The board of directors may apportion the profits of the association as the bylaws may prescribe, and each apportionment shall be made in accordance with the following procedure:

Terms Used In Arizona Laws 6-440

  • Association: means every association to which this chapter applies as defined in the section concerning scope of chapter. See Arizona Laws 6-401
  • Deputy director: means the deputy director of the financial institutions division of the department. See Arizona Laws 6-101
  • Profits: means , as determined by the application of proper accounting principles, gross income less the aggregate of operating and other expenses, losses actually sustained and not charged to reserves under this chapter and interest paid or accrued on borrowings and non-recurring charges. See Arizona Laws 6-401

1. Proper allocation first shall be made to accrued interest on accounts.

2. Proper allocation then shall be made to any reserves required by law or the deputy director.

3. Additional allocations then may be made to such special reserves as the board of directors may have established.

4. Dividends then may be declared if the bylaws so provide on shares of guaranty capital, in accordance with this chapter.

5. The residue of such profits may be held as undivided profits.

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