Indiana § 23-17-21-2 - Exceptions to prohibition
Full text of Indiana Indiana Code § 23-17-21-2 — Exceptions to prohibition, with citation guidance and answers to common questions.
§ 23-17-21-2. Exceptions to prohibition
Sec. 2. (a) A mutual benefit corporation may purchase the corporation's memberships if, after the purchase is completed:
(1) the corporation would be able to pay the corporation's debts as the debts become due in the usual course of the corporation's activities; and
(2) the corporation's total assets would at least equal the sum of the corporation's total liabilities.
(b) Corporations may make distributions upon dissolution in conformity with IC 23-0.5-6, IC 23-17-22, or IC 23-17-24.
(c) A corporation may, in conformity with the purposes of the corporation, make distributions to and confer benefits on a member or an affiliate that is a governmental entity (as defined under IC 34-6-2.1-77) or a member or an affiliate that is another nonprofit domestic or foreign entity if, after any distribution is completed:
(1) the corporation would be able to pay the corporation's debts as the debts become due in the usual course of the corporation's activities; and
(2) the corporation's total assets would at least equal the corporation's total liabilities.
An affiliate is an entity that directly or indirectly controls, is controlled by, or is under common control with the corporation. Control includes the power to select the corporation's board of directors.
(d) Corporations may repay loans or advances in accordance with and to the extent authorized under IC 23-17-7-9.
As added by P.L.179-1991, SEC.1. Amended by P.L.1-1998, SEC.129; P.L.118-2017, SEC.91; P.L.186-2025, SEC.125.
IC 23-17-22Chapter 22. General Dissolution
23-17-22-1Corporations without members; corporations that have not commenced business; articles of dissolution; contents 23-17-22-2Proposals by board; conditions for adoption; notice 23-17-22-3Articles of dissolution; contents 23-17-22-4Revocation; authorization; articles of revocation; contents; effect 23-17-22-5Continued existence; winding up and liquidation; effect of dissolution 23-17-22-6Claims against dissolved corporation; notice to claimants; limitation of actions 23-17-22-7Claims against dissolved corporation; notice by publication; limitation of actions; enforcement
Frequently Asked Questions About Indiana § 23-17-21-2
What does Indiana Code § 23-17-21-2 cover?
Section 23-17-21-2 ("Exceptions to prohibition") is part of the Indiana Code, the codified statutory law of Indiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Indiana § 23-17-21-2?
A common citation format is "Indiana Code § 23-17-21-2" (Indiana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Indiana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Indiana official source linked on this page or consult a licensed Indiana attorney.
How does Indiana § 23-17-21-2 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Indiana can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Indiana.