(a) A corporation shall set apart, as an earned surplus, all of its net earnings in each and every year, until such earned surplus shall equal twice the total of the capital and paid-in surplus then outstanding. The earned surplus shall be held in cash, invested in United States government bonds or such other securities as may be legal investments under the act of May 26, 1949 (P.L. 1828),¹ as amended, known as the “Fiduciaries Investment Act of 1949,” and shall be kept and used to meet losses and contingencies of such corporation, and whenever the amount of earned surplus shall become impaired it shall be built up again to the required amount in the manner provided for its original accumulation.

(b) A corporation shall not deposit any of its funds in any banking organization unless such banking organization has been designated as a depository by a vote of the majority of the directors of the corporation, exclusive of any director who is an officer or director of the depository so designated. A corporation shall not receive money on deposit. A corporation shall not make any loans, directly or indirectly, to any of its officers or to any firms in which any of its officers is a member or officer.