California Financial Code

§ 1151

FIN § 1151 Effective Jan 1, 2012Div. 1.1 · Ch. 5 · Art. 4

Statute text

For purposes of any statute, regulation, or requirement of any governmental official or agency which refers to the capital (including, without limitation, stated capital, paid-in capital, and paid-up capital, but excluding contributed capital), surplus, or undivided profits of a bank, a bank, with the approval of its board, may establish and maintain capital, surplus, and undivided profits accounts and may from time to time allocate and reallocate its shareholders’ equity among such accounts; provided, however:

(a)That no part of the contributed capital of the bank shall be allocated to the undivided profits account of the bank;

(b)That the undivided profits account of the bank shall at no time exceed the retained earnings of the bank; and

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Legislative history

Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.