Stock, surplus, undivided profits and reserves to include percentage of value of outstanding investment certificates; dividends on permanent stock; stock dividends.
1. Except as permitted by subsection 6, the total common stock and any preferred stock subscribed and paid plus the total of the surplus, undivided profits and all reserves available for losses must not at any time be less than 5 percent of the aggregate certificate value of the outstanding investment certificates of the association after the 11th anniversary of the date of insurance of accounts. The stock surplus, undivided profits and reserves must be at least equal to the percentage of outstanding investment certificates on each prior anniversary as stated below:
Date of insurance of accounts................................................................ 3.00 percent
Second anniversary of date of insurance of accounts....................... 3.20 percent
Third anniversary of date of insurance of accounts........................... 3.40 percent
Fourth anniversary of date of insurance of accounts......................... 3.60 percent
Fifth anniversary of date of insurance of accounts............................ 3.80 percent
Sixth anniversary of date of insurance of accounts............................ 4.00 percent
Seventh anniversary of date of insurance of accounts...................... 4.20 percent
Eighth anniversary of date of insurance of accounts......................... 4.40 percent
Ninth anniversary of date of insurance of accounts........................... 4.60 percent
Tenth anniversary of date of insurance of accounts.......................... 4.80 percent
2. No dividends may be declared on common or preferred stock until the total of the common stock, preferred stock, surplus, undivided profits and all reserves available for losses is equal to the percentage required by subsection 1 of the outstanding investment certificates and if payment of those dividends would reduce the capital structure to an amount below that percentage.
3. Subject to the provisions of this chapter, common stock and any preferred stock is entitled to the rate of dividend, if earned, fixed by the board of directors. Stock dividends may be declared by the board of directors at any time, payable only from otherwise unallocated surplus and undivided profits.
4. No stock dividend may be declared and paid for any period in which the association has not declared and paid interest upon its withdrawable accounts.
5. The liability of an association on account of any capital notes which are subordinated to all outstanding investment certificates shall be deemed a reserve available for losses for the purposes of subsection 1 and of NRS 673.274, but no dividends may be declared on common or preferred stock while the capital notes are outstanding, without the written permission of the Commissioner.
6. The Commissioner may approve a lower ratio of the total common stock and any preferred stock, undivided profits and all reserves which must be available for losses to the aggregate of outstanding investment certificates. The Commissioner shall not approve any ratio which would impair the insurance of the association’s accounts by the Federal Deposit Insurance Corporation.
Last modified: February 26, 2006