2010 California Code
Financial Code
Article 7. Reserves

14700.  Every credit union shall create and maintain a regular
reserve as specified by the commissioner.



14701.  Losses incurred by a credit union may be charged to its
regular reserve as permitted by rule of the commissioner.



14702.  In addition to the regular reserve, special reserves shall
be established when required by regulation or when found necessary by
the board of directors of the credit union or by the commissioner.



14703.  A credit union shall establish and maintain an
allowance-for-loan-losses account in accordance with generally
accepted accounting principles. The commissioner may order the credit
union to increase the amount of its allowance-for-loan-losses
account if the commissioner finds that the amount of the account is
not adequate.