48-63-102 - Authorized distributions. - Tennessee Statutes

48-63-102. Authorized distributions.

(a)  A mutual benefit corporation may purchase its memberships if after the purchase is completed:

     (1)  The corporation would be able to pay its debts as they become due in the usual course of its activities; and

     (2)  The corporation's total assets would at least equal the sum of its total liabilities.

(b)  A public benefit corporation may make distributions to its members:

     (1)  Who are public benefit corporations; and

     (2)  If in conformity with its charitable purposes.

(c)  A public benefit corporation and a mutual benefit corporation may make distributions upon dissolution in conformity with chapter 64 of this title.

[Acts 1987, ch. 242, § 13.02.]