Illinois Compiled Statutes 205 ILCS 205/5008 – Dividends
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(a) Subject to the restrictions set forth in this Section and the savings bank’s bylaws, the board of directors from time to time may declare dividends on capital stock subject to the following restrictions:
(1) No dividends may be declared when the total
(1) No dividends may be declared when the total
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capital of the savings bank is less than that required by Section 5007 of this Act.
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(2) The board of directors may quarterly,
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semiannually, or annually declare a dividend on capital stock of so much of the net profits of the savings bank that they shall determine expedient, except that until the paid-in surplus of the savings bank shall equal its capital stock, no dividend shall be declared unless there has been transferred to paid-in surplus not less than 10% of the net profits of the preceding half year in the case of quarterly or semiannual dividends, or not less than 10% of the net profits for the preceding 2 half year periods in the case of annual dividends. A stock dividend may be declared out of retained earnings at any time.
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(b) The written approval of the Commissioner shall be required by a savings bank having total capital of less than 6% of total assets before any dividends on capital stock that exceed 50% of the savings bank’s net profits of that year may be declared by a savings bank in any year. A savings bank may not declare dividends in excess of the savings bank’s net profits in any year without the approval of the Commissioner.
(c) For the purpose of this Article the term “net profit” means the remainder of all earnings from current operations plus actual recoveries on loans, investments, and other assets after deducting all current expenses, including dividends or interest on deposit accounts, additions to reserves as required by the Commissioner, actual losses, accrued dividends on preferred stock, if any, and all State and federal taxes.
Terms Used In Illinois Compiled Statutes 205 ILCS 205/5008
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
- State: when applied to different parts of the United States, may be construed to include the District of Columbia and the several territories, and the words "United States" may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14
(c) For the purpose of this Article the term “net profit” means the remainder of all earnings from current operations plus actual recoveries on loans, investments, and other assets after deducting all current expenses, including dividends or interest on deposit accounts, additions to reserves as required by the Commissioner, actual losses, accrued dividends on preferred stock, if any, and all State and federal taxes.