Use of the proceeds as enumerated in §§ 66-11-137 — 66-11-139 for any purpose other than either payment pursuant to written agreement between the parties or in accordance with the allocation of costs and profits under generally accepted accounting principles for construction projects shall be prima facie evidence of intent to defraud. Use of a single business bank account for multiple projects shall not be evidence of intent to defraud.
Tenn. Code Ann. § 66-11-140
Misuse of proceeds prima facie evidence of intent to defraud
Applied in 2 court decisions — leading case Wilson v. Mettetal (In Re Mettetal) (1984)
Most recently applied in Alside Supply Center v. Vinson (October 1990)
Code 1932, § 7945; T.C.A
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.