South Dakota § 47-1A-640.3 - Indebtedness to shareholder by reason of distribution at parity with indebtedness to general unsecured creditor.
Full text of South Dakota South Dakota Codified Laws § 47-1A-640.3 — Indebtedness to shareholder by reason of distribution at parity with indebtedness to general unsecured creditor., with citation guidance and answers to common questions.
§ 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.
Source: official South Dakota text · Last verified 2026-08-27
Frequently Asked Questions About South Dakota § 47-1A-640.3
What does South Dakota Codified Laws § 47-1A-640.3 cover?
Section 47-1A-640.3 ("Indebtedness to shareholder by reason of distribution at parity with indebtedness to general unsecured creditor.") is part of the South Dakota Codified Laws, the codified statutory law of South Dakota. 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 South Dakota § 47-1A-640.3?
A common citation format is "South Dakota Codified Laws § 47-1A-640.3" (South Dakota). 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 South Dakota law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the South Dakota official source linked on this page or consult a licensed South Dakota attorney.
How does South Dakota § 47-1A-640.3 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in South Dakota 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 South Dakota.