South Dakota Codified Laws 47-1A-640.3. Indebtedness to shareholder by reason of distribution at parity with indebtedness to general unsecured creditor
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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.
Terms Used In South Dakota Codified Laws 47-1A-640.3
- 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.
Source: SL 2005, ch 239, § 83.