Tenn. Comp. R. & Regs. 0180-07-.09 - BRANCH NAME USAGE
(1) Banks, Savings
Banks or Savings and Loan Companies doing business in Tennessee and subject to
examination authority of the commissioner are not required to use their
official chartered name at all branch locations. However, reasonable care must
be taken to insure that customer confusion does not occur. To eliminate
confusion and the potential to mislead members of the public into believing
they are dealing with different institutions for purposes of federal deposit
insurance coverage, institutions will be required to do the following when
using unofficial branch names:
(a) Disclose,
clearly and conspicuously, in signs, advertising, and similar materials that
the facility is a branch, division, or other unit of the insured institution.
The institution should exercise care that the signs and advertising do not
create a deceptive and/or misleading impression.
(b) Use the official chartered name and
location of the institution on all legal documents, checks, cashier's checks,
drafts, loan applications, loan agreements, loan documents, certificates of
deposit, signature cards, account statements, and other similar
documents;
(c) Educate the staff of
the institution regarding the possibility of customer confusion with respect to
deposit insurance. Advise staff at the branch facility to inquire of customers,
prior to opening new accounts, whether they have deposits at the Institution's
other facilities or branches. Require staff to make the branch customer aware
that the branch and other facilities are in fact parts of the same insured
institution and that deposits held at each facility are not separately insured;
and
(d) Within thirty (30) days
after one institution acquires or combines with another, all customers shall be
provided a disclosure that identifies the official chartered name of the
institution, its main office location and all branch locations. Utilization of
branch names different from the official chartered name of the institution must
be adequately described in the disclosure.
(2) The Department will not authorize the
registration of unofficial branch names with the Secretary of State as assumed
names.
(3) Institutions that
contemplate using name other than their official chartered names over a
computer network such as the Internet should be aware that in instances where
customers are allowed to open accounts electronically, the same procedures
described in Rule 0180-7-.09(1) shall apply.
Notes
Authority: T.C.A. ยงยง 45-1-102(a), 45-1-107(a)(5), 45-1-107(h), 45-1-124(d), 45-2-205, 45-2-614, 45-2-1407, 45-2-1408, 45-3-115, 45-3-202(b)(5), 45-3-209, and 48-14-101.
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