Section 1700-04-01-.10 - WITHDRAWAL FROM COLLATERAL POOL PARTICIPATION(1) Voluntary Withdrawal.(a) Voluntary Withdrawal Generally. A qualified public depository may withdraw from participation in the collateral pool by giving written notice to the State Treasurer, and to all public depositors having deposits at the qualified public depository. The notice shall provide an effective date of withdrawal which shall not be less than one hundred eighty (180) calendar days after the date the notice is received by the Treasurer.(b) Contingent Liability of Withdrawing Qualified Public Depository. A qualified public depository shall be contingently liable for any loss to the pool as provided in the contingent liability agreement. To assure that an institution can meet its contingent liability, an institution shall continue to maintain pledged collateral in an amount established by the Board.(c) Reports. The withdrawing qualified public depository shall continue to file monthly and annual reports with the Treasurer during the period in which the contingent liability agreement is in effect. To the extent that the Treasurer requires qualified public depositories to submit quarterly reports directly to the Treasurer pursuant to this chapter, this requirement shall continue to be in effect during the period in which the contingent liability agreement is in effect.(2) Mandatory Withdrawal from Collateral Pool.(a) Mandatory Withdrawal Generally. A qualified public depository shall be required to withdraw upon the vote of a majority of the Board as provided in T.C.A. § 9-4-517.(b) Contingent Liability of Withdrawing Qualified Public Depository. A qualified public depository shall be contingently liable for any loss to the pool as provided in the contingent liability agreement. To assure that an institution can meet its contingent liability, an institution shall continue to maintain pledged collateral in an amount established by the Board.(c) Reports. The withdrawing qualified public depository shall continue to file monthly and annual reports with the Treasurer during the period in which the contingent liability agreement is in effect as well as the quarterly reports required under rule 1700-04-01.07 unless the quarterly reports are suspended pursuant to subparagraph (2)(c) thereof.(3) Appeal. Any qualified public depository subject to mandatory withdrawal may appeal the decision of the Board by following the appeal procedure in rule 1700-04-01-.13.Tenn. Comp. R. & Regs. 1700-04-01-.10
Original rule filed April 30, 1992; effective July 30, 1992. Amendment filed October 30, 2001; effective February 28, 2002. Amendments filed August 19, 2021; effective 11/17/2021.Authority: T.C.A. §§ 9-4-508, 9-4-516, and 9-4-517.