2017 New York Laws
BNK - Banking
Article 12
517 - How Net Earnings Credited for Dividend Purposes, Credits to Surplus Fund and to Undivided Profits, Dividends to Stockholders.

 517.  How  net  earnings  credited for dividend purposes, credits to
  surplus fund and to undivided profits, dividends to  stockholders.  When
  the net earnings of an investment company having preferred shares issued
  and  outstanding have been determined at the close of a dividend period,
  if the surplus fund does not equal twenty per centum of  the  investment
  company's  capital,  one-tenth of such net earnings shall be credited to
  the surplus fund, or so much thereof, less than one-tenth, as will  make
  such  fund  equal twenty per centum of such capital. The balance of such
  net earnings, or the entire amount thereof  if  such  fund  equals  such
  twenty  per  centum,  may be credited to the investment company's profit
  and loss account; or, if its  expenses  and  losses  for  such  dividend
  period  exceed  its  gross earnings, such excess shall be charged to its
  profit and loss account.  The  credit  balance  of  such  account  shall
  constitute  the  undivided profits at the close of such dividend period,
  which undivided profits shall be available for dividends.
The directors of any investment company may annually, semi-annually or
  quarterly, but not more frequently, declare such dividends as they shall
  judge expedient from such undivided profits; provided, however, that the
  directors of any such company may declare a dividend in the  last  month
  of  the fiscal year of such company, in lieu of any other semi-annual or
  quarterly declaration in the same fiscal  year.  No  investment  company
  shall declare any dividends to its stockholders until it shall have made
  good   any   existing   impairment  of  its  capital  and  any  existing
  encroachment on its reserves required to be maintained against deposits.