All landlords of residential property requiring security deposits prior to occupancy are required to deposit all tenants' security deposits in an account used only for that purpose, in any bank or other lending institution subject to regulation by the state of Tennessee or any agency of the United States government.
Tenants shall be informed of the location of the separate account.

State laws place no limit on the amount landlords can charge for security deposits. When you give the landlord a deposit, be sure to get AND keep the receipt EVEN if you give the landlord a check or money order. The amount you give should also be on the lease. Verify the correct is on the lease.

However, some cities may have enacted their own laws with respect to this.

If the landlord fails to deposit in a separate security deposit account, they may lose their right to hold those monies.

Within three (3) business days of the termination of occupancy but prior to any repairs or cleanup of the premises, the landlord shall inspect the premises and compile a comprehensive listing of any damage to the unit which is the basis for any charge against the security deposit and the estimated dollar cost of repairing such damage. The tenant shall then have the right to inspect the premises to ascertain the accuracy of such listing. The landlord and the tenant shall sign such listing, which signatures shall be conclusive evidence of the accuracy of such listing. If the tenant refuses to sign such listing, the tenant shall state specifically in writing the items on the list to which the tenant dissents, and shall sign such statement of dissent. If the tenant has moved or is otherwise inaccessible to the landlord, the landlord shall mail a copy of the listing of damages and estimated cost of repairs to the tenant at the tenant's last known mailing address.

The landlord also loses their rights should they not send the tenant a notice of damages or deductions.
GIVE YOUR OLD LANDLORD YOUR NEW MAILING ADDRESS OR YOU MAY LOSE SOME RIGHTS.

Should a tenant vacate the premises with unpaid rent due and owing, and without making a demand for return of deposit, the landlord may, after thirty (30) days, remove the deposit from the account and apply the deposit to the unpaid debt.