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Reserves - 17 Pa. Cons. Stat. § 513

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     § 513.  Reserves.
        (a)  General rule.--Each credit union shall establish and
     maintain a regular reserve account to the same extent and in the
     same manner as required of a Federal credit union.
        (b)  Computation of reserve and net worth requirements.--For
     the purpose of establishing the reserves required by this
     section and for the provision and maintenance of adequate equity
     or net worth, a credit union shall compute its reserve and net
     worth requirements consistent with section 216 of the Federal
     Credit Union Act (48 Stat. 1216, 12 U.S.C. § 1790d) and the
     National Credit Union Administration rules and regulations set
     forth in 12 CFR Pt. 702 (relating to prompt corrective action).
        (c)  Allowance for loan loss.--Each credit union, in addition
     to maintaining a regular reserve, shall establish an allowance
     for loan loss. The allowance for loan loss reserve shall be
     funded in the manner and used for the purposes as designated
     from time to time by the department. The board of directors
     shall decide the loans which are to be charged off against the
     allowance for loan loss, except that the department may, at the
     time of examination of a credit union, recommend for charge-off
     such loans which in its opinion are unsound, which loans shall
     be charged against the allowance for loan loss account within 60
     days of the receipt of such recommendation from the department.
     Any amount received from the repayment of a loan after it has
     been charged off against the allowance for loan loss account
     shall be credited back to the account.
        (d)  Allowance for investment loss.--(Deleted by amendment).
     (Dec. 12, 1994, P.L.1067, No.146, eff. 60 days; Dec. 9, 2002,
     P.L.1572, No.207, eff. 60 days)

Last modified: November 27, 2007