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Can you summarize 45 TNCO Chapter 2, Part 8?
Banking Institutions > Deposit Insurance
Short Summary
The provided legal document content covers various aspects related to deposit insurance in Tennessee. It authorizes state banks, with the approval of the commissioner, to enter into contracts and take advantage of memberships, loans, subscriptions, contracts, grants, rights, or privileges offered by the federal deposit insurance corporation (FDIC). State banks are also permitted to subscribe for and acquire stock, debentures, or other types of insurance from the FDIC. The document governs the appointment of the FDIC as the receiver of a state bank in Tennessee when the bank is closed due to its inability to meet the demands of its depositors or as required by Tennessee law. The FDIC, as the receiver, assumes all the duties, powers, and privileges provided by the laws of Tennessee, except when they conflict with the Federal Deposit Insurance Act. The document also pertains to the subrogation rights of the FDIC when a state bank is closed and the FDIC has paid or made available for payment the insured deposit liabilities of the closed institution. The FDIC becomes subrogated to all rights against the closed bank of the owners of the deposits. The document further allows the commissioner to furnish information to the FDIC and governs the borrowing, pledging, and selling of assets by closed banks. It states that the commissioner and/or the receiver or liquidator of a closed bank may borrow from the FDIC, pledge or mortgage assets as security for a loan, and sell assets to the FDIC, subject to court approval. Lastly, the document exempts banks receiving insured deposits from the requirement of furnishing security for the deposits to the extent that the deposits are insured under the Banking Act of 1933. No specific exemptions or penalties are mentioned in these documents.
Whom does it apply to?
State banks in Tennessee, the commissioner, the federal deposit insurance corporation (FDIC), depositors and other creditors of closed banks
What does it govern?
Membership and participation in the federal deposit insurance corporation (FDIC), appointment of the FDIC as the receiver of a state bank, subrogation rights of the FDIC, provision of information to the FDIC, borrowing, pledging, and selling of assets by closed banks, security requirements for public funds deposits
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Tennessee