Pennsylvania Statutes Title 7 P.S. Banks and Banking § 1302. Cash dividends

(a) Authorized dividends--The board of directors of an institution may, from time to time, declare, and the institution may pay, dividends on its outstanding shares subject to the restrictions of this act and to the restrictions, if any, in its articles. Dividends may be declared and paid out of accumulated net earnings of the institution or accumulated net earnings acquired as a result of a merger and transferred to surplus, if used within seven years of the date of merger, and may be paid in cash or property other than its own shares.

(b) Surplus requirements--A dividend may not be declared or paid unless:

(c) Fund for dividends after merger, consolidation or conversion--In determining the accumulated net earnings of an institution which has been the resulting institution in a merger, consolidation or conversion, the accumulated net earnings immediately prior to the merger, consolidation or conversion of each institution and national bank or Federal savings bank which was a party to the merger or consolidation or of the national bank or Federal savings bank which converted into the institution may, to the extent not transferred to capital or surplus of the resulting institution, be carried forward as accumulated net earnings of the resulting institution.