§ 3-306
86 words·~1 min read·
/md/financial-institutions/3-306A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§3–306.
(a)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)Any losses of a commercial bank that exceed its undivided profits may be charged to its surplus.