§ 34-31-8-12 — Adjustment of fair market value of the total gross assets of a transferor corporation

Indiana § 34-31-8-12

• Jurisdiction: Indiana
• Title 34: CIVIL LAW AND PROCEDURE
• Art. 31: LIMITED LIABILITY
• Ch. 8: Limited Liability Concerning Asbestos Related Claims

Text

(a) Except as provided in subsections (b)
through (d), the sum determined as the fair market value of the total
gross assets of a transferor corporation as of the time of a merger or
consolidation for purposes of determining the limit on the cumulative
successor asbestos related liabilities of an innocent successor
corporation under this chapter shall be adjusted annually at a rate equal
to the sum of the following:
(1) The prime rate listed in the first edition of the Wall Street
Journal published for each calendar year since the merger or
consolidation. If the prime rate is not published in the first edition
of the Wall Street Journal, then a reasonable determination of the
prime rate on the first day of the year may be used.
(2) One percent (1%).
(b) The rate described in subsection (a) may not be compounded.
(c) The adjustment of the fair market value of the total gross assets
of the transferor corporation as of the time of the merger or
consolidation shall continue as described in subsection (a) until the
date as of which the adjusted value is first exceeded by the cumulative
amounts of successor asbestos related liabilities paid or committed to
be paid by or on behalf of:
(1) the innocent successor corporation;
(2) any predecessor corporation; and
(3) the transferor corporation;
after the time of the merger or consolidation.
(d) No adjustment of the fair market value of total gross assets of a
transferor corporation under this section shall be applied to any liability
insurance.

Legislative History

As added by P.L.134-2009, SEC.6.