6.1-56 - (Repealed effective October 1, 2010) Dividends; surplus; undivided profits. - Virginia Statutes

§ 6.1-56. (Repealed effective October 1, 2010) Dividends; surplus; undividedprofits.

The board of directors of any bank may declare a dividend of so much as theyshall judge expedient of the net undivided profits of the bank, afterproviding for all expenses, losses, interest and taxes accrued, or due bysuch bank. But before any such dividend is declared, any deficit in capitalfunds originally paid in shall have been restored by earnings to theirinitial level, and no dividend shall be declared or paid by any bank whichwould impair the paid-in capital of the bank.

To ascertain the net undivided profits before any dividend shall be declared,all debts due to such bank on which interest is past due and unpaid for aperiod of twelve months, unless the same are well secured and in process ofcollection by law, shall be deducted from the undivided profits in additionto all expenses, losses, interest and taxes accrued, and the balance shall bedeemed to be the net undivided profits.

Notwithstanding the foregoing provisions of this section, the Commission maylimit or approve the payment of dividends by the board of directors of anybank when the Commission determines that such limitation or approval iswarranted by the financial condition of the bank.

(Code 1950, § 6-48; 1966, c. 584; 1976, c. 658; 1979, c. 53; 1992, c. 48;1995, c. 84.)