Section 27-13-12-5 - Consideration of debts(a) In determining net worth under this chapter, a debt may not be considered fully subordinated unless: (1) the subordination clause is in a form acceptable to the commissioner; and(2) any interest obligation relating to the repayment of the subordinated debt is subordinated under a clause that is in a form acceptable to the commissioner.(b) The interest expense relating to the repayment of any fully subordinated debt is considered a covered expense.(c) Any debt that: (1) is incurred through a note that meets the requirements of this chapter; and(2) is otherwise acceptable to the commissioner; may not be considered liability and must be recorded as equity.
As added by P.L. 26-1994, SEC.25.