (5) Qualifications of institutions in which scholarships may be granted; (6) Maximum duration of scholarship; (7) Scholastic achievement as qualification for commencement or continuation of scholarship not exceeding average passing grade in institution; (8) Amount of contributions and duration necessary to participation in benefits of plan; (9) Good moral character of management personnel; and (10) Voting rights of members or trustees of members. Acts 1968, ch. 589, § 3; T.C.A., § 49-4503.
(a) The commissioner is authorized to regulate the operation and administration of any plan or plans, as provided in this section, and to adopt and promulgate reasonable regulations as necessary to the exercise of the powers vested in the commissioner. In the adoption of regulations, the commissioner shall give paramount consideration to the safeguarding of funds and the protection of scholarship recipients.
(b) No plan shall be approved by the commissioner that does not comply with regulations relating to the following: (1) Rights to withdrawal of principal investment; (2) Enrollment fees and dues in an amount reasonably necessary to administer the plan as determined by the commissioner and pursuant to recommendation of the board of directors of the nonprofit corporation; (3) Incorporation and qualification with the secretary of state by a corporation; (4) Security of funds for scholarships; (5) Qualifications of institutions in which scholarships may be granted; (6) Maximum duration of scholarship; (7) Scholastic achievement as qualification for commencement or continuation of scholarship not exceeding average passing grade in institution; (8) Amount of contributions and duration necessary to participation in benefits of plan; (9) Good moral character of management personnel; and (10) Voting rights of members or trustees of members.
(1) Rights to withdrawal of principal investment;
(2) Enrollment fees and dues in an amount reasonably necessary to administer the plan as determined by the commissioner and pursuant to recommendation of the board of directors of the nonprofit corporation;
(3) Incorporation and qualification with the secretary of state by a corporation;
(4) Security of funds for scholarships;
(5) Qualifications of institutions in which scholarships may be granted;
(6) Maximum duration of scholarship;
(7) Scholastic achievement as qualification for commencement or continuation of scholarship not exceeding average passing grade in institution;
(8) Amount of contributions and duration necessary to participation in benefits of plan;
(9) Good moral character of management personnel; and
(10) Voting rights of members or trustees of members.
Acts 1968, ch. 589, § 3; T.C.A., § 49-4503.

## Nearby sections

- [Tenn. Code Ann. § 49-4-101 Part definitions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T49_C4_S49-4-101.md)
- [Tenn. Code Ann. § 49-4-102 Plans subject to law](https://www.frixlaw.com/law-library/statutes/STATE_TN_T49_C4_S49-4-102.md)
- [Tenn. Code Ann. § 49-4-103 Regulation of plans](https://www.frixlaw.com/law-library/statutes/STATE_TN_T49_C4_S49-4-103.md)
- [Tenn. Code Ann. § 49-4-104 Unauthorized solicitation or advertising](https://www.frixlaw.com/law-library/statutes/STATE_TN_T49_C4_S49-4-104.md)
- [Tenn. Code Ann. § 49-4-105 Corporations administering plans](https://www.frixlaw.com/law-library/statutes/STATE_TN_T49_C4_S49-4-105.md)
- [Tenn. Code Ann. § 49-4-106 Participation by financial institutions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T49_C4_S49-4-106.md)
- [Tenn. Code Ann. § 49-4-107 Certificate of authority](https://www.frixlaw.com/law-library/statutes/STATE_TN_T49_C4_S49-4-107.md)
- [Tenn. Code Ann. § 49-4-108 Deposit of funds](https://www.frixlaw.com/law-library/statutes/STATE_TN_T49_C4_S49-4-108.md)
- [Tenn. Code Ann. § 49-4-109 Financial statements and examinations](https://www.frixlaw.com/law-library/statutes/STATE_TN_T49_C4_S49-4-109.md)
- [Tenn. Code Ann. § 49-4-110 Revocation of authorization](https://www.frixlaw.com/law-library/statutes/STATE_TN_T49_C4_S49-4-110.md)
- [Tenn. Code Ann. § 49-4-111 Tax exemption](https://www.frixlaw.com/law-library/statutes/STATE_TN_T49_C4_S49-4-111.md)
- [Tenn. Code Ann. § 49-4-112 Violations - Penalties](https://www.frixlaw.com/law-library/statutes/STATE_TN_T49_C4_S49-4-112.md)
- [Tenn. Code Ann. § 49-4-201 Creation](https://www.frixlaw.com/law-library/statutes/STATE_TN_T49_C4_S49-4-201.md)
- [Tenn. Code Ann. § 49-4-202 Board of directors](https://www.frixlaw.com/law-library/statutes/STATE_TN_T49_C4_S49-4-202.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TN_T49_C4_S49-4-103. Check the current official text before relying on it. Not legal advice.