Sec. 36. If an association that is organized under or governed by this chapter with capital stock purchases:

(1) the stock;

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Terms Used In Indiana Code 15-12-1-36

  • association: means any corporation organized under or governed by this chapter. See Indiana Code 15-12-1-4
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
  • person: includes the following:

    Indiana Code 15-12-1-6

  • Property: includes personal and real property. See Indiana Code 1-1-4-5
(2) any property; or

(3) any interest in any property;

of any person, firm, corporation, or association, the association may discharge the obligations incurred in the purchase, wholly or in part, by exchanging for the acquired interest, shares of the association’s capital stock to an amount that at par value would equal the fair market value of the stock or interest purchased, as determined by the board of directors. In that case, the transfer to the association of the stock or interest purchased must be equivalent to payment in cash for the shares of stock issued.

[Pre-2008 Recodification Citation: 15-7-1-17.]

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