7-8-11. Dividends.
(1) The board of directors of an industrial bank may declare a dividend out of the net
profits of the industrial bank after providing for all expenses, losses, interest, and taxes accrued
or due from the industrial bank in accordance with this section and subject to Section 7-8-12.
(2) The industrial bank shall transfer to a surplus fund at least 10% of its net profits
before dividends for the period covered by the dividend, until the surplus reaches 100% of its
capital stock.
(3) Any amount paid from the industrial bank's net earnings into a fund for the retirement
of any debenture capital or preferred stock for the period covered by the dividend is considered
an addition to its surplus fund if, upon the retirement of the debenture capital or preferred stock,
the amount paid into the retirement fund for the period may be properly carried to the surplus
fund of the industrial bank. In this case the industrial bank shall transfer to the surplus fund the
amount paid into the retirement fund.
Amended by Chapter 92, 2004 General Session
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Last revised: Thursday, May 28, 2009