Sec. 31. (a) An association organized with capital stock may, at any time, unless otherwise provided in the association’s articles of incorporation or bylaws, and except when the debts of the association exceed fifty percent (50%) of the assets:

(1) redeem, purchase, or acquire the association’s outstanding common stock at the book value, as conclusively determined by the association’s board of directors, but not to exceed par; and

(2) pay for the stock in cash within one (1) year.

     (b) An association organized with capital stock may, at any time, unless otherwise provided in its articles of incorporation or bylaws, redeem, purchase, or acquire the association’s outstanding preferred stock. However, an association may not redeem or purchase the association’s outstanding preferred stock:

(1) when the association is insolvent; or

(2) when the redemption or purchase would render the association insolvent or would reduce the net assets of the association below the total amount payable to the holders of stock having prior or equal rights to the assets of the association upon involuntary dissolution.

[Pre-2008 Recodification Citations: subsection (a) formerly 15-7-1-13(h); subsection (b) formerly 15-7-1-13(i).]

As added by P.L.2-2008, SEC.3.