Section 286.5-371 - Dividends paid, when(1) Dividends shall be declared, credited, or paid on all stock daily, quarterly, semiannually, or annually, as the bylaws provide and the savings account from which the amount is so withdrawn shall have been outstanding for a period of not less than six (6) months; and earnings on any amount so withdrawn shall neither be distributed for any greater portion of the dividend period than that during which such amount remained in the association, nor at the rate in excess of the rate at which earnings, exclusive of any bonus, are distributed on savings accounts for the dividend period in which such amount is so withdrawn. All stock upon which payments are made in installments, except stock pledged upon the direct reduction plan, and all paid-up fully participating stock, shall be entitled to dividend in proportion to the amount paid in on such stock. Paid-up stock upon which the dividend rate is limited shall not participate in profits in excess of the limited rate.(2) Stock issued upon which mortgage is made upon semiannual reduction plan shall participate in any dividend only to extent of payments not credited upon the loan.(3) No dividend shall be declared, credited, or paid by any association except out of net income collected after deducting all expenses of operation and all losses sustained, except such losses from sale of real estate as may be charged to the reserve fund as provided in this subtitle.Effective:6/18/1964
Created 1964 Ky. Acts ch. 138, sec. 19, effective6/18/1964.