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286.3-350 When dividends may be declared.
(1)
(2)
The board of directors of any bank or trust company organized under the laws of
this state may declare a dividend of so much of the net profits as they deem
expedient. The net profits shall be computed by deducting all expenses, losses, and
interest and taxes accrued or due from the bank.
The approval of the commissioner shall be required if the total of all dividends
declared by such institution in any calendar year shall exceed the total of its net
profits of that year combined with its retained net profits of the preceding two (2)
years, less any required transfers to surplus or a fund for the retirement of preferred
stock or debt.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 636, effective July 15, 2010. -- Amended
2006 Ky. Acts ch. 183, sec. 10, effective July 12, 2006. -- Amended 1998 Ky. Acts
ch. 196, sec. 13, effective July 15, 1998. -- Amended 1982 Ky. Acts ch. 251, sec. 11,
effective April 1, 1982. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective
October 1, 1942, from Ky. Stat. sec. 596.
Formerly codified as KRS 287.350.
Legislative Research Commission Note (7/12/2006). This section was amended in
2006 Ky. Acts ch. 183. In that same session, 2006 Ky. Acts ch. 247, sec. 38 required
that all sections of KRS Chapters 287, 288, 290, 291, 294, 366, 366A, and 368 be
renumbered as sections of a single KRS chapter entitled the "Kentucky Financial
Services Code." Therefore, the Statute Reviser, acting under KRS 7.136(1), has
changed the number of this section and codified it as a section of KRS Chapter 286.
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