§ 45-2-2107 — Adequate capital structure - Factors considered

Tennessee § 45-2-2107

• Jurisdiction: Tennessee
• Title: 45

Text

(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. (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.

Legislative History

Added by 2014 Tenn. Acts, ch. 642,s 3, eff. 7/1/2014.