Tennessee Code Annotated
Tenn. Code Ann. § 47-28-101 (2026)
Chapter definitions
✓ current as of May 2026
- (a) As used in this chapter, unless the context otherwise requires:
- (1) "Borrower" under an open-end credit agreement means all persons having the right under the terms of the agreement to request or demand advances under the agreement;
- (2) "Credit limit" means the maximum amount of principal indebtedness which may be outstanding at any one time under a revolving credit agreement;
- (3) "Creditor" includes a state or national bank, a state or federal savings and loan association, a savings bank, a registrant under the Industrial Loan and Thrift Companies Act, compiled in title 45, chapter 5, a state or federal credit union, or any other individual, partnership, trust, corporation, or other legal entity permitted or authorized to enter into credit transactions secured by a mortgage;
- (4) "Mortgage" includes a mortgage, deed of trust, or other conveyance of real property securing obligations, except instruments creating or perfecting a security interest in fixtures which do not include other real property;
- (5) "Notice of limitation" under an open-end mortgage means the notice which the borrower may serve on the creditor to reduce the credit limit, as provided by this chapter;
- (6) "Obligatory advance" means an advance which the creditor is required to make by agreement with the borrower, whether or not a subsequent event beyond the control of the creditor may allow the creditor to cancel the obligation to make such advance. Advances shall be deemed obligatory, even though made pursuant to a credit agreement or mortgage containing some or all of the following provisions:
- (A) The right of the creditor to withhold advances on the occurrence of a default until the default is cured, if such default is curable under the terms of the agreement;
- (B) The inclusion of a stated or objectively ascertainable date on which the obligation to make further advances ends;
- (C) Requirements for procedures to be followed by the borrower to activate the obligation to make advances;
- (D) In the case of an open-end mortgage, the right of the creditor, on notice to the borrower, to reduce the credit limit, or to withhold advances, because of a decrease in the value of the collateral or an adverse change in the borrower's credit worthiness; and
- (E) In the case of an open-end mortgage, the right of the creditor, on notice to the borrower, to cancel the obligation to make further advances thereunder on grounds stated in the open-end credit agreement or mortgage;
- (7) "Open-end credit agreement" means a revolving credit agreement that is secured by a mortgage and that is not entered into for commercial purposes. Any such agreement shall be included, incorporated by reference or referred to in the mortgage, and shall prescribe the terms under which advances thereunder are to be made.
- (8) "Open-end mortgage" means a mortgage securing an open-end credit agreement;
- (9) "Optional advance" is any advance which is not obligatory; and
- (10) "Revolving credit agreement" means a written agreement between a creditor and one (1) or more borrowers, under which:
- (A) It is contemplated that future advances of money or credit may be made on the request or demand of the borrower;
- (B) It is contemplated that the principal balance outstanding may increase or decrease from time to time; and
- (C) A maximum limit is fixed on the total amount of principal indebtedness that may be outstanding at any time under the agreement.
- (b) A credit agreement or mortgage is for "commercial purposes," which is entered into:
- (1) By an individual, partnership, trust, corporation, or other legal entity that is engaged in business or agricultural endeavors; and
- (2) Solely in order to finance such endeavors.
Acts 1987, ch. 137, § 1; 1994, ch. 590, §§ 1-3.
Notes of Decisions
Cited in 3
cases, 2002–2020 · leading case: Home Fed. Bank, FSB, of Middlesboro v. First Nat'l Bank of Lafollette, 110 S.W.3d 433 (Tenn. Ct. App. 2002).
Home Fed. Bank, FSB, of Middlesboro v. First Nat'l Bank of Lafollette, 110 S.W.3d 433 (Tenn. Ct. App. 2002). “Their stipulations as to the law included one pertaining to open-end mortgages and the statutory scheme found at T.C.A. § 47-28-101, et seq. (2001). We agree with so much of the parties’ stipulation as states that the first deed of trust is not an open-end mortgage.”
David Mark Poole & Mary Louise Poole (Bankr. E.D. Tenn. 2019). “” Tenn. Code Ann. § 47-28-101 (a)(4); see also Higdon v.”
Tennessee State Bank v. Douglas v. Mashek (2020). “Tenn. Code Ann § 47-28-101(7) (2013). Although certain provisions of the statutory scheme codified at Tennessee Code Annotated § 47-28-101 (2013), et seq.”
— Tenn. Code Ann. § 47-28-101(10)(A) — 1 case
Home Fed. Bank, FSB, of Middlesboro v. First Nat'l Bank of Lafollette, 110 S.W.3d 433 (Tenn. Ct. App. 2002). “Their stipulations as to the law included one pertaining to open-end mortgages and the statutory scheme found at T.C.A. § 47-28-101, et seq. (2001). We agree with so much of the parties’ stipulation as states that the first deed of trust is not an open-end mortgage.”
— Tenn. Code Ann. § 47-28-101(6) — 1 case
Home Fed. Bank, FSB, of Middlesboro v. First Nat'l Bank of Lafollette, 110 S.W.3d 433 (Tenn. Ct. App. 2002). “Their stipulations as to the law included one pertaining to open-end mortgages and the statutory scheme found at T.C.A. § 47-28-101, et seq. (2001). We agree with so much of the parties’ stipulation as states that the first deed of trust is not an open-end mortgage.”
— Tenn. Code Ann. § 47-28-101(7) — 1 case
Tennessee State Bank v. Douglas v. Mashek (2020). “Tenn. Code Ann § 47-28-101(7) (2013). Although certain provisions of the statutory scheme codified at Tennessee Code Annotated § 47-28-101 (2013), et seq.”
— Tenn. Code Ann. § 47-28-101(9) — 1 case
Home Fed. Bank, FSB, of Middlesboro v. First Nat'l Bank of Lafollette, 110 S.W.3d 433 (Tenn. Ct. App. 2002). “Their stipulations as to the law included one pertaining to open-end mortgages and the statutory scheme found at T.C.A. § 47-28-101, et seq. (2001). We agree with so much of the parties’ stipulation as states that the first deed of trust is not an open-end mortgage.”
— Tenn. Code Ann. § 47-28-101(a)(7) — 1 case
Home Fed. Bank, FSB, of Middlesboro v. First Nat'l Bank of Lafollette, 110 S.W.3d 433 (Tenn. Ct. App. 2002). “Their stipulations as to the law included one pertaining to open-end mortgages and the statutory scheme found at T.C.A. § 47-28-101, et seq. (2001). We agree with so much of the parties’ stipulation as states that the first deed of trust is not an open-end mortgage.”
— Tenn. Code Ann. § 47-28-101(a)(8) — 1 case
Home Fed. Bank, FSB, of Middlesboro v. First Nat'l Bank of Lafollette, 110 S.W.3d 433 (Tenn. Ct. App. 2002). “Their stipulations as to the law included one pertaining to open-end mortgages and the statutory scheme found at T.C.A. § 47-28-101, et seq. (2001). We agree with so much of the parties’ stipulation as states that the first deed of trust is not an open-end mortgage.”
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