Sale, consolidation, merger, disposal, or lease of assets in bulk;
designation of successor
Sec. 16. (a) Except for sales of stock or merchandise in the
ordinary course of the seller's business, a seller who has deposited
money or an insurance policy under section 12 or 12.5 of this chapter
may not:
(1) sell, consolidate, merge, or dispose of assets; or
(2) lease the seller's business, facilities, or assets;
without providing, as an integral part of the transaction or
occurrence, for the designation of a successor seller of the money or
insurance policy placed in trust. For purposes of this section, a
change in control determines the seller's obligation.
(b) If a seller acting as a trustee of an insurance policy fails to
designate a qualified successor seller, the board shall make the
designation. However, the designated successor must be willing to
accept the designation.
(c) This section does not restrict a purchaser's right to designate
a new seller in accordance with section 13 of this chapter.
As added by P.L.200-1991, SEC.1. Amended by P.L.241-1995,
SEC.11; P.L.114-1999, SEC.13.
Last modified: May 27, 2006