6.2-889 - (Effective October 1, 2010) Required reserves. - Virginia Statutes

§ 6.2-889. (Effective October 1, 2010) Required reserves.

A. As used in this section, unless the context requires otherwise:

"Demand deposits" means all deposits the payment of which can be legallyrequired in less than 30 days.

"Time deposits" means all deposits the payment of which cannot be legallyrequired in less than 30 days.

B. Every bank shall maintain a reserve related to its demand deposits and toits time deposits. The reserve on:

1. Demand deposits shall consist of actual cash on hand and balances payableon demand, due from other solvent banks; and

2. Time deposits shall consist of actual cash on hand and balances payable ondemand due from other solvent banks; provided that up to 100 percent of suchreserve on time deposits may be in the form of short maturity generalobligations of the United States, such maximum percentage to be fixed by theCommission.

C. The Commission shall by regulation establish from time to time the reserverequirements within the following limits:

1. On demand deposits: zero to 15 percent; and

2. On time deposits: zero to five percent.

D. The reserves required herein for each day shall be computed on the basisof average daily deposits covering a biweekly period, provided that shorteraveraging periods may be fixed by regulation of the Commission.

E. Nothing herein shall be construed to relieve any bank which is a member ofthe Federal Reserve System from maintaining a reserve fund in accordance withthe requirements applicable to such member banks.

(Code 1950, § 6-52; 1966, c. 584, § 6.1-69; 1976, c. 658; 1981, c. 65; 2010,c. 794.)