554

The Bank shall maintain a reserve of not less than twenty percent (20%) of its liabilities on accounts of deposits on demand. No less than fifty percent (50%) of such reserves consist on cash or investment instruments with maturities not exceeding ninety (90) days. For the avoidance of doubt, any funds of municipalities on deposit in the Bank representing undisbursed amounts of loans from the Bank to such municipalities shall not be included as deposits on demand for purposes of the calculation of the legal reserve. The Secretary of the Treasury may, at the request of the Board of Directors of the Bank, evidenced by a resolution to that effect, suspend this legal reserve requirement for a term of no more than three (3) months, subject any reasonable term or condition set forth by the Secretary, due to the existence of a fiscal emergency. History —Sept. 23, 1948, No. 17, p. 290, §§ 6, 22; Apr. 26, 1957, No. 3, p. 3, § 3; May 30, 1960, No. 13, p. 23, §§ 2, 3; Aug. 9, 1998, No. 215, § 8; July 1, 2015, No. 97, § 3.