Idaho State Statutes - Idaho Attorney Directory

No dividend shall be declared or paid by
any bank until a surplus equal to twenty percent (20%) of the paid-in capital
stock of such bank has been built up. Thereafter, the board of directors of
any bank may declare a dividend of so much of its net profits as it shall deem
expedient; but before any such dividend is declared or paid, not less than
one-fifth (1/5) of the net profits of the bank for such period as is covered
by the dividend shall be carried to the surplus fund until such surplus fund
shall amount to fifty percent (50%) of the paid-in common stock. Any loss
sustained by any bank in excess of its undivided profits may be charged to its
surplus account, provided that its surplus funds shall thereafter be
reimbursed from its earnings in the manner above provided. If such surplus
fund is reduced below an amount equal to twenty percent (20%) of the common
stock, no further dividend shall be declared or paid until such surplus is
restored to that amount, and thereafter dividends shall only be declared and
paid in the amount and in the manner above provided until such surplus shall
be restored to an amount equal to fifty percent (50%) of the common stock.
The directors knowingly voting for any dividend in violation of any of the
provisions of this section shall be jointly and severally liable, civilly, for
any and all dividends so declared, and in addition thereto, shall be guilty of
a misdemeanor.

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