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Tenn. Code Ann. § 56-3-108

Dividends — Unauthorized payment — Penalty

Known as the Tennessee Insurance Law

The act spans §§ 56–56 (1,220 sections).

Acts 1895, ch. 160, § 25; Shan., § 3309; Code 1932, § 6129; T.C.A

(1) It is not lawful for the directors, trustees, or managers of any insurance company incorporated by the laws of this state to make any dividend except from the surplus profits.

(2) Any dividend made contrary to this chapter shall subject the company making the dividend to a forfeiture of its charter, and each stockholder receiving it to a liability to the creditors of the company to the extent of double the amount of the dividend declared.

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.