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Can you summarize TNCO 45-2-1808?
Investment and Security Powers > Insured and noninsured deposits and investments Disclosures to customers.
Short Summary
This legal document governs the disclosure requirements for state banks and securities broker-dealers that offer both insured deposit accounts and noninsured investments. It applies to these entities when they advertise, provide brochures, prospectuses, or other advertising statements, as well as when opening customer accounts. The document requires disclosures to be made regarding the insured or noninsured nature of the account or investment offering. For noninsured investments, it must be indicated that the investment is not insured, while for insured deposit accounts or certificates of deposit, it must be stated that the deposit is insured. Additionally, prior to accepting a deposit or selling a certificate of deposit, the bank or securities broker-dealer must disclose the name of the insured institution where the deposit is or will be located if different from the institution accepting or selling the deposit. Compliance with the disclosure requirements of the federal deposit insurance corporation is deemed to comply with this section. However, this section does not allow any bank or securities broker-dealer to advertise as a federally insured institution in violation of applicable federal rules.
Whom does it apply to?
State banks and securities broker-dealers that offer both insured deposit accounts and noninsured investments
What does it govern?
Insured and noninsured deposits and investments Disclosures to customers
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Tennessee