---
kind: "section"
citation: "12 C.F.R. § 702.211"
title: "12"
number: "702.211"
heading: "Payment of dividends."
url: "https://uscodex.org/cfr/12/702.211"
---

# §702.211. Payment of dividends.

- (a) **Restriction on dividends.** Dividends shall be available only from net worth, net of any special reserves established under [§ 702.208](/cfr/12/702.208.md), if any.
- (b) **Payment of dividends and interest refunds.** The board of directors may not pay a dividend or interest refund that will cause the credit union's capital classification to fall below adequately capitalized under [subpart A](/cfr/12/subpartA.md) of this part unless the appropriate regional director and, if state-chartered, the appropriate state official, have given prior written approval (in an RBP or otherwise). The request for written approval must include the plan for eliminating any negative retained earnings balance.

## Notes

### Amendments

[80 FR 66706, Oct. 29, 2015. Redesignated at 86 FR 11073, Feb. 23, 2021]

### Source

Source: 80 FR 66706, Oct. 29, 2015, unless otherwise noted.

### Authority

Authority: 12 U.S.C. 1757(9), 1766(a), 1784(a), 1786(e), 1790d.

### Source

Source: 65 FR 8584, Feb. 18, 2000, unless otherwise noted.

### Amendments

[80 FR 66706, Oct. 29, 2015. Redesignated at 86 FR 11073, Feb. 23, 2021]