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

Indiana Statutes

§ 27-13-12-5 — Consideration of debts

Indiana § 27-13-12-5

Title 27INSURANCE

Art. 13HEALTH MAINTENANCE ORGANIZATIONS

Ch. 12Protection Against Insolvency; Net Worth

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Bluebook

Ind. Code § 27-13-12-5 (2026).

Text

(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.

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(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.