Article 2. Dividends of California Financial Code >> Division 5. >> Chapter 6. >> Article 2.
(a) The board of directors of any credit union may declare
dividends at such intervals, in accordance with such formula, and for
such periods as provided in the written savings capital structure
(b) Dividends need not be paid on a share account having less than
the minimum balance prescribed in the bylaws.
The rates of dividends and terms of payment may be
established in advance by action of the board of directors. However,
nothing in this section shall be construed to permit any credit union
to pay a dividend except as provided in Section 14902.
The directors of any credit union may, for the dividend
period, declare dividends from its undivided profits as provided by
law, but no credit union shall credit or pay any dividends or pay
loan interest refunds to its members until it has transferred to its
regular reserve such part of its gross income as is required by
Section 14700. However, nothing in this division shall be construed
to permit the credit union to credit or pay a dividend from its
undivided profits account when the credit or payment would result in
a deficit in the undivided profits account.
Amounts paid or credited by a credit union to its members or
depositors on or before the 30th day after the close of its income
year shall be deemed for all purposes as paid or credited by the
credit union upon the last day of the income year. This section is
applicable only to credit unions as entities and does not apply to
the members or depositors thereof.