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The difference, combined with income on and release of statutory reserves, represents future profit.
The title insurance policies are fairly uniform, and backed by statutory reserves, which is important particularly in large commercial real estate transactions.
But Mr. Taishoff warned that funds from a co-op's statutory reserves may not be used for the purchase or a modification of lease terms as they are strictly limited to capital improvements.
In the business of insurance, statutory reserves are those liabilities an insurance company is legally required to maintain on its balance sheet with respect to the unmatured obligations (i.e., expected future claims) of the company.
In the U.S. life insurance industry, statutory reserves are most commonly computed using the Commissioner's reserve valuation method, or CRVM, the method prescribed by law for computing minimum required reserves.
One approach is to impose statutory reserve or cash requirements on banks and all other financial institutions, and then engage in tough open-market operations, possibly backing them up with special deposits (again applied to all financial institutions).
Provision for the establishment of statutory Marine Nature Reserves was included in the Wildlife and Countryside Act 1981, and on 21 November 1986 the Secretary of State for the Environment announced the designation of a statutory reserve at Lundy.
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