### Question
How does the law define undivided profits?


### Answer
Under *12 U.S.C. § 1441b*, **undivided profits** is defined as:

> 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**

