(1) The board of directors may periodically authorize and declare dividends to be paid on share accounts and membership shares, if any, from the credit union‘s undivided earnings after provisions have been made for the required reserves. Share accounts within the same class and of different classes may be paid dividends at differing rates depending on the amounts in the account or the contractual terms applicable to the account.

Terms Used In Nebraska Statutes 21-1776

  • Credit union: shall mean a cooperative, nonprofit corporation organized under the Credit Union Act for purposes of educating and encouraging its members in the concept of thrift, creating a source of credit for provident and productive purposes, and carrying on such collateral activities as are set forth in the act. See Nebraska Statutes 21-1705
  • Insolvent: shall mean a condition in which (1) the actual cash market value of the assets of a credit union is insufficient to pay its liabilities to its members, (2) a credit union is unable to meet the demands of its creditors in the usual and customary manner, (3) a credit union, after demand in writing by the director, fails to make good any deficiency in its reserves as required by law, or (4) a credit union, after written demand by the director, fails to make good an impairment of its capital or surplus. See Nebraska Statutes 21-1712
  • Membership shares: shall mean a balance held by a credit union and established by a member in accordance with standards specified by the credit union. See Nebraska Statutes 21-1716
  • Reserves: shall mean an allocation of retained income and shall include regular and special reserves, except for any allowance for loan or investment losses. See Nebraska Statutes 21-1720

(2) Dividends shall not be declared or paid at a time when the credit union is insolvent or when payment thereof would render the credit union insolvent.

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