Rules & Regulations of the State of Tennessee
Title 0180 - Financial Institutions
Chapter 0180-19 - Rules Pertaining to Securities Activities of State-Chartered Banks
Section 0180-19-.06 - APPLICATION PROCEDURES

Universal Citation: TN Comp Rules and Regs 0180-19-.06

Current through April 3, 2024

(1) The application required by Rules 0180-19-.04, 0180-19-.05, 0180-19-.09, and 0180-19-.10 shall include the following items, unless the context requires otherwise, as determined by the Commissioner:

(a) A complete description of the bank's investment and percentage ownership;

(b) The proposed activities;

(c) The organizational structure and management including comments on management's expertise;

(d) The relationship with the bank;

(e) A statement as to whether the bank intends to conduct any activity at a location other than the main office or a previously approved branch of the bank;

(f) A statement as to any insider involvement;

(g) The Board of Director's approval and guidelines for the investment or activity;

(h) The Bank's capital position, both dollar and percentage basis, after deducting the investment;

(i) Verification that the investment does not exceed the limitations required by Rule 0180-19-.11;

(j) A copy of any contract between the bank and any business in which the bank has an ownership interest or any third-party relating to the investment or activity;

(k) Evidence that all state or federal licenses required to engage in the activity to be approved have been obtained; and

(l) Any other information deemed necessary to adequately describe the proposal.

(2) The Department reserves the right to require the applicant to submit a legal analysis if the proposal is novel, unusually complex, or raises substantial unresolved legal issues.

(3) The Commissioner shall approve or deny the application within thirty (30) days following receipt of the complete application. The decision is not subject to the provisions of the "Uniform Administrative Procedures Act": The Commissioner may extend the thirty (30) day period for approval or denial, for an additional thirty (30) day period by notifying the applicant that additional information is needed or additional time for analysis is needed.

(4) The Commissioner may, as an exercise of discretion, determine whether or not an application should be approved on the basis of the following:

(a) The capital, assets, management, earnings, liquidity and sensitivity to market riskof the state-chartered bank are satisfactory;

(b) The state-chartered bank has sufficient managerial resources to engage in the proposed securities activities; and

(c) Any other relevant factors.

(5) The Department may impose certain conditions and/or limitations in connection with any approval under this Rule. These conditions may include requiring the bank to obtain and show evidence of approval by other pertinent regulatory agencies.

(6) The Commissioner may suspend or revoke the approval granted under this Rule, if any of the following occur:

(a) The capital, assets, management, earnings, liquidity or sensitivity to market risk of a state-chartered bank becomes unsatisfactory;

(b) The Commissioner determines that the activity being conducted violates state or federal law or is unsafe or unsound;

(c) Other relevant occurrences dictate that the Commissioner suspend or revoke the state-chartered bank's approval under this Rule;

(d) The Commissioner determines that the application submitted pursuant to paragraph (1) above contained false or misleading information.

Authority: Public Chapter 168, "Acts of 1989"; Section 1; T.C.A. §§ 45-1-107; 45-2-1601 and 45-2-1602.

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