                                 CODE OF VIRGINIA

REQUIRED RESERVES (§ 6.2-889)

A. As used in this section, unless the context requires otherwise:
			&#8220;Demand deposits&#8221; means all deposits the payment of which can be
legally required in less than 30 days.
			&#8220;Time deposits&#8221; means all deposits the payment of which cannot be
legally required in less than 30 days.

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

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

   2. 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.

C. The Commission shall by regulation establish from time to time the reserve
requirements 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 basis of
average daily deposits covering a biweekly period, provided that shorter
averaging periods may be fixed by regulation of the Commission.

E. 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.

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