Tennessee Code 59-13-133 – Use of preferred stock to discharge obligations
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Terms Used In Tennessee Code 59-13-133
- Association: means any corporation organized under this chapter. See Tennessee Code 59-13-103
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Person: means any individual, firm, partnership, corporation, and association. See Tennessee Code 59-13-103
- Property: includes both personal and real property. See Tennessee Code 1-3-105
Whenever an association, organized pursuant to this chapter with preferred capital stock, shall purchase the stock or any property, or any interest in any property of any person, it may discharge the obligations so incurred, wholly or in part, by exchanging for the acquired interest, shares of its preferred capital stock to an amount which at par value would equal the fair market value of the stock or interest so purchased, as determined by the board of directors. In that case the transfer to the association of the stock or interest purchased shall be equivalent to payment in cash for the shares of stock issued.