§ 23-18-1-7 — "Distribution"

"Distribution" means a direct or an indirect
transfer of money or other property or the incurrence or the transfer of
indebtedness by a limited liability company to or for the benefit of its
members in respect of their interests in the limited liability company.
A distribution may be in the form of a declaration or payment of a
dividend, purchase, redemption, or other acquisition of an interest, a
distribution of indebtedness, or otherwise. The term does not include:
(1) amounts constituting reasonable compensation for past or
present services or reasonable payments made in the ordinary
course of business under a bona fide retirement plan or other
benefit program; or
(2) the making of or payment or performance upon a bona fide
guaranty or similar arrangement by a limited liability company to
or for the benefit of its members.
However, the failure of an amount to satisfy subdivision (1), or of a
payment or performance to satisfy subdivision (2), is not determinative
of whether the amount, payment, or performance is a distribution.

Legislative History

As added by P.L.8-1993, SEC.301. Amended by P.L.130-2006, SEC.26; P.L.40-2013, SEC.5.