§ 6-06-26 — Dividends

North Dakota § 6-06-26

• Jurisdiction: North Dakota
• Title 6: Banks and Banking
• Ch. 6-06: Credit Unions

Text

A credit union's board of directors may declare and pay a dividend on shares from current or
accumulated net earnings, or both, but only after providing for required reserves, accrued and
unpaid expenses, and established loan and lease losses. A credit union may pay a dividend on
partial or full shares and may pay the dividend at differing levels and at differing intervals based
on the type of share accounts owned by a member, the liquidation priority of share accounts,
and the balances of a member's share accounts. A credit union may determine the rate and
amount of a dividend before the end of the dividend period involved. A credit union, upon action
of its board of directors, may authorize an interest refund to members of record at the close of
business the last day of any dividend period in proportion to the interest paid during that
dividend period. A credit union shall not pay a dividend if payment would result in the insolvency
of the credit union.