Rule 80-2-3-.04 - Departmental Approval of Dividends(1) A credit union proposing to pay dividends that total less than 50% of its net income of the preceding calendar year as reported in the Statement of Income and Expense in the December 31st Call Report may do so without the prior written approval of the department; provided that: (a) Total adversely classified assets at the most recent examination of the credit union, the conclusions of which may have been presented to the Board of Directors, do not exceed eighty (80) percent of net worth as reflected at such examination; and(b) The net worth ratio after dividend distribution shall not be less than seven (7) percent.(2) If a request for approval of the payment of a dividend is required by this Rule, then such requests must be submitted on forms provided by the department.(3) Approval of dividends shall be based upon the following considerations: (a) Adequacy of current year earnings to fund the proposed dividends;(b) Adequacy of reserves;(c) Adequacy of undivided earnings from previous fiscal years to maintain a level of capital commensurate with asset growth, net worth requirements in accordance with applicable law and regulations, and adequate funding of ongoing operations;(d) Effects of any dividend reduction on cash flow and liquidity; and(e) Asset condition of the credit union.Ga. Comp. R. & Regs. R. 80-2-3-.04
O.C.G.A. §§ 7-1-61, 7-1-660, 7-1-663.
Original Rule entitled "Departmental Approval of Dividends" was filed on July 13, 1981; effective August 2, 1981.Amended: Filed August 17, 1983; effective September 6, 1983.Amended: F. Oct. 12, 1989; eff. Nov. 1, 1989.Amended: F. Aug. 15, 2005; eff. Sept. 4, 2005.Amended: F. July 7, 2023; eff. July 27, 2023.