Can you summarize NERS 8-163?

Short Summary

This legal provision, found in the Nebraska Revised Statutes under the section on Banks and Banking, governs the withdrawal of capital or surplus by banks. According to this provision, no bank is allowed to withdraw or permit the withdrawal of any part of its capital or surplus without written permission from the director. If the bank has sustained losses equal to or exceeding the retained net income, dividends cannot be made without the written permission of the director. Additionally, no dividend greater than the retained net income can be made without the written permission of the director. The term ‘retained net income’ is defined as the bank’s net income reported in its most recent report of condition and income, minus any dividends declared during the current and two prior calendar years, reduced by any net losses incurred during the year and transfers out of undivided profits to fund the retirement of preferred stock. Transfers out of undivided profits to the surplus account are not considered reductions to retained net income.

Whom does it apply to?

Banks

What does it govern?

Dividends; withdrawal of capital or surplus

What are exemptions?

None mentioned

What are the Penalties?

None mentioned

Jurisdiction

Nebraska

Source

NERS 8-163 [https://reggi.cloud.regology.com/regulations/US-NERS/US-NERS_C_8_S_163]

• Banking