12 U.S.C. § 56 — Prohibition on withdrawal of capital; unearned dividends

This section restricts how national banks can pay dividends, to protect their capital. While a bank association is operating, neither the association nor any of its members (shareholders) can withdraw, or allow the withdrawal of, any part of its capital, whether through dividends or any other means. If the bank has sustained losses equal to or greater than its undivided profits, it cannot pay any dividend at all. And even when it can pay a dividend, a bank operating as a going concern can never pay out more than its undivided profits, subject to whatever other laws apply. This section doesn't stop a bank from properly reducing its capital stock under the process described in section 59 of this title.