NY Banking L § 387 (2021)
2021 New York Laws BNK - Banking Article 10 - Savings and Loan Associations 387 - Credits to Surplus Account and Undivided Profits; Dividends to Shareholders.

§ 387.  Credits to surplus account and undivided profits; dividends to   shareholders.  1.  When  the  net  profits  of  any  savings  and   loan   association  have  been determined at the close of an accounting period,   if its net worth does not equal ten per centum of its capital, such  net   profits  shall  be credited to its surplus account in such amount as may   be determined by the superintendent of financial services until such net   worth equals ten per  centum  of  its  capital.  For  purposes  of  this   article,  the  term  "net worth" shall mean the excess of assets at book   value, less allocated reserves, over known liabilities. The  balance  of   such  net  profits,  together  with  any  amounts remaining from similar   balances for previous accounting periods, shall constitute the undivided   profits of such savings and  loan  association  at  the  close  of  such   period.  The  directors,  in  addition  to  the transfers to the surplus   account required by this section, may  transfer  additional  amounts  to   surplus account from undivided profits or continue to carry as undivided   profits  such  sum  or  sums  as  they may deem wise. Amounts heretofore   credited to a reserve for bad debts pursuant to  chapter  three  hundred   nine  of  the laws of nineteen hundred fifty-two shall be transferred to   surplus account.2. The undivided profits of a savings  and  loan  association  at  the   close  of  an  accounting  period  shall be available for dividends. The   directors may declare such dividends pursuant to the provisions of  this   paragraph  or  for  any  annual, semiannual, quarterly or monthly period   closing on the last day of a calendar month or as provided in  paragraph   (bb)  of subdivision four of section three hundred seventy-eight of this   chapter.  No association shall declare, credit or pay any dividend while   its capital is impaired, or at any time except by a vote of the board of   directors.Notwithstanding  the  foregoing,  in  the  event  the  gross   income,   undivided  profits,  surplus  account or net worth of a savings and loan   association shall be, or shall be deemed by the  superintendent  to  be,   increased as a result of any loan, purchase of assets or guaranty by, or   other  transaction with, any insuror of the accounts of such savings and   loan association, including a transaction subject to subdivision two  of   section  three  hundred  eighty-two-b of this article, the amount of any   such increase in the gross income, undivided profits, surplus account or   net worth of such savings and loans association shall,  with  the  prior   written approval of the superintendent, be available for dividends.4. Dividends shall be apportioned upon the dues and dividends credited   to  members,  provided,  however,  that,  except  in the case of special   savings shares, no dividend shall be required to be  computed  and  paid   upon  any  dues  credited  to  a member except from the first day of the   month immediately following the  date  of  receipt  of  such  dues,  and   provided  further,  that no dividend shall be required to be apportioned   on shares having a book value of less than fifty dollars or  on  savings   shares  issued  for  special  purposes  which  by  their terms are to be   withdrawn by the shareholder within one year  from  the  date  of  their   issuance.  Any such association may compute dividends upon dues credited   to a member from the date of actual receipt of such dues. The by-laws of   any such  association  may  provide  a  schedule  of  varying  rates  of   dividends  for different classes of shares and different types of shares   within any class.5. No savings and loan association shall declare  any  dividends  upon   the  accumulations  on  any  share  for a longer period than that during   which such accumulations have been held; provided,  however,  that  dues   paid  upon  shares  not  later than the tenth day of any month, may have   dividends declared thereon from the first day of the month in which such   payment was made; and  withdrawals  of  shares  during  the  last  three    business  days  of any dividend period or, in the event that one of such   last three business days is a Saturday, deposits withdrawn upon  one  of   the last four business days of any dividend period may receive dividends   apportioned for the full period.