Tennessee § 56-9-319 Mutual debts and credits - When offset allowed

Tennessee Statutes

§ 56-9-319 — Mutual debts and credits - When offset allowed

Tennessee § 56-9-319

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This text of Tennessee § 56-9-319 (Mutual debts and credits - When offset allowed) 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. § 56-9-319 (2026).

Text

(a)In all cases of mutual debts or mutual credits between the insurer and another person in connection with any action or proceeding under this chapter, the credits and debts shall be set off and the balance only shall be allowed or paid, except as provided in subsection (b).

(b)No offset shall be allowed in favor of any such person where:

(1)The obligation of the insurer to the person would not, at the date of the entry of any liquidation order or otherwise, as provided in this chapter, entitle the person to share as a claimant in the assets of the insurer;

(2)The obligation of the insurer to the person was purchased by or transferred to the person with a view of its being used as an offset; or (3) The obligation of the person is to pay an assessment levied against the subscribers of

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(a) In all cases of mutual debts or mutual credits between the insurer and another person in connection with any action or proceeding under this chapter, the credits and debts shall be set off and the balance only shall be allowed or paid, except as provided in subsection (b). (b) No offset shall be allowed in favor of any such person where: (1) The obligation of the insurer to the person would not, at the date of the entry of any liquidation order or otherwise, as provided in this chapter, entitle the person to share as a claimant in the assets of the insurer; (2) The obligation of the insurer to the person was purchased by or transferred to the person with a view of its being used as an offset; or (3) The obligation of the person is to pay an assessment levied against the subscribers of a reciprocal insurer, or is to pay a balance upon the subscription to the capital stock of a stock insurer.