Bill 982

                    Current Status

Bill Number:               982
Ratification Number:       540
Act Number                 456
Introducing Body:          Senate
Subject:                   Banks to set aside surplus account

(A456, R540, S982)

AN ACT TO AMEND SECTION 34-9-130, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CAPITAL AND SURPLUS RESERVE REQUIREMENTS OF BANKS AND BANKING INSTITUTIONS, SO AS TO REQUIRE SUCH INSTITUTIONS TO MAINTAIN MINIMUM DEPOSITS OF CASH, CASH ITEMS IN PROCESS OF COLLECTION OR CASH IN OTHER BANKS OF THREE PERCENT TIME DEPOSITS AND SEVEN PERCENT DEMAND DEPOSITS AVERAGED OVER TEN WORKING DAYS INSTEAD OF BEING REQUIRED TO MAINTAIN SUCH CASH ITEMS AND MINIMUM DEPOSITS AT ALL TIMES.

Be it enacted by the General Assembly of the State of South Carolina:

Banks to set aside surplus account

Section 1. Section 34-9-130 of the 1976 Code is amended to read:

"Section 34-9-130. Every bank or banking institution shall set aside to its surplus account not less than one-tenth of its annual net earnings each year until its surplus shall be equal to at least twenty-five percent of its capital stock. It shall maintain minimum deposits, averaged over ten working days beginning with the first of each month, either in cash, cash items in process of collection, or cash in other commercial banks payable on demand, or a combination of these of three percent of its time and savings deposits and seven percent of its demand deposits. A bank may however deduct from its total deposits the net of federal funds sold over federal funds purchased and book value of investments in United States Treasury bills before computing the above percentages. Cash items of longer standing than ten days may not constitute a part of such reserve to be set aside. The State Board of Financial Institutions shall enforce the provisions of this section."

Time effective

Section 2. This act shall take effect upon approval by the Governor.