Section 3-306 - Maintenance of surplus; losses. - Maryland Statutes

§ 3-306. Maintenance of surplus; losses.
 

(a)  Maintenance of surplus.- 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)  Losses.- Any losses of a commercial bank that exceed its undivided profits may be charged to its surplus. 
 

[An. Code 1957, art. 11, § 95; 1980, ch. 33, § 2; 1995, ch. 593.]