At present, the department's interpretation of T.C.A., Section 45-2-1102 requires that a bank's legal lending limit be calculated on the date a loan is made. The department recognizes that the frequency of a daily calculation places an unnecessary regulatory burden on the management of our banks. Thus, to simplify the calculation of capital for lending limit purposes and alleviate the burden of daily calculations, the department is changing its interpretation of said statute to permit banks to calculate their legal lending limit on a quarterly basis using Report of Condition data. Accordingly, the calculation should be performed at the end of each calendar quarter to determine the legal lending limit for the next quarter. For purposes of this Bulletin, the effective date of each calculation will be the earlier of the following dates: a) The date on which the bank's Consolidated Report of Condition and Income (Call Report) is submitted; or b) The date on which the bank's Call Report is required to be submitted. This Bulletin takes effect immediately. If you have any questions regarding this Bulletin, please contact either Assistant Commissioner Derek Carrier or Chief Administrator Jim Douthit at (615) 741-6013.