§ 702.211. Payment of dividends.
113 words·~1 min read·
/us/cfr/t12/s§ 702.211·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Restriction on dividends. Dividends shall be available only from net worth, net of any special reserves established under § 702.208, if any.
(b)Payment of dividends and interest refunds. The board of directors may not pay a dividend or interest refund that will cause the credit union's capital classification to fall below adequately capitalized under subpart A of this part unless the appropriate regional director and, if state-chartered, the appropriate state official, have given prior written approval (in an RBP or otherwise). The request for written approval must include the plan for eliminating any negative retained earnings balance. [80 FR 66706, Oct. 29, 2015. Redesignated at 86 FR 11073, Feb. 23, 2021]