N.Y. BNK Law § 517

§ 517. How net earnings credited for dividend purposes, credits to\nsurplus fund and to undivided profits, dividends to stockholders. When\nthe net earnings of an investment company having preferred shares issued\nand outstanding have been determined at the close of a dividend period,\nif the surplus fund does not equal twenty per centum of the investment\ncompany's capital, one-tenth of such net earnings shall be credited to\nthe surplus fund, or so much thereof, less than one-tenth, as will make\nsuch fund equal twenty per centum of such capital. The balance of such\nnet earnings, or the entire amount thereof if such fund equals such\ntwenty per centum, may be credited to the investment company's profit\nand loss account; or, if its expenses and losses for such dividend\nperiod exceed its gross earnings, such excess shall be charged to its\nprofit and loss account. The credit balance of such account shall\nconstitute the undivided profits at the close of such dividend period,\nwhich undivided profits shall be available for dividends.\n The directors of any investment company may annually, semi-annually or\nquarterly, but not more frequently, declare such dividends as they shall\njudge expedient from such undivided profits; provided, however, that the\ndirectors of any such company may declare a dividend in the last month\nof the fiscal year of such company, in lieu of any other semi-annual or\nquarterly declaration in the same fiscal year. No investment company\nshall declare any dividends to its stockholders until it shall have made\ngood any existing impairment of its capital and any existing\nencroachment on its reserves required to be maintained against deposits.\n