Section 112. Dividends; payable from net profits; restrictions

1. The
  directors of a bank or trust  company  may  annually,  semi-annually  or
  quarterly,   but   not   more   frequently   unless  authorized  by  the
  superintendent by regulation or otherwise,  declare  such  dividends  as
  they  deem  judicious  to be paid from net profits. No dividend shall be
  declared, credited or paid so long as there is any impairment of capital
  stock. No bank or  trust  company  having  outstanding  preferred  stock
  shall,  except  as  otherwise  authorized by the superintendent, declare
  dividends upon common stock for any period other than a period for which
  dividends are declared upon preferred stock.
    2. The approval of the superintendent shall be required if  the  total
  of  all  dividends  declared  by a bank or trust company in any calendar
  year shall exceed the total of its net profits for  that  year  combined
  with  its  retained  net  profits  of  the preceding two years, less any
  required transfer to surplus  or  a  fund  for  the  retirement  of  any
  preferred stock.
    3. For the purposes of this section, the term "net profits" shall mean
  the  remainder  of  all  earnings  from  current  operations plus actual
  recoveries on loans and investments and other  assets,  after  deducting
  from  the  total  thereof all current operating expenses, actual losses,
  accrued dividends on preferred stock, if any, and all federal and  state
  taxes.