7-3-16 - Losses charged to surplus -- Replenishment of fund -- Dividend restrictions.
7-3-16. Losses charged to surplus -- Replenishment of fund -- Dividendrestrictions.
Any losses sustained by any bank in excess of its reserves for loan losses and undividedprofits shall be charged to its surplus fund. Its surplus fund shall be replenished from net profits,and no dividend may be declared or paid by the bank in excess of one-half of its net profits untilits surplus fund is equal to an amount prescribed by the commissioner in writing.
Amended by Chapter 8, 1983 General Session