In addition to cash dividends, directors of a national bank may declare dividends payable in property, with the approval of the OCC. A national bank shall submit a request for prior approval of a noncash dividend to the appropriate OCC licensing office. Even though the property distributed has been previously charged down or written off entirely, the dividend is equivalent to a cash dividend in an amount equal to the actual current value of the property. Before the dividend is declared, the bank should show the excess of the actual value over book value on the books of the national bank as a recovery, and the dividend should then be declared in the amount of the full book value (equivalent to the actual current value) of the property being distributed.
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