CHAPTER 96

FORMERLY

HOUSE BILL NO. 324

AN ACT TO AMEND CHAPTER9, TITLE 5 OF THE DELAWARE CODE RELATING TO BANKING AND RESERVE REQUIREMENTS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Chapter 9, Title 5 of the Delaware Code by striking paragraph (b) of §907 and substituting therefore the following:

"(b) Every bank, banking association, trust company, savings bank or savings society shall maintain reserves as follows:

(1) Seven percent (7%) of the average aggregate of its demand deposits and three percent of the average aggregate of its time deposits, except that no reserves need be maintained against deposits of the United States or any agency or instrumentality thereof, or the State or any political subdivision or municipality thereof which are collateralized; and

(2) Such reserves shall consist of cash in the possession of the bank or of net balances payable on demand with banking institutions within or without the State which have been approved in writing as reserve depositories by the State Bank Commissioner or 50% of such required reserves may be maintained in unencumbered obligations of or guaranteed by the United States, or any agency or instrumentality thereof including, without limitation, obligations of the Federal National Mortgage Association, The Federal Home Loan Mortgage Corporation, and Public Housing Authorities, or obligations of the State or its municipalities, subdivisions, agencies or instrumentalities and having a like market value."

Section 2. Amend Chapter 9, Title 5 of the Delaware Code by striking the last sentence of paragraph (c) of 007 in its entirety.

Section 3. Amend Chapter 9, Title 5 of the Delaware Code by striking paragraph (d) of §907 in its entirety and by substituting in lieu thereof the following:

"(d) No money held in a fiduciary-capacity whether as executor, administrator, guardian, trustee or otherwise, which is on deposit with other banking institutions, shall be carried or counted as a part of the required reserves in any bank or trust company, exclusive of Federal Reserve Member Banks, unless it shall first set aside, earmarked for the trust department, obligations of or guaranteed by the United States or any agency or instrumentality thereof including, without limitation, obligations of The Federal National Mortgage Association, The Federal Home Loan Mortgage Corporation, and Public Housing Authorities or obligations of the State, its municipalities, subdivisions, agencies or instrumentalities having a maturity of not more than five (5) years from the date of earmarking for the trust department and having a current market value of at least 110 percent of the amount on deposit."

Approved June 28, 1977.