1. The board of directors of a state bank may, from time to time, declare, and the state bank may pay, dividends on its outstanding shares subject to the restrictions of this chapter and to the restrictions, if any, in its articles of incorporation. Dividends may be declared and paid only out of undivided profits and may be paid in cash or property.
2. A dividend may not be declared or paid unless the transfer of net profits to surplus required by section 524.402 has been made prior to the declaration of the dividend.
[C97, § 1852, 1888; S13, § 1850-a, 1852, 1889-l; C24, 27, 31, 35, § 9188, 9191, 9262, 9262-c1, 9263, 9283, 9299; C39, § 9188, 9191, 9262, 9262.1, 9263, 9283, 9299; C46, 50, 54, 58, 62, 66, § 526.33, 526.35, 528.56, 528.57, 528.58, 528.85, 532.16; C71, 73, 75, 77, 79, 81, § 524.516]
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Search: Iowa Code 1995
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