Download as PDF
286.5-371 Dividends paid, when.
(1)
(2)
(3)
Dividends shall be declared, credited, or paid on all stock daily, quarterly,
semiannually, or annually, as the bylaws provide and the savings account from
which the amount is so withdrawn shall have been outstanding for a period of not
less than six (6) months; and earnings on any amount so withdrawn shall neither be
distributed for any greater portion of the dividend period than that during which
such amount remained in the association, nor at the rate in excess of the rate at
which earnings, exclusive of any bonus, are distributed on savings accounts for the
dividend period in which such amount is so withdrawn. All stock upon which
payments are made in installments, except stock pledged upon the direct reduction
plan, and all paid-up fully participating stock, shall be entitled to dividend in
proportion to the amount paid in on such stock. Paid-up stock upon which the
dividend rate is limited shall not participate in profits in excess of the limited rate.
Stock issued upon which mortgage is made upon semiannual reduction plan shall
participate in any dividend only to extent of payments not credited upon the loan.
No dividend shall be declared, credited, or paid by any association except out of net
income collected after deducting all expenses of operation and all losses sustained,
except such losses from sale of real estate as may be charged to the reserve fund as
provided in this subtitle.
Effective: June 18, 1964
History: Created 1964 Ky. Acts ch. 138, sec. 19, effective June 18, 1964.
Formerly codified as KRS 289.371.
Legislative Research Commission Note (7/12/2006). In accordance with 2006 Ky. Acts
ch. 247, secs. 38 and 39, this statute has been renumbered as a section of the
Kentucky Financial Services Code, KRS Chapter 286, and KRS references within
this statute have been adjusted to conform with the 2006 renumbering of that code.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.