DIY Legal Forms

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Approve Loan To Pay Dividend

WHEREAS, the Corporation has accumulated a surplus sufficient to pay the declared dividend of (--%) on the common stock payable on [Date], to stockholders of record at the close of business on [Date], and

WHEREAS, the cash surplus can be more advantageously used for the expansion of the business, be it

RESOLVED, that the President is hereby authorized to transact a loan from [Name] Bank for the amount of the dividend declared, and

RESOLVED FURTHER, that, upon obtaining the said loan, the Treasurer is hereby directed and authorized to pay out from the fund so borrowed the declared dividend on the date specified.

The undersigned hereby certifies that [Name] is the duly elected and qualified Secretary and the custodian of the books and records and seal of [Name], a corporation duly formed pursuant to the laws of the State of [State], and that the foregoing is a true record of a resolution duly adopted at a meeting of the Board of Directors, and that said meeting was held in accordance with state law and the Bylaws of the above named Corporation on [Date], and that said resolution is now in full force and effect without modification or rescission.

IN WITNESS WHEREOF, I have executed my name as Secretary and have hereunto affixed the corporate seal of the above named Corporation on [Date].

A True Record.