Whenever an association, organized pursuant to this chapter with preferred capital stock, shall purchase 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 which 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.
Tenn. Code Ann. § 59-13-133
Use of preferred stock to discharge obligations
Known as the Tennessee Coal Cooperative Marketing Association Law
The act spans §§ 59-13-101 to 59-13-144 (44 sections).
Acts 1984, ch. 864, § 33.
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.