State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-51

§53‑51.  Reserve and cash defined.

(a)        Reserve shallconsist of:

(1)        Cash on hand;

(2)        Balances payable ondemand, due from other approved solvent banks, which have been designateddepositories as hereinafter provided in this Chapter; and

(3)        Subject to rules andregulations, duly adopted by the State Banking Commission, fixing the maximumpercentage of required reserves that may consist of such obligations, thefollowing prescribed unencumbered, interest‑bearing obligations, whichshall not have more than 120 days to final maturity:

a.         Obligations of theUnited States Treasury and of any agency of the United States which areguaranteed by the United States Government; and

b.         General obligationof the State of North Carolina and of any political subdivision thereof whichhas received an investment rating of A or higher by a nationally recognizedrating service.

(4)        Balances maintainedat a federal reserve bank either directly or on a pass‑through basis tomeet the reserve requirements of the federal reserve system.

(b)        For purposes ofthis section, cash shall include both lawful  money of the United States andexchange of any clearinghouse association. (1903, c. 275, s. 29; Rev.,s. 232; 1919, c. 58; 1921, c. 4, s. 32; C.S., s. 220(g); 1979, c. 483, s. 7;1981, c. 671, s. 10.)