CHAPTER NO. 585

SENATE BILL NO. 2307

By Rochelle, Dixon, Carter, Elsea, Crutchfield, Fowler

Substituted for: House Bill No. 2279

By Rhinehart, Hassell, Mumpower, Wood, Curtiss, Lewis, Ralph Cole, Boner, Fraley,

Bowers, White, Phelan

AN ACT To amend Tennessee Code Annotated, Section 45-4-1002(a), relative to the examination of credit unions.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. Tennessee Code Annotated, Section 45-4-1002(a), is amended by deleting the first sentence and substituting the following:

The commissioner shall either personally or by competent examiner appointed by the commissioner visit and examine every credit union subject to the commissioner's supervision at least once in each year; provided, however, this provision requiring examination at least once in each year may be extended to eighteen (18) months. In making such a determination, the commissioner should consider the credit union's quality of management, capitalization, internal controls and any other factors the commissioner deems relevant. In no event may a credit union's examination cycle be extended to eighteen (18) months if it did not receive a composite rating of one (1) or two (2) at its last examination.

SECTION 2. This act shall take effect upon becoming a law, the public welfare requiring it.

PASSED: February 18, 1998

APPROVED this 4th day of March 1998