National bank dividends

• Currency: Current through P.L. 118-13 (published on www.congress.gov on 08/07/2023)
• Citation: 12 U.S.C. § 60

(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.

Cite as 12 U.S.C. § 60

Source: 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.

Notes from the Office of Law Revision Counsel

current through 5/22/2023

EDITORIAL NOTES

CODIFICATION

R.S. §5199 derived from act June 3, 1864, ch. 106, §33, 13 Stat. 109, which was the National Bank Act. See section 38 of this title.

AMENDMENTS

2006- Pub. L. 109-351 amended section generally. Prior to amendment, section related to periodic declarations of dividends subject to certain surplus fund requirements and to the approval of the Comptroller of the Currency in certain situations.