Public Chapter 660 became effective on May 12, 2006. This new law makes amendments to the bank formation process. As amended, T.C.A. Section 45-2-201(b) now provides:
"Each incorporator shall subscribe and pay in full in cash for common stock in an amount as determined by the commissioner."
The Commissioner has determined that Incorporators shall subscribe and pay an aggregate investment of 10% of the proposed minimum capital structure of the bank "in organization", which shall include a minimum investment of at least $25,000 for each incorporator.
Verification that the incorporators have fully funded this minimum investment must be submitted with the Notice of Intention. Pursuant to T.C.A. Section 45-2-203(b), this minimum investment will typically be used to pay the organizational expenses of the bank "in organization". Funds maintained in the organizational expense fund shall not be commingled with the non-incorporator funds.
Please direct questions regarding this Bulletin to Tod K. Trulove, Assistant Commissioner - Bank Division, at 615/741-6013 or Tina G. Miller, Staff Attorney, at 615/532-1030.