Purchase of Memberships—authorized Distributions

1. Law
2. Tennessee Code
3. Securities, Corporations and Associations
4. Distributions
5. Purchase of Memberships—authorized Distributions

1. 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.
2. A public benefit corporation may make distributions to its members who are public benefit corporations if the distributions are in conformity with its charitable purposes.
3. A public benefit corporation and a mutual benefit corporation may make distributions upon dissolution in conformity with chapter 64 of this title.

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