TO: All Federally Insured
Banks, Savings Banks and Savings
and Loan Associations in Tennessee and Independent
Trust Companies
SUBJECT: Chapter 0180-15, Rules Pertaining to Acquisitions of
Financial Institutions and Holding Companies
DATE: December 1, 1997
On April 30, 1997, an Amendment to Chapter
0180-15 of the Rules of the Department of Financial Institutions became
effective. The Chapter addresses rules relating to the application or
notification procedures required for the direct or indirect acquisition of
banks, savings associations, savings banks, and trust companies. These rules
provide the Department with the ability to monitor compliance with the deposit
cap which prohibits any bank holding company from acquiring a Tennessee bank if
the acquisition would result in the bank or bank holding company controlling
thirty percent (30%) or more of the insured deposits in the state. These rules
also establish the Department's ability to monitor compliance with the
prohibition against any bank or bank holding company acquiring a financial
institution which has not been in operation for five (5) years, subject to any
and all exemptions.
Many of these rules are necessary to implement
the recent statutory changes which permit interstate banking and branching.
Finally, these rules allow the Department to review acquisitions for safety and
soundness as a means of preserving state-chartered banks, savings associations,
savings banks, and trust companies.
A copy of Chapter 0180-15 is attached* for your information and review. Should
you have questions regarding this Bulletin or the attachments, please contact
either Curt Faulkner at 615/741-4791 or Debra Grissom at 615/741-5018.
____________________________
Bill C. Houston, Commissioner
Tennessee Department of Financial
Institutions
*To obtain a copy of Chapter 0180-15 please contact Mrs. Debra Grissom
at 615/741-5018.
Most recent revision Monday, February 8, 1999
