HB35 (2005) Detail

Relative to bank reserve and lending procedures.


HB 35 – AS INTRODUCED

2005 SESSION

05-0216

06/01

HOUSE BILL 35

AN ACT relative to bank reserve and lending procedures.

SPONSORS: Rep. Marple, Merr 9; Rep. L. Christiansen, Hills 27

COMMITTEE: Commerce

ANALYSIS

This bill requires a bank to maintain a cash reserve equal to 100 percent of its demand, time, and savings deposits and repeals the bank commissioner’s rulemaking authority relative to reserves.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

05-0216

06/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Five

AN ACT relative to bank reserve and lending procedures.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Regulation of Trust and Banking Companies; Reserves. RSA 390:6 is repealed and reenacted to read as follows:

390:6 Reserves. Every such corporation shall at all times maintain as a reserve an amount equal to 100 percent of the aggregate amount of its demand deposits plus an amount equal to at least 100 percent of the aggregate amount of its time and savings deposits. One hundred percent of the reserves on demand deposits shall be in lawful money of the United States. The form of the reserve for time and savings deposits shall be in lawful money of the United States. The board of trust company incorporation created under RSA 392 may not vary the amount of reserve required. No new loan or investment shall be made by such corporation when its reserve is not in accordance with the requirements of this section. The required reserve must be maintained on a daily basis. The bank commissioner may order an audit at any time to ensure compliance with this section. Any deficiency in the reserve established pursuant to this section shall subject the company to a penalty of $1,000 per day.

2 Repeal. RSA 390:11-a, I, relative to the bank commissioner's rulemaking authority relative to the reserves required by RSA 390:6, is repealed.

3 Effective Date. This act shall take effect 60 days after its passage.

Links

HB35 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

HB35 Revision: 8811 Date: Jan. 21, 2010, midnight

Docket