# Tenn. Code Ann. § 45-2-203: Organizational expenses

> Tennessee · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C2_S45-2-203

## Section

- **Citation:** Tenn. Code Ann. § 45-2-203
- **Heading:** Organizational expenses
- **Jurisdiction:** Tennessee
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** TN Code / Title 45 / Chapter 2 / Section 45-2-203

## Text

(a) Organizational expenses shall not be paid from capital or surplus funds of the bank without the prior written consent of the commissioner. (b) (1) Prior to filing the notice of intent, the incorporators shall subscribe for shares of the corporation seeking to conduct banking business in Tennessee in an amount the commissioner deems adequate to pay the organizational expenses of the proposed bank. (2) The expense fund shall be used for expenses incurred by the incorporators in connection with the organization of the proposed bank. Subscriptions paid by the incorporators for their shares in the proposed bank may be used to pay organizational expenses, but, in that case, shall not be commingled with funds in any account in which any non-incorporator funds have been or are to be deposited. (c) Payment from the expense fund for payment of broker commissions to secure subscriptions to stock shall not be permitted without prior written consent of the commissioner. Acts 1969, ch. 36, § 1 (3.306); 1973, ch. 294, § 6; 1977, ch. 35, § 1; T.C.A., § 45-203; Acts 2006, ch. 660, § 1.
(a) Organizational expenses shall not be paid from capital or surplus funds of the bank without the prior written consent of the commissioner.
(b) (1) Prior to filing the notice of intent, the incorporators shall subscribe for shares of the corporation seeking to conduct banking business in Tennessee in an amount the commissioner deems adequate to pay the organizational expenses of the proposed bank. (2) The expense fund shall be used for expenses incurred by the incorporators in connection with the organization of the proposed bank. Subscriptions paid by the incorporators for their shares in the proposed bank may be used to pay organizational expenses, but, in that case, shall not be commingled with funds in any account in which any non-incorporator funds have been or are to be deposited.
(1) Prior to filing the notice of intent, the incorporators shall subscribe for shares of the corporation seeking to conduct banking business in Tennessee in an amount the commissioner deems adequate to pay the organizational expenses of the proposed bank.
(2) The expense fund shall be used for expenses incurred by the incorporators in connection with the organization of the proposed bank. Subscriptions paid by the incorporators for their shares in the proposed bank may be used to pay organizational expenses, but, in that case, shall not be commingled with funds in any account in which any non-incorporator funds have been or are to be deposited.
(c) Payment from the expense fund for payment of broker commissions to secure subscriptions to stock shall not be permitted without prior written consent of the commissioner.
Acts 1969, ch. 36, § 1 (3.306); 1973, ch. 294, § 6; 1977, ch. 35, § 1; T.C.A., § 45-203; Acts 2006, ch. 660, § 1.

## Nearby sections

- [Tenn. Code Ann. § 45-2-103 Changes affecting bank control](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C2_S45-2-103.md)
- [Tenn. Code Ann. § 45-2-104 Equality of taxation](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C2_S45-2-104.md)
- [Tenn. Code Ann. § 45-2-105 Exemption of nonprofit general welfare corporations](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C2_S45-2-105.md)
- [Tenn. Code Ann. § 45-2-106 Provisions applicable to savings and loan associations and savings banks - Conflicting laws](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C2_S45-2-106.md)
- [Tenn. Code Ann. § 45-2-107 Acquisition, formation or control of banks and savings institutions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C2_S45-2-107.md)
- [Tenn. Code Ann. § 45-2-201 Incorporators - Applicant requirements](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C2_S45-2-201.md)
- [Tenn. Code Ann. § 45-2-202 Notice of intention - Request for issuance of charter - Approval or nonapproval of notice of intention or request for issuance of charter and accompanying documents - Notice - Filing - Restriction on acceptance of shares of capital stock until notice of approval received](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C2_S45-2-202.md)
- [Tenn. Code Ann. § 45-2-203 Organizational expenses](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C2_S45-2-203.md)
- [Tenn. Code Ann. § 45-2-204 Application for charter - Acceptance, nonacceptance and filing of application - Notice to other banks - Formation of interim bank](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C2_S45-2-204.md)
- [Tenn. Code Ann. § 45-2-205 Examination of application for charter - Factors considered](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C2_S45-2-205.md)
- [Tenn. Code Ann. § 45-2-206 Subscription calls](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C2_S45-2-206.md)
- [Tenn. Code Ann. § 45-2-207 Capital structure](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C2_S45-2-207.md)
- [Tenn. Code Ann. § 45-2-208 Capital notes and debentures](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C2_S45-2-208.md)
- [Tenn. Code Ann. § 45-2-211 Indemnification of officers, directors or employees](https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C2_S45-2-211.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TN_T45_C2_S45-2-203. Check the current official text before relying on it. Not legal advice.