§ 6.1-69. Required reserves
Every bank shall maintain a reserve related to its demand deposits and to its time deposits. Such reserve on demand deposits shall consist of actual cash on hand and balances payable on demand, due from other solvent banks. Such reserve on time deposits shall consist of actual cash on hand and balances payable on demand due from other solvent banks; provided that up to 100 percent of such reserve on time deposits may be in the form of short maturity general obligations of the United States, such maximum percentage to be fixed by the Commission. The term "demand deposits" shall mean all deposits the payment of which can be legally required in less than thirty days. The term "time deposits" shall mean all deposits the payment of which cannot be legally required in less than thirty days.
The Commission shall by regulation establish from time to time the reserve requirements within the following limits: zero to fifteen per centum on demand deposits, zero to five per centum on time deposits. The reserves required herein for each day shall be computed on the basis of average daily deposits covering a biweekly period, provided that shorter averaging periods may be fixed by regulation of the Commission.
Nothing herein shall be construed to relieve any bank which is a member of the Federal Reserve System from maintaining a reserve fund in accordance with the requirements applicable to such member banks.
(Code 1950, § 6-52; 1966, c. 584; 1976, c. 658; 1981, c. 65.)
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