{"data":{"id":"us-tn/tenn.-code-ann.-56-3-109","jurisdiction":"us-tn","citation":"Tenn. Code Ann. § 56-3-109","heading":"Dividends - Illegal division - Directors' liability to creditors","body":"Moneys received as premiums upon risks undetermined and outstanding, at the time of declaring any dividend, shall not be considered as profits, earned and divided as such; and if any loss should happen impairing the capital stock, no dividend shall be declared until the capital stock is made good; and if a dividend is declared, contrary to this prohibition, the directors consenting to the dividend shall be liable to make good to the creditors of the company, if their claims cannot otherwise be satisfied, the amount of dividends thus illegally divided.","path":["TN Code","Title 56","Chapter 3"],"source_url":"https://oss-data-us.vaquill.ai/v2026.08/us_tn_statutes.parquet","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:26Z","sha256":"b0afb7a5cbd156bcd9a55830f3e9e0f9780043a3e126d5081f1d59a7f547ab66","source_id":"us-tn","stale":false,"prev":"us-tn/tenn.-code-ann.-56-3-108","next":"us-tn/tenn.-code-ann.-56-3-110"},"notice":"GroundRules: Original legal text. Not legal advice."}