### Question
How is the "undivided profits" defined?


### Answer
The term **undivided profits** is defined in *12 U.S.C. § 1441b* as follows -

> earnings retained after dividends have been paid minus the sum of—


(A) that portion required to be added to reserves maintained pursuant to the first 2 sentences of section 1436 of this title

#### Citation:
  - *12 U.S.C. § 1441b*
  - Heading: **CHAPTER 11-FEDERAL HOME LOAN BANKS**

