Section 0780-01-27-.13 - CERTIFICATES OF DEPOSIT(1) No association shall invest in any certificate of deposit unless: (a) The certificate of deposit, as issued, is registered in the name of the investing association.(b)1. The total investment in certificates of deposit of the association in any one bank does not exceed 10% of the total capital of the bank (capital stock, surplus, undivided profits and capital notes) or $100,000, whichever is greater.2. No association may give or receive consideration of any kind to or from a third party in connection with investment in a certificate of deposit. No association may encumber any such certificate as collateral or otherwise with the issuing bank or any other corporation or person, except to secure a loan to the association itself. The association shall retain in its portfolio, with respect to each investment in a certificate of deposit, evidence that the certificate is registered. If there is an encumbrance thereon permitted, the portfolio shall disclose all relevant facts with respect thereto.Tenn. Comp. R. & Regs. 0780-01-27-.13
Original Rule certified June 10, 1974.Authority: T.C.A. §45-1303.