Section 0180-19-.03 - CATEGORY I: PRE-APPROVED ACTIVITIES REQUIRING NOTICE(1) The activities listed below shall be known as "Category I" activities and can be engaged in by the bank directly without notice to the Department. However, if a state-chartered bank intends to acquire or establish a subsidiary or begin performing a new activity in an existing subsidiary it shall provide the Department written notice within ten (10) days after acquiring or establishing the subsidiary or commencing a new activity, provided the activity is limited to one of the following: (a) Holding property such as real estate, personal property, securities, or other assets acquired by the bank through foreclosure or otherwise in good faith to compromise a doubtful claim, or in the ordinary course of collecting a debt previously contracted;(b) Business services for the bank or its affiliates - furnishing services for the internal operations of the bank or its affiliates, including: accounting, auditing, appraising, advertising and public relations, data processing and data transmission services, databases, or facilities;(c) Financial advice and consulting for the bank or its affiliates;(d) Selling money orders, savings bonds, or travelers checks;(e) Courier services between financial institutions;(f) Providing check guaranty and verification services;(g) Data processing and warehousing products, services, and related activities, including associated equipment and technology;(h) Making, purchasing, selling, servicing, or warehousing loans or other extensions of credit, or interests therein, for the subsidiary's account, or for the account of others, including consumer loans, credit cards loans, commercial loans, residential mortgage loans, and commercial mortgage loans;(i) Leasing of personal property or acting as agent, broker or adviser in leasing;(j) Owning, holding, and managing all or part of the parent bank's investment securities portfolio;(k) Activities related to extending credit, any usual and customary activity in connection with making, acquiring, brokering or servicing loans or other extensions of credit which shall include: 1. Real estate and personal property appraising;2. Collection agency services;3. Credit bureau services; and4. Real estate settlement services.(l)Sales of credit related insurance;(m)Income tax preparation;(n)Sales of insurance on an agency basis from any place having a population which does not exceed 5,000, as shown by the last decennial census, so long as the bank has a branch in the place; and(o)Any other activity in which a national bank or a member bank of the federal reserve can engage without having to apply for approval.(2) The notice required by Rule 0180-19-.03(1) shall include a complete description of the bank's investment in the subsidiary and of the activity conducted as well as the name of the subsidiary.Tenn. Comp. R. & Regs. 0180-19-.03
Original rule filed June 25, 1990; effective September 26, 1990. Repeal and new rule filed August 31, 1998; effective December 29, 1998.Authority: Public Chapter 168, "Acts of 1989"; Section 1; T.C.A. §§ 45-1-107; 45-2-1601 and 45-2-1602.