12 C.F.R. § 702.114

Current through November 30, 2024
Section 702.114 - Payment of dividends
(a)Restriction on dividends. Dividends shall be available only from net worth, net of any special reserves established under § 702.112 , if any.
(b)Payment of dividends and interest refunds. The board of directors must not pay a dividend or interest refund that will cause the credit union's capital classification to fall below adequately capitalized under this subpart unless the appropriate Regional Director and, if state-chartered, the appropriate state official, have given prior written approval (in an NWRP or otherwise). The request for written approval must include the plan for eliminating any negative retained earnings balance.

12 C.F.R. §702.114

84 FR 68781 , 1/1/2022