Ask Reggi Your Question Now
Can you summarize TNRR 0180-16?
Financial Institutions > Rules Pertaining to Insurance
Short Summary
These rules, part of the Rules and Regulations of the State of Tennessee under the Tennessee Department of Financial Institutions, pertain to insurance requirements for state-chartered banks. The rules allow banks to establish a special reserve fund in lieu of providing a fidelity bond for active officers and employees. The establishment of the special reserve fund is subject to the bank’s adjusted total capital to adjusted total assets ratio meeting or exceeding its peer group average. The amount of the special reserve should meet or exceed the suggested range of amounts for banks’ blanket bond coverage as scheduled by the American Bankers Association. The special reserve fund can consist of cash or investment-quality securities, and it should be held by a federally-insured trustee institution. The rules also require reporting on the status of the special reserve fund and an annual review by the bank’s board of directors. The special reserve is not considered regulatory capital.
Whom does it apply to?
State-chartered banks in Tennessee
What does it govern?
Rules Pertaining to Insurance
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Tennessee