Suspension From Pool

(1) Notice of Suspension to Qualified Public Depository. The Board may suspend or disqualify any qualified public depository for a violation of any order issued pursuant to these rules or for violation of any of the provision of the Act or these rules. The qualified public depository shall be notified of the effective date of the suspension, the length of the suspension and such terms or conditions of the suspension that the Board may prescribe within ten (10) business days of the action by the Board. (2) Notice of Suspension to Public Depositors. The qualified public depository shall furnish the Treasurer, in a form prescribed by him, a current listing of all public depositors within five (5) business days of the receipt of a notice of suspension. The Treasurer shall notify each public depositor appearing on the listing submitted by the qualified public depository of the effective date, duration and terms of suspension of any qualified public depository. In addition, if the suspension is for longer than sixty (60) calendar days, the Treasurer shall publish the notice of suspension in the Tennessee Administrative Register. (3) Effect of Suspension. A qualified public depository which is suspended from participation in the pool shall be prohibited from opening additional demand deposit accounts, accepting any savings deposits or time deposits which would be secured by the pool or from renewing any time deposits which are secured by the pool. The qualified public depository shall continue to file all required reports and shall continue to collateralize all existing time deposits, savings deposits and demand deposits secured by the pool. (4) Appeal. A qualified public depository which is suspended may appeal the decision by following the appeal procedure in rule 1700-04-01-.13.