12 CFR § 5.63 - Capital limitation under 12 U.S.C. 56.

---
identifier: "/us/cfr/t12/s5.63"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 5.63 - Capital limitation under 12 U.S.C. 56."
title_number: 12
title_name: "Banks and Banking"
section_number: "5.63"
section_name: "Capital limitation under 12 U.S.C. 56."
chapter_name: "COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY"
part_number: "5"
part_name: "RULES, POLICIES, AND PROCEDURES FOR CORPORATE ACTIVITIES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1  24a, 35, 93a, 214a, 215, 215a, 215a-1, 215a-2, 215a-3, 215c, 371d, 481, 1462a, 1463, 1464, 1817(j), 1831i, 1831u, 2901  3101  3907, and 5412(b)(2)(B)."
regulatory_source: "61 FR 60363, Nov. 27, 1996, unless otherwise noted."
cfr_part: "5"
---


# 5.63 Capital limitation under 12 U.S.C. 56.

(a) *General limitation.* Except as provided by 12 U.S.C. 59 and § 5.46, a national bank may not withdraw, or permit to be withdrawn, either in the form of a dividend or otherwise, any portion of its permanent capital. Further, a national bank may not declare a dividend in excess of undivided profits.

(b) *Preferred stock.* The provisions of 12 U.S.C. 56 do not apply to dividends on preferred stock. However, if the undivided profits of the national bank are not sufficient to cover a proposed dividend on preferred stock, the proposed dividend constitutes a reduction in capital subject to 12 U.S.C. 59 and § 5.46.