Tennessee § 45-3-1309 Director acting to detriment of association

Tennessee Statutes

§ 45-3-1309 — Director acting to detriment of association

Tennessee § 45-3-1309

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This text of Tennessee § 45-3-1309 (Director acting to detriment of association) is published on Counsel Stack Legal Research, covering Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tenn. Code Ann. § 45-3-1309 (2026).

Text

It is a Class B misdemeanor for any director of an association to concur in any vote or act of the directors of the association if the director knows or has reason to know that the vote or act is intended to:

(1)Place the association in an impaired condition;

(2)Cause the association to pay dividends on its outstanding capital stock in violation of law;

(3)Cause a reduction of the capital stock of an association in violation of law;

(4)Cause the association to receive or discount any note or other evidence of debt in payment of capital stock required to be paid; or (5) Apply any of the funds of the association, except as permitted by law, directly or indirectly, to the purchase of shares of its own capital stock.

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It is a Class B misdemeanor for any director of an association to concur in any vote or act of the directors of the association if the director knows or has reason to know that the vote or act is intended to: (1) Place the association in an impaired condition; (2) Cause the association to pay dividends on its outstanding capital stock in violation of law; (3) Cause a reduction of the capital stock of an association in violation of law; (4) Cause the association to receive or discount any note or other evidence of debt in payment of capital stock required to be paid; or (5) Apply any of the funds of the association, except as permitted by law, directly or indirectly, to the purchase of shares of its own capital stock.