CHAPTER 21. DISTRIBUTIONS
IC 23-17-21
Chapter 21. Distributions
IC 23-17-21-1
Prohibited distributions
Sec. 1. Except as authorized under section 2 of this chapter, a
corporation may not make distributions.
As added by P.L.179-1991, SEC.1.
IC 23-17-21-2
Exceptions to prohibition
Sec. 2. (a) A mutual benefit corporation may purchase the
corporation's memberships if, after the purchase is completed:
(1) the corporation would be able to pay the corporation's debts
as the debts become due in the usual course of the corporation's
activities; and
(2) the corporation's total assets would at least equal the sum of
the corporation's total liabilities.
(b) Corporations may make distributions upon dissolution in
conformity with IC 23-17-22, IC 23-17-23, or IC 23-17-24.
(c) A corporation may, in conformity with the purposes of the
corporation, make distributions to and confer benefits on a member
or an affiliate that is a governmental entity (as defined under
IC 34-6-2-49) or a member or an affiliate that is another nonprofit
domestic or foreign entity if, after any distribution is completed:
(1) the corporation would be able to pay the corporation's debts
as the debts become due in the usual course of the corporation's
activities; and
(2) the corporation's total assets would at least equal the
corporation's total liabilities.
An affiliate is an entity that directly or indirectly controls, is
controlled by, or is under common control with the corporation.
Control includes the power to select the corporation's board of
directors.
(d) Corporations may repay loans or advances in accordance with
and to the extent authorized under IC 23-17-7-9.
As added by P.L.179-1991, SEC.1. Amended by P.L.1-1998,
SEC.129.