Dividends need not be paid on a share account having less than the minimum balance prescribed in the bylaws.
Share Accounts and Certificates for FundsDividends
Section § 14900
This law states that if a share account does not meet the minimum balance required by the organization's bylaws, it isn't necessary to pay dividends on that account.
dividends minimum balance share account
Section § 14901
The board of directors at a credit union can decide on dividend rates and payment terms ahead of time. However, they can't pay dividends unless they follow the rules set in Section 14902.
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.
credit union dividend rates board of directors
Section § 14902
This law allows credit union directors to declare dividends for a given period from their leftover profits, according to the law. However, before paying dividends or giving loan interest refunds to members, the credit union must transfer part of its income into a regular reserve, as required by another law (Section 14700). Also, credit unions cannot pay dividends from their profits if it will cause them to owe more money than they have in their undivided profits account.
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.
credit union dividends undivided profits dividend declaration
Section § 14905
This law means that any payments or bonuses a credit union gives to its members within 30 days after the end of the fiscal year will be treated as if they were made on the last day of that fiscal year. This rule applies only to the credit unions themselves, not to their individual members or depositors.
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.
credit union payments income year end fiscal year closing
