Financial Code section 1132

Neither a bank nor any majority-owned subsidiary of a bank shall make any distribution to the shareholders of such bank in an amount which exceeds the lesser of:

(a)

The retained earnings of the bank; or

(b)

The net income of the bank for its last three fiscal years, less the amount of any distributions made by the bank or by any majority-owned subsidiary of the bank to the shareholders of the bank during such period.

Source: Section 1132, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=FIN§ionNum=1132.­ (updated Jan. 1, 2012; accessed Jun. 25, 2025).

Green check means up to date. Up to date

Verified:
Jun. 25, 2025

§ 1132's source at ca​.gov