The board of directors of a state bank may declare dividends not more than once in each calendar quarter from undivided profits if:

1. (1) the undivided profits account has been maintained in accordance with the Banking Act; and
2. (2) the reserve against deposits required by the Banking Act is not and will not thereby be impaired.

History: 1953 Comp., § 48-22-56, enacted by Laws 1963, ch. 305, § 56.

ANNOTATIONS

Am. Jur. 2d, A.L.R. and C.J.S. references. — 10 Am. Jur. 2d Banks § 69.

Validity of cancellation of accrued dividends on preferred bank stock, 8 A.L.R.2d 893.

9 C.J.S. Banks and Banking § 60.