§ 3-306. Maintenance of surplus; losses

   (a) Maintenance of surplus. -- If the surplus of a commercial bank at any time is less than 100 percent of its capital stock, then, until the surplus is 100 percent of the capital stock, the commercial bank:

   (1) Shall transfer to its surplus annually at least 10 percent of its net earnings; and

   (2) May not declare or pay any cash dividends that exceed 90 percent of its net earnings.

(b) Losses. -- Any losses of a commercial bank that exceed its undivided profits may be charged to its surplus.

HISTORY: An. Code 1957, art. 11, § 95; 1980, ch. 33, § 2; 1995, ch. 593.