Sec. 14. Every such company shall on June 30 and December 31 of each year, and before the payment of any dividends on its outstanding stock, transfer to its surplus account a credit equal to five per cent (5%) of the net earnings of such company for the preceding six (6) months and shall accumulate such surplus account until the unimpaired amount thereof equals the amount of the capital stock of such company. No such company shall declare or pay dividends upon its stock in any form unless its capital is unimpaired and unless a surplus fund equal to twenty-five per cent (25%) of its capital has been accumulated and is maintained unimpaired. Thereafter any such company may annually or semiannually, but not more frequently declare and pay a dividend of so much of its net earnings as may be deemed expedient, but the rate of such dividend shall not exceed the rate of six per cent (6%) per annum upon the book value of its shares, as determined by the department, until the unimpaired surplus fund of the company is equal to the amount of its unimpaired capital stock.
Formerly: Acts 1935, c.181, s.14.
Structure Indiana Code
Title 28. Financial Institutions
Article 5. Industrial Loan and Investment Companies
Chapter 1. Industrial Loan and Investment Act
28-5-1-2. Application of Chapter
28-5-1-3. Definitions; Department's Powers
28-5-1-4. Definitions; Certificate of Authority; Branches; Automated Teller Machines
28-5-1-5. Capital Requirements
28-5-1-6.3. Request to Exercise Rights and Privileges Granted to National Banks; Appeal
28-5-1-6.5. Sale of Annuity Contracts
28-5-1-10. Time for Existing Companies to Comply With Loan Limits
28-5-1-11. Acquisition or Conveyance of Real Estate; Purposes
28-5-1-12. Certificates of Indebtedness or Investment; Form; Payment; Withdrawals
28-5-1-13. Certificates of Indebtedness or Investment; Reserve Balance
28-5-1-14. Surplus Account; Dividends
28-5-1-15. Authority of Department; Examination of Affiliates; Examination of Vendors
28-5-1-16. Records Retention Policy
28-5-1-17. Rules and Regulations
28-5-1-18. Fidelity Coverage for Officers and Employees; Bonds; Reserve Funds
28-5-1-19. Exclusion From Banking Business; False Advertising; Desist Orders
28-5-1-22.1. Prohibited Transactions
28-5-1-25. Conversion Into State Bank, Trust Company, or Savings Association
28-5-1-26. Requirement to Provide Property Tax Information in Certain Transactions