Current through October 22, 2024
Section 0180-13-.03 - AGREEMENT AND PRIOR APPROVAL REQUIRED(1) Any state-chartered financial institution entering into an agreement with an electronic data processing (EDP) servicer shall notify the commissioner in writing within at least thirty (30) days prior to entering into such agreement. The commissioner may for good cause disapprove the financial institution's choice of servicer upon written notice to the institution before the expiration of the thirty (30) days. The commissioner's failure to either approve or disapprove the servicer within the thirty (30) days shall be deemed approval or the servicer.(2) Any state-chartered financial institution which desires to discontinue service with an electronic data processing (EDP) servicer and begin to perform this function in-house shall notify the commissioner in writing thirty (30) days prior to discontinuing the outside EDP service.(3) Any state-chartered financial institution entering into an agreement with an electronic data processing (EDP) servicer shall execute a written agreement with such servicer which shall include the following or similar language approved by the commissioner:AGREEMENT
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(4) A copy of the written agreement by and between the serviced institution and the servicer shall be forwarded to the commissioner upon execution.(5) At the time the electronic data processing servicer enters into such a written agreement with the financial institution, and at such other times as the Commissioner may require, the electronic data processing servicer shall also be required to provide information to the Department concerning its current status which shall include, among other things, the following information: (a) a current financial statement certified by any managing official of the servicer;(b) a list of all Tennessee state chartered financial institutions serviced by the servicer and the location of the data center from which such service is provided;(c) the number of employees of the servicer;(d) the location of the third party software escrow;(e) if the servicer provides processing, how back-up is provided;(f) a copy of the most current EDP audit; and(g) a listing of the servicer's insurance, including the type, amount, and with whom the coverage is held.Tenn. Comp. R. & Regs. 0180-13-.03
Original rule filed February 19, 1985; effective May 14, 1985. Amendment filed August 29, 1989; effective November 29, 1989. Amendment filed July 13, 1992; effective October 25, 1992.Authority: T.C.A. §§ 45-1-107, 45-2-616, 45-3-801, 45-4-1001 and 45-5-501.