Surplus fund required - Dividends only out of earnings not required for surplus
N.D. Cent. Code § 6-03-34
in effect6-03-34. Surplus fund required - Dividends only out of earnings not required for
surplus.
The board of directors of any association organized under this title may declare and pay
dividends out of the net profits of the association subject to the limitations of this chapter. Except
for cooperative financial institutions, every such association, as its board of directors deems
advisable, shall ascertain, set apart, and convert into a surplus fund at least fifty percent of its
net earnings until such surplus fund equals one hundred percent of its common stock, and no
dividend may be declared upon its stock except from the remaining fifty percent of its net
earnings.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t06c03.pdf#nameddest=6-03-34Fetched: 10/16/2026