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PUBLIC CHAPTER NO. 671
SENATE BILL NO. 1870
By Johnson
Substituted for: House Bill No. 2537
By Lamberth, Cochran, Hurt
AN ACT to amend Tennessee Code Annotated, Title 45, Chapter 2; Title 45, Chapter 4 and Title 45,
Chapter 7, relative to financial institutions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 45-2-1602(a)(1 ), is amended by deleting
the language "; provided, that a full-scope examination, as set out in subsection (b), shall be
conducted by the commissioner or the commissioner's designee at least once in every three (3)
years".
SECTION 2. Tennessee Code Annotated, Section 45-2-1602(a)(2), is amended by deleting
the subdivision and substituting instead:
(2) The provision of subdivision (a)(1) requiring an examination at least once in each
year may be extended to up to twenty-four (24) months or such longer period as determined
by the commissioner. In making this determination, the commissioner should consider the
bank's quality of management, capitalization, risk profile and internal controls, the
examination cycle imposed by any applicable federal banking regulatory authority, and any
other factors the commissioner deems relevant.
SECTION 3. Tennessee Code Annotated, Section 45-4-505(a), is amended by deleting the
subsection and substituting instead:
(a) Any credit union organized under this chapter shall, prior to commencing its
operations, obtain and thereafter maintain insurance of its share and deposit balances by
membership in the National Credit Union Association, unless otherwise determined by the
commissioner pursuant to subsection (c).
SECTION 4. Tennessee Code Annotated, Section 45-4-505, is amended by adding the
following as new subsections:
(c) The commissioner may determine the type, amounts, and other characteristics of
share insurance required to be maintained by each state credit union. In making the
determination, the commissioner shall consider the following factors:
(1) The safety and soundness of the state credit union;
(2) The ability of the state credit union to promote the economic progress of
this state;
(3) Public confidence in the credit union system;
(4) The views of the credit union industry in this state; and
(5) Any other factors the commissioner may deem relevant.
SB 1870
(d) The commissioner may promulgate rules to implement this section. The rules
must be promulgated in accordance with the Uniform Administrative Procedures Act,
compiled in title 4, chapter 5.
SECTION 5. Tennessee Code Annotated, Section 45-4-703, is amended by deleting
subsection (d) and by deleting the first sentence of subsection (e).
SECTION 6. Tennessee Code Annotated, Section 45-4-1002(a), is amended by deleting the
subsection and substituting instead:
(a) 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 each year; provided, that this provision requiring examination at
least once in each year may be extended to up to twenty-four (24) months or such longer
period as determined by the commissioner. In making this determination, the commissioner
should consider the credit union's quality of management, capitalization, internal controls, the
examination cycle imposed by any applicable federal credit union regulatory authority, and
any other factors the commissioner deems relevant. The commissioner may order
examinations and shall, at all times, be given free access to all the books, papers, securities,
and other sources of information in respect to the credit union. For that purpose, the
commissioner shall have the power to subpoena and examine, personally or through a
deputy duly authorized, witnesses on oath and documents pertaining to the business of the
credit union. The commissioner may have follow-up examinations and visitations conducted
on a credit union if the commissioner believes that the examinations and visitations are
necessary to protect the interests of the members of the credit union.
SECTION 7. Tennessee Code Annotated, Title 45, Chapter 4, Part 11, is amended by
deleting the part in its entirety.
SECTION 8. Tennessee Code Annotated, Section 45-4-1210(a), is amended by deleting the
language "an annual examination" and substituting instead "examination in accordance with § 45-4-
1002(a)".
SECTION 9. Tennessee Code Annotated, Section 45-7-104(6), is amended by deleting the
subdivision and substituting instead:
(6) A federally insured depository fina'ncial institution, bank holding company, office of
an international banking corporation, foreign bank that establishes a federal branch pursuant
to 12 U.S.C. § 3102, corporation organized pursuant to the Bank Service Company Act (12
U;S.C. §§ 1861-1867), or corporation organized under the Edge Act (12 U.S.C. §§ 611-633).
SECTION 10. This act takes effect upon becoming a law, the public welfare requiring it.
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SENATE BILL NO. 1870
PASSED: March 23, 2026
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RANDY Mc~LLY
SPEAKER OF THE SENATE
CAMERQ-----TON,SPEAKER
HOUSE OF REPRESENTATIVES
APPROVED this 71::L.. ~ day of Aer,f 2026
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