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§ 3-308. Declaration of stock dividend

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, § 3-308
§ 3-308. Declaration of stock dividend
Currentness
In general
(a) The board of directors of a commercial bank may not declare a stock dividend unless its surplus, after the increase in capital stock, is equal to at least 20 percent of the outstanding capital stock as increased.
Transfer of net earnings to surplus
(b) If the surplus of the commercial bank, after the increase in capital stock, is less than 100 percent of its capital stock as increased, the commercial bank annually shall transfer to surplus at least 10 percent of its net earnings until the surplus is 100 percent of its capital stock as increased.

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, § 68.
MD Code, Financial Institutions, § 3-308, MD FIN INST § 3-308
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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