{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-869.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-869.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-869.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-869.html"}],"law_id":54800,"edition_id":1,"section_id":54800,"structure_id":13792,"section_number":"6.2-869","catch_line":"Dividends; surplus; undivided profits","history":"Code 1950, \u00a7 6-48; 1966, c. 584, \u00a7 6.1-56; 1976, c. 658; 1979, c. 53; 1992, c. 48; 1995, c. 84; 2010, c. 794.","full_text":"A\n\nThe board of directors of any bank may declare a dividend of so much as the board shall judge expedient of the net undivided profits of the bank, after providing for all expenses, losses, interest and taxes accrued, or due by such bank. Before any such dividend is declared, any deficit in capital funds originally paid in shall have been restored by earnings to their initial level, and no dividend shall be declared or paid by any bank which would impair the paid-in capital of the bank.B\n\nTo ascertain the net undivided profits before any dividend shall be declared, all debts due to such bank on which interest is past due and unpaid for a period of 12 months, unless the same are well secured and in process of collection by law, shall be deducted from the undivided profits in addition to all expenses, losses, interest and taxes accrued, and the balance shall be deemed to be the net undivided profits.C\n\nNotwithstanding the foregoing provisions of this section, the Commission may limit or approve the payment of dividends by the board of directors of any bank when the Commission determines that such limitation or approval is warranted by the financial condition of the bank.","order_by":null,"text":{"0":{"id":201113,"text":"The board of directors of any bank may declare a dividend of so much as the board shall judge expedient of the net undivided profits of the bank, after providing for all expenses, losses, interest and taxes accrued, or due by such bank. Before any such dividend is declared, any deficit in capital funds originally paid in shall have been restored by earnings to their initial level, and no dividend shall be declared or paid by any bank which would impair the paid-in capital of the bank.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":201114,"text":"To ascertain the net undivided profits before any dividend shall be declared, all debts due to such bank on which interest is past due and unpaid for a period of 12 months, unless the same are well secured and in process of collection by law, shall be deducted from the undivided profits in addition to all expenses, losses, interest and taxes accrued, and the balance shall be deemed to be the net undivided profits.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":201115,"text":"Notwithstanding the foregoing provisions of this section, the Commission may limit or approve the payment of dividends by the board of directors of any bank when the Commission determines that such limitation or approval is warranted by the financial condition of the bank.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":13792,"edition_id":1,"name":"Directors and Officers; Dividends","identifier":"8","label":"article","depth":4,"order_by":1,"parent_id":13791,"metadata":{},"date_created":"2026-06-26 03:45:53","date_modified":"2026-06-26 03:45:53","permalink":{"id":265601,"object_type":"structure","relational_id":13792,"identifier":"8","token":"6.2\/II\/8\/8","url":"\/6.2\/II\/8\/8\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13791,"edition_id":1,"name":"Banks","identifier":"8","label":"chapter","depth":3,"order_by":1,"parent_id":13000,"metadata":{},"date_created":"2026-06-26 03:45:53","date_modified":"2026-06-26 03:45:53","permalink":{"id":265065,"object_type":"structure","relational_id":13791,"identifier":"8","token":"6.2\/II\/8","url":"\/6.2\/II\/8\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13000,"edition_id":1,"name":"Depository Institutions and Trust Organizations","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12852,"metadata":{},"date_created":"2026-06-26 03:44:07","date_modified":"2026-06-26 03:44:07","permalink":{"id":263685,"object_type":"structure","relational_id":13000,"identifier":"II","token":"6.2\/II","url":"\/6.2\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12852,"edition_id":1,"name":"Financial Institutions and Services","identifier":"6.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":263249,"object_type":"structure","relational_id":12852,"identifier":"6.2","token":"6.2","url":"\/6.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":72617,"structure_id":13792,"section_number":"6.2-860","catch_line":"Bank to be managed by board of directors; number of directors","url":"\/6.2-860\/","token":"6.2\/II\/8\/8\/6.2-860","metadata":false},{"id":84782,"structure_id":13792,"section_number":"6.2-861","catch_line":"Application of Virginia Stock Corporation Act","url":"\/6.2-861\/","token":"6.2\/II\/8\/8\/6.2-861","metadata":false},{"id":64096,"structure_id":13792,"section_number":"6.2-862","catch_line":"Directors to own stock in bank","url":"\/6.2-862\/","token":"6.2\/II\/8\/8\/6.2-862","metadata":false},{"id":75199,"structure_id":13792,"section_number":"6.2-863","catch_line":"Oaths of directors","url":"\/6.2-863\/","token":"6.2\/II\/8\/8\/6.2-863","metadata":false},{"id":72831,"structure_id":13792,"section_number":"6.2-864","catch_line":"Report to Commission of election of director","url":"\/6.2-864\/","token":"6.2\/II\/8\/8\/6.2-864","metadata":false},{"id":63998,"structure_id":13792,"section_number":"6.2-865","catch_line":"Removal of director or officer; appeals; penalty","url":"\/6.2-865\/","token":"6.2\/II\/8\/8\/6.2-865","metadata":false},{"id":56603,"structure_id":13792,"section_number":"6.2-866","catch_line":"Meetings of board of directors","url":"\/6.2-866\/","token":"6.2\/II\/8\/8\/6.2-866","metadata":false},{"id":63140,"structure_id":13792,"section_number":"6.2-867","catch_line":"Discount by officer, director, or employee of paper refused by bank","url":"\/6.2-867\/","token":"6.2\/II\/8\/8\/6.2-867","metadata":false},{"id":70091,"structure_id":13792,"section_number":"6.2-868","catch_line":"Bonds required of officers and employees; blanket bond","url":"\/6.2-868\/","token":"6.2\/II\/8\/8\/6.2-868","metadata":false},{"id":54800,"structure_id":13792,"section_number":"6.2-869","catch_line":"Dividends; surplus; undivided profits","url":"\/6.2-869\/","token":"6.2\/II\/8\/8\/6.2-869","metadata":false}],"previous_section":{"id":70091,"structure_id":13792,"section_number":"6.2-868","catch_line":"Bonds required of officers and employees; blanket bond","url":"\/6.2-868\/","token":"6.2\/II\/8\/8\/6.2-868","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-869\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 6 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1966, chapter 584; in 1976, chapter 658; in 1979, chapter 53; in 1992, chapter 48; in 1995, chapter 84<\/a>; in 2010, chapter 794<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":265639,"object_type":"law","relational_id":54800,"identifier":"6.2-869","token":"6.2\/II\/8\/8\/6.2-869","url":"\/6.2-869\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-869\/","token":"6.2\/II\/8\/8\/6.2-869","dublin_core":{"Title":"Dividends; surplus; undivided profits","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-869","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The board of directors of any bank<\/span> may declare a dividend of so much as the board shall judge<\/span> expedient of the net undivided profits of the bank<\/span>, after providing for all expenses, losses, interest and taxes accrued, or due by such bank<\/span>. Before any such dividend is declared, any deficit in capital funds originally paid in shall have been restored by earnings to their initial level, and no dividend shall be declared or paid by any bank<\/span> which would impair the paid-in capital of the bank<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> To ascertain the net undivided profits before any dividend shall be declared, all debts due to such bank<\/span> on which interest is past due and unpaid for a period of 12 months, unless the same are well secured and in process of collection by law<\/span>, shall be deducted from the undivided profits in addition to all expenses, losses, interest and taxes accrued, and the balance shall be deemed to be the net undivided profits. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Notwithstanding the foregoing provisions of this section, the Commission<\/span> may limit or approve the payment of dividends by the board of directors of any bank<\/span> when the Commission<\/span> determines that such limitation or approval is warranted by the financial condition of the bank<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDIVIDENDS; SURPLUS; UNDIVIDED PROFITS (\u00a7 6.2-869)\n\nA. The board of directors of any bank may declare a dividend of so much as the\nboard shall judge expedient of the net undivided profits of the bank, after\nproviding for all expenses, losses, interest and taxes accrued, or due by such\nbank. Before any such dividend is declared, any deficit in capital funds\noriginally paid in shall have been restored by earnings to their initial level,\nand no dividend shall be declared or paid by any bank which would impair the\npaid-in capital of the bank.\n\nB. To ascertain the net undivided profits before any dividend shall be declared,\nall debts due to such bank on which interest is past due and unpaid for a period\nof 12 months, unless the same are well secured and in process of collection by\nlaw, shall be deducted from the undivided profits in addition to all expenses,\nlosses, interest and taxes accrued, and the balance shall be deemed to be the\nnet undivided profits.\n\nC. Notwithstanding the foregoing provisions of this section, the Commission may\nlimit or approve the payment of dividends by the board of directors of any bank\nwhen the Commission determines that such limitation or approval is warranted by\nthe financial condition of the bank.\n\nHISTORY: Code 1950, \u00a7 6-48; 1966, c. 584, \u00a7 6.1-56; 1976, c. 658; 1979, c. 53;\n1992, c. 48; 1995, c. 84; 2010, c. 794.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}