§ 53-88. Use of surplus. - North Carolina Statutes

§53‑88.  Use of surplus.

The surplus of any bank doingbusiness under this Chapter shall not be used for the purpose of payingexpenses or losses until the credit to undivided profits has been exhausted.But any portion of such surplus may be converted into capital stock anddistributed as a stock dividend, provided that such surplus shall not therebybe reduced below fifty percent (50%) of the paid‑in capital of such bank,having a paid‑in capital of fifteen thousand dollars ($15,000) or more.When the surplus of any bank having a capital stock of less than fifteenthousand dollars ($15,000) shall reach an amount equal to one hundred percent(100%) of its paid‑in capital, the board of directors of such bank shalldeclare a dividend of fifty percent (50%) of said surplus and distribute thesame as a stock dividend: Provided, that where the distribution of such a stockdividend would increase the capital stock of any bank to an amount greater thanfifteen thousand dollars ($15,000), the board of directors of such bank may, inits discretion, declare a stock dividend of only so much of said surplus aswill be necessary to increase the stock of the said bank to fifteen thousanddollars ($15,000). (1921, c. 4, s. 59; C.S., s. 221(k).)