Rules & Regulations of the State of Tennessee
Title 0780 - Commerce and Insurance
Subtitle 0780-01 - Insurance Division
Chapter 0780-01-27 - Operation of State Chartered Building and Loan Associations
Section 0780-01-27-.13 - CERTIFICATES OF DEPOSIT

1. The total investment in certificates of deposit of the association in any one bank does not exceed 10% of the total capital of the bank (capital stock, surplus, undivided profits and capital notes) or $100,000, whichever is greater.

2. No association may give or receive consideration of any kind to or from a third party in connection with investment in a certificate of deposit. No association may encumber any such certificate as collateral or otherwise with the issuing bank or any other corporation or person, except to secure a loan to the association itself. The association shall retain in its portfolio, with respect to each investment in a certificate of deposit, evidence that the certificate is registered. If there is an encumbrance thereon permitted, the portfolio shall disclose all relevant facts with respect thereto.