Rules & Regulations of the State of Tennessee
Title 0180 - Financial Institutions
Chapter 0180-15 - Rules Pertaining to Acquisitions for Financial Institutions and Holding Companies
Section 0180-15-.01 - SCOPE

(1) This Chapter establishes rules relating to the application or notification procedures required for the direct or indirect acquisition of banks, savings associations or savings banks. These rules provide the Department with the ability to monitor compliance with the deposit cap which prohibits any bank holding company from acquiring a Tennessee bank if the acquisition would result in the bank or bank holding company controlling thirty percent (30%) or more of the insured deposits in the state. These rules also establish the Department's ability to monitor compliance with the prohibition against any bank or bank holding company acquiring a bank which has not been in operation for five (5) years, subject to any and all exemptions.

Many of these rules are necessary to implement the recent statutory changes which permit interstate banking and branching. Finally, these rules allow the Department to review acquisitions for safety and soundness as a means of preserving state-chartered banks, savings associations and savings banks.