Regulations Governing the Audit and Adjustment of Deposit and Other Liability Reserves of Financial Institutions Article 8

The payment reserve for checks and drafts issued by a financial institution with the financial institution itself as payer shall be cash in vaults and reserve accounts A deposits placed with the Bank or Trustee Institutions. When reserves are calculated, the amounts of such checks and drafts shall be deducted; however, where the financial institution issues such checks internally within for personnel and general affairs expenditures, reserves shall be calculated and set aside in accordance with the reserve ratio for checking accounts.