Tennessee § 45-3-817 - Commissioner's power to act in certain instances.

§ 45-3-817. Commissioner's power to act in certain instances.

Insufficient Reserves. If the reserves of an association fall below the level specified by this chapter or by the rules and regulations of the commissioner, the commissioner shall require the association to increase its reserves, within the time and manner prescribed by the commissioner, so as to bring the sum of the reserves to the level so required, and shall, in addition and to the extent that the commissioner deems it necessary to protect the association and the public, require the association to take any one (1) or more of the actions set forth in subsection (c). Unsound Business Practices. In addition to the powers conferred upon the commissioner by any other provision of this chapter, if the commissioner determines that the association is engaging or has engaged in unsound and imprudent business practices that have caused or may cause the association to be in an impaired condition, the commissioner shall have the power to take any one (1) or more of the actions set forth in subsection (c). Powers of Commissioner. In the event that subsections (a) or (b) are applicable to any association, the commissioner may require the association to do any one (1) or more of the following: Increase its liquid assets and maintain the increased liquid assets at a level prescribed by the commissioner; Cease accepting all deposit accounts, cease accepting particular classes or categories of deposit accounts or limit the amounts of particular classes or categories of deposit accounts to be accepted; Cease all lending, lending in a particular area, or making a particular type or category of loan; Cease or limit the purchase of loans or other investments; Cease or limit promotional expenditures; Convene a meeting of the board of directors of the association with the commissioner or the commissioner's delegate in attendance to accomplish the purpose of this section; and Take other steps the commissioner deems necessary to safeguard the interests of the association and the public. Acts 1978, ch. 708, § 3.17; T.C.A., § 45-1524. Compiler's Notes. For repeal of the former section, see Compiler's Notes to § 45-3-801 .