Misuse of Proceeds Prima Facie Evidence of Intent to Defraud

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Use of the proceeds as enumerated in §§66-11-137 —66-11-139 for any purpose other than either payment pursuant to written agreement between the parties or in accordance with the allocation of costs and profits under generally accepted accounting principles for construction projects shall be prima facie evidence of intent to defraud. Use of a single business bank account for multiple projects shall not be evidence of intent to defraud.

Code 1932, § 7945; T.C.A. (orig. ed.), § 64-1142; Acts 2004, ch. 688, § 2; 2007, ch. 189, § 39.

Textbooks. Tennessee Jurisprudence, 4 Tenn. Juris., Bankruptcy, § 9, 41; 6 Tenn. Juris., Constitutional Law, § 47; 18 Tenn. Juris., Mechanics' Liens, § 3.

Law Reviews.

1985 Tennessee Survey: Selected Developments in Tennessee Law, 53 Tenn. L. Rev. 389 (1986).


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