Dividends Paid with Loan
Where the financial statement shows a capital surplus but the corporation is short of cash to pay a dividend, Form 3020 may be used to authorize a loan to pay the dividend.~

Form 3020:     BOARD OF DIRECTORS' RESOLUTION AUTHORIZING LOAN TO PAY DIVIDEND~
BOARD OF DIRECTORS' RESOLUTION AUTHORIZING LOAN TO PAY DIVIDEND

Upon a duly made, seconded and unanimously carried motion, the Board of Directors of this Corporation adopted the following resolution:
WHEREAS, the financial statement submitted to the Board of Directors of this Corporation reveals that there is a surplus of > dollars > which would be sufficient to support the payment of the regular dividend scheduled to be declared at this time, and 
WHEREAS, the Corporation's accounts receivable have not been timely paid for the past quarter, and
WHEREAS, the Corporation has obtained a short-term loan, it is hereby
RESOLVED, that regular quarterly dividends shall be declared and paid out of the proceeds of the short-term loan made by the > Bank to all shareholders of record on the > day of > , 19> .
The undersigned, > , certifies that I am the duly appointed Secretary of > Corporation and that the above is a true 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 > , 19> , 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.

Secretary
Dated: > , 19> .
(SEAL)