statutory deposit

noun

Definitions

  1. An amount of money that a bank or insurance company is legally required to keep on hand…

    An amount of money that a bank or insurance company is legally required to keep on hand rather than investing.

    • Statutory deposit can function as a policyholders' protection fund.
    • Of the $1.5 million, $900,000 is mandated to be a statutory deposit with this state.
    • Both bank associations govern the respective statutory deposit funds and the voluntary deposit funds, but statutory and voluntary funds are kept legally separate.

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sense glosses and etymology drawn from English Wiktionary · source · CC-BY-SA