New Jersey § 17:12b-130

§ 17:12b-130.

(a) At least annually and after determination of the net income for the accounting

period and the establishment of reserves required or permitted by this act, the board

of each State association shall determine by resolution, the rate or rates of dividend,

if any, which shall be declared for each class of account. Such dividends shall be taken only from the net income or from the undivided profits

account. Dividends shall be apportioned to members' accounts upon a compound interest plan. Dividends shall be made available to members by adding the same to their accounts,

except where otherwise provided by this act, but in no event shall dividends be made

available to the members earlier than the eighth calendar day prior to the closing

of the period for which said dividends are paid. Notwithstanding any other provision of this act, the board of any State association,

may by resolution, authorize the payment of dividends on amounts withdrawn from savings

accounts between the dates as of which such association regularly distributes earnings

on savings accounts provided that dividends paid on any amount so withdrawn, shall

not be paid for any greater portion of the dividend period than that during which

such amount remains in such association, nor at a rate in excess of the rate at which

earnings, exclusive of any reward profit, are distributed on savings accounts for

the dividend period in which such amount is so withdrawn. (b) State associations issuing installment share accounts may declare dividends to

accounts of other classes at a rate less than, but no more than, the rate declared

to installment share accounts for the same period, unless the board has adopted a

reward profit plan in which event all dividends, except those provided for under the

reward profit plan, shall be declared at the same rate. Notwithstanding any other provisions of this act, a State association may apportion

dividends to installment share accounts at other than a regular dividend period for

the purpose of maturing such accounts; provided, however, that the amount of dividends

so apportioned shall be no greater than the pro rata share of income for the current

period applicable for dividend purposes to such accounts. (c) Notwithstanding any other provisions of this act, a State association may, if

its by-laws so provide, exclude from dividends, either or both of the following classes

of accounts: (1) Those having a participation value of less than $50.00. Such accounts may be placed in, or transferred to, an account designated as a “nondividend

account;” provided, however, that the State association shall maintain a list of

the names of the savings members and the amounts credited to such savings members

in such “nondividend account.” (2) Those which are issued under a plan whereby they will be withdrawn within 24 months

from the date upon which they are issued, or it may credit dividends to such accounts

according to a schedule which it may establish, provided that such schedule shall

not result in the crediting of dividends to any of such accounts at a rate greater

than that applicable to any class of accounts, other than those described in subsection

(c) of this section.