9-4-508 - Collateral pool boards Powers and duties. - Tennessee Statutes

9-4-508. Collateral pool boards Powers and duties.

The collateral pool board has the following powers, together with all powers incidental thereto or necessary for the performance of those hereinafter stated:

     (1)  The board may establish criteria, as may be necessary, to:

          (A)  Approve entry into the collateral pool by a public depository;

          (B)  Order discontinuance of participation in the program by a qualified public depository;

          (C)  Restrict the total amount of public deposits held by a public depository that is subject to the authority of the board;

          (D)  Establish collateral-pledging levels based on qualitative and quantitative standards as well as the number of participating qualified public depositories and the financial performance of such participants; and

          (E)  Suspend or disqualify, or disqualify after suspension, any qualified public depository that has violated any of the provisions of this part or of rules adopted under this part. Any public depository that is suspended or disqualified pursuant to this subsection is subject to the provisions of § 9-4-517 governing withdrawal from the public deposit security program and return of pledged collateral;

     (2)  If the board has reason to believe that any qualified public depository or any other financial institution subject to the authority of the board is or has been violating any of the provisions of this part or of rules adopted under this part, it may issue to the qualified public depository or other financial institution an order to cease and desist from the violation or to correct the condition giving rise to or resulting from the violation. The board may suspend or disqualify any qualified public depository for violation of any order issued pursuant to this subdivision;

     (3)  The board may establish a minimum amount of required collateral to provide for the contingent liability;

     (4)  The board may establish a process by which to determine, to the greatest extent practicable, that a qualified public depository is securing all its public deposits through the collateral pool;

     (5)  The board may review administration of the pool by the state treasurer and prepare an annual report on the condition of the pool;

     (6)  The board may, at its discretion, require every qualified public depository to pay on a periodic basis an operating fee as may be set by the board. In determining whether to set a fee and the amount to be paid, the board may consider any matter which, in its discretion, it deems relevant including, but not limited to, the number of participating qualified public depositories and the financial performance of such participants;

     (7)  The board, upon six (6) affirmative votes, may promulgate reasonable substantive and procedural rules as are necessary to carry out the purpose and intent of this part. Such rules shall be adopted pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5;

     (8)  The board may delegate any of its powers conferred in this section to the state treasurer; and

     (9)  The board may purchase insurance from insurers licensed to do business in this state for the purpose of providing coverage against loss caused by the default or insolvency of qualified public depositories. Any loss may be satisfied from such insurance prior to the assessment against qualified public depositories as provided in § 9-4-512(3).

[Acts 1990, ch. 1043, § 1; 1992, ch. 592, §§ 17-20, 24; 1996, ch. 621, § 11; 1997, ch. 217, §§ 4, 7.]