Missouri Laws 362.310 – Surplus fund — composition — purposes
Current as of: 2024 | Check for updates
|
Other versions
Terms Used In Missouri Laws 362.310
- Bank: means any corporation soliciting, receiving or accepting money, or its equivalent, on deposit as a business, whether the deposit is made subject to check, or is evidenced by a certificate of deposit, a passbook, a note, a receipt, or other writing, and specifically a commercial bank chartered under this chapter or a national bank located in this state. See Missouri Laws 362.010
- Surplus: means the excess of assets over liabilities including liability to stockholders. See Missouri Laws 362.010
- Undivided profits: means the credit balance of the profit and loss account of any corporation to which this chapter is applicable. See Missouri Laws 362.010
Every bank and trust company shall create a fund to be known as a “surplus fund”. This fund may be created or increased by contributions or by transfers from undivided profits. The fund up to forty percent of the capital of the bank or trust company shall be used only for the payment of losses in excess of undivided profits; provided, that the excess of surplus over forty percent, upon the approval of the director of finance, may be capitalized as a stock dividend or may be transferred to undivided profits and used for cash dividends in the discretion of the board of directors.