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(a) "Municipal obligation" has the meaning given in s. 67.01 (6).
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(b) "Short-term" means maturing within 18 months or less.
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6(2) Reserve requirements. A bank shall maintain sufficient reserves to meet
7anticipated withdrawals, commitments and loan demand. A bank shall maintain at
8least the level of reserves required for it by the federal reserve system. The division
9may prescribe additional reserve requirements for an individual bank based on
10examination findings or other reports available to the division.
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11(3) Permitted reserves. A bank's reserves consist of all of the following:
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(b) Cash items in the process of collection.
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(c) Short-term obligations of or demand balances with other insured financial
15institutions in the United States.
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(d) Short-term obligations of or guaranteed by the federal government.
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1(e) Short-term obligations of this state.
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(f) Short-term municipal obligations.
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(g) Short-term obligations approved by rule of the division.
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(h) Balances with federal reserve banks.
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5(4) Effect of insufficient reserves. If the reserves of a bank fall below the
6reserves required under sub. (2), the bank may not increase its loans or discounts,
7except by discounting or purchasing bills of exchange payable at sight or on demand.
8The division shall notify a bank whose reserves are below the reserves required
9under sub. (2) that the bank shall make good its reserves. If the bank fails for 30 days
10thereafter to make good such reserves, the division may assess the bank $100 for
11each 2-week period during which the bank has not made good its reserves and may
12notify the attorney general and the department of justice shall institute proceedings
13for the appointment of a receiver and to wind up the business of the bank. The
14assessment shall be paid to the division and, if any such bank fails or refuses to pay
15the assessment, the division may maintain an action for the recovery of the
16assessment.".
