Tenn. Comp. R. & Regs. 0180-19-.11 - LIMITATIONS ON INVESTMENTS
(1) A bank may
invest, in the aggregate up to seventy-five percent (75%) of its capital in the
stock or purchase of the assets of other corporations, firms, partnerships or
companies, including limited liability companies and limited liability
partnerships that engage in certain approved activities. However, the
Commissioner has determined, based upon safety and soundness concerns, that no
bank shall invest more than twenty-five percent (25%) of its capital in any
single corporation, firm, partnership or company, including a limited liability
company or a limited liability partnership requiring an application and
approval pursuant to Rule 0180-19-.04, Rule 0180-19-.05, or Rule
0180-18-.10.
(2) Based upon safety
and soundness concerns a state-chartered bank that directly or indirectly
engages in any Category II (Rule 0180-19-.04 ) activity is subject to the
lending limitations of T.C.A. §
45-2-1805 unless otherwise
provided by this chapter.
(3) If a
single subsidiary engages in activities falling into more than one Category,
(See Rules 0180-19-.04, 0180-19-.05 and 0180-19-.10 ) then the bank 's
investment in that subsidiary shall be limited to the lowest applicable
percentage of capital limitation.
Notes
Authority: T.C.A. § 45-1-107(h); 45-2-602;45-2-607(d) and 45-2-1805.
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