§412:9-401  Required reserve for a
depository financial services loan company.  (a)  Every depository
financial services loan company shall maintain and have on hand at all times a
reserve composed of cash and other securities in an amount equal to seven per
cent of the depository financial services loan company's liabilities on
outstanding deposits with an original term not exceeding one year, and five per
cent of the depository financial services loan company's liabilities on
outstanding deposits with an original term of one year or more.  The reserve
shall not be pledged.  The reserve requirement shall be determined as of the
same calendar day in each calendar week and shall be based on the daily average
of all outstanding deposits of the immediate preceding seven calendar days. 
During the succeeding seven calendar day period beginning with each
determination date, the average daily balance of the reserve shall equal or
exceed the reserve amount so determined.  Determination of the reserve
requirement shall be computed within two working days after the determination
date.



(b)  Cash reserves shall be limited to cash on
hand, cash in federal reserve banks, federal home loan banks, and federally
insured financial institutions, and direct obligations of the United States,
this State or its counties.  Cash reserves may be deposited in United States
branches of non-United States banks, with the written approval of the
commissioner.  The cash reserve shall at all times be at least fifty per cent
of the reserve required by this section.



(c)  Other securities used as reserves shall be
limited to obligations of the United States and its agencies and of this State
and its counties that qualify as permitted investments under sections
412:9-409(a)(1) and (2) and 412:9-409(b), reverse repurchase agreements whereby
the depository financial services loan company has purchased obligations of the
United States under terms which require the seller to repurchase the
obligations of the United States for cash on demand or in not less than thirty
days, bankers acceptances, irrevocable lines of credit of one year or more
approved by the commissioner, and securities listed on the New York or the
American stock exchanges or the National Market System of the NASDAQ Stock
Market.  Not more than twenty-five per cent of the total reserve shall be held
in securities listed on the New York or American stock exchanges, or the
National Market System of the NASDAQ Stock Market.



(d)  If the reserve or cash reserve portion of
the reserve of any depository financial services loan company falls below the
amount required by this section, the depository financial services loan company
shall promptly take action to correct the deficiency.  Upon discovery of any
deficiency, the depository financial services loan company shall notify the
commissioner of the deficiency and inform the commissioner of any action being
taken to correct the deficiency.  If the deficiency has not been corrected, the
commissioner may in writing direct the depository financial services loan
company to take action necessary to cure the deficiency. [L 1993, c 350, pt of
§1; am L 1999, c 264, §1; am L 2001, c 170, §11]