417.
| (1) Every banking company shall, after the Reserve appointed date, maintain a reserve fund. |
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| (2) Every banking company shall out of the declared profits of each year and before any dividend is declared transfer to the reserve fund
| | (a) a sum equivalent to not less than twenty per centum of such profits until the amount of the said reserve fund is equal to fifty per centum of the paid-up capital; and | | |
| | (b) thereafter, in every year in which the liabilities exceed the paid-up capital, a sum equivalent to not less than ten per centum of such profits until the amount of the said reserve fund is equal to the paid-up capital. | | |
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| (3) A banking company shall invest the amount standing to the credit of its reserve fund in securities mentioned in section 20 of the Trusts Ordinance or in any approved security or keep such amount deposited in a special account to be opened by the company for the purpose in any prescribed banking company: |
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| (4) In this section "approved security" means any security approved by the Minister by notification published in the Gazette. |
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| (5) Subject as hereinafter provided, the preceding provisions of this section shall apply to every banking company in incorporated in Sri Lanka and to every banking company incorporated outside Sri Lanka which has an established place of business within Sri Lanka : |
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Sri Lanka Consolidated Acts