The balance of net income of an association, if any, may be credited to a surplus account from which the board of directors of any association with permanent capital stock may, at its discretion and at such times as it may determine, declare and pay dividends in cash or additional stock to the holders of record of the stock outstanding at the date the dividends are declared. The reserve fund shall, at all times, be maintained at not less than the minimum amounts required in the Savings and Loan Act.
History: 1953 Comp., § 48-15-112, enacted by Laws 1967, ch. 61, § 68.
ANNOTATIONSCross references. — For paying dividends on savings accounts, see 58-10-66 NMSA 1978.
For the permanent capital stock association reserve fund, see 58-10-68B NMSA 1978.
Capital stock building and loan association could pay quarterly dividends on its various classes of shares. 1962 Op. Att'y Gen. No. 62-58 (opinion rendered under former law).
Am. Jur. 2d, A.L.R. and C.J.S. references. — 10 Am. Jur. 2d Banks §§ 414 to 418.
9 C.J.S. Banks and Banking § 603; 12 C.J.S. Building and Loan Associations § 26.