12 C.F.R. § 702.114 – Payment of dividends.

(a) Restriction on dividends. Dividends shall be available only from net worth, net of any special reserves established under § 702.112, if any.
(b) Payment of dividends and interest refunds. The board of directors must not pay a dividend or interest refund that will cause the credit union's capital classification to fall below adequately capitalized under this subpart unless the appropriate Regional Director and, if state-chartered, the appropriate state official, have given prior written approval (in an NWRP or otherwise). The request for written approval must include the plan for eliminating any negative retained earnings balance.