To: ALL TENNESSEE STATE CHARTERED BANKS
SUBJECT: Use of Unofficial
"Operational" Names for Branch Locations
Dated September 5, 1996
The Department of Financial Institutions has received numerous inquiries
recently into the permissibility of using names, other than the
corporate-chartered name of the financial institution, at branch locations. The
purpose of this Bulletin therefore is to clarify the Department's position on
the use of unofficial "operational" names.
It has been the Department's policy for some time, and will continue to be the
policy, to allow financial institutions to use unofficial names for branch
locations, provided the signage bears the legal name and location of the
principal institution and that this facility is a branch thereof.
(i.e.-"The Bank of Any Town", a branch of The Bank of Every Town). The
Department will not authorize the registration of such unofficial
"operational" names with the Secretary of State's office as they do
not constitute an "Assumed Name" as provided in T.C.A. Section
48-14-101(d)(1)(B). These names may therefore not be protected from use by other
parties. Some protection may be afforded by applying with the Secretary of
State's office for a "Reserved Name" using a corporate version of the
unofficial name, as outlined in T.C.A. Section 48-14-102. However, the reserved
status expires after four (4) months and would require continual reapplication.
The use of unofficial "operational" names may also be protected from
use by others through the laws against unfair competition or unfair trade
practices or the right to acquire and protect trade names and trademarks.
To eliminate confusion and the potential to mislead the public into believing
they are dealing with different institutions for deposit insurance coverage, the
Department of Financial Institutions will henceforth require that when using
unofficial branch names, not only the signage at the branch facility, but all
official bank documents, including (but not limited to) checks, cashier's
checks, loan applications, loan documents, certificates of deposit, and all
legal documents must bear the official legal name and location of the principal
institution. The official legal name may appear in isolation or along with the
"operational" name shown as "a branch of the legal name and its
location". Also, all advertisements, publications, etc. using the branch
"operational" name must clearly show or state that the facility is a
"branch of the legal name and its location". It is anticipated that
letter sizing will be clear and legible and will not have to be mandated by this
Department.
To accommodate for minimal waste, those institutions currently using documents
not meeting these disclosure requirements will have one year from the date of
the Bulletin to exhaust existing supplies and purchase conforming documents.
Advertisements, publications, etc. should be amended immediately. Non-confirming
signage must be corrected within six (6) months from the date of this Bulletin.
Compliance with this Bulletin will be verified by the staff of the Tennessee
Department of Financial Institutions at all future examinations/visitations of
your institutions. If you have questions regarding this Bulletin, please contact
Executive Administrative Assistant Marian Carrier at 615-741-5069.
Signed: Bill C. Houston, Commissioner
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