2006 Minnesota Statutes

53.08 DIVIDENDS.
    Subdivision 1. General conditions for dividends. When an industrial loan and thrift
company is organized under this chapter or operating thereunder, the board of directors may
declare a dividend of so much of the net profits of the corporation, after providing for all expenses,
reserves, interest, and taxes accrued or due from the corporation, as they shall judge expedient,
but before any dividend is declared, not less than one-tenth of the net profits of the industrial loan
and thrift company of the preceding half year, or for such period as is covered by the dividend,
shall be carried to surplus until the aggregate of undivided profits and surplus shall amount to 20
percent of its capital represented by shares of common stock.
    Subd. 2. Special conditions for deposit companies. In addition to the conditions in
subdivision 1, industrial loan and thrift companies having outstanding time certificates of
indebtedness, savings accounts, or savings deposits must comply with the following special
conditions:
(1) the dividend period for the purpose of declaring dividends shall be the period beginning
on January 1 and ending as of the close of business December 31 of each calendar year and the
net income for this period shall be determined from the consolidated report of income of each
company;
(2) the Department of Commerce will supply each company with forms to be completed with
information called for. The forms must be mailed or delivered to the commissioner within ten
days of the date of declaration of any dividend and at least 15 days before the proposed payment
date of any dividend. The forms shall contain a statement by the commissioner providing that if
certain requirements as set forth in the statement are met, the company may pay a cash dividend
or dividends without specific approval of the commissioner in the year after the dividend period
in amounts so as not to reduce the company's capital, surplus, undivided profits, and reserves
below these requirements;
(3) declared dividends shall be deducted from undivided profits and carried on the books as
another liability entitled "dividends payable." The other liability account shall be reversed upon
payment or nonapproval by the commissioner; and
(4) except as provided in clause (2), no company shall pay a cash dividend to its stockholders
until written approval for the dividend has been obtained from the commissioner.
History: (7774-32) 1933 c 246 s 8; 1947 c 20 s 5; 1971 c 442 s 5; 1989 c 166 s 23