12 CFR 702.114
§ 702.114 Payment of dividends.
United States · 12 CFR — Banks and Banking · Status: effective
Cite this
- Citation
- 12 CFR 702.114, § 702.114 Payment of dividends, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/48386
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Full text
(a) Restriction on dividends. Dividends shall be available only from net worth, net of any special reserves established under § 702.112, if any.
(b) Payment of dividends and interest refunds. The board of directors must not pay a dividend or interest refund that will cause the credit union's capital classification to fall below adequately capitalized under this subpart unless the appropriate Regional Director and, if state-chartered, the appropriate state official, have given prior written approval (in an NWRP or otherwise). The request for written approval must include the plan for eliminating any negative retained earnings balance.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.