<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 47-1A-640.3 - Indebtedness to shareholder by reason of distribution at parity with indebtedness to general unsecured creditor. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2068144Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2068144SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2068144CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2068144Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2068144DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2068144000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2068144SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2068144SCL-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2068144Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=47-1A-640.3"><span class="s2068144SENU">47-1A-640.3</span></a><span xml:space="preserve" class="s2068144SENU">. </span><span class="s2068144CL">Indebtedness to shareholder by reason of distribution at parity with indebtedness to general unsecured creditor.</span></p><p dir="ltr" class="s2068144Normal-000000"><span xml:space="preserve" class="s2068144DefaultParagraphFont">A corporation's indebtedness to a shareholder incurred by reason of a distribution made in accordance with §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=47-1A-640"><span class="s2068144DefaultParagraphFont">47-1A-640</span></a><span xml:space="preserve" class="s2068144DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=47-1A-640.5"><span class="s2068144DefaultParagraphFont">47-1A-640.5</span></a><span class="s2068144DefaultParagraphFont">, inclusive, is at parity with the corporation's indebtedness to its general, unsecured creditors except to the extent subordinated by agreement.</span></p><p dir="ltr" class="s2068144Normal"><span xml:space="preserve" class="s2068144000001"> </span></p><p dir="ltr" class="s2068144Normal"><span class="s2068144SCL">Source:</span><span xml:space="preserve" class="s2068144SCL-000002"> SL 2005, ch 239, § 83.</span></p></div></body></html>