P.R. Laws tit. 7, § 817a
The Labor Bank shall always keep a reserve that shall be called “legal reserve” and which shall not be less than twenty percent (20%) of its obligations payable at sight, except the deposits of the Government of the Commonwealth of Puerto Rico, of municipal governments, public corporations and instrumentalities of the Commonwealth or of the Government of the United States, secured by collateral in cash. This reserve shall be composed by any of the following values or combination thereof:
(1) Lawful money of the United States.
(2) Checks through banks or trust companies located on any part of the Island of Puerto Rico to be presented for collection during the day following the day on which received.
(3) Money deposited in other banks, provided said deposits are authorized by the Secretary of the Treasury and are subject to immediate collection.
The Secretary of the Treasury may, in his discretion, increase the minimum of the legal reserve established in this section up to not more than thirty percent (30%) of the aggregate obligations of the Labor Bank, payable at sight, except the deposits of the Government of the Commonwealth of Puerto Rico, of its municipalities, public corporations and instrumentalities of the Commonwealth, or of the Government of the United States, secured by collateral in cash, when in his judgment circumstances may so require; but the order increasing the minimum of the legal reserve shall not be effective until thirty (30) days after issued.
The requirements of the legal reserve herein established shall be computed on the basis of the average of reserve kept during one week, this computation to be made on Monday of each week. Every bank subject to the provisions of this section shall be bound to render to the Secretary of the Treasury a weekly report certified by an officer of the bank duly authorized therefor, setting forth the daily computation of the legal reserve kept by said bank and the average of the legal reserve kept during a week.
The Secretary of the Treasury shall notify the Labor Bank, if its legal reserve be less than the one required or that may be required under this section, of the Bank’s duty to immediately complete its amount and to notify the Secretary as soon as this is done. If the Labor Bank fails to complete the amount within a term of thirty (30) days, it may be declared as in liquidation by the Secretary of the Treasury and shall be considered by the Secretary as a corporation in liquidation.
History —June 14, 1960, No. 86, p. 162, added as § 17a on June 26, 1961, No. 115, p. 248, § 2.