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Can you summarize NERS 8-164?
BANKS AND BANKING > Dividends declared; conditions.
Short Summary
This legal provision, found in the Nebraska Revised Statutes under the section on Banks and Banking, governs the declaration of dividends by the board of directors of any bank. The document outlines two conditions that must be met before dividends can be declared. Firstly, all bad debts that have been required to be charged off by either the board of directors or the department must have been charged off. Additionally, any debts due to the bank on which interest is past due and unpaid for a period of six months, unless they are well secured or in the process of collection, are considered bad debts. Secondly, twenty percent of the net profits accumulated since the preceding dividend must have been carried to the surplus fund, unless the surplus fund already equals or exceeds the amount of the paid-up capital stock. The document provides the source of the law and various amendments made over the years. An annotation is also included, stating that stockholders are generally entitled to share equally in the distribution of dividends, but this can be varied by agreement between the stockholders.
Whom does it apply to?
Board of directors of any bank
What does it govern?
Dividends declared
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Nebraska