Reciprocal Statutes

DEFINITION of 'Reciprocal Statutes'

Legislation enacted between two or more states promoting commerce. Reciprocal Statutes can be enacted for a variety of economic reasons, such as to allow uniform regional banking or corporate taxation rules. This legislation is usually intended to streamline trade and business transactions.

BREAKING DOWN 'Reciprocal Statutes'

Another example of Reciprocal Status could be permitting in-state tuition for students from another state in return for the same treatment for the other state's students. This would allow a greater number of students to consider the other state's educational institution as a possibility. Reciprocal Statutes can be enacted for noneconomic reasons as well.

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