§ 23-17-21-2 — Exceptions to prohibition

Indiana § 23-17-21-2

• Jurisdiction: Indiana
• Title 23: BUSINESS AND OTHER ASSOCIATIONS
• Art. 17: NONPROFIT CORPORATIONS
• Ch. 21: Distributions

Text

(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 23-0.5-6, IC 23-17-22, 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 34-6-2.1-77) 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.

Legislative History

As added by P.L.179-1991, SEC.1. Amended by P.L.1-1998, SEC.129; P.L.118-2017, SEC.91; P.L.186-2025, SEC.125.