(a) (1) Except as otherwise provided in this section, the board may declare and pay dividends from its available net earnings or undivided earnings at the close of any accounting period after providing for accrued expenses and interest.
(2) Dividends paid or accrued are to be treated as an expense.
(b) The board shall set the dividend rate and any terms and conditions regarding the dividend.
(c) A credit union may not declare a dividend:
(1) Unless the required amount of earnings has been credited to the reserve fund of the credit union; or
(2) If the known losses at the close of a fiscal year would exceed the sum of the balances of the reserve fund, surplus, and undivided earnings after payment of the dividend.
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