Guam § 133103 - Apportionment of Profits.

§ 133103. Apportionment of Profits.

Profits and losses shall be apportioned at least annually. In

computing earnings or dividends on shares, the rate shall be applied to

the value thereof, subject to regulations prescribed by the by-laws or

directors in respect of payments on such shares since the last prior

apportionment. Interest unpaid, although due or accrued, on debts owing

to any association, shall not be included in calculation of its profits

available for dividends; nor shall any association, except with the

previous written consent of the commissioner, enter or at any time carry

on its books any of its assets at a valuation exceeding its actual cost to

such association. If the loan reserve mentioned in this section shall not

equal 5 percent of the aggregate unpaid principal amount of the

outstanding loans at the time of each apportionment of profits, the

directors, before declaring any dividends, shall set aside as a loan reserve

not less than 5 percent of the net profits accruing since the last prior

apportionment and shall continue so to do until said loan reserve shall

amount to at least 5 percent of the aggregate unpaid principal amount of

the loans in force secured by real property. Such loan reserve shall be

available at all times to meet any losses, whether arising from loans or

otherwise, but the directors of any association at their option may charge

losses against earnings, undivided profits or surplus. If at any time said

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loan reserve shall be in anywise impaired, it shall thereafter be restored

in like manner. Said loan reserve shall include such sum, if any, as the

directors of such association may transfer from its surplus or undivided

profits to said loan reserve. Every association may, in addition to a

dividend on its stock at a rate equal to that declared and paid or credited

on installment shares, if any, set aside from and out of the net profits, if

any, at each annual distribution thereof an amount not exceeding 1 per

cent per annum on the average loans in force during such period, or a

proportionate amount at each semiannual, quarterly or other distribution,

from which to declare additional dividends on its stock; provided,

however, that at least one-tenth of the amount so set aside shall be

carried to stock surplus until such surplus shall amount to at least 25 per

cent of the par value of the outstanding stock, and if at any time

thereafter such stock surplus shall be in anywise impaired, it shall

thereafter be restored in like manner. Subject to the requirements of this

section as to the loan reserve and stock surplus, and subject to the

provisions of other sections of this act expressly restricting the

declaration or payment of dividends, the directors of any association not

issuing shares may make, declare and pay dividends on the stock of so

much of the surplus profits arising from the business thereof as to them

appears advisable.