§ 18132 Industrial Loan Company Dividends

This law says a company that lends money can only give out profits to its owners if it has enough money saved up. The amount it needs depends on how many offices it has.

Key Takeaways

•A money-lending company must have at least $750,000 saved to give out profits.
•For every extra office it has, it needs an additional $50,000 saved.
•If the company doesn’t meet this requirement, it cannot give profits to its owners.

Example

A money-lending company wants to give some of its profits to its owners.

The company must have at least $750,000 saved, plus an extra $50,000 for every office it has. If it doesn’t have enough, it can’t give out the profits.

How to Calculate

Minimum unimpaired capital = $750,000 + ($50,000 × number of branch offices)

Start with $750,000 as the base amount.
Count how many branch offices the company has.
Multiply the number of branch offices by $50,000.
Add the result to $750,000 to get the total minimum amount needed.

A company has 3 branch offices.

Result: $750,000 + ($50,000 × 3) = $900,000

An industrial loan company may declare a dividend on its capital stock only if the company has minimum unimpaired capital of seven hundred fifty thousand dollars ($750,000) plus additional capital stock of fifty thousand dollars ($50,000) for each branch office. (Repealed and added by Stats. 1983, Ch. 858, Sec. 8.)

This law says a company that lends money can only give out profits to its owners if it has enough money saved up. The amount it needs depends on how many offices it has.

Key Takeaways

•A money-lending company must have at least $750,000 saved to give out profits.
•For every extra office it has, it needs an additional $50,000 saved.
•If the company doesn’t meet this requirement, it cannot give profits to its owners.

Example

A money-lending company wants to give some of its profits to its owners.

The company must have at least $750,000 saved, plus an extra $50,000 for every office it has. If it doesn’t have enough, it can’t give out the profits.

How to Calculate

Minimum unimpaired capital = $750,000 + ($50,000 × number of branch offices)

Start with $750,000 as the base amount.
Count how many branch offices the company has.
Multiply the number of branch offices by $50,000.
Add the result to $750,000 to get the total minimum amount needed.

A company has 3 branch offices.

Result: $750,000 + ($50,000 × 3) = $900,000

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 18132 Industrial Loan Company Dividends

Key Takeaways

Example

How to Calculate

Key Terms

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References