Section 379.1394

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 379

Effective - 28 Aug 2007   

  379.1394.  Dividend-payments, limitations. — 1.  A SPLRC may not declare or pay dividends in any form to its owners other than in accordance with the transaction agreements.

  2.  Dividends may not decrease the capital of the SPLRC below the minimum initial capital requirement.

  3.  After giving effect to the dividends the assets of the SPLRC, including assets held in trust and letters of credit issued for the exclusive benefit of the SPLRC, must be sufficient to satisfy the director that it can meet its obligations.

  4.  Approval of the director for ongoing dividends of other distributions must be conditioned upon the retention at the time of each payment of capital or surplus equal to or in excess of amounts specified by or determined in accordance with formulas approved for the SPLRC by the director.

  5.  Dividends may be declared by the management of the SPLRC provided that the dividend amount or form does not violate the provisions of sections 379.1353 to 379.1421 or jeopardize the fulfillment of the obligations of the SPLRC.

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(L. 2007 S.B. 215)