17-5412.   Declaration of dividends.The board of directors of any association formed under the provisions ofthis or any previous act may from time to time declare dividends from theearnings of the association to be paid or credited in such manner as may beprovided in the bylaws, but no dividends shall be declared except from theearnings and undivided profits of the association. If the board of directorsshall declare, credit or pay any dividendwhen there is an impairment of capital they shall be jointly and severallyliable to the extent of the dividend so declared, credited or paid for allthe debts of the association then existing or that shall be thereaftercontracted while they shall respectively continue in office. Any of the boardof directors who shall object to the declaring ofsuch dividend or the payment or crediting of the same and who shall at thetime of declaration of the dividend procure objections to be noted inthe book of minutes of the association and shall file a certificate of suchobjections in writing with the secretary of the association and with thecommissioner shall be exempted from such liability and any director of suchassociation who consents to the payment of any dividend when the capital isimpaired shall be deemed guilty of a felony and upon conviction thereofshall be imprisoned in the custody of the secretaryof corrections for not less than one nor morethan five years.

      History:   L. 1943, ch. 133, § 70; L. 1967, ch. 129, §2;L. 1990, ch. 309, § 6; May 24.