Dividends Paid with Loan
Form 3040 is comparable to Forms 3030 and 3031, except that it specifically relates to making an adjustment in the company's reserve for depreciation and to converting the excess reserve to surplus, so that dividends may be paid.~

Form 3040:     BOARD OF DIRECTORS' RESOLUTION AUTHORIZING CONVERSION OF EXCESS DEPRECIATION TO SURPLUS~
BOARD OF DIRECTORS' RESOLUTION AUTHORIZING CONVERSION OF EXCESS DEPRECIATION TO SURPLUS

Upon a duly made, seconded and unanimously carried motion, the Board of Directors of this Corporation adopted the following resolution:
WHEREAS, > dollars ($>) have been assigned to the depreciation account on the Corporation's books for the period running from the > day of > , 19> to the > day of > , 19> , and
WHEREAS, > dollars ($> ) have been assigned to the reserve for depreciation on the books of the Corporation, and
WHEREAS, the value of the real property upon which the above mentioned depreciation and reserve for depreciation charges and credits were made has been determined by the independent appraisal firm of > to be > dollars ($> ), it is hereby
RESOLVED, that the Treasurer of this Corporation is hereby directed to transfer on the Corporation's books > dollars ($> ) from the Corporation's reserve for buildings account to the Corporation's surplus account.
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)