State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-87

§53‑87.  Directors may declare dividends.

The board of directors of anybank may declare a dividend of so much of its undivided profits as they maydeem expedient, subject to the requirements hereinafter provided. When thesurplus of any bank having a capital stock of fifteen thousand dollars($15,000) or more is less than fifty percent (50%) of its paid‑in capitalstock, such bank shall not declare any dividend until it has transferred fromundivided profits to surplus twenty‑five percent (25%) of said undividedprofits, or any lesser percentage that may be required to restore the surplusto an amount equal to fifty percent (50%) of the paid‑in capital stock.When the surplus of any bank having a capital stock of less than fifteenthousand dollars ($15,000) is less than one hundred percent (100%) of its paid‑incapital stock, such bank shall not declare any dividend until it hastransferred from undivided profits to surplus fifty percent (50%) of saidundivided profits, or any lesser percentage that may be required to restore thesurplus to an amount equal to one hundred percent (100%) of the paid‑incapital stock. In order to ascertain the undivided profits from which suchdividend may be made, there shall be charged and deducted from the actualprofits:

(1)        All ordinary andextraordinary expenses, paid or incurred, in managing the affairs andtransacting the business of the bank;

(2)        Interest paid orthen due on debts which it owes;

(3)        All taxes due;

(4)        All overdrafts overone thousand dollars ($1,000) which have been standing on the books of the bankfor a period of 60 days or longer;

(5)        All losses sustainedby the bank. In computing the losses, there shall be included debts owing thebank which have become due and are not in process of collection, and on whichinterest for one year or more is due and unpaid, unless said debts are wellsecured; and debts reduced to final judgments which have been unsatisfied formore than one year and on which no interest has been paid for a period of oneyear, unless said judgments are well secured.

(6)        All investmentscarried on its books, which are prohibited under the provisions of thisChapter, or rules and regulations made by the Commissioner of Banks, pursuantto the powers conferred under this Chapter. (1921, c. 4, s. 58; C.S., s.221(j); 1927, c. 47, s. 10; 1931, c. 243, s. 5; 1991, c. 677, s. 4.)