(a) Subject to such additional requirements as the Banking Board may impose, every bank or foreign bank shall maintain a legal reserve which shall not be less than 20 percent of its demand liabilities, excepting deposits of the United States Virgin Islands or Federal Government, secured by actual collateral. Said reserve shall be composed of the following:
(1) Not less than 6 ⅔ percent of said obligations shall consist of lawful money of the United States.
(2) Not more than 3 ⅓ percent of said obligations may consist of checks on banks, branches of foreign banks, national banking associations or trust companies located in any part of the United States Virgin Islands, to be presented for collection during the day following on which they are received.
(3) Ten percent shall consist of readily marketable obligations of the United States Government or money deposited in other banks, or in other branches of foreign banks, national banking associations, or trust companies located in any part of the United States Virgin Islands; provided, that deposits in such banks or trust companies are authorized by the Banking Board, subject to immediate collection.
(b) The Banking Board may increase the minimum legal reserve established in this section, up to not more than 30 percent of the total demand liabilities of the bank or foreign bank, except deposits of the Government of the United States Virgin Islands, the public corporations and instrumentalities of the United States Virgin Islands, or of the United States Government, secured by actual collateral, when in its judgment the circumstances so require it; but the order increasing the minimum legal reserve shall not be effective until thirty days after it is entered, provided this time might be extended by the Banking Board.
(c) The legal reserve requirements established in this section shall be computed on the basis of the reserve average maintained for a week, such computation to be made on Monday every week. Every bank and foreign bank subject to the provisions of this section shall render to the Banking Board a weekly report certified by a bank officer duly authorized therefor, wherein shall be recorded the daily computation of the legal reserve maintained by such bank or foreign bank, and the reserve average maintained during the week.
(d) The Banking Board shall notify any bank or foreign bank whose legal reserve is less than that required by this section of its obligations to make up the full amount. If such bank or foreign bank fails to do so within a period of thirty days, it may be declared in liquidation by the Banking Board, provided it is a bank incorporated under this title, and it shall be treated by the Banking Board as a corporation in liquidation. If it is a foreign bank, the Banking Board shall order the cancellation of its license by the Lieutenant Governor and the liquidations of its business in the United States Virgin Islands.
(e) In the case of foreign banks doing business in the United States Virgin Islands, the term “demand liabilities” as used in this section shall be limited in meaning to those demand liabilities which are payable at such foreign banks' branches established in the United States Virgin Islands.
(f) The Banking Board is hereby authorized to levy on and collect from any bank or foreign bank an administrative fine of not less than $25 nor more than $100 for each week on which said bank or foreign bank has failed to maintain the minimum legal reserve required or which may be required under this section. If any bank or foreign bank on which an administrative fine is levied under this subsection fails to pay same within the term of fifteen days from the date of notice of levying such administrative fine, the Banking Board may, for the purpose of collecting said administrative fine, file a civil action in the District Court.
(g) The provisions of this section prescribing the legal reserve shall not apply to any bank which is a member of the Federal Reserve System, for so long as such bank remains a member of such system, and in such case the reserve requirements demanded by the Federal Reserve System shall be deemed sufficient.