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, acorporation 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 thecorporation's memberships if, after the purchase is completed:
        (1) the corporation would be able to pay the corporation's debtsas the debts become due in the usual course of the corporation'sactivities; and
        (2) the corporation's total assets would at least equal the sum ofthe corporation's total liabilities.
    (b) Corporations may make distributions upon dissolution inconformity with IC 23-17-22, IC 23-17-23, or IC 23-17-24.
    (c) A corporation may, in conformity with the purposes of thecorporation, make distributions to and confer benefits on a memberor an affiliate that is a governmental entity (as defined underIC 34-6-2-49) or a member or an affiliate that is another nonprofitdomestic or foreign entity if, after any distribution is completed:
        (1) the corporation would be able to pay the corporation's debtsas the debts become due in the usual course of the corporation'sactivities; and
        (2) the corporation's total assets would at least equal thecorporation's total liabilities.
An affiliate is an entity that directly or indirectly controls, iscontrolled by, or is under common control with the corporation.Control includes the power to select the corporation's board ofdirectors.
    (d) Corporations may repay loans or advances in accordance withand 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.