{"data":{"id":"us/12-cfr-702.114","jurisdiction":"us","citation":"12 CFR 702.114","heading":"Payment of dividends.","body":"(a) Restriction on dividends. Dividends shall be available only from net worth, net of any special reserves established under § 702.112, if any.\n(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.","path":["Title 12—Banks and Banking","CHAPTER VII—NATIONAL CREDIT UNION ADMINISTRATION","SUBCHAPTER A—REGULATIONS AFFECTING CREDIT UNIONS","PART 702—CAPITAL ADEQUACY","Subpart A—Prompt Corrective Action"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-12.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:16Z","sha256":"2c4a69cc7ae6599f59995030b481b3f92dc454a01bea92a1b39037adf081878b","source_id":"us-cfr","stale":true,"prev":"us/12-cfr-702.113","next":"us/12-cfr-702.201"},"notice":"GroundRules: Original legal text. Not legal advice."}