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(1) No bank shall act as a reserve bank unless:

(a) the bank has unimpaired paid-up capital and surplus of at least $1,000,000. For purposes of this rule, "unimpaired paid-up capital and surplus" shall mean the aggregate of the bank's capital stock account(s) and its surplus account, as defined in 32-1-109 , MCA, minus any deficit balance existing after aggregating the bank's undivided profits account, profit and loss (or similar) account, capital reserve account(s) , valuation reserve account(s) , and allocated or specific reserve account(s) ; and

(b) the bank has received written approval from the department in response to the bank's written request to act as a reserve bank.

(2) In addition to maintaining a reserve in the amount required by Federal Reserve Board regulations, approved reserve banks shall maintain an additional reserve balance equal to at least 10% of bank deposits.

(3) The reserve shall be held in the form(s) and manner(s) established by Federal Reserve Board regulations, or deposits in a federal home loan bank in the district in which the bank is located.

History: 32-1-455, MCA; IMP, 32-1-455, MCA; Eff. 12/31/72; AMD, Eff. 5/5/75; AMD, 1993 MAR p. 2776, Eff. 11/25/93; TRANS, from Commerce, 2001 MAR p. 1178.

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