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Simple English definitions for legal terms

legal reserve

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A quick definition of legal reserve:

A legal reserve is a certain amount of money that a bank or insurance company is required by law to keep on hand to meet the demands of their customers. It is like a savings account that is set aside for emergencies or future needs. Other types of reserves include a bad-debt reserve for covering losses on unpaid bills, a loss reserve for estimated future payments, and a required reserve set by the Federal Reserve Board for banks to hold in cash and deposits.

A more thorough explanation:

A legal reserve is a minimum amount of liquid assets that a bank or an insurance company must maintain by law to meet depositors' or claimants' demands. It is a fund of money set aside to cover future liabilities.

  • Amortization reserve: An account created for bookkeeping purposes to extinguish an obligation gradually over time.
  • Bad-debt reserve: A reserve to cover losses on uncollectible accounts receivable.
  • Loss reserve: An insurance company's reserve that represents the estimated value of future payments, as for losses incurred but not yet reported.
  • Mean reserve: In insurance, the average of the beginning reserve and the ending reserve of the policy year.
  • Policy reserve: An insurance company's reserve that represents the difference between net premiums and expected claims for a given year.
  • Required reserve: The minimum amount of money, as required by the Federal Reserve Board, that a bank must hold in the form of vault cash and deposits with regional Federal Reserve Banks.

For example, a bank must maintain a legal reserve to ensure that it has enough money to meet the demands of its depositors. This reserve is set by law and is a percentage of the bank's deposits. Similarly, an insurance company must maintain a legal reserve to cover future claims from policyholders. This reserve is based on the company's estimated future liabilities and is also set by law.

legal rescission | legal residence

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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