There shall be a distribution of the profits or surplus of an association among the member shareholders as is prescribed by the association's bylaws. The board of directors of an association may declare a sum of not more than forty per cent of the net profits or surplus to be appropriated for a contingent or sinking fund, an unallocated reserve fund or a collective account as may be prescribed in the association's bylaws.
Conn. Gen. Stat. § 33-193
Distribution of profits; sinking fund
(1949 Rev., S. 5302; P.A. 19-65, S. 8.) History: P.A. 19-65 replaced “earnings” with “surplus”, replaced former provision re distribution of profits or earnings with provision r…
Official source: Connecticut General Assembly. Reproduced from public-domain Connecticut statutes; confirm against the official source for the current text. Not legal advice.