48-2-201 - Participation certificates in bonds or notes secured by mortgages on realty.

48-2-201. Participation certificates in bonds or notes secured by mortgages on realty.

Persons issuing and selling participation certificates in bonds or notes secured by mortgages or deeds of trust on land wherever located shall hold legal title to such bonds or notes in trust for the use and benefit of bona fide purchasers of such certificates to the extent of the interests sold to such purchasers, and such certificates and the interests represented thereby shall not be subject to the claims of creditors of the trustee holding legal title.

[Acts 1980, ch. 599, § 1; T.C.A., § 48-16-201; Acts 1985, ch. 110, § 1.]