Section 45-3-1309 - Director acting to detriment of association

It is a Class B misdemeanor for any director of an association to concur in any vote or act of the directors of the association if the director knows or has reason to know that the vote or act is intended to:(1) Place the association in an impaired condition;(2) Cause the association to pay dividends on its outstanding capital stock in violation of law;(3) Cause a reduction of the capital stock of an association in violation of law;(4) Cause the association to receive or discount any note or other evidence of debt in payment of capital stock required to be paid; or(5) Apply any of the funds of the association, except as permitted by law, directly or indirectly, to the purchase of shares of its own capital stock.Acts 1978, ch. 708, § 5.13; T.C.A., § 45-1713.