# Tenn. Code Ann. § 45-1-102: Purpose - Standards for exercise of authority by commissioner - Rules of construction > Tennessee · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C1_S45-1-102 ## Section - **Citation:** Tenn. Code Ann. § 45-1-102 - **Heading:** Purpose - Standards for exercise of authority by commissioner - Rules of construction - **Jurisdiction:** Tennessee - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** TN Code / Title 45 / Chapter 1 / Section 45-1-102 ## Text (a) It is the underlying purpose of this chapter and chapter 2 of this title to provide the citizens of Tennessee with a sound system of state chartered banks by providing for and encouraging the development of the banks while restricting their activities to the extent necessary to safeguard the interests of depositors. (b) This underlying purpose includes, but is not limited to, providing for: (1) The sound conduct of the business of banks subject to this chapter and chapter 2 of this title; (2) The conservation of their assets; (3) The maintenance of adequate reserves against deposits; (4) The opportunity for banks subject to this chapter and chapter 2 of this title to compete with other businesses including, but not limited to, other financial organizations existing under the laws of this and other states, the United States and foreign countries; (5) The opportunity for banks to serve the citizens of this state by improving and expanding their services and facilities and the opportunity for banks to participate in and promote the economic progress of Tennessee and the United States; (6) The opportunity for the management of banks to exercise business judgment in conducting the affairs of their institutions; and (7) Modernization and simplification of the law governing banking by providing that banks subject to this chapter and chapter 2 of this title shall have all the rights and powers granted corporations for profit by the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27, except for the rights and powers withheld by those chapters or by rule or regulation of the commissioner of financial institutions. (c) It is not a purpose of this chapter and chapter 2 of this title to restrict the activities of banks for the purpose of protecting any person, as hereinafter defined, from competition from banks, and this chapter and chapter 2 of this title do not confer any right or cause of action upon any competitor. (d) The purposes of this chapter and chapter 2 of this title shall constitute standards to be observed by the commissioner of financial institutions in the commissioner's exercise of authority under this chapter and chapter 2 of this title, and shall constitute rules of construction in all matters of construction and application of those chapters. Acts 1969, ch. 36, § 1 (1.102); 1973, ch. 294, §6; T.C.A., §45-102; Acts 1994, ch. 551, § 19. (a) It is the underlying purpose of this chapter and chapter 2 of this title to provide the citizens of Tennessee with a sound system of state chartered banks by providing for and encouraging the development of the banks while restricting their activities to the extent necessary to safeguard the interests of depositors. (b) This underlying purpose includes, but is not limited to, providing for: (1) The sound conduct of the business of banks subject to this chapter and chapter 2 of this title; (2) The conservation of their assets; (3) The maintenance of adequate reserves against deposits; (4) The opportunity for banks subject to this chapter and chapter 2 of this title to compete with other businesses including, but not limited to, other financial organizations existing under the laws of this and other states, the United States and foreign countries; (5) The opportunity for banks to serve the citizens of this state by improving and expanding their services and facilities and the opportunity for banks to participate in and promote the economic progress of Tennessee and the United States; (6) The opportunity for the management of banks to exercise business judgment in conducting the affairs of their institutions; and (7) Modernization and simplification of the law governing banking by providing that banks subject to this chapter and chapter 2 of this title shall have all the rights and powers granted corporations for profit by the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27, except for the rights and powers withheld by those chapters or b ting the affairs of their institutions; and (7) Modernization and simplification of the law governing banking by providing that banks subject to this chapter and chapter 2 of this title shall have all the rights and powers granted corporations for profit by the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27, except for the rights and powers withheld by those chapters or by rule or regulation of the commissioner of financial institutions. (1) The sound conduct of the business of banks subject to this chapter and chapter 2 of this title; (2) The conservation of their assets; (3) The maintenance of adequate reserves against deposits; (4) The opportunity for banks subject to this chapter and chapter 2 of this title to compete with other businesses including, but not limited to, other financial organizations existing under the laws of this and other states, the United States and foreign countries; (5) The opportunity for banks to serve the citizens of this state by improving and expanding their services and facilities and the opportunity for banks to participate in and promote the economic progress of Tennessee and the United States; (6) The opportunity for the management of banks to exercise business judgment in conducting the affairs of their institutions; and (7) Modernization and simplification of the law governing banking by providing that banks subject to this chapter and chapter 2 of this title shall have all the rights and powers granted corporations for profit by the Tennessee Business Corporation Act, compiled in title 48, chapters 11-27, except for the rights and powers withheld by those chapters or by rule or regulation of the commissioner of financial institutions. (c) It is not a purpose of this chapter and chapter 2 of this title to restrict the activities of banks for the purpose of protecting any person, as hereinafter defined, from competition from banks, and this chapter and chapter 2 of this title do not confer any right or cause of action upon any competitor. (d) The purposes of this chapter and chapter 2 of this title shall constitute standards to be observed by the commissioner of financial institutions in the commissioner's exercise of authority under this chapter and chapter 2 of this title, and shall constitute rules of construction in all matters of construction and application of those chapters. Acts 1969, ch. 36, § 1 (1.102); 1973, ch. 294, §6; T.C.A., §45-102; Acts 1994, ch. 551, § 19. ## Nearby sections - [Tenn. Code Ann. § 45-1-101 Short title](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C1_S45-1-101.md) - [Tenn. Code Ann. § 45-1-102 Purpose - Standards for exercise of authority by commissioner - Rules of construction](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C1_S45-1-102.md) - [Tenn. Code Ann. § 45-1-103 General definitions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C1_S45-1-103.md) - [Tenn. Code Ann. § 45-1-104 Department to execute laws](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C1_S45-1-104.md) - [Tenn. Code Ann. § 45-1-105 Commissioner, deputy and assistant commissioners - Qualifications - Vacancy](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C1_S45-1-105.md) - [Tenn. Code Ann. § 45-1-106 Salary of commissioner](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C1_S45-1-106.md) - [Tenn. Code Ann. § 45-1-107 Powers and duties of commissioner](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C1_S45-1-107.md) - [Tenn. Code Ann. § 45-1-108 Review of commissioner's orders - Enforcement](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C1_S45-1-108.md) - [Tenn. Code Ann. § 45-1-109 Oaths of office](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C1_S45-1-109.md) - [Tenn. Code Ann. § 45-1-111 Limitation of personal liability](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C1_S45-1-111.md) - [Tenn. Code Ann. § 45-1-112 Official seal](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C1_S45-1-112.md) - [Tenn. Code Ann. § 45-1-113 Office facilities](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C1_S45-1-113.md) - [Tenn. Code Ann. § 45-1-114 Removal of commissioner from office - Causes - Procedure](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C1_S45-1-114.md) - [Tenn. Code Ann. § 45-1-115 Divisions within department - Classification and salaries of department positions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C1_S45-1-115.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C1_S45-1-102. Check the current official text before relying on it. Not legal advice.