Adequate Capital Structure — Factors Considered

1. Law
2. Tennessee Code
3. Banks and Financial Institutions
4. Banking Institutions
5. State Trust Companies
6. Adequate Capital Structure — Factors Considered

1. No state trust company shall be organized with capital of less than five hundred thousand dollars ($500,000), or such greater amount as may be required by the commissioner after considering the factors in this section.
2. The commissioner may at any time prescribe a capital structure for a state trust company that the commissioner deems adequate for it to operate in a safe and sound manner. The commissioner shall consider the following factors in determining an adequate capital structure:
   1. The nature and type of business conducted or to be conducted;
   2. The nature and liquidity of assets currently held or to be held in the state trust company's own account;
   3. The amount of fiduciary assets currently or projected to be under management or administration;
   4. The type of fiduciary assets currently held or proposed to be held, and the depository of such assets;
   5. The complexity of fiduciary duties and degree of discretion proposed currently or to be undertaken;
   6. The competence and experience of current or proposed management;
   7. The extent and adequacy of internal controls;
   8. The reasonableness of any business plan for retaining or acquiring additional equity capital;
   9. The existence and adequacy of insurance for protecting the state trust company's fiduciary assets; and
   10. Any other factors the commissioner may deem relevant.

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