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Code of Federal Regulations (Last Updated: May 6, 2024) |
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Title 12 - Banks and Banking |
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Chapter VII - National Credit Union Administration |
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SubChapter A - Regulations Affecting Credit Unions |
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Part 702 - Capital Adequacy |
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Subpart B - Alternative Prompt Corrective Action for New Credit Unions |
§ 702.211 - Payment of dividends.
Latest version.
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§ 702.211 Payment of dividends.
(a) Restriction on dividends. Dividends shall be available only from net worth, net of any special reserves established under § 702.208, if any.
(b) Payment of dividends and interest refunds. The board of directors may not pay a dividend or interest refund that will cause the credit union's capital classification to fall below adequately capitalized under subpart A of this part unless the appropriate regional director and, if state-chartered, the appropriate state official, have given prior written approval (in an RBP or otherwise). The request for written approval must include the plan for eliminating any negative retained earnings balance.
[80 FR 66706, Oct. 29, 2015. Redesignated at 86 FR 11073, Feb. 23, 2021]