reglab/statecodes huggingface dataset:
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 14 - BANK HOLDING COMPANIES-BANK STRUCTURE ACT OF 1974 (§§ 45-2-1401 — 45-2-1412) › Section 45-2-1403 - Prohibition against acquiring shares of bank in operation less than three (3)

(a)
Except as otherwise provided in subsection (b):
(1)
No bank holding company acting directly or indirectly shall acquire control of, merge, or consolidate with a Tennessee bank that has not been in operation for at least three (3) years; and
(2)
No out-of-state bank acting directly or indirectly shall acquire control of, merge, or consolidate with a Tennessee bank that has not been in operation for at least three (3) years.
(b)
Subsection (a) shall not prohibit the following transactions:
(1)
An interim bank merger for the purpose of acquiring control of a Tennessee bank that has been in operation for at least three (3) years, but the requirement of that period of operation shall not apply if the bank holding company owned more than fifty percent (50%) of the shares of the bank prior to the time of merger by reason of the purchase of the shares in a de novo acquisition;
(2)
Acquisition of control, merger or consolidation of any Tennessee bank in financial difficulty, as determined by the appropriate regulatory officials; provided, that the officials determine that the acquisition will protect the stockholders and depositors by maintaining financial soundness;
(3)
Acquisition of shares of stock given as collateral security upon a debt contracted in good faith; provided, that:
(A)
The acquisition is necessary to prevent loss upon the debt;
(B)
The making of the loan and the acquisition of the shares are in the ordinary course of business and not as a means of circumventing this part; and
(C)
The shares so acquired shall be sold or disposed of at public or private sale within a period of one (1) year from the acquisition of the shares or by a later time that the appropriate regulatory officials deem required to permit the disposition of the shares without undue risk or loss;
(4)
Acquisition of shares of stock by a bank acting solely in a fiduciary capacity in the ordinary course of its trust business and not for the purpose of circumventing this part;
(5)
Acquisition of control of a bank by a company that will become a Tennessee bank holding company solely by reason of the acquisition; and
(6)
The acquisition of shares of a bank holding company by another bank holding company where more than fifty percent (50%) of the total consolidated assets of the holding company being acquired are held by banks in operation for more than three (3) years.
Acts 1974, ch. 469, § 3; 1979, ch. 76, § 1; T.C.A., § 45-621; Acts 1980, ch. 616, § 1; 1981, ch. 228, § 1; 1983, ch. 74, § 3; 1987, ch. 45, § 1; 1995, ch. 165, § 2; 1996, ch. 768, § 24; 2003, ch. 32, § 4.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 14 - BANK HOLDING COMPANIES-BANK STRUCTURE ACT OF 1974 (§§ 45-2-1401 — 45-2-1412) › Section 45-2-1404 - Acquisition by holding company prohibited

A bank or bank holding company shall be prohibited from acquiring any bank in Tennessee if the bank or bank holding company, including all insured depository institutions that are affiliates of the bank or bank holding company, upon consummation of the acquisition, would control thirty percent (30%) or more of the total amount of the deposits of the insured depository institutions in Tennessee. For purposes of this part, "deposit" has the meaning set forth in § 3(
l
) of the Federal Deposit Insurance Act (
12 U.S.C. § 1813
(
l
)).
Acts 1974, ch. 469, § 4; T.C.A., § 45-622; Acts 1995, ch. 165, § 2.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 14 - BANK HOLDING COMPANIES-BANK STRUCTURE ACT OF 1974 (§§ 45-2-1401 — 45-2-1412) › Section 45-2-1405 - Power of commissioner

The commissioner has the power to establish rules and regulations to carry out the legislative purposes of this part.
Acts 1974, ch. 469, § 5; T.C.A., § 45-623; Acts 1981, ch. 386, § 1; 1995, ch. 165, § 2.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 14 - BANK HOLDING COMPANIES-BANK STRUCTURE ACT OF 1974 (§§ 45-2-1401 — 45-2-1412) › Section 45-2-1407 - Powers

(a)
An out-of-state state bank that establishes and maintains one (1) or more branches in Tennessee under this part may conduct any activities at the branch or branches that are authorized under the laws of this state for Tennessee state banks.
(b)
Notwithstanding any other state law to the contrary and in addition to any other activities a state bank may conduct, a Tennessee state bank may conduct any activities at any branch outside Tennessee that are permissible for a bank chartered by the host state where the branch is located, subject to regulation by the commissioner for the purpose of maintaining the state bank's safety and soundness.
Acts 1996, ch. 562, § 1.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 14 - BANK HOLDING COMPANIES-BANK STRUCTURE ACT OF 1974 (§§ 45-2-1401 — 45-2-1412) › Section 45-2-1409 - Notice and filing requirements

Any out-of-state bank that will be the resulting bank pursuant to an interstate merger transaction involving a Tennessee state bank shall notify the commissioner of the proposed merger not later than the date on which it files an application for an interstate merger transaction with the responsible federal bank supervisory agency, and shall submit a copy of that application to the commissioner and pay the filing fee, if any, required by the commissioner. Any Tennessee state bank that is a party to the interstate merger transaction shall comply with all applicable state and federal laws. Any out-of-state bank that is the resulting bank in the interstate merger transaction shall provide satisfactory evidence to the commissioner of compliance with applicable requirements of Tennessee law.
Acts 1996, ch. 562, § 1.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 14 - BANK HOLDING COMPANIES-BANK STRUCTURE ACT OF 1974 (§§ 45-2-1401 — 45-2-1412) › Section 45-2-1410 - Notice of subsequent merger

(a)
Each out-of-state state bank that has established and maintains a branch in this state pursuant to this part shall give at least thirty (30) days' prior written notice to the commissioner of any merger, consolidation, or other transaction that would cause a change of control with respect to the bank or any bank holding company that controls the bank, with the result that an application would be required to be filed pursuant to the federal Change In Bank Control Act of 1978 (
12 U.S.C. § 1817(j)
), or the federal Bank Holding Company Act of 1956 (
12 U.S.C. § 1841
et seq.), or any successor statutes. In the case of an emergency transaction, the out-of-state state bank shall provide a shorter notice that is consistent with applicable state or federal law. The home state supervisory agency of the bank may provide the prior written notice required.
(b)
The notice requirement of subsection (a) shall apply to out-of-state trust institutions that maintain an office in this state pursuant to this chapter. The notice shall also be required of:
(1)
Any transfer of all or substantially all of the trust accounts or trust assets of the out-of-state trust institution to another person; or
(2)
The closing or disposition of any office in this state.
Acts 1996, ch. 562, § 1; 1999, ch. 112, § 12.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 14 - BANK HOLDING COMPANIES-BANK STRUCTURE ACT OF 1974 (§§ 45-2-1401 — 45-2-1412) › Section 45-2-1411 - Enforcement

If the commissioner determines that a branch maintained by an out-of-state state bank or a trust office maintained by an out-of-state trust institution in this state is being operated in violation of any provision of the laws of this state, or is being operated in an unsafe and unsound manner, the commissioner shall have the authority to take all enforcement actions that the commissioner would be empowered to take if the branch or office were a Tennessee state bank; provided, that the commissioner shall promptly give notice to the home state supervisory agency of each enforcement action taken against an out-of-state state bank or out-of-state trust institution. To the extent practicable, the commissioner shall consult and cooperate with the home state supervisory agency in pursuing and resolving the enforcement action. The commissioner may issue an order temporarily or permanently prohibiting a trust institution from acting as a fiduciary in this state.
Acts 1996, ch. 562, § 1; 1999, ch. 112, § 13.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 14 - BANK HOLDING COMPANIES-BANK STRUCTURE ACT OF 1974 (§§ 45-2-1401 — 45-2-1412) › Section 45-2-1412 - Acquisition of branch by out-of-state bank

(a)
An out-of-state bank that does not already maintain a branch in Tennessee and that meets the requirements of this title may establish and maintain a branch in Tennessee through the acquisition of a branch or establishment of a de novo branch.
(b)
[Deleted by 2020 amendment.]
(c)
No bank or out-of-state bank may establish or maintain a branch in this state on the premises or property of an affiliate if the affiliate engages in commercial activities.
Amended by 2020 Tenn. Acts, ch. 605, s 2, eff. 3/20/2020.
Acts 1998, ch. 742, § 2; 2001, ch. 140, § 2; 2007 , ch. 5, § 3.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 15 - LIQUIDATION, DISSOLUTION, AND REORGANIZATION (§§ 45-2-1501 — 45-2-1505) › Section 45-2-1503 - Requirements of reorganization plan

(a)
A plan of reorganization shall not be prescribed under this chapter unless:
(1)
The plan is feasible and fair to all classes of depositors, creditors and stockholders;
(2)
The face amount of the interest accorded to any class of depositors, creditors or stockholders under the plan does not exceed the value of the assets upon liquidation, less the full amount of the claims of all prior classes, subject, however, to any fair adjustment for new capital that any class will pay in under the plan;
(3)
The plan provides for the issuance of common stock in an amount that will provide an adequate ratio to deposits;
(4)
Any exchange of new common stock for obligations or stock of the bank will be effected in inverse order to the priorities in liquidation of the classes that will retain an interest in the bank and upon terms that fairly adjust any change in the relative interest of the respective classes that will be produced by the exchange;
(5)
The plan assures the removal of any director, officer or employee responsible for any unsound or unlawful action or the existence of an unsound condition; and
(6)
Any merger or consolidation provided by the plan conforms to the requirements this chapter and chapter 1 of this title.
(b)
Whenever, in the course of reorganization, supervening conditions render the plan unfair or its execution impractical, the commissioner may modify the plan or liquidate the institution. The action shall be taken by order upon appropriate notice.
Acts 1969, ch. 36, § 1 (3.503); 1973, ch. 294, § 6; T.C.A., § 45-903.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 15 - LIQUIDATION, DISSOLUTION, AND REORGANIZATION (§§ 45-2-1501 — 45-2-1505) › Section 45-2-1505 - Formation of new bank

(a)
Upon application of either five (5) individual incorporators or a bank holding company domiciled in this state, the commissioner may grant a charter and may issue a certificate of authority to the incorporators if the commissioner finds that the immediate formation of a new state bank will protect the depositors of a state bank closed in accordance with §
45-2-1502
.
(b)
The requirements contained in this chapter pertaining to the formation and operation of a state bank shall not be applicable for a period of one (1) year after formation of a new state bank hereunder, unless the commissioner determines that the requirements are necessary to the operation of the new state bank.
(c)
None of the restrictions contained in the Bank Structure Act of 1974, compiled in part 14 of this chapter, or as the same may be hereafter amended, shall apply to the formation of the new state bank.
(d)
The new state bank may acquire all or any part of the assets or deposits of a closed bank in accordance with this chapter.
Acts 1980, ch. 510, § 5.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 16 - EXAMINATION AND REPORTS (§§ 45-2-1601 — 45-2-1604) › Section 45-2-1601 - Supervision of banks

(a)
Every person doing a banking business under the laws of this state shall be subject to supervision and regulation by the commissioner.
(b)
In addition to other powers conferred by chapters 1-9 of this title, the commissioner has the power to require banks subject to the commissioner's supervision to:
(1)
Maintain their accounts and to value their assets in accordance with generally accepted principles of accounting;
(2)
Charge off the whole or part of an asset that at the time of its acquisition could not lawfully have been acquired and that could not lawfully be retained at the time of the commissioner's action; provided, that the commissioner's action is within two (2) years of the aforementioned acquisition;
(3)
Record liens and security in property or, at the option of the bank, insure against losses from not recording;
(4)
Obtain a financial statement from a borrower to the extent that the bank can do so;
(5)
Search, or obtain insurance of, the title to real estate taken as security; and
(6)
Maintain adequate insurance against the risks that the commissioner determines are necessary and appropriate for the protection of depositors.
(c)
No person shall be subjected to any civil or criminal liability for any act or omission to act in good faith in reliance upon a subsisting order, regulation or interpretation of the commissioner, notwithstanding a subsequent decision by a court invalidating the order, regulation or interpretation.
Acts 1969, ch. 36, § 1 (2.201); 1973, ch. 294, § 6; T.C.A., § 45-701.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 16 - EXAMINATION AND REPORTS (§§ 45-2-1601 — 45-2-1604) › Section 45-2-1604 - Reports by banks

(a)
All banks shall make to the commissioner, on the call of the commissioner for the reports, at least two (2) reports during each year according to the form, including electronic transmission, that may be prescribed by the commissioner. The report must be verified by the oath or affirmation of the executive officers or agents thereof, and in the case of a corporation, by the president or cashier or secretary, and must be attested by the signature of at least three (3) directors of the corporation. The commissioner shall make one (1) of the calls in the first one-half (1/2) of the year and another in the latter one-half (1/2) of the year.
(b)
Each report shall exhibit in detail and under appropriate heads the resources and liabilities of each bank at the close of business on any past day specified by the commissioner. The day for reports shall be uniform throughout the state, and shall be transmitted by the bank to the commissioner within the period the commissioner prescribes, but in no instance less than five (5) days after receipt of a request or requisition thereof from the commissioner. Instead of the report required under this subsection (b), the commissioner may accept a copy of a call report required by federal regulatory agencies or deems the filing of the report, electronic or otherwise, as required by federal regulatory agencies to constitute compliance with this section.
(c)
The commissioner may call for a special report from any particular bank whenever, in the commissioner's judgment, the same is necessary or deemed necessary for the protection of the public or for a full and complete knowledge of the condition of the bank by the commissioner. Special reports called for shall be made in all particulars as required in subsections (a) and (b); provided, that a bank is not required to publish a copy of a special report in a newspaper.
Acts 1969, ch. 36, § 1 (2.204); 1973, ch. 294, § 6; 1977, ch. 56, § 1; T.C.A., § 45-704; Acts 1996, ch. 768, § 26; 2001, ch. 54, § 30; 2004, ch. 455, § 1.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 17 - PROHIBITED ACTS (§§ 45-2-1701 — 45-2-1720) › Section 45-2-1701 - Unauthorized conduct of banking or fiduciary activity - Violation a criminal offense

(a)
It is unlawful for any person not so authorized to carry on a banking business under this chapter and chapter 1 of this title, falsely and with intent to defraud, to act as a bank, or to represent that the person is or is acting for a bank, or to use an artificial or corporate name that is the name of a bank. The right to receive money on deposit and the right to pay out money on checks are declared to be the exclusive privileges of the banking business.
(b)
No trust company hereafter may be incorporated or be qualified to act as a fiduciary unless it is incorporated under this chapter and chapter 1 of this title, or the laws governing national banking associations. The foregoing, however, shall not be deemed to restrict the activity of a foreign bank or trust company acting as a trustee under §
35-50-107
; nor shall it be deemed to restrict the fiduciary activity of any other class of regulated financial institutions that may now have, or hereafter acquire, fiduciary powers; provided, that nothing herein shall be construed to increase the powers of other classes of regulated financial institutions.
(c)
A violation of this section is a Class C misdemeanor.
Acts 1969, ch. 36, § 1 (3.601); T.C.A., § 45-1101; Acts 1980, ch. 620, § 4; 1989, ch. 591, § 113.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 17 - PROHIBITED ACTS (§§ 45-2-1701 — 45-2-1720) › Section 45-2-1702 - Receiving deposit, premium payment or investment in failing financial institution

(a)
A person directing or participating in the direction of a financial institution commits an offense who receives or permits the receipt of a deposit, premium payment or investment in the institution knowing that, due to the financial condition of the institution:
(1)
It is or will be unable to make payment of the deposit on demand, if it is a deposit ordinarily payable on demand; or
(2)
It is about to suspend operations or go into receivership.
(b)
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.
(c)
An offense under this section is a Class E felony.
Acts 1969, ch. 36, § 1 (3.602); T.C.A., § 45-1102; Acts 1989, ch. 591, §§ 111, 118.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 17 - PROHIBITED ACTS (§§ 45-2-1701 — 45-2-1720) › Section 45-2-1703 - Unlawful service as officer or director - Exceptions at commissioner's discretion

(a)
It is unlawful for any person to serve as an officer or director of a bank who:
(1)
Has been convicted of an offense constituting, in the jurisdiction in which the judgment was rendered, a felony involving a violation of banking laws, fraud, embezzlement, or breach of trust;
(2)
Would be disqualified by federal law from serving as a director or officer of a federally chartered bank; or
(3)
Is indebted to the bank for more than thirty (30) days upon judgment that has become final.
(b)
Notwithstanding subsection (a), the commissioner shall have the discretion to approve the application of any person to become a director or officer of a bank chartered under Tennessee law, if the commissioner finds the person has demonstrated fitness to participate in the conduct of the affairs of the bank through evidence of the person's rehabilitation, including, but not limited to, the person's reputation since the person's conviction, the person's age at the time of conviction, and the time that has elapsed since the conviction and other factors as the commissioner determines.
Acts 1969, ch. 36, § 1 (3.603); T.C.A., § 45-1103; Acts 2006, ch. 660, § 5.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 17 - PROHIBITED ACTS (§§ 45-2-1701 — 45-2-1720) › Section 45-2-1704 - Unlawful gratuity or compensation

(a)
It is unlawful for an affiliate of a bank or for an officer, director or employee of a bank or affiliate of a bank to willfully and knowingly and without authority from the board of directors or governing body of the bank or two (2) or more of the active managing officers of the bank to receive, consent to receive, or agree to receive, any commission, emolument, gratuity or reward, or any promise of any commission, emolument, reward, property or thing of value or of personal advantage for procuring, or endeavoring to procure, for any person any loan from, or the purchase or discount of, any paper, note, draft, check or bill of exchange by the bank.
(b)
As used in this section, "affiliate" includes:
(1)
Any person who holds a majority of the stock of a bank, any other corporation in which the person owns a majority of the stock and any partnership in which the person has an interest;
(2)
Any corporation in which the bank or an officer, director, or employee thereof holds a majority of the stock and any partnership in which the person has an interest; and
(3)
Any corporation of which a majority of the directors are officers, directors, or employees of the bank or of which officers, directors, trustees or employees constitute a majority of the directors of the bank.
(c)
A violation of this section is a Class C misdemeanor.
Acts 1969, ch. 36, § 1 (3.604); T.C.A., § 45-1104; Acts 1989, ch. 591, § 113.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 17 - PROHIBITED ACTS (§§ 45-2-1701 — 45-2-1720) › Section 45-2-1705 - Unlawful concealment of transactions

(a)
It is unlawful for an officer, director, or employee of a bank to conceal or endeavor to conceal any transaction of the bank from any officer, director or employee of the bank or any official or employee of the department to whom it should properly be disclosed.
(b)
A violation of this section is a Class C misdemeanor.
Acts 1969, ch. 36, § 1 (3.605); T.C.A., § 45-1105; Acts 1989, ch. 591, § 113.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 17 - PROHIBITED ACTS (§§ 45-2-1701 — 45-2-1720) › Section 45-2-1706 - Improper maintenance of accounts - False or deceptive entries and statements

(a)
It is unlawful for an officer, director, employee or agent of a bank to:
(1)
Maintain or authorize the maintenance of any account of the bank in a manner that, to the person's knowledge, does not conform to the requirements prescribed by this chapter and chapter 1 of this title or by the commissioner;
(2)
Make any false or misleading statement or entry or omit any statement or entry that should be made in any book, account, report or statement of the institution, with intent to deceive; or
(3)
Obstruct or endeavor to obstruct a lawful examination of the institution by an officer or employee of the department.
(b)
A violation of this section is a Class B misdemeanor.
Acts 1969, ch. 36, § 1 (3.606); 1973, ch. 294, § 6; T.C.A., § 45-1106; Acts 1989, ch. 591, § 112.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 17 - PROHIBITED ACTS (§§ 45-2-1701 — 45-2-1720) › Section 45-2-1707 - Payment of penalties and judgments against others

(a)
It is unlawful for a state bank to pay a fine or penalty imposed by law upon any other person or any judgment against the person or to reimburse directly, or indirectly, any person by whom the fine, penalty or judgment has been paid, except in settlement of its own liability or in connection with the acquisition of property against which the judgment is a lien, or as provided in §
45-2-211
.
(b)
A violation of this section is a Class C misdemeanor.
Acts 1969, ch. 36, § 1 (3.607); T.C.A., § 45-1107; Acts 1989, ch. 591, § 113.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 17 - PROHIBITED ACTS (§§ 45-2-1701 — 45-2-1720) › Section 45-2-1708 - Unlawful use of term "safe deposit."

(a)
It is unlawful for any person to use the terms "safe deposit," "safety deposit," or other words deceptively similar, in connection with the rental of storage space, or in the title or name under that business is done, except:
(1)
A person subject to the jurisdiction of the department;
(2)
A manufacturer or dealer in safe deposit facilities or equipment; or
(3)
An association, the membership of which is composed of officers or institutions subject to regulation under this chapter and chapter 1 of this title, or the laws of the United States or any state.
(b)
A violation of this section is a Class C misdemeanor.
Acts 1969, ch. 36, § 1 (3.608); T.C.A., § 45-1108; Acts 1989, ch. 591, § 113.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 17 - PROHIBITED ACTS (§§ 45-2-1701 — 45-2-1720) › Section 45-2-1710 - Advance notice of bank examination

(a)
If the department notifies a bank of an examination, a department employee who, before the notification of the visitation, gives notice or information to any officer or agent or employee of a bank as to when a bank will be visited for examination commits a criminal offense.
(b)
If the department does not notify a bank of an examination, a department employee who, before a visitation, gives notice or information to any officer or agent or employee of a bank as to when a bank will be visited for examination commits a criminal offense.
(c)
A violation of this section is a Class C misdemeanor.
Acts 1969, ch. 36, § 1 (3.610); T.C.A., § 45-1110; Acts 1989, ch. 591, § 113; 1993, ch. 31, § 2.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 17 - PROHIBITED ACTS (§§ 45-2-1701 — 45-2-1720) › Section 45-2-1711 - False reports

Any employee of the department who makes a report on oath, as to the result of any examination made by the employee, that is knowingly and willfully false, commits a Class C misdemeanor.
Acts 1969, ch. 36, § 1 (3.611); T.C.A., § 45-1111; Acts 1989, ch. 591, § 113.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 17 - PROHIBITED ACTS (§§ 45-2-1701 — 45-2-1720) › Section 45-2-1712 - False swearing on examination by commissioner or bank examiner

Any person who willfully and corruptly swears or affirms falsely when being examined under oath by any bank examiner or the commissioner in regard to any material matter or thing commits a Class C misdemeanor.
Acts 1969, ch. 36, § 1 (3.612); 1973, ch. 294, § 6; T.C.A., § 45-1112; Acts 1989, ch. 591, § 113.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 17 - PROHIBITED ACTS (§§ 45-2-1701 — 45-2-1720) › Section 45-2-1713 - Disclosing condition of bank, its depositors or debtors

Any bank examiner or commissioner who knowingly and willfully discloses the condition and affairs of any bank ascertained by an examination as examiner of the bank, or who knowingly and willfully, except to the extent as authorized by this chapter and chapter 1 of this title, reports or gives information as to who are depositors or debtors of a bank where the information is obtained as examiner of the bank, commits a Class C misdemeanor and shall be removed from office; and the fact of the disclosure shall be prima facie evidence that the information was obtained by virtue of the person's office.
Acts 1969, ch. 36, § 1 (3.616); 1973, ch. 294, § 6; T.C.A., § 45-1113; Acts 1989, ch. 591, § 113.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 17 - PROHIBITED ACTS (§§ 45-2-1701 — 45-2-1720) › Section 45-2-1714 - Director voting to impair capital or other acts detrimental to bank

Any director of a bank commits a Class B misdemeanor who concurs in any vote or act of the directors of the bank by which it is intended to:
(1)
Make a dividend except from the surplus profits arising from the business of the bank;
(2)
Divide, withdraw or in any manner pay to the stockholders or any of them any part of the capital stock of the bank, or to reduce the capital stock, except in pursuance of law;
(3)
Discount or receive any note, or other evidence of debt in payment of capital stock required to be paid or with intention to provide the means of making the payment;
(4)
Receive or discount any note or other evidence of debt with the intent to enable any stockholder to withdraw any part of the money paid in by the stockholder or the stockholder's stock; or
(5)
Apply any portion of the funds of the bank except as allowed by law, directly or indirectly, to the purchase of shares of its own stock.
Acts 1969, ch. 36, § 1 (3.613); T.C.A., § 45-1114; Acts 1989, ch. 591, § 112.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 17 - PROHIBITED ACTS (§§ 45-2-1701 — 45-2-1720) › Section 45-2-1715 - Unlawful increase of capital stock

Any officer or director of a bank who knowingly and willfully issues, participates in issuing, or concurs in a vote to issue, any increase of its capital stock beyond the amount of the capital stock thereof duly authorized by or in pursuance of law, or who knowingly and willfully sells or agrees to sell, or is interested directly or indirectly in the sale of the shares of stock of the bank, or in any agreement to sell the same, commits a Class C misdemeanor.
Acts 1969, ch. 36, § 1 (3.614); T.C.A., § 45-1115; Acts 1989, ch. 591, § 113.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 17 - PROHIBITED ACTS (§§ 45-2-1701 — 45-2-1720) › Section 45-2-1716 - Appropriation of property, false entries, or refusal to make reports

(a)
Any director, officer, or employee of any bank commits a Class C misdemeanor who:
(1)
Knowingly receives or possesses any of the bank's property, otherwise than in payment for a just demand, or with intent to defraud, and omits to make, or causes the omission of, a full and true entry thereof in its books and accounts;
(2)
Concurs in omitting to make any material entry in its books or accounts; or
(3)
Knowingly by letterhead, newspaper advertisement, or otherwise represents its capital stock to be in excess of the actual capital paid in, or knowingly concurs in making or publishing any written report, exhibit, or statement of its affairs or pecuniary conditions, making any material statement that is false and by which the bank is made to appear in better condition than it really is, or knowingly omits or concurs in omitting any statement required by law.
(b)
This section shall not be construed to conflict with §
39-14-103
.
Acts 1969, ch. 36, § 1 (3.615); T.C.A., § 45-1116; Acts 1989, ch. 591, § 113; 1996, ch. 675, § 46.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 17 - PROHIBITED ACTS (§§ 45-2-1701 — 45-2-1720) › Section 45-2-1717 - Criminal sanctions for violations - Reports - Confidential information

(a)
It is the duty of the commissioner to submit to the district attorneys general for the respective counties of the state any criminal violation of the banking laws known by the commissioner to have occurred in the county. The commissioner shall also report the violation to the appropriate division of the Tennessee bureau of investigation.
(b)
The commissioner may submit to the district attorneys general, to the attorney general and reporter, and to the appropriate division of the Tennessee bureau of investigation any criminal violation of the securities laws known by the commissioner to have occurred.
(c)
Confidential information that is communicated by the commissioner pursuant to this section, whether the reporting is required or authorized by law, remains confidential in the hands of the agency to which the information is reported, and does not become a matter of public record by virtue of this communication.
Acts 1969, ch. 36, § 1 (3.617); 1973, ch. 294, § 6; modified; T.C.A., § 45-1117; Acts 1984, ch. 632, § 1; 1991, ch. 235, § 4.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 17 - PROHIBITED ACTS (§§ 45-2-1701 — 45-2-1720) › Section 45-2-1718 - Criminal sanctions for violations

(a)
Except as otherwise specifically provided in this chapter and chapter 1, any person responsible for an act or omission expressly declared to be a criminal offense by this chapter and chapter 1 of this title commits:
(1)
A Class C misdemeanor; or
(2)
If the act or omission was intended to defraud, a Class E felony.
(b)
An officer, director, or employee of a bank is responsible for an act or omission of the institution declared to be a criminal offense against this chapter and chapter 1 of this title whenever, knowing that the act or omission is unlawful, the person participates in authorizing, executing, ratifying or concealing the act, or in authorizing or ratifying the omission or, having a duty to take the required action, omits to do so.
(c)
Unless otherwise provided in this chapter and chapter 1 of this title, it is no defense to a criminal prosecution hereunder that the defendant did not know the facts establishing the criminal character of the act or omission charged, if the defendant could and should have known the facts in the proper performance of the defendant's duty.
Acts 1969, ch. 36, § 1 (3.618); T.C.A., § 45-1118; Acts 1989, ch. 591, §§ 38, 113.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 17 - PROHIBITED ACTS (§§ 45-2-1701 — 45-2-1720) › Section 45-2-1719 - Injunction

Whenever a violation of this chapter and chapter 1 of this title by a bank or an officer, director or employee thereof is threatened or impending and will cause substantial injury to the institution or to the depositors, or stockholders thereof, a court of competent jurisdiction shall, upon the suit of the commissioner, issue an injunction restraining the violation.
Acts 1969, ch. 36, § 1 (3.619); T.C.A., § 45-1119.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 17 - PROHIBITED ACTS (§§ 45-2-1701 — 45-2-1720) › Section 45-2-1720 - False advertising

(a)
It is unlawful for any entity to make, publish, disseminate, circulate, or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated or placed before the public, in a newspaper, magazine or other publication, or in the form of a notice, circular, pamphlet, letter or poster or over the internet or any radio or television, or in any other way, an advertisement, announcement or statement containing any assertion, representation, or statement with respect to the sale, distribution, offering for sale or advertising of any loan, refinance, insurance or any other product or service that is untrue, deceptive, misleading, or that uses the name or logo of any other lender without the express written consent of the lender whose name is used. For purposes of this section, "lender" means any bank, savings and loan association, savings bank, trust company, credit union, industrial loan and thrift company, mortgage company, mortgage broker, or any subsidiary or affiliate thereof.
(b)
Each solicitation to an individual in violation of this section shall be considered a separate act. The commissioner of financial institutions, the commissioner of commerce and insurance, and the attorney general and reporter are entitled to enforce this section against any regulated entity within their jurisdiction or against any other person. The commissioners shall have authority to issue a cease and desist order and to impose a civil penalty of up to one thousand dollars ($1,000) per violation.
(c)
Any lender whose name or logo is used in violation of this section is entitled to sue for damages, which shall include any actual damages, statutory penalties of one thousand dollars ($1,000) per violation, and court costs and attorney's fees.
Acts 2006, ch. 801, § 11.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 18 - INVESTMENT AND SECURITY POWERS (§§ 45-2-1801 — 45-2-1808) › Section 45-2-1801 - Legislative intent

(a)
It is the intention of the general assembly both to broaden the permissible activities available to state chartered banks and to ensure the soundness of the state's banking system by protecting depositors.
(b)
It is further the intention of the general assembly to provide for the sound conduct of the business of banks while authorizing the availability of expanded services under the authority of the appropriate state regulatory entities.
Acts 1989, ch. 168, § 1.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 18 - INVESTMENT AND SECURITY POWERS (§§ 45-2-1801 — 45-2-1808) › Section 45-2-1802 - Powers generally

An authorized state bank, directly or indirectly through a subsidiary, may:
(1)
Provide portfolio investment advice to customers;
(2)
Serve as investment advisor to investment companies, including, but not limited to, open-end and closed-end mutual funds, private investment companies and investment companies registered under the Investment Companies Act of 1940;
(3)
Serve as investment or financial advisor to states, counties and municipalities or subdivisions or instrumentalities thereof;
(4)
Act as general partner to investment partnerships;
(5)
Act as dealer-manager or financial advisor to corporations or partnerships, including, but not limited to, providing valuation advice, opinions with respect to sales or purchases or assets, corporate restructuring, issuances of securities, mergers and other acquisitions;
(6)
Engage in the sale, distribution, and underwriting of, and deal in, commercial paper issued by any entity;
(7)
Engage in the sale, distribution, and underwriting of, and deal in, promissory notes secured by real estate mortgages, credit obligations secured by real or personal property or manufactured housing, participation interests in promissory notes and credit obligations, and mortgage related payment bonds secured by promissory notes; and
(8)
Engage in the sale, distribution and underwriting of, and deal in, stocks, bonds, debentures, notes, mutual fund shares or unit investment trust interest, and other securities which may be sold by a broker-dealer, financial institution or investment company under Tennessee law.
Acts 1989, ch. 168, § 1.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 18 - INVESTMENT AND SECURITY POWERS (§§ 45-2-1801 — 45-2-1808) › Section 45-2-1803 - Regulations - Adoption - Office of subsidiaries

(a)
The commissioner of financial institutions shall adopt regulations, for the protection of depositors, that state banks, or any class of state banks determined by the commissioner to be appropriate, are required to apply to and receive approval of the commissioner before engaging in one (1) or more of the activities permitted in §
45-2-1802
, and may be required to conduct certain of the activities, other than those activities that may be conducted directly by a national bank, only through a subsidiary.
(b)
Any offices of the subsidiary shall not be considered branches of the bank for purposes of §
45-2-614
.
(c)
In addition, the commissioner of commerce and insurance may adopt regulations, if the commissioner determines that the action is necessary for the protection of investors and in the public interest, to require the underwriting, market making or dealing in securities (other than securities which may be underwritten or dealt in by national banks or in which national banks may make a market) activities of state banks be conducted through a subsidiary.
Acts 1989, ch. 168, § 1.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 18 - INVESTMENT AND SECURITY POWERS (§§ 45-2-1801 — 45-2-1808) › Section 45-2-1804 - Duties of commissioner

The commissioner of financial institutions, in adopting regulations pursuant to §
45-2-1803
, shall:
(1)
Determine the appropriate level of capital or assets required for a bank to engage directly in an activity permitted in §
45-2-1802
;
(2)
Determine whether the risk to depositors is sufficiently significant as to require that the activity permitted in §
45-2-1802
must be conducted in a separately capitalized subsidiary;
(3)
Determine the appropriate minimum level of capital required for the subsidiary;
(4)
Condition the bank's or subsidiary's engaging in an activity permitted in §
45-2-1802
, upon a specified level of demonstrated expertise or training;
(5)
In connection with subsidiaries engaged in the activities specified in §
45-2-1802(6)-(8)
, adopt regulations restricting transactions between the subsidiary and a state bank parent or affiliate of the subsidiary to those transactions which are permissible under and consistent with the federal deposit insurance corporation regulations; the regulations may be adopted by reference; and
(6)
Adopt other regulations that are necessary to provide adequate protection for depositors of the state bank, giving due consideration to the limitations, or lack of limitations, on the same or similar activities conducted by other financial institutions.
Acts 1989, ch. 168, § 1.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 18 - INVESTMENT AND SECURITY POWERS (§§ 45-2-1801 — 45-2-1808) › Section 45-2-1805 - Lending limits

(a)
The lending limit provisions of §
45-2-1102
shall apply to extensions of credit by a state bank to any subsidiary engaging in one (1) or more of the activities permitted in §
45-2-1802
, and the sale and purchase of classified loans or loan participations restrictions of §
45-2-1102
shall apply to sales or purchases of classified loans from a state bank to any subsidiary engaged in one (1) or more of the activities permitted in §
45-2-1802
.
(b)
The amount of any outstanding underwriting commitment or obligation of a state bank or its subsidiary with respect to any single issuer shall not exceed:
(1)
The total of the combined lending limits, state and federal, of the state bank and all other banks that are controlled by the same holding company as the state bank; less
(2)
The total of all outstanding extensions of credit to the issuer from the state bank and from all other banks that are controlled by the same bank holding company as the state bank; provided, that:
(A)
The distribution of open-end mutual funds shall not be considered underwriting; and
(B)
An obligation authorized by §
45-2-607
that is held as an investment by a state bank shall not be considered an extension of credit by the bank.
Acts 1989, ch. 168, § 1.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 18 - INVESTMENT AND SECURITY POWERS (§§ 45-2-1801 — 45-2-1808) › Section 45-2-1806 - Investment advisors - Registration

Any state bank or state bank subsidiary that acts as an investment advisor to any mutual fund shall register as an investment advisor with the United States securities and exchange commission and with the department of commerce and insurance. For purposes of this section, a bank common trust fund, investment in which is limited to accounts in which the bank acts as fiduciary or co-fiduciary, shall not be considered a mutual fund.
Acts 1989, ch. 168, § 1.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 2 - BANKING INSTITUTIONS (§§ 45-2-101 — 45-2-2204) › Part 18 - INVESTMENT AND SECURITY POWERS (§§ 45-2-1801 — 45-2-1808) › Section 45-2-1807 - Uninsured depository accounts

Any depository account with a state bank or state bank subsidiary upon which drafts, checks, or other negotiable instruments can be drawn and that is not insured or partially insured by a corporation or subdivision of the United States government must in the application for the account inform the customer of the lack of deposit insurance, and the customer must acknowledge by signature and date of the same.
Acts 1989, ch. 168, § 1.