A. Every savings institution doing business in the Commonwealth shallmaintain an adequate net worth appropriate for the conduct of its businessand the protection of its account holders. Every savings institution shallset up and maintain the reserves required by, and may set up and maintainsuch additional reserves as are permitted by, this chapter. On or before theclosing date of each accounting period, after payment of or provision for allexpenses, every savings institution shall transfer to a separate reserveaccount, which shall be set up and maintained for the sole purpose ofabsorbing losses, termed in this section "general reserve," an amount equalto at least five percent of its net income. In the case of a savingsinstitution which at the close of such accounting period has assets in excessof twenty million dollars or which has done business as a savings institutionin the Commonwealth for more than twenty years, such savings institutionshall transfer to such separate reserve account the greater of five percentof its net income or an amount obtained by subtracting an amount equal to itsgeneral reserve at the beginning of the period from an amount equal to fourpercent of its assets, excluding liquid assets, at the end of the period,until the general reserve is equal to at least five percent of the totalamount of its deposit accounts at the beginning of such accounting period.Upon advanced written application of a savings institution, the Commissionermay approve the transfer to the general reserve of a lesser amount for suchaccounting period. In the event that any credit to the general reserve ismade after July 1, 1985, in excess of the minimum requirement, the dollaramount of any such excess may be carried over as a credit toward the minimumrequirement of any subsequent period. When the general reserve of a savingsinstitution does not equal at least five percent of the deposit accountliability of the institution, credits, as above provided, shall again be madeto the general reserve until it again equals at least five percent of theinstitution's deposit account liability. In the case of stock savingsinstitutions, the capital stock account, to the extent that the capital hasnot been impaired, shall be treated as part of the reserve and the board ofdirectors may, by resolution, permanently or conditionally designate all orpart of the capital stock, capital surplus, earned surplus or undividedprofit accounts as a part of its general reserve. A savings institution mayretain its undivided profits in such amounts as may from time to time befixed by resolution of its board of directors. The Commission maytemporarily reduce the reserve requirements for a savings institution if itfinds such reduction to be in the best interest of the institution and itsstockholders or members.
B. Notwithstanding the requirements of this section, an insured savingsinstitution may maintain its reserves in accordance with the requirements ofthe Federal Deposit Insurance Corporation or other federal agency.
(Code 1950, §§ 6-201.28, 6.1-156, 6.1-195.33; 1960, c. 402; 1966, c. 584;1968, c. 256; 1972, c. 796; 1973, c. 133; 1985, c. 425; 1986, c. 500; 1990,c. 3.)
A. Every savings institution doing business in the Commonwealth shallmaintain an adequate net worth appropriate for the conduct of its businessand the protection of its account holders. Every savings institution shallset up and maintain the reserves required by, and may set up and maintainsuch additional reserves as are permitted by, this chapter. On or before theclosing date of each accounting period, after payment of or provision for allexpenses, every savings institution shall transfer to a separate reserveaccount, which shall be set up and maintained for the sole purpose ofabsorbing losses, termed in this section "general reserve," an amount equalto at least five percent of its net income. In the case of a savingsinstitution which at the close of such accounting period has assets in excessof twenty million dollars or which has done business as a savings institutionin the Commonwealth for more than twenty years, such savings institutionshall transfer to such separate reserve account the greater of five percentof its net income or an amount obtained by subtracting an amount equal to itsgeneral reserve at the beginning of the period from an amount equal to fourpercent of its assets, excluding liquid assets, at the end of the period,until the general reserve is equal to at least five percent of the totalamount of its deposit accounts at the beginning of such accounting period.Upon advanced written application of a savings institution, the Commissionermay approve the transfer to the general reserve of a lesser amount for suchaccounting period. In the event that any credit to the general reserve ismade after July 1, 1985, in excess of the minimum requirement, the dollaramount of any such excess may be carried over as a credit toward the minimumrequirement of any subsequent period. When the general reserve of a savingsinstitution does not equal at least five percent of the deposit accountliability of the institution, credits, as above provided, shall again be madeto the general reserve until it again equals at least five percent of theinstitution's deposit account liability. In the case of stock savingsinstitutions, the capital stock account, to the extent that the capital hasnot been impaired, shall be treated as part of the reserve and the board ofdirectors may, by resolution, permanently or conditionally designate all orpart of the capital stock, capital surplus, earned surplus or undividedprofit accounts as a part of its general reserve. A savings institution mayretain its undivided profits in such amounts as may from time to time befixed by resolution of its board of directors. The Commission maytemporarily reduce the reserve requirements for a savings institution if itfinds such reduction to be in the best interest of the institution and itsstockholders or members.
B. Notwithstanding the requirements of this section, an insured savingsinstitution may maintain its reserves in accordance with the requirements ofthe Federal Deposit Insurance Corporation or other federal agency.
(Code 1950, §§ 6-201.28, 6.1-156, 6.1-195.33; 1960, c. 402; 1966, c. 584;1968, c. 256; 1972, c. 796; 1973, c. 133; 1985, c. 425; 1986, c. 500; 1990,c. 3.)
A. Every savings institution doing business in the Commonwealth shallmaintain an adequate net worth appropriate for the conduct of its businessand the protection of its account holders. Every savings institution shallset up and maintain the reserves required by, and may set up and maintainsuch additional reserves as are permitted by, this chapter. On or before theclosing date of each accounting period, after payment of or provision for allexpenses, every savings institution shall transfer to a separate reserveaccount, which shall be set up and maintained for the sole purpose ofabsorbing losses, termed in this section "general reserve," an amount equalto at least five percent of its net income. In the case of a savingsinstitution which at the close of such accounting period has assets in excessof twenty million dollars or which has done business as a savings institutionin the Commonwealth for more than twenty years, such savings institutionshall transfer to such separate reserve account the greater of five percentof its net income or an amount obtained by subtracting an amount equal to itsgeneral reserve at the beginning of the period from an amount equal to fourpercent of its assets, excluding liquid assets, at the end of the period,until the general reserve is equal to at least five percent of the totalamount of its deposit accounts at the beginning of such accounting period.Upon advanced written application of a savings institution, the Commissionermay approve the transfer to the general reserve of a lesser amount for suchaccounting period. In the event that any credit to the general reserve ismade after July 1, 1985, in excess of the minimum requirement, the dollaramount of any such excess may be carried over as a credit toward the minimumrequirement of any subsequent period. When the general reserve of a savingsinstitution does not equal at least five percent of the deposit accountliability of the institution, credits, as above provided, shall again be madeto the general reserve until it again equals at least five percent of theinstitution's deposit account liability. In the case of stock savingsinstitutions, the capital stock account, to the extent that the capital hasnot been impaired, shall be treated as part of the reserve and the board ofdirectors may, by resolution, permanently or conditionally designate all orpart of the capital stock, capital surplus, earned surplus or undividedprofit accounts as a part of its general reserve. A savings institution mayretain its undivided profits in such amounts as may from time to time befixed by resolution of its board of directors. The Commission maytemporarily reduce the reserve requirements for a savings institution if itfinds such reduction to be in the best interest of the institution and itsstockholders or members.
B. Notwithstanding the requirements of this section, an insured savingsinstitution may maintain its reserves in accordance with the requirements ofthe Federal Deposit Insurance Corporation or other federal agency.
(Code 1950, §§ 6-201.28, 6.1-156, 6.1-195.33; 1960, c. 402; 1966, c. 584;1968, c. 256; 1972, c. 796; 1973, c. 133; 1985, c. 425; 1986, c. 500; 1990,c. 3.)
