§ 23-1-28-5 — Measuring effect of distribution; date

The effect of a distribution under section 3 of
this chapter is measured:
(1) in the case of distribution by purchase, redemption, or other
acquisition of the corporation's shares, as of the earlier of:
(A) the date money or other property is transferred or debt
incurred by the corporation; or
(B) the date the shareholder ceases to be a shareholder with
respect to the acquired shares;
(2) in the case of any other distribution of indebtedness, as of the
date the indebtedness is distributed; and
(3) in all other cases, as of:
(A) the date the distribution is authorized if the payment occurs
within one hundred twenty (120) days after the date of
authorization; or
(B) the date the payment is made if it occurs more than one
hundred twenty (120) days after the date of authorization.

Legislative History

As added by P.L.149-1986, SEC.12.