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DIVIDEND Definition & Legal Meaning

Definition & Citations:

A fund to be divided. The share allotted to each of several persons entitledto share in a division of profits or property. Thus, dividend may denote a fund setapart by a corporation out of its profits, to be apportioned among the shareholders, orthe proportional amount falling to each. In bankruptcy or insolvency practice, a dividendis a proportional payment to the creditors out of the insolvent estate. State v.Comptroller of State, 54 N. J. Law, 135, 23 Atl. 122; Trustees of University v. NorthCarolina R. Co., 76 N. C. 103, 22 Am. Rep. 671; De Koven v. Alsop, 205 111. 309, OSN. E. 930, 03 L. R. A. 587; Hyatt v. Allen, 56 N. Y. 553, 15 Am. Rep. 449; Cary v.Savings Union, 22 Wall. 38, 22 L. Ed. 779; In re Ft. Wayne Electric Corp. (D. C.) 94 Fed.109; In re Fielding (D. C.) 96 Fed. 800. In old English law. The term denotes one part of an indenture, (q. v.)


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