§ 15-12-1-31 — Redemption of stock

(a) An association organized with capital
stock may, at any time, unless otherwise provided in the association's
articles of incorporation or bylaws, and except when the debts of the
association exceed fifty percent (50%) of the assets:
(1) redeem, purchase, or acquire the association's outstanding
common stock at the book value, as conclusively determined by
the association's board of directors, but not to exceed par; and
(2) pay for the stock in cash within one (1) year.
(b) An association organized with capital stock may, at any time,
unless otherwise provided in its articles of incorporation or bylaws,
redeem, purchase, or acquire the association's outstanding preferred
stock. However, an association may not redeem or purchase the
association's outstanding preferred stock:
(1) when the association is insolvent; or
(2) when the redemption or purchase would render the association
insolvent or would reduce the net assets of the association below
the total amount payable to the holders of stock having prior or
equal rights to the assets of the association upon involuntary
dissolution.
[Pre-2008 Recodification Citations: subsection (a) formerly
15-7-1-13(h); subsection (b) formerly 15-7-1-13(i).]

Legislative History

As added by P.L.2-2008, SEC.3.