Indebtedness to shareholder by reason of distribution at parity with indebtedness to general unsecured creditor.

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47-1A-640.3. Indebtedness to shareholder by reason of distribution at parity with indebtedness to general unsecured creditor.

A corporation's indebtedness to a shareholder incurred by reason of a distribution made in accordance with §§47-1A-640 to 47-1A-640.5, inclusive, is at parity with the corporation's indebtedness to its general, unsecured creditors except to the extent subordinated by agreement.

Source: SL 2005, ch 239, §83.


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