7-8-11 - Dividends.
7-8-11. Dividends.
(1) The board of directors of an industrial bank may declare a dividend out of the netprofits of the industrial bank after providing for all expenses, losses, interest, and taxes accruedor due from the industrial bank in accordance with this section and subject to Section 7-8-12.
(2) The industrial bank shall transfer to a surplus fund at least 10% of its net profitsbefore dividends for the period covered by the dividend, until the surplus reaches 100% of itscapital stock.
(3) Any amount paid from the industrial bank's net earnings into a fund for the retirementof any debenture capital or preferred stock for the period covered by the dividend is consideredan addition to its surplus fund if, upon the retirement of the debenture capital or preferred stock,the amount paid into the retirement fund for the period may be properly carried to the surplusfund of the industrial bank. In this case the industrial bank shall transfer to the surplus fund theamount paid into the retirement fund.
Amended by Chapter 92, 2004 General Session