SEC. 127. Each such bank, before the declaration of a dividend, shall carry ten per centum of its net profit? accruing since the last preceding dividend to a surplus fund until the same shall amount to twenty per centum of its authorized capital stock; and no part of the surplus fund shall at any time be paid out in dividends, but losses accruing in fix course of business of the bank may be paid from the surplus fund. Nothing herein contained shall prevent the accumulation of a larger surplus fund should the directors so determine.
Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗ · Data as of July 4, 2026
CitationAct No. 1459 Section 127 (LawPlayer, data as of July 4, 2026)
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
