Ask Reggi Your Question Now
Can you summarize TNCO 45-2-1702?
Prohibited Acts > Receiving deposit, premium payment or investment in failing financial institution.
Short Summary
This provision, found in the Tennessee Code under the section on Prohibited Acts for Banking Institutions, governs the offense of receiving or permitting the receipt of a deposit, premium payment, or investment in a financial institution that is known to be unable to make payment of the deposit on demand or is about to suspend operations or go into receivership. The offense applies to any person directing or participating in the direction of a financial institution. However, it is a defense to prosecution if the person making the deposit, premium payment, or investment was adequately informed of the financial condition of the institution. Violation of this provision is considered a Class E felony.
Whom does it apply to?
Person directing or participating in the direction of a financial institution
What does it govern?
Receiving deposit, premium payment or investment in failing financial institution
What are exemptions?
It is a defense to prosecution under this section that the person making the deposit, premium payment or investment was adequately informed of the financial condition of the institution.
What are the Penalties?
Class E felony
Jurisdiction
Tennessee