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  • PART I ADMINISTRATION OF THE GOVERNMENT
  • TITLE XXII CORPORATIONS
  • CHAPTER 168 SAVINGS BANKS
  • Section 27A Reserve balances

Section 27A. Such corporation shall maintain the reserve balances required by the Federal Reserve Act (12 U.S.C. 461(b)), and in the event such reserves are less than required by said act, such corporation shall not make any new loans or investments until the required reserves shall be restored. The commissioner may notify such corporation to make good such reserve and if it fails to do so within thirty days thereafter, he may certify to the Depositors Insurance Fund, pursuant to section four of chapter forty-three of the acts of nineteen hundred and thirty-four, that such corporation is in an unsound or unsafe condition to transact the business for which it is organized and thereafter such fund shall have and may exercise all of the powers and privileges granted to it by said chapter forty-three.