Rules & Regulations of the State of Tennessee
Title 0180 - Financial Institutions
Chapter 0180-12 - Operation of State-Chartered Building and Loan Associations
Section 0180-12-.20 - BOOKS AND RECORDS; ADVERTISEMENTS; STOCK

(1) An association which determines to maintain any of its records by means of data processing services shall notify this Department in writing at least 90 days prior to the date on which such maintenance of records will begin.

(2) Such notification shall include identification of the records to be maintained by data processing service and a statement as to the location at which such records will be maintained.

(3) Every association shall be required to follow the bookkeeping and accounting system in accordance with the standard accounting manual for savings and loan associations and shall comply with generally accepted accounting principles and practices.

(4) The accrual basis must be used by all associations.

(5) Complete records of its stockholders or members, as the case may be, shall be maintained, which shall show the names and addresses of all stockholders or members and the number of shares of stock or amounts of deposits held by each.

(6) Machine Accounting - An association may use machine posting of its books and records, but it shall support all settlement or summary sheets with appropriate accounting machine tapes and all other necessary information.

(7) Posting and Balancing of Books - The books and records of an association shall be posted promptly and be balanced by the appropriate officer or officers of the association no less frequently than monthly. Trial Balances by adding machine or other listing methods shall be taken of all loan and free deposit share accounts at least quarterly. Copies of the Trial Balances shall be retained for at least five (5) years.

(8) Journal Vouchers - An association may use a system of journal vouchers, but in such case all such vouchers shall be serially numbered and retained as part of the permanent records of the association.

(9) Advertising and Promotional Activities - Association's Advertising File - Each association shall maintain and make available to the Commissioner for inspection at its home office, a chronological file of all forms of advertisement used by it during the preceding eighteen (18) months.

(10) Misleading Impression - In connection with any loan or investment, an advertisement or any advertising sign as a whole shall not be inaccurate or create a misleading impression even though statements therein, separately considered, are literally truthful.

(11) Use After Notice - It shall be an unsound business practice to use advertising in connection with any loan or investment after the Commissioner has given written notice that the advertisement is false, misleading or likely to deceive the public.

(12) Stock and Dividends - Capital stock is non-withdrawable permanent stock by whatever name. Any association authorized by law to issue or maintain shares of Capital Stock must, prior to the payment of any dividend on such Capital Stock, in any dividend period, pay interest on all deposit accounts.

(13) Certificate - Stated Restrictions - Each certificate heretofore or hereafter issued as evidence of ownership of Capital Stock shall clearly show on its face in a type size no less than 50 points that such stock is "Capital Stock". In addition, each stock certificate shall state the restrictions upon such stock, including the following: