§ 460. Dividends to shareholders; conditions precedent.
1.The board\nof directors of any credit union may declare a dividend from the credit\nunion's undivided profits calculated as provided in this article for any\nperiod determined by the board of directors.\n 2. Earnings from all sources for the period for which a dividend is to\nbe paid, except as provided in section four hundred fifty-eight of this\narticle, may be credited to the profit and loss account of the credit\nunion and the following items shall be charged against such account in\nthe determination of the amount available for dividends to shareholders:\n (a) All expenses paid or incurred by the credit union in the\nmanagement of its affairs, the collection of its debts or the\ntransaction of its business.\n (b) The inte
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§ 460. Dividends to shareholders; conditions precedent. 1. The board\nof directors of any credit union may declare a dividend from the credit\nunion's undivided profits calculated as provided in this article for any\nperiod determined by the board of directors.\n 2. Earnings from all sources for the period for which a dividend is to\nbe paid, except as provided in section four hundred fifty-eight of this\narticle, may be credited to the profit and loss account of the credit\nunion and the following items shall be charged against such account in\nthe determination of the amount available for dividends to shareholders:\n (a) All expenses paid or incurred by the credit union in the\nmanagement of its affairs, the collection of its debts or the\ntransaction of its business.\n (b) The interest paid or accrued on debts owed by the credit union.\n (c) All losses incurred on loans in excess of the allowance for loan\nloss account.\n (d) Any interest collected in advance shall be considered unearned at\nthe end of the fiscal period, and shall be set aside in an account\ncalled "unearned interest".\nThe credit balance of the profit and loss account as thus determined\nshall constitute the undivided profits of the credit union at the close\nof such period, and shall be applicable to the payment of dividends\nexcept as provided in subdivision three of this section.\n 3. No dividend shall be credited or paid unless the credit union has:\n (a) Made good any existing impairment of its capital; and\n (b) Carried to its allowance for loan loss account such part of its\nearnings as is required by section four hundred fifty-nine of this\narticle.\n 4. Dividends may be paid on shares and share certificates at various\nrates with due consideration of the conditions that pertain to each type\nof account such as minimum balance, notice and time requirements.\n 5. When any dividend shall be declared in excess of the amount\navailable for dividends as determined in accordance with the provisions\nof this section, the directors voting for such dividend may be held\njointly and severally liable to the credit union for the amount of the\nexcess so declared.\n