§ 43-16-135 — Purchase of property with preferred stock

Whenever an association, organized under this chapter with preferred capital stock, purchases the stock or any property, or any interest in any property of any person, it may discharge the obligations so incurred, wholly or in part, by exchanging for the acquired interest, shares of its preferred capital stock to an amount that at par value would equal the fair market value of the stock or interest so purchased, as determined by the board of directors. In that case, the transfer to the association of the stock or interest purchased shall be equivalent to payment in cash for the shares of stock issued.

Legislative History

Acts 1923, ch. 100, § 20; Shan. Supp., § 2534a60; Code 1932, §3818; T.C.A. (orig. ed.), § 43-1836.