Skip to main content
Find a Lawyer

Tennessee Code Title 48. Corporations and Associations § 48-58-303

Current as of January 02, 2024 | Updated by FindLaw Staff

(a) A corporation may not lend money to or guarantee the obligation of a director or officer of the corporation.

(b) This section does not apply to loans and guarantees authorized or permitted by any other statute that regulates any special class of corporation.

(c) This section does not apply to:

(1) Advances to pay reimbursable expenses reasonably expected to be incurred by a director or officer;

(2) Advances to pay premiums on life insurance if the advance is secured by the cash value of the policy;

(3) Advances pursuant to part 5 of this chapter;

(4) Loans or advances pursuant to employee benefit plans; or

(5) Loans to pay relocation expenses.

(d) Neither a sale on credit in the ordinary course of business nor a life insurance policy loan shall be subject to the restrictions of this section.

(e) The fact that a loan or guarantee is made in violation of this section does not affect the borrower's liability on the loan.

Back to chapter list
Previous part of code Next part of code
Back to chapter list

Cite this article: FindLaw.com - Tennessee Code Title 48. Corporations and Associations § 48-58-303 - last updated January 02, 2024 | https://codes.findlaw.com/tn/title-48-corporations-and-associations/tn-code-sect-48-58-303/

Read this complete Tennessee Code Title 48. Corporations and Associations § 48-58-303 on Westlaw. Westlaw subscription required.

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.

Was this helpful?

Search all Tennessee Codes

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About the Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to find an attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

Copied to clipboard