Maintenance of surplus; losses

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    (a)    If the surplus of a commercial bank at any time is less than 100 percent of its capital stock, then, until the surplus is 100 percent of the capital stock, the commercial bank:

        (1)    Shall transfer to its surplus annually at least 10 percent of its net earnings; and

        (2)    May not declare or pay any cash dividends that exceed 90 percent of its net earnings.

    (b)    Any losses of a commercial bank that exceed its undivided profits may be charged to its surplus.


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