The problem with which this note is concerned is whether under Nebraska law a corporation may pay a dividend from a surplus created, or at least enhanced, by a revaluation of fixed assets. The Nebraska Supreme Court has not decided the issue. In an attempt to answer this question the following must be considered: first, an examination of Nebraska’s statute and what it means; second, a survey of some representative types of state statutes and the cases decided under them; and third, the effect of policy considerations which any court must weigh when confronted with the problem.

I. The Nebraska Statute

II. Survey of State Statutes

III. Policy Considerations