(205 ILCS 105/4-17) (from Ch. 17, par. 3304-17)
Sec. 4-17.
Dividends.
(a) Subject to the restrictions set forth in this Section and the
association's by-laws, the board of directors from time to time may
determine the rate and amount of dividends to be paid on capital and for
that purpose may establish reasonable classifications of withdrawable
capital accounts, based on (1) types or classes of such accounts, (2)
the length of time accounts are continued in effect, (3) size of initial
payments on accounts, (4) minimum balances of accounts during
apportionment periods, (5) frequency and extent of the activity of
accounts or (6) such other classifications as the Commissioner may
approve; and the Commissioner is authorized to prepare model plans of
classifications for adoption by associations.
(b) However, the declaration of dividends on capital shall be subject to
the following restrictions:
(1) No dividends may be declared when the total amount of the
contingent reserve is less than that required by Section 4-16 of this Act,
unless the allocation provided by that Section has
been made.
(2) Subject to regulations of the Commissioner, Cash dividends may
be declared quarterly on permanent
reserve shares after payment or provision has been made for all expenses,
losses, required reserves and dividends on withdrawable capital.
A stock dividend may be declared out of undivided
profits at any time.
(c) A dividend need not be allocated to any share account, other than a
regular installment share account, which has a withdrawal value of less
than $10 on the record date with respect to which the dividend is paid; and
no allocation need be made to a share account which by written agreement
will be closed within 15 months of the date on which such account is
opened.
(d) The board of directors shall determine by resolution the method of
calculating the amount of any dividend on withdrawable capital and the
date on which the same is to be declared or credited; but no payment or
credit shall be made more than 10 days before the end of any apportionment
period.
(Source: P.A. 85-578.)
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