Action against company - Estopped to deny liability

Any company that executes or guarantees any recognizance, stipulation, bond or undertaking under this chapter shall be estopped, in any proceeding to enforce the liability that it has assumed to incur, to deny its corporate power to execute or guarantee the instrument or assume the liability. Acts 1895, ch. 175, § 7; Shan., § 2220; Code 1932, § 3952; T.C.A. (orig. ed.), § 56-1413. Any company that executes or guarantees any recognizance, stipulation, bond or undertaking under this chapter shall be estopped, in any proceeding to enforce the liability that it has assumed to incur, to deny its corporate power to execute or guarantee the instrument or assume the liability. Acts 1895, ch. 175, § 7; Shan., § 2220; Code 1932, § 3952; T.C.A. (orig. ed.), § 56-1413.