56-21-110 - Deposits and investments Borrowing of funds by officers or committee members prohibited Director or officer not to take fees for making loans Penalty. - Tennessee Statutes

56-21-110. Deposits and investments Borrowing of funds by officers or committee members prohibited Director or officer not to take fees for making loans Penalty.

(a)  The deposits and investments of every mutual fire insurance company subject to this chapter shall be made in its corporate name.

(b)  No officer of the company or member of any committee thereof charged with the investment of funds shall borrow the same or be, directly or indirectly, liable therefor, for or on account of loans made to others, nor shall any director or any officer take or receive to use any fee, brokerage, commission, gift or other consideration on account of any loan made by or on behalf of any such company; provided, that this does not prevent the persons subscribing for or securing shares of guaranty capital in any company operating on the guaranty capital plan on equal terms and conditions with other guarantors.

(c)  A violation of this section is a Class C misdemeanor.

[Acts 1907, ch. 461, § 10; Shan., § 3369a26; Acts 1921, ch. 160, § 10; Code 1932, § 6277; T.C.A. (orig. ed.), § 56-2012; Acts 1989, ch. 591, § 113.]