(1) A state bank may, from time to time, declare and pay dividends not inconsistent with the bank’s articles of incorporation or bylaws. However, prior written approval of the Commissioner of Banking and Consumer Finance shall be required for a declaration and payment of dividends if any of the following conditions exist:(a) The bank is subject to a corrective plan or enforcement action;(b) After making the dividend, the bank would be undercapitalized. For purposes of this paragraph (b), “undercapitalized” means that term as defined by the applicable federal regulatory agency based on bank type; or(c) The Commissioner of Banking and Consumer Finance has determined that conditions exist at the bank that pose a risk to its safety and soundness.
(a) The bank is subject to a corrective plan or enforcement action;
(b) After making the dividend, the bank would be undercapitalized. For purposes of this paragraph (b), “undercapitalized” means that term as defined by the applicable federal regulatory agency based on bank type; or
(c) The Commissioner of Banking and Consumer Finance has determined that conditions exist at the bank that pose a risk to its safety and soundness.
(2) Directors declaring a dividend in violation of the provisions of this section shall be personally liable to the full amount of the dividend so declared and it shall be the duty of the commissioner, upon discovering the payment of any such dividend, to forthwith make demand upon the directors that the same be restored to the bank, and upon their failure so to do he shall cause suit to be brought against them in the chancery court of the county in which the bank is located, either in his name or in the name of the bank, to recover the same for the benefit of the bank.