12 U.S.C. § 60 — National bank dividends

submitted 91 years ago by Pub. L. 86-230 to r/title-12-BANKS-AND-BANKING · 135 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law lets a national bank's directors declare a dividend from the bank's undivided profits, as much as they think is reasonable. But the bank can't pay more in dividends than its recent net income allows, unless the Comptroller of the Currency approves a bigger payout.

(a) In general: Subject to (b), a national bank's directors may declare a dividend out of however much of the bank's undivided profits they judge is a good idea. (b) Approval required under certain circumstances: A national bank cannot declare and pay dividends in a year that add up to more than its net income for that year plus its retained net income from the two years before, minus any transfers the Comptroller of the Currency requires and any transfers required for a fund to retire preferred stock — unless the Comptroller approves paying dividends above that amount.

the actual law source: uscode.house.gov ↗public domain

(a) In general

Subject to subsection (b), the directors of any national bank may declare a dividend of so much of the undivided profits of the bank as the directors judge to be expedient.

(b) Approval required under certain circumstances

A national bank may not declare and pay dividends in any year in excess of an amount equal to the sum of the total of the net income of the bank for that year and the retained net income of the bank for the preceding 2 years, minus the sum of any transfers required by the Comptroller of the Currency and any transfers required to be made to a fund for the retirement of any preferred stock, unless the Comptroller of the Currency approves the declaration and payment of dividends in excess of such amount.

Source credit: (R.S. § 5199; Aug. 23, 1935, ch. 614, title III, § 315, 49 Stat. 712; Pub. L. 86–230, § 21(a), Sept. 8, 1959, 73 Stat. 465; Pub. L. 103–325, title VI, § 602(h)(2), Sept. 23, 1994, 108 Stat. 2294; Pub. L. 109–351, title III, § 302(a), Oct. 13, 2006, 120 Stat. 1970.)

history & why it existsrecord from the source credit

1935Enacted · Act of Aug. 23, 1935, ch. 614 · 49 Stat. 712
1959Amended · Pub. L. 86-230 · 73 Stat. 465
1994Amended · Pub. L. 103-325 · 108 Stat. 2294
2006Amended · Pub. L. 109-351 · 120 Stat. 1970

A history note hasn’t been published yet. The record shows enactment by Pub. L. 86-230 on 1935-08-23.

all 0 arguments · sorted by: best

no arguments yet — make the first case