Tennessee Code Title 45. Banks and Financial Institutions § 45-4-505

(a) Any credit union organized under this chapter shall, prior to commencing its operations, obtain and thereafter maintain insurance of its share and deposit balances by membership in the National Credit Union Association, unless otherwise determined by the commissioner pursuant to subsection (c).

(b) If it appears at any time that any credit union within this section has failed to maintain the insurance, the commissioner shall, after hearing, or opportunity for hearing, order the credit union to correct the condition and shall grant it not less than thirty (30) days to comply.  Upon failure to do so, the commissioner may suspend or revoke the charter, place the credit union in involuntary liquidation and appoint a liquidating agent for the credit union under part 9 of this chapter.

(c) The commissioner may determine the type, amounts, and other characteristics of share insurance required to be maintained by each state credit union.  In making the determination, the commissioner shall consider the following factors:

(d) The commissioner may promulgate rules to implement this section.  The rules must be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.