Virginia § 6.2-889 - Required reserves
Full text of Virginia Code of Virginia § 6.2-889 — Required reserves, with citation guidance and answers to common questions.
§ 6.2-889. Required reserves
A. As used in this section, unless the context requires otherwise:
"Demand deposits" means all deposits the payment of which can be legally required in less than 30 days.
"Time deposits" 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.
Code 1950, § 6-52; 1966, c. 584, § 6.1-69; 1976, c. 658; 1981, c. 65; 2010, c. 794.
Frequently Asked Questions About Virginia § 6.2-889
What does Code of Virginia § 6.2-889 cover?
Section 6.2-889 ("Required reserves") is part of the Code of Virginia, the codified statutory law of Virginia. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Virginia § 6.2-889?
A common citation format is "Code of Virginia § 6.2-889" (Virginia). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Virginia law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Virginia official source linked on this page or consult a licensed Virginia attorney.
How does Virginia § 6.2-889 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Virginia can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Virginia.