7-3-15 - Dividends allowed -- Surplus requirements. - Utah Statutes

7-3-15. Dividends allowed -- Surplus requirements.
(1) The board of directors of a bank may declare a cash or stock dividend out of the netprofits of the bank after providing for all expenses, losses, interest, and taxes accrued or due fromthe bank, as it shall judge expedient.
(2) Before any dividend is declared pursuant to Subsection (1), not less than 10% of thenet profits of the bank for the period covered by the dividend shall be carried to a surplus funduntil the surplus shall amount to 100% of its capital.
(3) Under this section, any amounts paid into a fund for the retirement of any debenturecapital or preferred stock of the bank from its net earnings for the period covered by the dividendshall be considered an addition to its surplus fund if, upon the retirement of the debenture capitalor preferred stock, the amount paid into the retirement fund for the period may be properlycarried to the surplus fund of the bank. In this case the bank shall be obligated to transfer to thesurplus fund the amount paid into the retirement fund.

Amended by Chapter 182, 1996 General Session