Tennessee Commerce Bank Agrees to Get Fed Okay to Pay Dividends

WASHINGTON — A Tennessee bank owner must get prior Federal Reserve approval to pay dividends or increase debt.

The Fed released Tuesday an agreement with Tennessee Commerce Bancorp Inc. The Franklin, Tenn., company owns Tennessee Commerce Bank. Under the agreement, the bank holding company must get prior approval to declare or pay dividends or to incur, increase, or guarantee any debt.

The company also agreed to submit to the Fed a plan to maintain sufficient capital.

For reprint and licensing requests for this article, click here.
Community banking Tennessee
MORE FROM AMERICAN BANKER