Indiana § 27-13-12-5 Consideration of debts

Indiana Statutes

§ 27-13-12-5 — Consideration of debts

Indiana·Title 27 INSURANCE·Art. 13 HEALTH MAINTENANCE ORGANIZATIONS·Ch. 12 Protection Against Insolvency; Net Worth

(a)In determining net worth under this chapter, a debt may not be considered fully subordinated unless:

(1)the subordination clause is in a form acceptable to the commissioner; and

(2)any interest obligation relating to the repayment of the subordinated debt is subordinated under a clause that is in a form acceptable to the commissioner.

(b)The interest expense relating to the repayment of any fully subordinated debt is considered a covered expense.

(c)Any debt that:

(1)is incurred through a note that meets the requirements of this chapter; and

(2)is otherwise acceptable to the commissioner; may not be considered liability and must be recorded as equity.

Free access — add to your briefcase to read the full text and ask questions with AI

(a) In determining net worth under this
chapter, a debt may not be considered fully subordinated unless:
(1) the subordination clause is in a form acceptable to the
commissioner; and
(2) any interest obligation relating to the repayment of the
subordinated debt is subordinated under a clause that is in a form
acceptable to the commissioner.
(b) The interest expense relating to the repayment of any fully
subordinated debt is considered a covered expense.
(c) Any debt that:
(1) is incurred through a note that meets the requirements of this
chapter; and
(2) is otherwise acceptable to the commissioner;
may not be considered liability and must be recorded as equity.

Indiana § 27-13-12-5 (Consideration of debts) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.