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Can you summarize TNRR 0180-19?
Financial Institutions > Rules of Procedure for Investments and Activities for State-Chartered Banksand Their Subsidiaries
Short Summary
The Rules of Procedure for Investments and Activities for State-Chartered Banks and Their Subsidiaries govern the permissible investments and activities of state-chartered banks and their subsidiaries in the state of Tennessee. The document aims to broaden the range of activities available to state-chartered banks and ensure their competitiveness with other financial entities. It emphasizes the importance of safety and soundness in these investments and activities. The document requires state-chartered banks to notify the Department when forming a subsidiary or engaging in new activities through an existing subsidiary. There are exemptions for subsidiaries formed prior to the effective date of this Chapter, but they must seek approval or give notice for new activities. The document establishes limitations on certain investments and provides a grace period of three years for banks to divest from investments that exceed these limitations. It also addresses the offering of securities services by state-chartered banks, with a focus on safety and soundness. The Commissioner has the authority to vary or waive requirements as permitted by statute. The document provides definitions for various terms used, outlines the requirements and criteria for a subsidiary to be considered a bona fide subsidiary, and specifies the responsibilities and obligations of a bank securities department. It categorizes activities into Category I, which can be engaged in directly by the bank without notice to the Department. However, if a bank intends to acquire or establish a subsidiary or begin a new activity in an existing subsidiary, written notice must be provided to the Department. The document also outlines the application procedures for state-chartered banks and their subsidiaries seeking approval for investments and activities. The Commissioner has the authority to approve or deny the application within thirty days, with a possible extension of an additional thirty days if more information or analysis is needed. The document also governs the examination and supervision of subsidiaries of Tennessee-chartered banks, the limitations on investments in real property, and the application process for minority investments in other entities. No specific exemptions or penalties are mentioned in the document.
Whom does it apply to?
State-chartered banks and their subsidiaries in the state of Tennessee
What does it govern?
Permissible investments and activities of state-chartered banks and their subsidiaries
What are exemptions?
Exemptions for subsidiaries formed prior to the effective date of this Chapter, but they must seek approval or give notice for new activities
What are the Penalties?
No specific penalties mentioned
Jurisdiction
Tennessee