Section 0180-18-.08 - LOANS TO AFFILIATED BIDCOS(1) Pursuant to Section 25 of the Act and with regard to BIDCOS in which a state-chartered bank has an interest or which are affiliated with a state-chartered bank: (a) Loans made to such BIDCOS should be made on substantially the same basis as any other loan and with the same limitations detailed under this section.(b) A bank shall not in any manner extend credit, lease or sell property of any kind, or furnish any service, or fix or vary on the condition or requirement: 1. That the BIDCO obtain some additional credit, property, or service from such bank other than a loan, discount, deposit, or trust service;2. That the BIDCO provide some additional credit, property, or service from a bank holding company of such bank, or from any other subsidiary of such bank holding company; and/or3. That the BIDCO not obtain some other credit, property, or service from a competitor of such bank, a bank holding company of such bank or any subsidiary of such bank holding company, other than a condition or requirement that such bank reasonably impose in a credit transaction to assure the soundness of the credit.(2) State bank investments in BIDCOS are subject to investment limitations set forth in T.C.A. § 45-2-607.Tenn. Comp. R. & Regs. 0180-18-.08
Original rule filed December 27, 1989; effective March 28, 1990.Authority: Public Chapter 124, Acts of 1989, §§6 and 25.