362.310. Surplus fund--composition--purposes. - Missouri Statutes

Surplus fund--composition--purposes.

362.310. Every bank and trust company shall create a fund to be knownas a "surplus fund". This fund may be created or increased bycontributions or by transfers from undivided profits. The fund up to fortypercent of the capital of the bank or trust company shall be used only forthe payment of losses in excess of undivided profits; provided, that theexcess of surplus over forty percent, upon the approval of the director offinance, may be capitalized as a stock dividend or may be transferred toundivided profits and used for cash dividends in the discretion of theboard of directors.

(RSMo 1939 § 7970, A.L. 1967 p. 445, A.L. 2005 H.B. 707)

Prior revisions: 1929 § 5375; 1919 § 11758