2023 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.