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SB 973

Financial Institutions, Dept. of - As introduced, increases, from 10 to 15 business days, the time that the commissioner has after receipt of an application for a certificate of authority or any accompanying documents for organization of a business authorized to conduct banking business that do not comply with requirements for the documents to return the certificate or documents to the incorporators with notice of the defect in the application. - Amends TCA Title 34; Title 45 and Title 47.

114th Regular Session (2025-2026) Introduced by Steve Southerland

SB 973 extends Tennessee banking application review deadlines from 10 to 15 business days for regulators to identify deficiencies in new bank formation applications.

Passed on Second Consideration, refer to Senate Commerce and Labor Committee
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Bill Summary · SB 973

Legislative bill overview

SB 973 extends the timeframe for Tennessee's Department of Financial Institutions commissioner to review banking applications and identify deficiencies from 10 to 15 business days. The bill applies this extended deadline to applications for certificates of authority and accompanying documents for new banking businesses that fail to meet regulatory requirements.

Why is this important

The extension affects how quickly new banking institutions can receive feedback on incomplete applications, potentially impacting startup timelines for financial institutions in Tennessee. This also reflects administrative capacity considerations—regulators need adequate time to thoroughly review complex financial applications for compliance with state banking laws.

Potential points of contention

  • Applicant burden: Extending the review period delays feedback to applicants, which could slow the process of establishing new banking institutions and reduce competitiveness of Tennessee's banking market
  • Administrative efficiency: The rationale for needing 50% more time (10 to 15 days) is not specified in the bill summary, raising questions about whether existing resources are insufficient or if standards are increasing
  • Broader regulatory impact: The amendments to three separate Tennessee Code Annotated titles suggest this may have cascading effects across banking, business organization, and financial regulations that aren't detailed here

Compiled from official sources — confirm details with the bill’s official record.

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