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Can you summarize TNRR 0180-22?
Financial Institutions > Rules Pertaining to Agency Relationships to Banks
Short Summary
This document, Chapter 0180-22 of the Rules and Regulations of the State of Tennessee, establishes rules pertaining to the agency relationships of state-chartered banks. The rules are applicable to state-chartered banks in Tennessee and are in accordance with the provisions of Public Chapter 85, Acts of 1989. The primary purposes of these rules are to facilitate transactions and activities described in Public Chapter 85 and to protect the safety and soundness of all Tennessee banks, their depositors, and other customers. The document provides definitions for terms such as ‘affiliated bank’, ‘agency relationship’, ‘agent’, ‘commissioner’, ’national bank’, ‘principal’, and ‘state-chartered bank’. The authority for these rules is derived from T.C.A. 45-2-614(e), 45-1-107, and Public Chapter 85, Acts of 1989. The document allows the agent bank to conduct various transactions, including those permitted to non-affiliated banks, opening deposit accounts, receiving collateral, acting as paying agent, transmitting money by electronic funds transfer, providing custodian and safe deposit facilities, and purchasing or selling short-term deposits on behalf of the principal. The document also grants the commissioner the authority to approve any other acts. The document outlines the requirements for establishing agency relationships between banks in the state of Tennessee. It states that a form of Agreement between the banks must be submitted to the commissioner for approval before the agency relationship can commence. The commissioner has the power to request amendments or reject the Agreement. The commissioner must approve or deny the Agreement within 30 days of receiving the complete Agreement, unless amendments have been requested, in which case the time period starts after the amended Agreement is submitted. The Agreement must describe the services to be provided by the agent bank(s), the physical operation of the relationship, the compliance with depository and other applicable laws, the accounting procedures between the agent bank(s) and the principal bank(s), and whether the banks are affiliated or non-affiliated. Proof of affiliation status must be provided. The document also pertains to the safety and soundness considerations in activities and transactions of particular banks. The Commissioner has the authority to rescind approval of any activities or transactions based on the safety and soundness of the activities, transactions, and/or the financial and managerial soundness of particular banks. However, the Commissioner cannot disapprove activities or transactions specifically enumerated in T.C.A. Section 45-2-614(e) unless it is based on the financial or managerial soundness of particular banks. The Commissioner has the discretion to condition approval of activities and transactions upon the establishment of appropriate safeguards, procedures, agreements, or other matters to protect the safety and soundness of particular banks. The Commissioner may also prescribe the form(s) of notice required by T.C.A. Section 45-2-614(e) and the type of information to be contained therein.
Whom does it apply to?
State-chartered banks in Tennessee
What does it govern?
Agency relationships of state-chartered banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Tennessee