H1N1...EMERGENCY BANK SHUTDOWNS????
TO: All Tennessee State Chartered Banks
SUBJECT: Closing of Bank Offices - TCA §45-2-603 and §45-2-604
DATE: August 5, 2009
This bulletin is intended to address specifically the issue of suspending bank office activity in response to possible H1N1 (swine flu) outbreaks and more generally to emergency powers of banks in response to disasters. Additionally, this bulletin provides certain guidance should a Tennessee state bank close certain offices under the authority of TCA §45-2-603 and §45-2-604 in the discretion of its directorate and management.
Banks organized under the laws of the State of Tennessee may, at their discretion, temporarily close offices or operations in areas affected by an emergency resulting from fire, act of God, attack by a foreign nation, riot, insurrection, civil disorder or any similar disaster without prior approval of the commissioner in accordance with TCA §45-2-603 and §45-2-604.
The Department of Financial Institutions considers bank determinations that H1N1 outbreaks pose legitimate health risks to the general public or significantly impacts the ability of a banking institution to maintain an appropriate level of personnel on site to meet customer needs to be included among any “similar disaster” as referenced in TCA §45-2-603. Other events may also be included among any similar disaster, and the directorate and executive management are encouraged to use reasonable discretion in applying TCA §45-2-603 and §45-2-604. However, the safety of institution personnel and local citizens are of paramount importance when evaluating the appropriateness of closing offices.
9.09 HAS OCCURED....10.24.09 STATE OF EMERGECY DECLARED.....PREPARE TO FEEL BY 11.10.9........