Arkansas Code
Subchapter 6 - Operation
§ 23-35-607. Dividends — Definition

(a) At such intervals as the board of directors of the credit union may authorize and after provision for required reserves, the board may declare, pursuant to such rules as may be issued by the State Credit Union Supervisor, a dividend to be paid at different rates on different types of shares and at different rates and maturity dates in the case of share certificates.
(b)
(1) Dividend credit may be accrued on various types of shares and share certificates as authorized by the board.
(2) Dividend credit for a month may be accrued on shares which are or become fully paid up during the first fifteen (15) days of that month.
(3) No dividends shall be paid on shares which are withdrawn during the dividend period.

(c)
(1) No dividend shall be declared or paid at a time when the credit union is insolvent or when the payments thereof would render the credit union insolvent.
(2) Insolvency shall be determined by the supervisor to have occurred when:
(A) A credit union cannot meet its obligations as they come due in the normal course of business; or
(B) Considering the credit union's assets and liabilities, the net recoverable assets, if made immediately available, would not be sufficient to discharge the credit union's obligations to its creditors and members.

(3) As used in this subsection, “net recoverable assets” means all assets of the credit union as reflected in a balance sheet which has been prepared using generally accepted accounting principles less the following:
(A) Any uncollectible or unrecoverable asset;
(B) Ten percent (10%) of the unpaid balances of all loans delinquent more than two (2) months but less than six (6) months, twenty-five percent (25%) of the unpaid balances of all loans delinquent from six (6) months to less than twelve (12) months, eighty percent (80%) of the unpaid balances of loans delinquent twelve (12) months but less than sixteen (16) months, and one hundred percent (100%) of the unpaid balances of all loans delinquent sixteen (16) months or more.

(d) Each individual who has met the requirements for membership shall be entitled to, and paid, a dividend on his or her fully paid shares as declared by the board.