§ 60. National bank dividends

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. undated

   R.S. § 5199

   Enacted · 12 U.S.C. § 60

   R.S. § 5199

   Unresolved: No Public Law or Statutes at Large citation in the Code source.

   Source evidence

   Code source credit
   R.S. § 5199

2. 1959

   Pub. L. 86–230 § 21(a) · 73 Stat. 457

   1. Amended · 12 U.S.C. § 60

      Pub. L. 86–230 designated existing provisions as subsec. (a), authorized the declaration of dividends, quarterly and annually, when at least one-tenth of the bank’s net profits of the preceding half year or of the preceding two consecutive half-year periods has been carried to the surplus fund, respectively

   2. Added · 12 U.S.C. § 60

      Pub. L. 86–230 added subsecs. (b) and (c)

   Source evidence

   Code amendment note
   Pub. L. 86–230 designated existing provisions as subsec. (a), authorized the declaration of dividends, quarterly and annually, when at least one-tenth of the bank’s net profits of the preceding half year or of the preceding two consecutive half-year periods has been carried to the surplus fund, respectively, and added subsecs. (b) and (c).

   Enacted provision · exact public law section
   (a) Section 5199 of the Revised Statutes (12 U.S.C. 60) is 49 Stat. 712. amended to read as follows: “Sec. 5199. (a) The directors of any national banking association Declaration of dividends. may, quarterly, semiannually or annually, declare a dividend of so much of the net profits of the association as they shall judge expedient, except that until the surplus fund of such association shall equal its common capital, no dividends shall be declared unless there has been carried to the surplus fund not less than one-tenth part of the association’s net profits of the preceding half year in the case of quarterly or semiannual dividends, or not less than one-tenth part of its net profits of the preceding two consecutive half-year periods in the case of annual dividends: Provided, That for the purposes of this section, any amounts paid into a fund for the retirement of any preferred stock of any such association out of its net profits for such period or periods shall be deemed to be additions to its surplus fund if, upon the retirement of such preferred stock, the amounts so paid into such retirement fund may then properly be carried to surplus. In any such case the association shall be obligated to transfer to surplus the amounts so paid into such retirement fund on account of the preferred stock as such stock is retired. “(b) The approval of the Comptroller of the Currency shall be required if the total of all dividends declared by such association in any calendar year shall exceed the total of its net profits of that year combined with its retained net profits of the preceding two years, less any required transfers to surplus or a fund for the retirement of any preferred stock. “(c) For the purpose of this section the term ‘net profits’ shall mean the remainder of all earnings from current operations plus actual recoveries on loans and investments and other assets, after deducting from the total thereof all current operating expenses, actual losses, accrued dividends on preferred stock, if any, and all Federal and State taxes.”

3. 1994

   Riegle Community Development and Regulatory Improvement Act of 1994

   Pub. L. 103–325 § 602(h)(2)(A) · 108 Stat. 2160

   1. Substituted · 12 U.S.C. § 60(a)

      Pub. L. 103–325, § 602(h)(2)(A), (B), substituted “undivided profits of the association, subject to the limitations in subsection (b) of this section,” for “net profits of the association” wherever subsequently appearing

   2. Substituted · 12 U.S.C. § 60(a)

      Pub. L. 103–325, § 602(h)(2)(A), (B), substituted “net income” for “net profits” wherever subsequently appearing

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 103–325, § 602(h)(2)(A), (B), substituted “undivided profits of the association, subject to the limitations in subsection (b) of this section,” for “net profits of the association” in first sentence and “net income” for “net profits” wherever subsequently appearing.

   Enacted provision · exact public law section
   (A) in the 1st sentence, by striking “net profits of the association” and inserting “undivided profits of the association, subject to the limitations in subsection (b),”;

4. 1994

   Riegle Community Development and Regulatory Improvement Act of 1994

   Pub. L. 103–325 § 602(h)(2)(B) · 108 Stat. 2160

   Substituted · 12 U.S.C. § 60(b)

   Pub. L. 103–325, § 602(h)(2)(B), substituted “net income” for “net profits” in two places

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 103–325, § 602(h)(2)(B), substituted “net income” for “net profits” in two places.

   Enacted provision · exact public law section
   (B) by striking “net profits” each subsequent place such term appears and inserting “net income”; and

5. 1994

   Riegle Community Development and Regulatory Improvement Act of 1994

   Pub. L. 103–325 § 602(h)(2)(C) · 108 Stat. 2160

   Struck · 12 U.S.C. § 60(c)

   Pub. L. 103–325, § 602(h)(2)(C), struck out subsec. (c) which read as follows: “For the purpose of this section the term ‘net profits’ shall mean the remainder of all earnings from current operations plus actual recoveries on loans and investments and other assets, after deducting from the total thereof all current operating expenses, actual losses, accrued dividends on preferred stock, if any, and all Federal and State taxes.”

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 103–325, § 602(h)(2)(C), struck out subsec. (c) which read as follows: “For the purpose of this section the term ‘net profits’ shall mean the remainder of all earnings from current operations plus actual recoveries on loans and investments and other assets, after deducting from the total thereof all current operating expenses, actual losses, accrued dividends on preferred stock, if any, and all Federal and State taxes.”

   Enacted provision · exact public law section
   (C) by striking subsection (c).

6. 2006

   Pub. L. 109–351 title III § 302(a) · 120 Stat. 1966

   Amended · 12 U.S.C. § 60

   Pub. L. 109–351 amended section generally. Prior to amendment, section related to periodic declarations of dividends subject to certain surplus fund requirements and to the approval of the Comptroller of the Currency in certain situations

   Source evidence

   Code amendment note
   Pub. L. 109–351 amended section generally. Prior to amendment, section related to periodic declarations of dividends subject to certain surplus fund requirements and to the approval of the Comptroller of the Currency in certain situations.

   Enacted provision · exact public law section
   (a) In General.— Section 5199 of the Revised Statutes of the United States (12 U.S.C. 60) is amended to read as follows: “SEC. 5199. NATIONAL BANK DIVIDENDS. “(a) In General.— Subject to subsection (b), the directors of any national bank may declare a dividend of so much of the undivided profits of the bank as the directors judge to be expedient. “(b) Approval Required Under Certain Circumstances.— A national bank may not declare and pay dividends in any year in excess of an amount equal to the sum of the total of the net income of the bank for that year and the retained net income of the bank for the preceding 2 years, minus the sum of any transfers required by the Comptroller of the Currency and any transfers required to be made to a fund for the retirement of any preferred stock, unless the Comptroller of the Currency approves the declaration and payment of dividends in excess of such amount.” .

7 of 8 references resolved to an enrolled provision · 1 unresolved