Board Membership And Operations

(1) Board Membership. (a) Generally. The Board shall be comprised of seven (7) members as follows: The Commissioner of Financial Institutions and the State Treasurer who serve as Ex-Officio members; one (1) representative of local government; and four (4) representatives of the banking industry. All seven (7) members shall be voting members of the Board. (b) Local Government Representative. The local government representative shall be appointed by the State Treasurer for a two (2)-year term and shall have at least two (2) years of experience in the field of finance. The State Treasurer may select the local government representative from lists of qualified persons submitted by interested county and municipal organizations including, but not limited to, the Tennessee County Services Association, the Tennessee Municipal League and the Tennessee County Officials Association. (c) Banking Industry Representatives. The State Treasurer shall appoint four (4) members to the Board from a list of two (2) nominees for each member position submitted by the Board of Directors of the Tennessee Bankers Association. Appointment of these members shall be effective at the time the Secretary of the Board is notified by the State Treasurer of such appointment. The Tennessee Bankers Association shall designate the initial terms of the members as one (1) year or two (2) year terms. The initial banking industry representatives shall serve the term designated by the Tennessee Bankers Association. All subsequent banking industry representatives shall serve two (2) year terms unless completing the unexpired term of a member due to a vacancy. Provided, however, a banking industry representative shall continue to serve until his successor is appointed. (d) In determining qualified persons to fill positions on the Board appointed by the State Treasurer, the State Treasurer shall consult with the interested groups, including, but not limited to, the organizations listed in T.C.A. § 9-4-506(a)(1). (2) Meetings. BANK COLLATERAL POOL CHAPTER 1700-04-01 (a) Called Meetings and Notice. The Board shall meet at the call of the chairperson or upon written request to the chairperson by four (4) members of the Board. Public notice of Board meetings shall be posted and Board meetings conducted electronically or by other means of communication shall be conducted in accordance with T.C.A. Title 8, Chapter 44, Part 1 and other applicable laws and rules. (b) Quorum. A quorum of the Board shall consist of four (4) members of the Board. Notwithstanding the presence of a quorum, where these rules require certain actions to be taken by a specified number of votes, the action may not be taken unless the requisite number of votes is cast. (c) Presiding Officer. The Chairman shall preside at all meetings of the Board. In the Chairman’s absence, the Vice-Chairman shall preside. (d) Executive Session. In the event that information deemed confidential pursuant to T.C.A. § 9-4-518(e) is to be discussed by the Board, the Board shall meet in executive session pursuant to T.C.A. § 9-4-518(f). The presiding officer shall announce to those in attendance that the Board, due to the confidential nature of material to be discussed, will meet in executive session which is closed to the public. The presiding officer shall set and announce a time specific at which point the meeting will again be opened for public attendance. The Board shall not take any official action during executive sessions. Minutes of executive sessions shall be maintained in such a manner as to not disclose the nature of confidential information discussed. (3) Records. (a) Where Maintained. All records of the Board shall be maintained by the State Treasurer in accordance with the requirements of applicable state law and rules and regulations pertaining to the receipt and maintenance of public records. (b) Confidential Records. Records submitted from any source which are confidential in nature as provided in T.C.A. § 9-4-518(e) shall be maintained by the State Treasurer in such a manner as to protect the confidentiality of those records and to prevent the unauthorized dissemination of such information. (c) Access to Records. Persons requesting access to the records of the Board shall submit their request to the State Treasurer who, upon determining that such records are not confidential in nature, shall permit the inspection of such records in accordance with applicable law, rules and regulations. (4) General Delegation to Treasurer. The Board, upon the affirmative vote of seven (7) members, may delegate such of its duties to the State Treasurer as the Board deems appropriate. In exercising such delegations, the State Treasurer shall be authorized to exercise such powers as are vested in the Board which are necessary to fulfill the delegated duties and responsibilities, and may assign any such duties and responsibilities to his staff as he deems necessary and proper. (5) Votes Required for Board Action. (a) Admission. Pursuant to T.C.A. § 9-4-503(b), no bank nor savings institution shall be admitted for participation in the Collateral Pool unless it receives six (6) affirmative votes of the Board. (b) Increase Collateral Pledge Level. The collateral pledge level of a qualified public depository may be increased upon four (4) affirmative votes of the Board. BANK COLLATERAL POOL CHAPTER 1700-04-01 (c) Suspension from Collateral Pool. A qualified public depository may be suspended from participation in the collateral pool upon four (4) affirmative votes of the Board. (d) Mandatory Withdrawal. Pursuant to T.C.A. § 9-4-517(a), a qualified public depository shall be required to withdraw upon a majority vote of the Board. For purposes of this rule, a majority vote shall mean an affirmative vote of four (4) members of the Board. (e) Benchmark Levels. The Board, upon the affirmative vote of four (4) members, shall set the benchmark levels in accordance with rule 1700-04-01-.03(2)(b) and (c). Any subsequent revision to the established benchmark levels may be accomplished by a majority vote of the Board, unless the revision causes the benchmark levels to be less stringent upon applicants. Should the Board’s subsequent revision cause the benchmark levels to be less stringent upon applicants, then the revision shall require six (6) affirmative votes of the Board. The benchmark levels shall be included in the Collateral Pool Operations Manual and made available to prospective applicants for admission to the collateral pool. (f) Majority Vote for Other Actions. Any action of the Board, other than that requiring a specific affirmative vote, may be accomplished by a majority vote. For purposes of this rule, a majority shall mean the affirmative vote of four (4) members of the Board. (6) Board Officers. (a) Selection. Officers shall be elected by majority vote of the Board. The election of officers shall occur at the first Board meeting held after June 30 of each year. (b) Term. Officers shall serve a one (1) year term to expire upon election of a successor by the Board. (c) Chairman. The Chairman shall preside at meetings of the Board and, together with the Board Secretary, set the agenda for each meeting. The Chairman shall have other duties and powers as may be assigned by the Board by majority vote. (d) Vice-Chairman. The Vice-Chairman shall preside at meetings in the absence of the Chairman. The Vice-Chairman shall exercise such other duties as may be assigned by majority vote of the Board. (e) Secretary. The Secretary shall keep an accurate record of the proceedings and actions of the Board. Together with the Chairman, the Secretary shall set the agenda for each meeting, notify Board members and the public of meetings and distribute appropriate materials to Board members. The Secretary shall also maintain information on the appointment of members to the Board and their term of office. (7) Miscellaneous. (a) Attachment to Treasury Department. The Board, for administrative purposes, is attached to the Tennessee Treasury Department pursuant to T.C.A. § 9-4-506(e). (b) Vacancies. Should any appointed member of the Board become unable to continue to serve on the Board for whatever reason, the member or his representative shall notify the Board of such inability to serve by submitting a letter of resignation to the Secretary. The Secretary shall notify the appropriate appointing Authority of the resignation and request that another representative be appointed to serve the remainder of the member’s term. BANK COLLATERAL POOL CHAPTER 1700-04-01