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§ 3-306. Surplus levels

West's Annotated Code of MarylandFinancial Institutions

West's Annotated Code of Maryland
Financial Institutions
Title 3. Banking Institutions--Commercial Banks
Subtitle 3. Capital Stock; Surplus Requirements; Stockholders (Refs & Annos)
MD Code, Financial Institutions, § 3-306
§ 3-306. Surplus levels
Currentness
In general
(a) If the surplus of a commercial bank at any time is less than 100 percent of its capital stock, then, until the surplus is 100 percent of the capital stock, the commercial bank:
(1) Shall transfer to its surplus annually at least 10 percent of its net earnings; and
(2) May not declare or pay any cash dividends that exceed 90 percent of its net earnings.
Losses charged to surplus
(b) Any losses of a commercial bank that exceed its undivided profits may be charged to its surplus.

Credits

Added by Acts 1980, c. 33, § 2, eff. July 1, 1980. Amended by Acts 1995, c. 593, § 1, eff. Oct. 1, 1995.
Formerly Art. 11, § 95.
MD Code, Financial Institutions, § 3-306, MD FIN INST § 3-306
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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