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Can you summarize 5 DECO 907?
General Provisions > Reserve requirements.
Short Summary
This legal document governs the reserve requirements for banks, trust companies, and savings banks. It defines demand deposits as deposits payable within 30 days and time deposits as deposits payable after 30 days. Every bank, trust company, or savings bank is required to maintain reserves based on the average aggregate of its demand deposits and time deposits. Reserves can be maintained in cash or net balances payable on demand with approved banking institutions. Alternatively, 50% of the required reserves can be maintained in certain obligations of the United States, agencies or instrumentalities thereof, or obligations of the State or its municipalities. The State Bank Commissioner has the authority to change the reserve requirements if necessary. Fiduciary deposits held by other banking institutions are not counted as part of the required reserves unless they are backed by specific obligations. Failure to maintain the required reserves may result in restrictions on new loans, discounts, or dividends. International banking facilities are exempt from the reserve requirements.
Whom does it apply to?
Banks, trust companies, and savings banks
What does it govern?
Reserve requirements for banks, trust companies, and savings banks
What are exemptions?
Deposits of the United States or any agency or instrumentality thereof, or the State or any political subdivision or municipality thereof which are collateralized
What are the Penalties?
No specific penalties mentioned
Jurisdiction
Delaware