Podcaster Jason Soloman passed along the following information down below. Accordingly, Soloman has a friend who works as a trial lawyer for the state of Tennessee, and she sent this over after following the situation with Billy Corgan and TNA.
“Both property and title pledge agreements are covered under the Tennessee Title Pledge Act. Tennessee law forbids anyone from engaging in the business of title pledging without first obtaining the requisite business licenses with the State. Additionally, pledge agreements made by an entity without having such a license is void and unenforceable, and “the person making the loan forfeits the right to collect any moneys in connection with the title pledge agreement or property pledge agreement.” (Tenn. Code Ann. 45-15-105).
I pulled the Tennessee List of Approyed Pledge Lenders and Corgan’s name is not on there. The only way Corgan could win on this argument is if he could show that Carter fraudulently induced him to sign the contract, but he (or his attorney) had a duty to know they couldn’t act as pledge lenders. TNA could also countersue Corgan for making a pledge loan and, if they win, he could be out every bit of the money he loaned them. Since Corgan said he loaned the money but only under those circumstances (stakes in company, position of President, etc.), he’s screwed.
He really has no excuse for not knowing you can’t loan with a pledge agreement without a license.”
