Company: BPOPM
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001193125-25-043848
Chunk: 72

Company: POPULAR, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 5
Chunk 72
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 and preferred stock. During 2024, $52.8
million was transferred to the statutory reserve
account. 
Section
27
of
the
Banking
Law
also
provides that
when
the
expenditures
of
a
bank
are
greater
than
its
receipts, the 
excess of the
former over the latter
must be charged against
the undistributed profits of
the bank, and the
balance, if any,
must be 
charged against
the reserve
fund.
If the
reserve fund
is
not sufficient
to
cover such
balance in
whole or
in part,
the outstanding 
amount must be charged against
the capital account and no
dividend may be declared until capital
has been restored to its
original 
amount and the reserve fund to 20% of the original
capital. 
Section 16 of the
Banking Law requires every
bank to maintain a
legal reserve that, except
as otherwise provided by
the 
Office of
the Commissioner,
may not be
less than 20%
of its
demand liabilities, excluding
government deposits (federal,
state and 
municipal) that
are secured
by collateral.
If a
bank is
authorized to
establish one
or more
bank branches
in a
state of
the United 
States or in a foreign country, where such branches are subject to the reserve requirements of that state
or country, the Office of the 
Commissioner
may
exempt
said
branch
or
branches
from
the
reserve
requirements
of
Section
16.
Pursuant
to
an
order
of
the 
Federal
Reserve
Board
dated
November
24,
1982,
BPPR
has
been
exempted
from
the
reserve
requirements
of
the
Federal 
Reserve
System
with
respect
to
deposits
payable
in
Puerto
Rico.
Accordingly,
BPPR
is
subject
to
the
reserve
requirement 
prescribed by the Banking Law. During 2024, BPPR was in compliance
with the statutory reserve requirement. 
Section 17 of the Banking Law permits a bank to make loans to
any one person, firm, partnership or corporation, up to an 
aggregate amount of
fifteen percent (15