TO: All Tennessee State Chartered Banks, Savings Banks And Credit Unions
      
SUBJECT: Hurricane Frances and Possible Impact on Tennessee
              Financial Institutions

DATE: September 3, 2004

According to the National Hurricane Center, Hurricane Frances is currently moving into a position which may force evacuations of portions of several Southeastern U.S. states, resulting in possible inflows of a significant number of displaced individuals into Tennessee to gain safe haven.

The Tennessee Department of Financial Institutions strongly encourages Tennessee financial institutions to be aware of the possible ramifications of Hurricane Frances as it may impact Tennessee institutions and residents. Therefore, the Department wishes to make a conscious effort to ensure that financial institutions are prepared for the possible influx of evacuated persons into Tennessee.

The Department encourages all financial institutions to prepare to stock and even restock ATM machines with currency to meet the anticipated increase in demand this holiday weekend. The Department suggests that institutions fully supply ATM machines upon close of business, Friday, September 3 and we suggest an interim evaluation of ATM cash availability during the holiday weekend.

We hope that every financial institution will prepare for and assist with the efforts to provide safe haven to evacuated citizens during this difficult time and to meet the banking needs of these individuals.

Please direct questions regarding this Bulletin to Assistant Commissioner-Bank Division, Tod Trulove at 615/741-6013 or Acting Assistant Commissioner-Credit Union Division, Paul Foster at 615/741-5608. Your cooperation is appreciated.