§ 45-2-1601 — Supervision of banks

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

Legislative History

Acts 1969, ch. 36, § 1 (2.201); 1973, ch. 294, § 6; T.C.A., § 45-701.