Tenn. Code Ann. § 48-63-102

Purchase of memberships—Authorized distributions

Applied in 1 court decision — leading case Summers v. Cherokee Children & Family Services, Inc. (2002)

Most recently applied in Summers v. Cherokee Children & Family Services, Inc. (September 2002)

Acts 1987, ch. 242, § 13.02; 2014, ch. 899, § 76.

(1) A mutual benefit corporation may purchase its memberships if after the purchase is completed: The corporation would be able to pay its debts as they become due in the usual course of its activities; and

(2) The corporation's total assets would at least equal the sum of its total liabilities.

(3) A public benefit corporation may make distributions to its members who are public benefit corporations if the distributions are in conformity with its charitable purposes.

(4) A public benefit corporation and a mutual benefit corporation may make distributions upon dissolution in conformity with chapter 64 of this title.

Current official text: Tennessee Code (LexisNexis). Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Tennessee statutes; confirm against the official source for the current text. Not legal advice.