45-4-503 - Dividends.
45-4-503. Dividends.
(a) (1) Subject to the limitations contained in subsection (e), a credit union may declare dividends at rates it deems appropriate for periods and classes of accounts that the board of directors may establish.
(2) A credit union may establish higher dividend rates for shares held in excess of specified minimum amounts.
(b) Shares that become fully paid during the preceding dividend period shall be entitled to a proportional part of the dividend.
(c) Dividend credit for a month may be accrued on shares that are or become fully paid during the first ten (10) days of that month.
(d) A credit union may provide for the payment of dividends from the date of deposit or the date when shares become fully paid to the date of withdrawal of the deposits or shares, if the bylaws so provide.
(e) No dividends shall be authorized or paid that will total more than the current earnings of the credit union after the required reserve transfer, undivided profits, and the amount held in regular reserves in excess of legal requirements unless the commissioner of financial institutions shall have granted written approval in advance of the payment of the dividends.
(f) Notwithstanding subsection (e), central credit unions, as defined in § 45-4-101, may declare and pay dividends from net earnings at the times and for the periods that the bylaws of the central credit unions may provide.
[Acts 1923, ch. 68, § 21; Shan. Supp., § 2198a28; Code 1932, § 3855; Acts 1957, ch. 69, § 2; 1963, ch. 30, § 6; 1967, ch. 227, § 6; 1973, ch. 374, § 1; 1974, ch. 557, § 2; 1978, ch. 552, § 6; T.C.A. (orig. ed.), § 45-1826; Acts 1982, ch. 722, §§ 2, 3; 1986, ch. 558, § 5.]