Section 9: Maintenance of reserve fund.

(1) Every mortgage institution shall maintain a reserve fund and shall, out of its net profits each year and before any dividend is declared, transfer to the reserve fund-
(a) where the reserve fund is less than the paid-up share capital, a sum equal to not less than twenty-five per centum of such profits; or
(b) where the reserve fund is equal to or in excess of the paid-up capital, a sum equal to not less than twelve and a half per centum of the net profits.
(2) No transfer under subsection (1) of this section shall be made until any past losses have been made good.