(a) Every person doing a banking business under the laws of this state shall be subject to supervision and regulation by the commissioner.

Terms Used In Tennessee Code 45-2-1601

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Bank: means any person, as hereinafter defined, doing a banking business subject to the laws of this or any other jurisdiction and, for the purposes of supervision, examination and liquidation, includes industrial investment companies and industrial banks authorized by chapter 5 of this title. See Tennessee Code 45-1-103
  • Commissioner: means the commissioner of financial institutions. See Tennessee Code 45-1-103
  • Good faith: means honesty in fact in the conduct or transaction concerned. See Tennessee Code 45-1-103
  • Person: means an individual, corporation, firm, trust, estate, partnership, joint venture, or association. See Tennessee Code 45-1-103
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • Record: means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in a perceivable form. See Tennessee Code 1-3-105
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(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.
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