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Maryland Code, Financial Institutions § 3-306

Current as of January 01, 2025 | Updated by Findlaw Staff

(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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Cite this article: FindLaw.com - Maryland Code, Financial Institutions § 3-306 - last updated January 01, 2025 | https://codes.findlaw.com/md/financial-institutions/md-code-fin-inst-sect-3-306/

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