New Jersey § 17:9a-186

§ 17:9a-186.

A. Except as may otherwise be hereinafter provided or provided by law now or hereafter

enacted or by rules and regulations promulgated pursuant to law or to which the savings

bank is subject by reason of membership in the Federal Deposit Insurance Corporation

or any successor corporation having for its purpose the insurance of deposits, every

savings bank (1) shall allow interest or dividends upon the deposits therewith, so that the depositors

receive, as nearly as possible, all the profits of the savings bank, after deducting

necessary expenses and reserves and after reserving an amount the managers deem expedient

as a surplus or contingent fund for the security of depositors, which, to the amount

of 20% of the deposits, the managers may accumulate and hold, to meet any contingency

or loss; (2) may (a) classify its depositors according to the character, amount, activity and

duration of their dealings with it, and (b) regulate such interest or dividends as

are allowed so that each depositor receives the same ratable proportion of interest

or dividends as all others of his class; (3) shall not declare or allow interest or dividends on any deposits for a longer

period than they have been deposited, except that (a) deposits made not later than

the fifth business day of any monthly period for which interest or dividends are declared

or allowed, or the tenth business day of the month commencing any quarterly or longer

interest or dividend periods, may have interest or dividends declared upon them for

the whole of the period or month when so deposited; and (b) deposits withdrawn during

the last 3 business days of any quarterly or longer interest or dividend period may

have interest allowed or dividends declared and credited upon them for the whole of

such period; (4) shall, within 1 year of the time its surplus reaches an amount equal to 20% of

such deposits, divide equitably substantially all of the surplus in excess, at the

time of such division, of 20% of such deposits, as an additional dividend to depositors,

in addition to other interest or dividends herein authorized; provided, that no such

additional dividend shall be declared or paid except after 1 month's prior written

notice to the commissioner of its intention to declare and pay such additional dividend; (5) may refuse to allow interest or dividends on deposit balances of less than a specified

minimum amount; (6) may refuse to allow interest or dividends upon sums on deposit for less than a

specified minimum period; and (7) may refuse to allow interest or dividends for a fractional part of a month or

other interest or dividend period, or upon a fractional part of a dollar or other

specified multiple thereof. B. No dividends or interest shall be declared, credited or paid, except by the authority

of a vote of the board of managers duly entered upon its minutes. No savings bank which is a qualified bank shall declare or pay any interest or dividend

in an amount which would reduce its surplus to less than $500,000.00.