Title 12 — Banks and BankingRelease 119-73not60
§626 Dividends; Surplus Fund
Title 12 › Chapter 6— FOREIGN BANKING › Subchapter II— ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING › § 626
Summary
Directors may declare dividends twice a year from the company’s net profits. Before each dividend, the corporation must set aside 10% of the preceding half‑year’s profits into a surplus fund until that fund equals 20% capital stock.
Full Legal Text
Title 12, §626
Banks and Banking — Source: USLM XML via OLRC
The directors of any corporation organized under the provisions of this subchapter may, semiannually, declare a dividend of so much of the net profits of the corporation as they shall judge expedient; but each corporation shall, before the declaration of a dividend, carry one-tenth of its net profits of the preceding half year to its surplus fund until the same shall amount to 20 per centum of its capital stock.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
This subchapter, referred to in text, was in the original “this section”, meaning section 25A of act Dec. 23, 1913, which is classified to this subchapter (§ 611 et seq.). Codification Section is comprised of par. 18 (undesignated) of section 25A of act Dec. 23, 1913, which comprises this subchapter. For complete classification of section 25A of this Act, see Codification note set out under section 611 of this title.
Reference
Citations & Metadata
Citation
12 U.S.C. § 626
Title 12 — Banks and Banking
Last Updated
Apr 3, 2026
Release point: 119-73not60