Section 30.404 - Regular Reserve: Shares Insured(a) As used in this Section, "credit union" means any credit union the share accounts of which are insured other than by the National Credit Union Share Insurance Fund.(b) A credit union that has been in operation for more than four years and maintains continuing insurance of its accounts pursuant to Section 14858 of the Financial Code shall maintain a regular reserve determined in accordance with this Subdivision, or as otherwise specified by the Commissioner pursuant to Financial Code Section 14700. At the close of each accounting period, 10% of the gross income of the credit union shall be transferred to the reserve until the reserve equals four percent of total risk assets, then five percent of the gross income of the credit union until the reserve equals six percent of total risk assets. Whenever the reserve falls below the above levels, it shall be replenished by contributions as may be needed to meet the required levels of four percent or six percent, as the case may be.(c) A credit union that has been in operation for less than four years shall maintain a regular reserve of at least the level specified by the Commissioner in his or her approval of the credit union's application for a certificate to act as a credit union, or as otherwise specified by the Commissioner pursuant to Financial Code Section 14700.Cal. Code Regs. Tit. 10, § 30.404
1. Change without regulatory effect renumbering former section 939 to new section 30.404 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).
2. Amendment filed 2-27-2003; operative 3-29-2003 (Register 2003, No. 9). Note: Authority cited: Section 14201, Financial Code. Reference: Section 14700, Financial Code.
1. Change without regulatory effect renumbering former section 939 to new section 30.404 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).
2. Amendment filed 2-27-2003; operative 3-29-2003 (Register 2003, No. 9).