P.R. Laws tit. 7, § 403
When the net earnings of a trust company have been determined at the close of a dividend period as provided in § 401 of this title, if its surplus fund does not equal twenty percent (20%) of the trust company’s capital, one-tenth (1/10) of such net earnings shall be credited to the surplus fund or so much thereof, less than one-tenth (1/10), as will make such fund equal twenty percent (20%) of such capital. The balance of such net earnings, or the entire amount thereof if such fund equals such twenty percent (20%), may be credited to the trust company’s profit-and-loss account; or, if its expenses and losses for such dividend period exceed its gross earnings, such excess shall be charged to its profit-and-loss account. The credit balance of such amount shall constitute the undivided profits at the close of such dividend period, and shall be available for dividends. The directors of any trust company may annually, semi-annually or quarterly, but not more frequently declare such dividends as they shall judge expedient from such undivided profits. No trust company shall declare, credit or pay any dividends to its stockholders until it shall have made good any existing impairment of its capital and any existing encroachment on its reserves required to be maintained against deposits.
History —Apr. 23, 1928, No. 40, p. 234, § 25, eff. 90 days after Apr. 23, 1928.