(a) No state trust company shall be organized with capital of less than five hundred thousand dollars ($500,000), or such greater amount as may be required by the commissioner after considering the factors in this section.

Terms Used In Tennessee Code 45-2-2107

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Commissioner: means the commissioner of financial institutions. See Tennessee Code 45-1-103
  • Fiduciary: A trustee, executor, or administrator.
  • 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
  • State trust company: means a corporation or limited liability company organized or reorganized under the Tennessee Banking Act, compiled in this chapter and chapter 2 of this title, whose purposes and powers are limited to fiduciary purposes and power, including a trust company previously organized under the laws of this state. See Tennessee Code 45-1-103
  • Trust company: means a state trust company or any other company chartered to act as a fiduciary that is neither a depository institution nor a foreign bank. See Tennessee Code 45-1-103
(b) The commissioner may at any time prescribe a capital structure for a state trust company that the commissioner deems adequate for it to operate in a safe and sound manner. The commissioner shall consider the following factors in determining an adequate capital structure:

(1) The nature and type of business conducted or to be conducted;
(2) The nature and liquidity of assets currently held or to be held in the state trust company’s own account;
(3) The amount of fiduciary assets currently or projected to be under management or administration;
(4) The type of fiduciary assets currently held or proposed to be held, and the depository of such assets;
(5) The complexity of fiduciary duties and degree of discretion proposed currently or to be undertaken;
(6) The competence and experience of current or proposed management;
(7) The extent and adequacy of internal controls;
(8) The reasonableness of any business plan for retaining or acquiring additional equity capital;
(9) The existence and adequacy of insurance for protecting the state trust company’s fiduciary assets; and
(10) Any other factors the commissioner may deem relevant.
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