South Dakota § 47-1A-640.2 Factors used to measure effect of distribution.

South Dakota Statutes

§ 47-1A-640.2 — Factors used to measure effect of distribution.

South Dakota § 47-1A-640.2

Title 47CORPORATIONS

Ch. 47-1SOUTH DAKOTA BUSINESS CORPORATION ACT

This text of South Dakota § 47-1A-640.2 (Factors used to measure effect of distribution.) is published on Counsel Stack Legal Research, covering South Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

S.D. Codified Laws § 47-1A-640.2 (2026).

Text

Except as provided in § 47-1A-640.4 , the effect of a distribution under § 47-1A-640.1 is measured:

(1)In the case of distribution by purchase, redemption, or other acquisition of the corporation's shares, as of the earlier of the date money or other property is transferred or debt incurred by the corporation, or the date the shareholder ceases to be a shareholder with respect to the acquired shares;

(2)In the case of any other distribution of indebtedness, as of the date the indebtedness is distributed; and (3) In all other cases, as of the date the distribution is authorized if the payment occurs within one hundred twenty days after the date of authorization, or the date the payment is made if it occurs more than one hundred twenty days after the date of authorization.

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Except as provided in § 47-1A-640.4 , the effect of a distribution under § 47-1A-640.1 is measured: (1) In the case of distribution by purchase, redemption, or other acquisition of the corporation's shares, as of the earlier of the date money or other property is transferred or debt incurred by the corporation, or the date the shareholder ceases to be a shareholder with respect to the acquired shares; (2) In the case of any other distribution of indebtedness, as of the date the indebtedness is distributed; and (3) In all other cases, as of the date the distribution is authorized if the payment occurs within one hundred twenty days after the date of authorization, or the date the payment is made if it occurs more than one hundred twenty days after the date of authorization.