Section 4
SEC. 4. The net profits of the National Bank shall be apportioned semiannually as follows: Fifty per centum to a surplus fund until the latter shall equal fifty per centum of the capital stock of the Bank, and thereafter twenty-five per centum of said net profits until said surplus fund shall equal the capital stock. The rest of the net profits shall be apportioned as follows, in the order mentioned: (a) To establish a special reserve for its circulating notes. This reserve shall finally equal twenty-five per centum of said circulating notes and shall be kept on deposit in a duly authorized depository or depositories in the United States and the Bank shall not dispose thereof except upon recommendation of the Secretary of Finance, approved by the Governor-General. The Bank shall semiannually return to the Government a portion of the funds taken from the proceeds of the bonds sold by authority of Act Numbered Twenty-nine hundred and ninety-nine, as provided in section three of this Act, equivalent in amount to the net profits set aside for its special reserve by virtue of this paragraph. (b) To refund to the Government the fixed deposits appropriated to cover losses, as provided in section two of this Act. (c) To reimburse the Government for the losses involved in the reduction of the capital stock as provided for in section one of this Act. The net profits set aside for the purposes mentioned in paragraphs (b) and (c) shall be paid to the Insular Treasurer. When the requirements of paragraphs (a), (6), and (c) and the provisions regarding the surplus above mentioned shall have been completely complied with, the remaining net profits may be distributed in the form of dividends to the stockholders as the Board of Directors may determine; but dividends shall never be declared or paid out of the surplus fund: Provided, however, That whenever the surplus fund shall have been reduced by- losses, fifty per centum of the net profits shall be set aside for said fund until the same shall once more equal fifty per centum of the capital stock, and thereafter twenty-five per centum of the net profits until the aforesaid fund shall again equal the capital stock.