TO: ALL TENNESSEE STATE CHARTERED BANKS
SUBJECT: LOAN PRODUCTION OFFICES
DATE: October 17, 2002
Notification procedures for a Tennessee chartered bank to establish Loan Production Offices ("LPO") became effective September 27, 2002.
All Tennessee chartered banks shall file notice with the Commissioner 14 (fourteen) days prior to establishing an LPO. The notice shall include:
- The name of the bank and its address;
- The name and address of the loan production office;
- The name and address of the bank officer responsible for loan production office activities;
- Description of proposed activities to be conducted at the loan production office;
- The date the loan production office plans to open for business; and,
- If the loan production office is to be located outside the State of Tennessee, provide a no objection letter from the state where the loan production office will be located.
- Such other information as the Commissioner may require in connection with the establishment of the loan production office.
If the loan production office will be using an assumed name, compliance with Rule 0180-7-.09 is required.
Each notice shall be accompanied by a non-refundable fee of $100.00 (One Hundred Dollars). Each loan production office established must follow the procedures provided above. In addition, each notice shall be amended if there is a material change to the information provided. A fee is not required for an amendment to a notice.
Loan production offices operated by Tennessee chartered banks, regardless of their location, are subject to inspection by the Commissioner. All expenses incurred by he Department as a result of any out-of-state inspection shall be paid in full by he bank in accordance with Chapter 0180-20 of the Rules of the Department of Financial Institutions.
The Department's rules can be accessed from our web page at www.tennessee.gov/tdfi. Questions concerning the establishment of Loan Production Offices can be directed to Curt Faulkner at 615/741-4791 or Debra Grissom at 615/741-5018
Fred R. Lawson