The effect of a distribution under section 3 of this chapter is measured:

1. (1) in the case of distribution by purchase, redemption, or other acquisition of the corporation's shares, as of the earlier of:

   1. (A) the date money or other property is transferred or debt incurred by the corporation; or
   2. (B) the date the shareholder ceases to be a shareholder with respect to the acquired shares;
2. (2) in the case of any other distribution of indebtedness, as of the date the indebtedness is distributed; and

3. (3) in all other cases, as of:

   1. (A) the date the distribution is authorized if the payment occurs within one hundred twenty (120) days after the date of authorization; or
   2. (B) the date the payment is made if it occurs more than one hundred twenty (120) days after the date of authorization.

As added by P.L.149-1986, SEC.12.