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Municipal Banking Services Must Now Be Evaluated Every Four Years (Public Chapter 277 of 2019)

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Reviewed Date: March 18, 2020

Original Author: 
Stegall, Kay
Co-author: 
Harris, Brad
Hodge, Elisha
Date of Material: 
Oct 15, 2019


Subjects:
Finance--Bank services
Finance--Administration--Municipal

Municipal Banking Services Must Now Be Evaluated Every Four Years (Public Chapter 277 of 2019)

Summary: 
MTAS resources and guidance on Public Chapter 277 of 2019 which requires a contract for banking services be based on the evaluation of proposals, which should be documented for audit purposes. Attached are a Q & A and a sample quote for banking services for use by Tennessee municipalities. Also included here is a link to the MTAS City Byte, an online short course, on the topic.

Municipal Banking Services Must Now Be Evaluated Every Four Years

Banking services must be evaluated at least every four years and proposals must be from at least two banks. This requirement is the result of Public Chapter 277 which was signed into law on May 2, 2019 by the governor.  The statute requires a contract for banking services be based on the evaluation of proposals, which should be documented for audit purposes. 

The law was effective July 1, 2019 thus banking services must be evaluated within the next four years or when the current contract expires whichever is sooner.

A detailed Q & A and a sample form for requesting quotes for bank services are attached at the bottom of this Knowledgebase record. 

In addition to these resources an MTAS City Byte is available here: https://kate.tennessee.edu/MTAS/docs/Courses_2018/public_chapter_277/story_html5.html

The text of Public Chapter 277 is available here: https://publications.tnsosfiles.com/acts/111/pub/pc0277.pdf


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Information written by MTAS staff was based on the law at the time and/or a specific sets of facts. The laws referenced may have changed and/or the technical advice provided may not be applicable to your city or circumstances. Always consult with your city attorney or an MTAS consultant before taking any action based on information posted to this website.