Paid-in and Unimpaired Capital and Surplus [Banks & Banking] Law and Legal Definition

Pursuant to 12 USCS § 1795a (3) [Title 12. Banks and Banking; Chapter 14. Federal Credit Unions; Central Liquidity Facility], the term paid-in and unimpaired capital and surplus means “the balance of the paid-in share accounts and deposits as of a given date, less any loss that may have been incurred for which there is no reserve or which has not been charged against undivided earnings, plus the credit balance (or less the debit balance) of the undivided earnings account as of a given date, after all losses have been provided for and net earnings or net losses have been added thereto or deducted therefrom. Reserves shall not be considered as part of surplus.”