Tennessee § 56-9-325 - Contingent claims — Claims made under employment contracts.
Full text of Tennessee Tennessee Code Annotated § 56-9-325 — Contingent claims — Claims made under employment contracts., with citation guidance and answers to common questions.
§ 56-9-325. Contingent claims — Claims made under employment contracts.
The claim of a third party which is contingent only on the third party's first obtaining a judgment against the insured shall be considered and allowed as if there were no such contingency. A claim may be allowed even if contingent, if it is filed in accordance with § 56-9-323. It may be allowed and may participate in all distributions declared after it is filed to the extent that it does not prejudice the orderly administration of the liquidation. Claims that are due except for the passage of time shall be treated as absolute claims are treated, except that the claims may be discounted at the legal rate of interest. Claims made under employment contracts by directors, principal officers, or persons in fact performing similar functions or having similar powers are limited to payment for services rendered prior to the issuance of any order of rehabilitation or liquidation under § 56-9-302 or § 56-9-307. Acts 1991, ch. 142, § 4.
Source: official Tennessee text · Last verified 2026-08-27
Frequently Asked Questions About Tennessee § 56-9-325
What does Tennessee Code Annotated § 56-9-325 cover?
Section 56-9-325 ("Contingent claims — Claims made under employment contracts.") is part of the Tennessee Code Annotated, the codified statutory law of Tennessee. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Tennessee § 56-9-325?
A common citation format is "Tennessee Code Annotated § 56-9-325" (Tennessee). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Tennessee law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Tennessee official source linked on this page or consult a licensed Tennessee attorney.
How does Tennessee § 56-9-325 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Tennessee can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Tennessee.