Section 110. Surplus fund; of what composed, and for what purposes used

Every bank and every trust company shall create a fund to be known as  a
  surplus fund. Such fund may be created or increased by contributions, by
  transfers  from  undivided profits, or from net profits. Such fund shall
  not be available for the payment of dividends,  except  with  the  prior
  approval  of  the  superintendent,  and  may  be used to pay expenses or
  absorb losses only in the event  such  bank  or  trust  company  has  no
  undivided profits against which such expenses or losses may be charged.