§ 45-2-602 — Subsidiary corporations

Tennessee § 45-2-602

• Jurisdiction: Tennessee
• Title: 45

Text

(a) (1) Any bank may exercise any of its powers through the medium of a subsidiary corporation or corporations. Any and all rights conferred upon banks shall be fully applicable to the subsidiary corporations of banks. Banks shall not be permitted, however, through the use of subsidiary corporations to circumvent the restrictions imposed by § 45-2-614 . Whenever the commissioner deems it necessary, the commissioner may examine any corporation that is a subsidiary corporation of a state bank. (2) A bank may organize, participate in or own an ownership interest in a limited liability company, or limited liability partnership, under this section and this title. (b) (1) For the purposes of this section, a minority stock ownership interest in a credit insurance company whose capital meets or exceeds the requirements of § 56-2-114 , or in an insurance holding company system as defined in § 56-11-101 , whose principal business is conducted through one (1) or more credit insurance companies whose capital meets or exceeds the requirements of § 56-2-114 , shall be deemed to be a subsidiary; provided, that the original cost of the stock ownership interest does not exceed five percent (5%) of the capital and surplus of the bank; and provided further, that no one (1) bank shall own more than five percent (5%) of the stock in the credit insurance company or insurance holding company system. (2) The existence and operation of any subsidiary corporation formed prior to June 9, 1981, shall not be impaired by subdivision (b)(1).

Legislative History

Acts 1969, ch. 36, § 1 (3.102); 1973, ch. 294, § 6; T.C.A., § 45-402; Acts 1981, ch. 253, §§ 1, 2; 1996, ch. 768, § 17.