54-71. Application of earnings; reserve fund.
The gross earnings of the association shall be ascertained annually, and there shall first be deducted therefrom the expenses incurred by the association for the preceding year and the balance thereof shall be set aside as a reserve fund for the payment of contingent losses, to an amount equal to two percent (2%) of the capital stock outstanding, and until such reserve fund equals twenty percent (20%) of the capital stock of such association. (1925, c. 223, s. 23.)
Structure North Carolina General Statutes
North Carolina General Statutes
Chapter 54 - Cooperative Organizations
Article 8 - Organization and Powers.
§ 54-45 - Application of term.
§ 54-46 - Incorporation and powers.
§ 54-48 - Reserve associations.
§ 54-49 - Land Conservation and Development Bureau; land mortgage associations.
§ 54-50 - Number of incorporators; capital stock.
§ 54-55 - Mortgage forms; approval.
§ 54-56 - Repayment of loan and interest.
§ 54-58 - Transfer of mortgaged lands.
§ 54-59 - Calling in loans before due.
§ 54-60 - Partial recall of debt.
§ 54-63 - Preference prohibited; association borrowing money.
§ 54-66 - Collaterals deposited with State Treasurer.
§ 54-67 - Redemption of bonds.
§ 54-68 - Validity of bonds after maturity.
§ 54-70 - Bonds as investments.
§ 54-71 - Application of earnings; reserve fund.