§ 24-3-3-13 — Interest paid and release of escrow funds; severability

Indiana § 24-3-3-13

• Jurisdiction: Indiana
• Art. 3: TOBACCO PRODUCTS
• Ch. 3: Qualified Escrow Fund for Tobacco Product

Text

(a) Subsection (b) applies unless and until all
or any part of subsection (b) is held to be unconstitutional or otherwise
unenforceable. If all or any part of subsection (b) or the application of
all or any part of subsection (b) to a person, an entity, or a circumstance
is held to be unconstitutional or invalid by a court, the
unconstitutionality or invalidity does not affect other provisions of this
chapter, and subsection (c) controls. Subsection (c) applies unless and
until all or any part of subsection (c) is held to be unconstitutional or
otherwise unenforceable. If all or any part of subsection (c) or the
application of all or any part of subsection (c) to a person, an entity, or
a circumstance is held to be unconstitutional or invalid by a court, the
unconstitutionality or invalidity does not affect other provisions of this
chapter, and subsection (d) controls.
(b) A tobacco product manufacturer that places funds into escrow
under section 12(2) of this chapter shall receive the interest or other
appreciation on such funds as earned. The funds shall be released from
escrow only under the following circumstances:
(1) To pay a judgment or settlement on any released claim
brought against the tobacco product manufacturer by the state or
any releasing party located or residing in Indiana. Funds shall be
released from escrow under this subdivision:
(A) in the order in which they were placed into escrow; and
(B) only to the extent and at the time necessary to make
payments required under such a judgment or settlement.
(2) To the extent that a tobacco product manufacturer establishes
that the amount the tobacco product manufacturer is required to
place in escrow on account of units sold in Indiana in a particular
year exceeds the master settlement agreement payments the
tobacco product manufacturer would have been required to make
on account of units sold in Indiana if the tobacco product
manufacturer were a participating manufacturer, as determined
under section IX(i) of the master settlement agreement and after
final determination of all adjustments, the excess payments shall
be released from escrow and shall revert to the tobacco product
manufacturer.
(3) To the extent not released from escrow under subdivision (1)
or (2), funds shall be released from escrow and revert back to the
tobacco product manufacturer twenty-five (25) years after the date
on which the funds were placed into escrow.
(c) This subsection applies only if subsection (b) is held to be
unconstitutional or otherwise unenforceable. A tobacco product
manufacturer that places funds into escrow under section 12(2) of this
chapter shall receive the interest or other appreciation on the funds as
earned. The funds shall be released from escrow only under the
following circumstances:
(1) To pay a judgment or settlement on any released claim
brought against the tobacco product manufacturer by the state or
any releasing party located or residing in Indiana. Funds shall be
released from escrow under this subdivision:
(A) in the order in which they were placed into escrow; and
(B) only to the extent and at the time necessary to make
payments required under such a judgment or settlement.
(2) To the extent not released from escrow under subdivision (1),
funds shall be released from escrow and revert back to the
tobacco product manufacturer twenty-five (25) years after the date
on which the funds were placed into escrow.
(d) This subsection applies only if subsections (b) and (c) are held
to be unconstitutional or otherwise unenforceable. A tobacco product
manufacturer that places funds into escrow under section 12(2) of this
chapter shall receive the interest or other appreciation on such funds as
earned. Such funds themselves shall be released from escrow only
under the following circumstances:
(1) To pay a judgment or settlement on any released claim
brought against such tobacco product manufacturer by the state
or any releasing party located or residing in Indiana. Funds shall
be released from escrow under this subdivision:
(A) in the order in which they were placed into escrow; and
(B) only to the extent and at the time necessary to make
payments required under such a judgment or settlement.
(2) To the extent that a tobacco product manufacturer establishes
that the amount it was required to place into escrow in a particular
year was greater than the state's allocable share of the total
payments that the manufacturer would have been required to
make in that year under the Master Settlement Agreement (as
determined pursuant to section IX(i)(2) of the Master Settlement
Agreement, and before any of the adjustments or offsets described
in section IX(i)(3) of that Agreement other than the Inflation
Adjustment) had it been a participating manufacturer, the excess
shall be released from escrow and revert back to the tobacco
product manufacturer.
(3) To the extent not released from escrow under subdivision (1)
or (2), funds shall be released from escrow and revert back to
such tobacco product manufacturer twenty-five (25) years after
the date on which the funds were placed into escrow.

Legislative History

As added by P.L.223-1999, SEC.1. Amended by P.L.252-2003, SEC.15.