Title 7 Chapter 8 Section 12
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Financial Institutions Act | |
Industrial Banks | |
Section 12 | Charge off of losses sustained on receivables and operating losses -- Replenishment of surplus account. |
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7-8-12. Charge off of losses sustained on receivables and operating
losses -- Replenishment of surplus account.
(1) (a) Losses sustained on receivables by an industrial bank shall be charged first to the industrial bank's reserve for losses and then to its current income. (b) Operating losses shall be charged first to the industrial bank's current income, next to undivided profits and then, after undivided profits have been exhausted, to the surplus account. (2) A charge to the industrial bank's surplus account shall be replenished from net profits or capital contributions. The industrial bank may declare or pay a dividend only with the written permission of the commissioner until its surplus account reaches an amount prescribed by the commissioner in writing. Amended by Chapter 92, 2004 General Session | |
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