DIY Legal Forms

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Authorizing Loan To Pay Dividend

Pursuant to a duly made, seconded, and unanimously carried motion, the Board of Directors of [Name] (hereinafter referred to as Corporation) adopted the following resolution:

WHEREAS the current financial statement reveals a surplus of $------ and such surplus is sufficient to support the payment of the regular dividend scheduled to be declared and the accounts receivable of said Corporation have not been paid in a timely fashion for the past quarter and the Corporation has obtained a short-term loan, it is hereby

RESOLVED, that the regular quarterly dividends shall be declared and paid out of the proceeds of said short-term loan to all shareholders of record on the [Date].

The undersigned, [Name], certifies that [Name] is the duly appointed Secretary of [Corporation] and that the above is a true, accurate, and correct copy of a resolution duly adopted at a meeting of the directors thereof, convened and held in accordance with law and the Bylaws of said Corporation on [Date], and that such resolution is now in full force and effect.

IN WITNESS THEREOF, I have affixed my name as Secretary of [Corporation] and have attached the seal of [Corporation] to this resolution.