56-20-105 - Limitation on and use of assessments. - Tennessee Statutes

56-20-105. Limitation on and use of assessments.

The officers of the corporation shall not enter into any contract or agreement, or make any debt of any kind, except for payment of losses or damages as provided in § 56-20-104, that will require an assessment of more than fifty cents (50¢) on each one hundred dollars ($100) of insurance in force. Neither shall the officers of any such company use for current expenses any money assessed for losses or damages, and all money for the expenses raised by assessment must be so stated in the notices calling for the assessment.

[Acts 1895, ch. 220, § 6; Shan., § 3359; Code 1932, § 6241; T.C.A. (orig. ed.), § 56-1905.]