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North Dakota Century Code Title 6. Banks and Banking § 6-03-36. Capital must be maintained--Dividends prohibited under certain conditions

Current as of January 01, 2024 | Updated by Findlaw Staff

1. No director or officer of an association may permit the impairment of an association's capital by the payment of dividends or otherwise.

2. Except as provided in subsection 4, no dividend may be paid which exceeds the following amount:

a. An association's net profits for the period beginning January first of the year for which the proposed dividends are declared and ending as reported in the most recent quarter-end call report; plus

b. The association's net profits for the preceding two calendar years as reported in the year-end call report; less

c. Any required transfers to:

(1) Surplus; and

(2) Funds for the retirement of preferred stock, capital notes, and debentures.

3. For the purpose of this section, “net profits” means the institution's net profits after taxes prior to extraordinary items less dividends as reported on the call reports.

4. Payment of a dividend which exceeds the calculated amount in subsection 2 may be made only with prior approval of the commissioner or state banking board.

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Cite this article: FindLaw.com - North Dakota Century Code Title 6. Banks and Banking § 6-03-36. Capital must be maintained--Dividends prohibited under certain conditions - last updated January 01, 2024 | https://codes.findlaw.com/nd/title-6-banks-and-banking/nd-cent-code-sect-6-03-36/

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