Virginia Code 6.2-1360: Dividends.
A. At such intervals and for such periods as the bylaws provide and after provision for the required reserves, the board of directors may declare dividends on share accounts from the undivided earnings or other funds set aside for dividends.
Terms Used In Virginia Code 6.2-1360
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Credit union: means a cooperative, nonprofit corporation organized under the laws of the Commonwealth and authorized to do business under this chapter for the purposes of encouraging thrift among its members, creating a source of credit at fair and reasonable rates of interest, providing an opportunity for its members to use and control their own money on a democratic basis in order to improve their economic and social condition, and conducting any other business, engaging in any other activity, and providing any other service that may be of benefit to its members, consistent with the provisions of this chapter and any regulations adopted by the Commission under this chapter. See Virginia Code 6.2-1300
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Reserves: means the total of allowances for loan losses, regular, special, and any other type of funds held in reserve. See Virginia Code 6.2-1300
- Shares: means the interest of a member having an account in a credit union. See Virginia Code 6.2-1300
B. Dividends may be paid at different rates on different types of share accounts and at different rates and maturity dates in the case of share certificates.
C. Dividend credit may be accrued on shares as authorized by the board of directors.
D. The rates of dividends and terms of payment may be declared in advance by the board of directors.
E. In no event shall a dividend be paid if, after the payment thereof, the liabilities of the credit union would exceed its assets.
Code 1950, § 6-228; 1964, c. 75; 1966, c. 584, § 6.1-219; 1968, c. 560; 1976, c. 202; 1990, c. 373, § 6.1-225.43; 2010, c. 794.