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§ 704. Composition of reserve fund

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 7 P.S. Banks and Banking

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 7 P.S. Banks and Banking (Refs & Annos)
Banking Code of 1965 (Refs & Annos)
Chapter 7. Reserves
7 P.S. § 704
§ 704. Composition of reserve fund
Currentness
(a) Institutions other than savings banks--In the case of an institution other than a savings bank, such portion of the reserve fund against deposits as shall be fixed by regulation of the department shall consist of United States coin and currency on hand or on deposit, subject to call without notice, in a reserve agent. The balance of such reserve fund shall be kept in obligations of:
(i) the United States or any instrumentality thereof, the Commonwealth of Pennsylvania, any political subdivision of the Commonwealth, any public body of the Commonwealth or any public body of any political subdivision of the Commonwealth, or
(ii) other issuers whose obligations are marketable and approved by regulation of the department for the purpose of this section.
(b) Savings banks--In the case of a savings bank, the reserve fund shall consist of:
(i) United States coin and currency on hand or on deposit, subject to call without notice, in a reserve agent, in a total amount not less than one percent of the deposits of the savings bank, and
(ii) securities permitted under subsection (a) of this section.
(c) Ownership and valuation--All assets which are part of the reserve fund shall be owned absolutely by the institution and shall not be pledged, assigned or hypothecated in any manner. The value of all securities which constitute part of an institution's reserve fund shall be computed at the current market value thereof.

Credits

1965, Nov. 30, P.L. 847, No. 356, § 704. Amended 1968, Nov. 27, P.L. 1104, No. 345, § 3.
7 P.S. § 704, PA ST 7 P.S. § 704
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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