{"data":{"id":"us-ok/okla.-stat.-tit.-6-6-409","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 6, § 6-409","heading":"Dividends","body":"A. Withdrawal of capital - Dividends - Bad debts - Banks and\n\ntrust companies. Without the prior written approval of the\n\nCommissioner, no bank shall, during the time it shall continue its\n\nbanking operations, withdraw, or permit to be withdrawn, either in\n\nthe form of dividends or otherwise, any portion of its capital or\n\nsurplus. If losses have at any time been sustained by any such\n\nbank, equal to or exceeding its undivided profits then on hand, no\n\ndividend shall be made, and no dividend shall ever be made by any\n\nbank, while it continues its banking operations, to an amount\n\ngreater than its net profits then on hand, deducting therefrom its\n\nlosses and bad debts. All debts due to any bank, on which interest\n\nis past due and unpaid for a period of six (6) months, unless the\n\nsame are well secured and in process of collection, shall be\n\nconsidered bad debts within the meaning of this section.\n\nNo trust company shall declare or pay any dividend to an amount\n\ngreater than its net undivided profits then on hand, deducting\n\ntherefrom:\n\n1. All losses;\n\n2. All debts, unless the same are well secured, on which\n\ninterest for a period of one (1) year is past due and unpaid and\n\ndebts upon which final judgment has been recovered but has been for\n\nmore than one (1) year unsatisfied and on which interest for a\n\nperiod of one (1) year is unpaid, unless the same are well secured;\n\n3. All assets or depreciation which the commissioner or a duly\n\nappointed examiner may have required to be charged off; and\n\n4. All expenses, interest and taxes accrued or due from the\n\ntrust company.\n\nAfter providing for the deductions set forth, the board of\n\ndirectors of a trust company may, at any regular meeting, declare a\n\ndividend out of so much of the net undivided profits of the trust\n\ncompany as they judge expedient. Interest unpaid, although due or\n\naccrued, shall not be included in the calculation of net undivided\n\nprofits.\n\nB. Dividends - When payable - Restrictions.\n\n1. The directors of any bank or trust company may, quarterly,\n\nsemiannually or annually, declare a dividend of so much of the net\n\nprofits of the corporation as they shall judge expedient, except\n\nthat, until the surplus fund of a bank shall equal its common\n\ncapital, no cash dividends shall be declared unless there has been\n\ncarried to the surplus fund not less than one-tenth (1/10) part of\n\nthe bank's net profits of the preceding half year in the case of\n\nquarterly or semiannual dividends, or not less than one-tenth (1/10)\n\npart of its net profits of the preceding two consecutive half-year\n\nperiods in the case of annual dividends: Provided that, for the\n\npurposes of this section, any amounts paid into a fund for\n\nretirement of any preferred stock of any such bank out of its net\n\nearnings for such period or periods shall be deemed to be additions\n\nto its surplus fund if, upon the retirement of such preferred stock,\n\nthe amounts so paid into such retirement fund may then properly be\n\ncarried to surplus. In any such case the bank shall be obligated to\n\ntransfer to surplus the amounts so paid into such retirement fund on\n\naccount of the preferred stock as such stock is retired.\n\n2. The approval of the Commissioner shall be required if the\n\ntotal of all dividends declared by a bank in any calendar year shall\n\nexceed the total of its net profits of that year combined with its\n\nretained net profits of the preceding two (2) years, less any\n\nrequired transfers to surplus or a fund for the retirement of any\n\npreferred stock.\n\n3. For the purpose of paragraph 2 of this subsection, the term\n\n\"net profits\" shall mean the remainder of all earnings from current\n\noperations plus actual recoveries on loans and investments and other\n\nassets, after deducting from the total thereof all current operating\n\nexpenses, actual losses, accrued dividends on preferred stock, if\n\nany, and all federal and state taxes.","path":["OK Code","Title 6"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os6.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"89451a3a68e8a63c0b9b6339e2c76a86d84c03d6434c799e032cfd7b232be23f","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-6-6-408","next":"us-ok/okla.-stat.-tit.-6-6-410"},"notice":"GroundRules: Original legal text. Not legal advice."}