Arizona Laws 6-552. Dividends
Current as of: 2024 | Check for updates
|
Other versions
A. After provision for the required reserves, the board of directors may declare dividends to be paid on share accounts from the undivided earnings.
Terms Used In Arizona Laws 6-552
- Credit union: means a cooperative nonprofit association that is incorporated under this chapter for the purposes of encouraging thrift among its members and creating a source of credit and other financial services at fair and reasonable cost. See Arizona Laws 6-501
- Reserves: means allocations of retained income and includes regular and special reserves and any allowances for loan losses and investment losses. See Arizona Laws 6-501
- Share account: means a balance held by a credit union and established by a member according to this chapter, including balances designated as shares, share certificates, share draft accounts and membership shares. See Arizona Laws 6-501
B. A credit union may pay dividends at various rates with due regard to the conditions that pertain to each type of share account, such as minimum balance, notice and time requirements. A credit union may, but is not required to, pay a dividend on membership shares.