US (United States) Title 12. Chapter 3: Federal reserve system

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Banks and banking

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12 USC CHAPTER 3 - FEDERAL RESERVE SYSTEM 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

.

-HEAD-

CHAPTER 3 - FEDERAL RESERVE SYSTEM

-MISC1-

SUBCHAPTER I - DEFINITIONS, ORGANIZATION, AND GENERAL PROVISIONS

AFFECTING SYSTEM

Sec.

221. Definitions.

221a. Additional definitions.

222. Federal reserve districts; membership of national banks.

223. Number of Federal reserve cities in district.

224. Status of reserve cities under former statutes.

225. Federal reserve banks; title.

225a. Maintenance of long run growth of monetary and credit

aggregates.

225b. Appearances before and reports to the Congress.

(a) Appearances before the Congress.

(b) Congressional report.

226. ''Federal Reserve Act.''

227. ''Banking Act of 1933.''

228. ''Banking Act of 1935.''

SUBCHAPTER II - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

241. Creation; membership; compensation and expenses.

242. Ineligibility to hold office in member banks; qualifications

and terms of office of members; chairman and vice chairman; oath

of office.

243. Assessments upon Federal reserve banks to pay expenses.

244. Principal offices of Board; chairman of Board; obligations and

expenses; qualifications of members; vacancies.

245. Vacancies during recess of Senate.

246. Powers of Secretary of the Treasury as affected by chapter.

247. Reports to Congress.

247a. Records of action on policy relating to open-market operation

and policies determined generally; inclusion in report to

Congress.

248. Enumerated powers.

(a) Examination of accounts and affairs of banks;

publication of weekly statements; reports of

liabilities and assets of depository

institutions; covered institutions.

(b) Permitting or requiring rediscounting of paper at

specified rate.

(c) Suspending reserve requirements.

(d) Supervising and regulating issue and retirement

of notes.

(e) Adding to or reclassifying reserve cities.

(f) Suspending or removing officers or directors of

reserve banks.

(g) Requiring writing off of doubtful or worthless

assets of banks.

(h) Suspending operations of or liquidating or

reorganizing banks.

(i) Requiring bonds of agents; safeguarding property

in hands of agents.

(j) Exercising supervision over reserve banks.

(k) Delegation of certain functions; power to

delegate; review of delegated activities.

(l) Employing attorneys, experts, assistants, and

clerks; salaries and fees.

(m) Repealed.

(n) Board's authority to examine depository

institutions and affiliates.

(o) Authority to appoint conservator or receiver.

(p) Authority.

(q) Uniform protection authority for Federal reserve

facilities.

(r) Voting; documentation of determinations.

248-1. Rules and regulations for transfer of funds and charges

therefor among banks; clearing houses.

248a. Pricing of services.

(a) Publication of pricing principles and proposed

schedule of fees; effective date of schedule of

fees.

(b) Covered services.

(c) Criteria applicable.

(d) Budgetary consequences of decline in volume of

services.

(e) Parity in clearing.

248b. Annual independent audits of Federal reserve banks and Board.

249. Repealed.

250. Independence of financial regulatory agencies.

251. Repealed.

252. Credit availability assessment.

(a) Study.

(b) Use of existing data.

SUBCHAPTER III - FEDERAL ADVISORY COUNCIL

261. Creation; membership; compensation; meetings; officers;

procedure; quorum; vacancies.

262. Powers.

SUBCHAPTER IV - FEDERAL OPEN MARKET COMMITTEE

263. Federal Open Market Committee; creation; membership;

regulations governing open-market transactions.

SUBCHAPTER V - FEDERAL DEPOSIT INSURANCE CORPORATION

264. Transferred.

265. Insured banks as depositaries of public money; duties;

security; discrimination between banks prohibited; repeal of

inconsistent laws.

266. State-chartered banks and other institutions as depositaries

of public money; fiscal agents; duties.

SUBCHAPTER VI - CAPITAL AND STOCK OF FEDERAL RESERVE BANKS;

DIVIDENDS AND EARNINGS

281. Capital.

282. Subscription to capital stock by national banking association.

283. Public subscription to capital stock.

284. Omitted.

285. Nonvoting stock.

286. Transfers of stock; rules and regulations.

287. Value of shares of stock; increase and decrease of stock;

member banks as shareholders; surrender of shares.

288. Cancellation of stock held by member bank on insolvency or

discontinuance of banking operations for sixty days; repayment of

cash-paid subscriptions.

289. Dividends and surplus funds of reserve banks; transfer for

fiscal year 2000.

(a) Dividends and surplus funds of reserve banks.

(b) Transfer for fiscal year 2000.

290. Use of earnings transferred to Treasury.

SUBCHAPTER VII - DIRECTORS OF FEDERAL RESERVE BANKS; RESERVE AGENTS

AND ASSISTANTS

301. Powers and duties of board of directors; suspension of member

bank for undue use of bank credit.

302. Number of members; classes.

303. Qualifications and disabilities.

304. Class A and class B directors; selection.

305. Class C directors; selection; ''Federal reserve agent.''

306. Assistants to Federal reserve agent.

307. Compensation of directors.

308. Terms of directors; vacancies.

SUBCHAPTER VIII - STATE BANKS AS MEMBERS OF SYSTEM

321. Application for membership.

322. Determination on application.

323. Stock in Federal reserve banks; method of payment.

324. Laws applicable on becoming members.

325. Examinations.

326. Acceptance of examinations and reports by State authorities;

special examinations.

327. Surrender of stock and cancellation of memberships.

328. Withdrawals from membership.

329. Capital stock required as condition precedent to membership.

329a. Omitted.

330. Laws applicable on becoming members; discounts for State

banks.

331. Certifying checks on State banks admitted as members.

332. Depositaries of public money; financial agents; security

required.

333. Mutual savings banks; application and admission to membership

in Federal Reserve System.

334. Reports from affiliates; penalty for failure to furnish.

335. Dealing in investment securities; limitations and conditions.

336. Certificates of stock; representation of stock of other

corporations.

337. Repealed.

338. Examination of affiliates; forfeiture of membership on refusal

of affiliate to give information or pay expense.

338a. Investments to promote public welfare and community

development; limitation on investments.

339. Participation by State member banks in lotteries and related

activities.

(a) Prohibited activities.

(b) Use of banking premises prohibited.

(c) Definitions.

(d) Lawful banking services connected with operation

of lottery.

(e) Regulations; enforcement.

339a. Resolution of clearing banks.

(a) Conservatorship or receivership.

(b) Board authority.

(c) Bankruptcy proceedings.

SUBCHAPTER IX - POWERS AND DUTIES OF FEDERAL RESERVE BANKS

341. General enumeration of powers.

342. Deposits; exchange and collection; member and nonmember banks

or other depository institutions; charges.

343. Discount of obligations arising out of actual commercial

transactions.

344. Discount or purchase of bills to finance agricultural

shipments.

345. Rediscount of notes, drafts, and bills for member banks;

limitation of amount.

346. Discount of acceptances.

347. Advances to member banks on their notes.

347a. Advances to member bank groups; inadequate amounts of

eligible and acceptable assets; liability of individual banks in

group; distribution of loans among banks of group; rate of

interest; notes accepted for advances as collateral security for

Federal reserve notes; foreign obligations as security for

advances.

347b. Advances to individual member banks on time or demand notes;

maturities; time notes secured by mortgage loans covering

one-to-four family residences.

(a) In general.

(b) Limitations on advances.

347c. Advances to individuals, partnerships, and corporations;

security; interest rate.

347d. Transactions between Federal Reserve banks and branch or

agency of foreign bank; matters considered.

348. Discount of obligations given for agricultural purposes or

based upon livestock; collateral security for Federal reserve

notes.

348a. Transactions with foreign banks; supervision of Board of

Governors of the Federal Reserve System.

349. Rediscount for intermediate credit banks of obligations given

for agricultural purposes; discount of notes made pursuant to

section 1031.

350. Purchase and sale of debentures and like obligations of

intermediate credit banks and agricultural credit corporations.

351. Obligations of cooperative marketing association as issued or

drawn for agricultural purposes.

352. Limitation on amount of obligations of certain maturities

which may be discounted and rediscounted.

352a. Repealed.

353. Purchase and sale of cable transfers, acceptances and bills.

354. Transactions involving gold coin, bullion, and certificates.

355. Purchase and sale of obligations of National, State, and

municipal governments; open market operations; purchases and

sales from or to United States; maximum aggregate amount of

obligations acquired directly from or loaned directly to United

States.

356. Purchase of commercial paper from member banks and sale of

same.

357. Establishment of rates of discount.

358. Establishment of accounts for purposes of open-market

operations; correspondents and agencies.

359. Purchase and sale of acceptances of intermediate credit banks

and agricultural credit corporations.

359a. Omitted.

360. Receiving checks and drafts on deposit at par; charges for

collections, exchange, and clearances.

361. Bills receivable, bills of exchange, acceptances; regulations

by Board of Governors.

362 to 364. Omitted.

SUBCHAPTER X - POWERS AND DUTIES OF MEMBER BANKS

371. Real estate loans.

(a) Authorization to make real estate loans; orders,

rules, and regulations of Comptroller of the

Currency.

(b) Eligibility for discount as commercial paper of

notes representing loans financing construction

of residential or farm buildings;

prerequisites.

371a. Payment of interest on demand deposits.

371b. Rate of interest on time deposits; payment of time deposits

before maturity; waiver of notice requirements for withdrawal of

savings deposits.

371b-1. Repealed.

371b-2. Interbank liabilities.

(a) Purpose.

(b) Aggregate limits on insured depository

institutions' exposure to other depository

institutions.

(c) ''Exposure'' defined.

(d) Insured depository institution.

(e) Rulemaking authority; enforcement.

371c. Banking affiliates.

(a) Restrictions on transactions with affiliates.

(b) Definitions.

(c) Collateral for certain transactions with

affiliates.

(d) Exemptions.

(e) Rules relating to banks with financial

subsidiaries.

(f) Rulemaking and additional exemptions.

371c-1. Restrictions on transactions with affiliates.

(a) In general.

(b) Prohibited transactions.

(c) Advertising restriction.

(d) Definitions.

(e) Regulations.

371d. Investment in bank premises or stock of corporation holding

premises.

(a) Conditions of investment.

(b) Definitions.

372. Bankers' acceptances.

(a) Institutions; drafts and bills of exchange;

types.

(b) Ratio limit of bills to unimpaired capital stock

and surplus.

(c) Authorization for special ratio limit; foreign

banks.

(d) Ratio limit for domestic transactions.

(e) Ratio limit for single entity; foreign banks;

security.

(f) Exception for participation agreements.

(g) Definitions by Board.

(h) Dollar equivalent of foreign bank paid-up capital

stock and surplus.

373. Acceptance of drafts or bills drawn by banks in foreign

countries or dependencies of United States for purpose of dollar

exchange.

374. Acting as agent for nonmember bank in getting discounts from

reserve bank.

374a. Acting as agent for nonbanking borrower in making loans on

securities to dealers in stocks, bonds, etc.; penalties.

375. Purchases from directors; sales to directors.

375a. Loans to executive officers of banks.

(1) General prohibition; authorization for extension

of credit; conditions for credit.

(2) Mortgage loans.

(3) Educational loans.

(4) General limitation on amount of credit.

(5) Partnership loans.

(6) Report of date and amount of credit extensions,

security, and uses of proceeds upon excessive

extension of credit.

(7) Endorsement or guarantee of loans or assets;

protective indebtedness.

(8) Continuation of violation.

(9) Report of loan activity since previous report of

condition.

(10) Rules and regulations; definitions.

375b. Extensions of credit to executive officers, directors, and

principal shareholders of member banks.

(1) In general.

(2) Preferential terms prohibited.

(3) Prior approval required.

(4) Aggregate limit on extensions of credit to any

executive officer, director, or principal

shareholder.

(5) Aggregate limit on extensions of credit to all

executive officers, directors, and principal

shareholders.

(6) Overdrafts by executive officers and directors

prohibited.

(7) Prohibition on knowingly receiving unauthorized

extension of credit.

(8) Executive officer, director, or principal

shareholder of certain affiliates treated as

executive officer, director, or principal

shareholder of member bank.

(9) Definitions.

(10) Board's rulemaking authority.

376. Rate of interest paid to directors, etc.

377. Repealed.

378. Dealers in securities engaging in banking business;

individuals or associations engaging in banking business;

examinations and reports; penalties.

SUBCHAPTER XI - DEPOSITARIES AND FISCAL AGENTS

391. Federal reserve banks as Government depositaries and fiscal

agents.

391a. Reimbursement of Federal Reserve Banks.

392. Depositaries of Government funds as confined to banks in

Federal reserve system; member banks as depositaries.

393. Federal reserve banks as depositaries for Farm Credit System.

394. Federal reserve banks as depositaries for and fiscal agents of

Home Owners' Loan Corporation.

395. Federal reserve banks as depositaries, custodians and fiscal

agents for Commodity Credit Corporation.

SUBCHAPTER XII - FEDERAL RESERVE NOTES

411. Issuance to reserve banks; nature of obligation; redemption.

412. Application for notes; collateral required.

413. Distinctive letter and serial number of notes; cancellation of

notes unfit for circulation; accounting; apportionment of credit

among Federal Reserve banks.

414. Authority of Board of Governors respecting issuance of notes;

interest; lien.

415. Reduction of liability for outstanding notes by depositing

notes and collateral and payment of notes of series prior to

1928; reissue of deposited notes.

416. Withdrawal of collateral deposited to protect notes and

substitution of other collateral; retirement of notes; payment of

notes of series prior to 1928; recovery of collateral; reissue of

deposited notes.

417. Custody and safe-keeping of notes issued to and collateral

deposited with reserve agent.

418. Printing of notes; denomination and form.

419. Delivery of notes prior to delivery to banks.

420. Control and direction of plates and dies; expense of issue and

retirement of notes paid by banks.

421. Examination of plates and dies.

422. Repealed.

SUBCHAPTER XIII - CIRCULATING NOTES AND BONDS SECURING SAME

441 to 448. Omitted.

SUBCHAPTER XIV - BANK RESERVES

461. Reserve requirements.

(a) Establishment of applicable definitions, payment

of interest, obligations as deposits, and

regulations.

(b) Additional definitions; required amounts of

reserves maintained against transaction

accounts; waiver of ratio limits in

extraordinary circumstances; supplemental

reserves; reserves related to foreign

obligations or assets; exemption for certain

deposits; discount and borrowing; transitional

adjustments; additional exemptions and waivers.

(c) Promulgation of rules and regulations respecting

maintenance of balances.

462 to 462c. Omitted or Repealed.

463. Limitation on amount of balance with any depository

institution without access to Federal Reserve advances.

464. Checking against and withdrawal of reserve balance.

465. Basis for ascertaining deposits against which required balance

is determined.

466. Reserves of banks in dependencies or insular possessions.

467. Deposits of gold coin, gold certificates, and Special Drawing

Right certificates with United States Treasurer.

SUBCHAPTER XV - BANK EXAMINATIONS

481. Appointment of examiners; examination of member banks, State

banks, and trust companies; reports.

482. Employees of Office of Comptroller of the Currency;

appointment; compensation and benefits.

483. Special examination of member banks; information of condition

furnished to Board of Governors of the Federal Reserve System.

484. Limitation on visitorial powers.

485. Examination of Federal reserve banks.

486. Waiver of requirements as to reports from or examinations of

affiliates.

SUBCHAPTER XVI - CIVIL LIABILITY OF FEDERAL RESERVE AND MEMBER

BANKS, SHAREHOLDERS, AND OFFICERS

501. Liability of Federal reserve or member bank for certifying

check when amount of deposit was inadequate.

501a. Forfeiture of franchise of national banks for failure to

comply with provisions of this chapter.

502. Liability of shareholders of Federal reserve banks on

contracts, etc.

503. Liability of directors and officers of member banks.

504. Civil money penalty.

(a) First tier.

(b) Second tier.

(c) Third tier.

(d) Maximum amounts of penalties for any violation

described in subsection (c).

(e) Assessment; etc.

(f) Hearing.

(g) Disbursement.

(h) ''Violate'' defined.

(i) Regulations.

(m) Notice under this section after separation from

service.

505. Civil money penalty.

(1) First tier.

(2) Second tier.

(3) Third tier.

(4) Maximum amounts of penalties for any violation

described in paragraph (3).

(5) Assessment; etc.

(6) Hearing.

(7) Disbursement.

(8) ''Violate'' defined.

(9) Regulations.

506. Notice after separation from service.

SUBCHAPTER XVII - RESERVE-BANK BRANCHES

521. Reserve-bank branches; establishment; directors;

discontinuance of branches; approval for erection of branch bank

building.

522. Federal reserve branch bank buildings.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 35, 1440, 1468, 1468b,

1813, 1817, 1828a, 1831k, 1831r, 2254, 3108 of this title.

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12 USC SUBCHAPTER I - DEFINITIONS, ORGANIZATION, AND

GENERAL PROVISIONS AFFECTING SYSTEM 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER I - DEFINITIONS, ORGANIZATION, AND GENERAL PROVISIONS

AFFECTING SYSTEM

.

-HEAD-

SUBCHAPTER I - DEFINITIONS, ORGANIZATION, AND GENERAL PROVISIONS

AFFECTING SYSTEM

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12 USC Sec. 221 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER I - DEFINITIONS, ORGANIZATION, AND GENERAL PROVISIONS

AFFECTING SYSTEM

-HEAD-

Sec. 221. Definitions

-STATUTE-

Wherever the word ''bank'' is used in this chapter, the word

shall be held to include State bank, banking association, and trust

company, except where national banks or Federal reserve banks are

specifically referred to.

The terms ''national bank'' and ''national banking association''

used in this chapter shall be held to be synonymous and

interchangeable. The term ''member bank'' shall be held to mean

any national bank, State bank, or bank or trust company which has

become a member of one of the Federal reserve banks. The term

''board'' shall be held to mean Board of Governors of the Federal

Reserve System; the term ''district'' shall be held to mean Federal

reserve district; the term ''reserve bank'' shall be held to mean

Federal reserve bank; the term ''the continental United States''

means the States of the United States and the District of Columbia.

The terms ''bonds and notes of the United States'', ''bonds and

notes of the Government of the United States'', and ''bonds or

notes of the United States'' used in this chapter shall be held to

include certificates of indebtedness and Treasury bills issued

under section 3104 of title 31.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 1, 38 Stat. 251; Aug. 23, 1935, ch.

614, title II, Sec. 203(a), 49 Stat. 704; Pub. L. 86-70, Sec. 8(a),

June 25, 1959, 73 Stat. 142; Pub. L. 97-258, Sec. 2(c), Sept. 13,

1982, 96 Stat. 1058.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in text, was in the original ''this

Act'', meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, as amended,

known as the Federal Reserve Act. For complete classification of

this Act to the Code, see References in Text note set out under

section 226 of this title and Tables.

-MISC2-

AMENDMENTS

1982 - Pub. L. 97-258 inserted provisions defining ''bonds and

notes of the United States'', ''bonds and notes of the Government

of the United States'', and ''bonds or notes of the United

States''. These provisions are based on acts Sept. 24, 1917, ch.

56, Sec. 5(c), 40 Stat. 290; Apr. 4, 1918, ch. 44, Sec. 4, 40 Stat.

504; Mar. 3, 1919, ch. 100, Sec. 3, 40 Stat. 1311; restated June

17, 1929, ch. 26, 46 Stat. 20 (former 31 U.S.C. 754(c)).

1959 - Pub. L. 86-70 inserted definition of ''the continental

United States''.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 221a, 3102, 3105 of this

title.

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12 USC Sec. 221a 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER I - DEFINITIONS, ORGANIZATION, AND GENERAL PROVISIONS

AFFECTING SYSTEM

-HEAD-

Sec. 221a. Additional definitions

-STATUTE-

As used in this chapter -

(a) The terms ''banks'', ''national bank'', ''national banking

association'', ''member bank'', ''board'', ''district'', and

''reserve bank'' shall have the meanings assigned to them in

section 221 of this title.

(b) Except where otherwise specifically provided, the term

''affiliate'' shall include any corporation, business trust,

association, or other similar organization -

(1) Of which a member bank, directly or indirectly, owns or

controls either a majority of the voting shares or more than 50

per centum of the number of shares voted for the election of its

directors, trustees, or other persons exercising similar

functions at the preceding election, or controls in any manner

the election of a majority of its directors, trustees, or other

persons exercising similar functions; or

(2) Of which control is held, directly or indirectly, through

stock ownership or in any other manner, by the shareholders of a

member bank who own or control either a majority of the shares of

such bank or more than 50 per centum of the number of shares

voted for the election of directors of such bank at the preceding

election, or by trustees for the benefit of the shareholders of

any such bank; or

(3) Of which a majority of its directors, trustees, or other

persons exercising similar functions are directors of any one

member bank; or

(4) Which owns or controls, directly or indirectly, either a

majority of the shares of capital stock of a member bank or more

than 50 per centum of the number of shares voted for the election

of directors of a member bank at the preceding election, or

controls in any manner the election of a majority of the

directors of a member bank, or for the benefit of whose

shareholders or members all or substantially all the capital

stock of a member bank is held by trustees.

-SOURCE-

(June 16, 1933, ch. 89, Sec. 2, 48 Stat. 162; Aug. 23, 1935, ch.

614, title III, Sec. 301, 49 Stat. 707; Pub. L. 89-485, Sec. 13(a),

(b), July 1, 1966, 80 Stat. 242.)

-REFTEXT-

REFERENCES IN TEXT

As used in this chapter, referred to in text, was in the original

''As used in this Act and in any provision of law amended by this

Act'', meaning act June 16, 1933, ch. 89, 48 Stat. 162, as amended,

known as the Banking Act of 1933. For complete classification of

this Act to the Code, see References in Text note set out under

section 227 of this title and Tables.

-MISC2-

AMENDMENTS

1966 - Subsec. (b)(4). Pub. L. 89-485, Sec. 13(a), added par. (4)

which incorporates definitions of ''holding company affiliate''

contained in cls. (1) and (2) of former subsec. (c) of this

section, and substituted ''a member bank'' for ''any one bank'' in

first two places.

Subsec. (c). Pub. L. 89-485, Sec. 13(b), repealed definition of

''holding company affiliate'', cls. (1) and (2) thereof now being

incorporated in the subsec. (b)(4) definition of ''affiliate'',

substituting ''a member bank'' for ''any one bank'' in first two

places and the par. excluding therefrom any corporations stock of

which is fully owned by the United States and any organization

determined by the Board of Governors of the Federal Reserve System

not to be engaged, directly or indirectly, as a business in holding

the stock of, or managing or controlling, banks, banking

associations, savings banks, or trust companies.

1935 - Subsec. (c). Act Aug. 23, 1935, added last par.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 371d, 1464, 1828 of this

title; title 26 section 601.

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12 USC Sec. 222 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER I - DEFINITIONS, ORGANIZATION, AND GENERAL PROVISIONS

AFFECTING SYSTEM

-HEAD-

Sec. 222. Federal reserve districts; membership of national banks

-STATUTE-

The continental United States, excluding Alaska, shall be divided

into not less than eight nor more than twelve districts. Such

districts may be readjusted and new districts may from time to time

be created by the Board of Governors of the Federal Reserve System,

not to exceed twelve in all: Provided, That the districts shall be

apportioned with due regard to the convenience and customary course

of business and shall not necessarily be coterminous with any State

or States. Such districts shall be known as Federal Reserve

districts and may be designated by number. When the State of

Alaska or Hawaii is hereafter admitted to the Union the Federal

Reserve districts shall be readjusted by the Board of Governors of

the Federal Reserve System in such manner as to include such State.

Every national bank in any State shall, upon commencing business or

within ninety days after admission into the Union of the State in

which it is located, become a member bank of the Federal Reserve

System by subscribing and paying for stock in the Federal Reserve

bank of its district in accordance with the provisions of this

chapter and shall thereupon be an insured bank under the Federal

Deposit Insurance Act (12 U.S.C. 1811 et seq.), and failure to do

so shall subject such bank to the penalty provided by section 501a

of this title.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 2, 38 Stat. 251; Aug. 23, 1935, ch.

614, title II, Sec. 203(a), 49 Stat. 704; Pub. L. 85-508, Sec. 19,

July 7, 1958, 72 Stat. 350; Pub. L. 86-3, Sec. 17, Mar. 18, 1959,

73 Stat. 12.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Deposit Insurance Act, referred to in text, is act

Sept. 21, 1950, ch. 967, Sec. 2, 64 Stat. 873, as amended, which is

classified generally to chapter 16 (Sec. 1811 et seq.) of this

title. For complete classification of this Act to the Code, see

Short Title note set out under section 1811 of this title and

Tables.

-MISC2-

AMENDMENTS

1959 - Pub. L. 86-3 required readjustment of districts when the

State of Hawaii is admitted to the Union.

1958 - Pub. L. 85-508 required readjustment of districts when the

State of Alaska is admitted to the Union, and inserted provisions

requiring national banks to become members of the Federal Reserve

System upon commencing business or within 90 Days after admission

into the Union of the State in which they are located.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-MISC4-

ADMISSION OF ALASKA AND HAWAII TO STATEHOOD

Alaska was admitted into the Union on Jan. 3, 1959, on issuance

of Proc. No. 3269, Jan. 3, 1959, 24 F.R. 81, 73 Stat. c16, and

Hawaii was admitted into the Union on Aug. 21, 1959, on issuance of

Proc. No. 3309, Aug. 21, 1959, 24 F.R. 6868, 73 Stat. c74. For

Alaska Statehood Law, see Pub. L. 85-508, July 7, 1958, 72 Stat.

339, set out as a note preceding section 21 of Title 48,

Territories and Insular Possessions. For Hawaii Statehood Law, see

Pub. L. 86-3, Mar. 18, 1959, 73 Stat. 4, set out as a note

preceding section 491 of Title 48.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 481 of this title.

-CITE-

12 USC Sec. 223 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER I - DEFINITIONS, ORGANIZATION, AND GENERAL PROVISIONS

AFFECTING SYSTEM

-HEAD-

Sec. 223. Number of Federal reserve cities in district

-STATUTE-

A Federal reserve district shall contain only one Federal reserve

city.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 2, 38 Stat. 251.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 481 of this title.

-CITE-

12 USC Sec. 224 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER I - DEFINITIONS, ORGANIZATION, AND GENERAL PROVISIONS

AFFECTING SYSTEM

-HEAD-

Sec. 224. Status of reserve cities under former statutes

-STATUTE-

The organization of reserve districts and Federal reserve cities

shall not be construed as changing the present status of reserve

cities except insofar as this chapter changes the amount of

reserves that may be carried with approved reserve agents located

therein.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 2, 38 Stat. 251; Pub. L. 86-114, Sec.

3(b)(5), July 28, 1959, 73 Stat. 264.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in text, was in the original ''this

Act'', meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, as amended,

known as the Federal Reserve Act. For complete classification of

this Act to the Code, see References in Text note set out under

section 226 of this title and Tables.

-MISC2-

AMENDMENTS

1959 - Pub. L. 86-114 struck out ''and central reserve cities''

after ''reserve cities''.

EFFECTIVE DATE OF 1959 AMENDMENT

Amendment by Pub. L. 86-114 effective three years after July 28,

1959, see section 3(b) of Pub. L. 86-114, set out as a Central

Reserve and Reserve Cities note under section 141 of this title.

PRIOR PROVISIONS

Provisions relating to reserve cities and central reserve cities

were contained in R.S. Sec. 5191, 5192, and act Mar. 3, 1887, ch.

378, Sec. 1, 2, 24 Stat. 559, 560.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 481 of this title.

-CITE-

12 USC Sec. 225 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER I - DEFINITIONS, ORGANIZATION, AND GENERAL PROVISIONS

AFFECTING SYSTEM

-HEAD-

Sec. 225. Federal reserve banks; title

-STATUTE-

A Federal reserve bank shall include in its title the name of the

city in which it is situated, as ''Federal Reserve Bank of

Chicago.''

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 2, 38 Stat. 252.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 481 of this title.

-CITE-

12 USC Sec. 225a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER I - DEFINITIONS, ORGANIZATION, AND GENERAL PROVISIONS

AFFECTING SYSTEM

-HEAD-

Sec. 225a. Maintenance of long run growth of monetary and credit

aggregates

-STATUTE-

The Board of Governors of the Federal Reserve System and the

Federal Open Market Committee shall maintain long run growth of the

monetary and credit aggregates commensurate with the economy's long

run potential to increase production, so as to promote effectively

the goals of maximum employment, stable prices, and moderate

long-term interest rates.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 2A, as added Pub. L. 95-188, title II,

Sec. 202, Nov. 16, 1977, 91 Stat. 1387; amended Pub. L. 95-523,

title I, Sec. 108(a), Oct. 27, 1978, 92 Stat. 1897; Pub. L.

100-418, title III, Sec. 3005(c), Aug. 23, 1988, 102 Stat. 1375;

Pub. L. 106-569, title X, Sec. 1003(a), Dec. 27, 2000, 114 Stat.

3028.)

-COD-

CODIFICATION

Another section 202 of Pub. L. 95-188 amended section 302 of this

title.

-MISC3-

AMENDMENTS

2000 - Pub. L. 106-569 struck out provisions after first sentence

relating to annual reports to Congress, transmittal of reports to

Congressional Committees, consultations with Committees, report of

Committee, changing conditions affecting achievement of objectives

and plans, and explanation for deviations from objectives and

plans.

1988 - Pub. L. 100-418 inserted '', including an analysis of the

impact of the exchange rate of the dollar on those trends'' after

''the Nation'' in cl. (1).

1978 - Pub. L. 95-523 substituted provisions relating to

independent written reports of the Board of Governors to the

Congress for provisions relating to the consultations of the Board

of Governors with Congress at semi-annual hearings, substituted

''the objectives and plans with respect to the ranges'' for ''such

ranges'', inserted ''of the monetary and credit aggregates

disclosed in the reports submitted under this section'' after

''growth or diminution'', and inserted proviso respecting the

inclusion of an explanation of reasons for revisions or deviations

in subsequent consultations and reports.

EFFECTIVE DATE OF 1978 AMENDMENT

Section 108(b) of Pub. L. 95-523 provided that: ''The amendment

made by subsection (a) (amending this section) takes effect on

January 1, 1979.''

-CITE-

12 USC Sec. 225b 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER I - DEFINITIONS, ORGANIZATION, AND GENERAL PROVISIONS

AFFECTING SYSTEM

-HEAD-

Sec. 225b. Appearances before and reports to the Congress

-STATUTE-

(a) Appearances before the Congress

(1) In general

The Chairman of the Board shall appear before the Congress at

semi-annual hearings, as specified in paragraph (2), regarding -

(A) the efforts, activities, objectives and plans of the

Board and the Federal Open Market Committee with respect to the

conduct of monetary policy; and

(B) economic developments and prospects for the future

described in the report required in subsection (b) of this

section.

(2) Schedule

The Chairman of the Board shall appear -

(A) before the Committee on Banking and Financial Services of

the House of Representatives on or about February 20 of even

numbered calendar years and on or about July 20 of odd numbered

calendar years;

(B) before the Committee on Banking, Housing, and Urban

Affairs of the Senate on or about July 20 of even numbered

calendar years and on or about February 20 of odd numbered

calendar years; and

(C) before either Committee referred to in subparagraph (A)

or (B), upon request, following the scheduled appearance of the

Chairman before the other Committee under subparagraph (A) or

(B).

(b) Congressional report

The Board shall, concurrent with each semi-annual hearing

required by this section, submit a written report to the Committee

on Banking, Housing, and Urban Affairs of the Senate and the

Committee on Banking and Financial Services of the House of

Representatives, containing a discussion of the conduct of monetary

policy and economic developments and prospects for the future,

taking into account past and prospective developments in

employment, unemployment, production, investment, real income,

productivity, exchange rates, international trade and payments, and

prices.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 2B, as added Pub. L. 106-569, title X,

Sec. 1003(b)(1), Dec. 27, 2000, 114 Stat. 3028.)

-CHANGE-

CHANGE OF NAME

Committee on Banking and Financial Services of House of

Representatives abolished and replaced by Committee on Financial

Services of House of Representatives, and jurisdiction over matters

relating to securities and exchanges and insurance generally

transferred from Committee on Energy and Commerce of House of

Representatives by House Resolution No. 5, One Hundred Seventh

Congress, Jan. 3, 2001.

-CITE-

12 USC Sec. 226 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER I - DEFINITIONS, ORGANIZATION, AND GENERAL PROVISIONS

AFFECTING SYSTEM

-HEAD-

Sec. 226. ''Federal Reserve Act''

-STATUTE-

The short title of the Act of December 23, 1913, ch. 6, 38 Stat.

251, shall be the ''Federal Reserve Act.''

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 1, 38 Stat. 251.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Reserve Act, referred to in text, is classified to

sections 1, 35, 59, 64, 82, 90, 101a, 104, 121, 141, 142, 221, 222

to 226, 241 to 247a, 248(a) to (m), (o), 261 to 263, 281 to 283,

285 to 290, 301 to 308, 321 to 329, 330 to 336, 337, 338, 341 to

347c, 348 to 352, 352a, 353 to 360, 371 to 372, 374 to 376, 391 to

393, 411 to 416, 418 to 421, 441 to 444, 446 to 448, 461, 462,

462a-1, 462b, 462c, 463 to 467, 481 to 486, 501a to 503, 521, 522,

531, 601 to 604, 611 to 632 of this title, and section 409 of

former Title 31, Money and Finance. See, also, section 19 of Title

15, Commerce and Trade; sections 217 to 219, 655, 1005, 1014, 1906

and 1909 of Title 18, Crimes and Criminal Procedure, and section

725(b) of former Title 31, Money and Finance. For complete

classification of this Act to the Code, see Tables.

-MISC2-

SHORT TITLE OF 1996 AMENDMENT

Pub. L. 104-208, div. A, title II, Sec. 2001(a), Sept. 30, 1996,

110 Stat. 3009-394, provided that: ''This title (see Tables for

classification) may be cited as the 'Economic Growth and Regulatory

Paperwork Reduction Act of 1996'.''

SHORT TITLE OF 1992 AMENDMENT

Pub. L. 102-491, Sec. 1, Oct. 24, 1992, 106 Stat. 3144, provided

that: ''This Act (amending section 522 of this title) may be cited

as the 'Federal Reserve Bank Branch Modernization Act'.''

SHORT TITLE OF 1987 AMENDMENT

Pub. L. 100-86, Sec. 1(a), Aug. 10, 1987, 101 Stat. 552, provided

that: ''This Act (enacting sections 371c-1, 1439-1, 1441, 1442a,

1467, 1467a, 1730h, 1730i, 1772b, 1772c, 3806, and 4001 to 4010 of

this title and section 3334 of Title 31, Money and Finance,

amending sections 24, 248a, 481, 619, 1430, 1436, 1464, 1467, 1725

to 1727, 1729 to 1730a, 1730h, 1757, 1761a, 1761b, 1764, 1766,

1767, 1785 to 1788, 1813, 1817, 1821, 1823, 1828, 1831d, 1832, 1841

to 1843, 1846, 1849, and 3106 of this title, sections 905 and 906

of Title 2, The Congress, sections 45, 46, and 57a of Title 15,

Commerce and Trade, and sections 3328, 3702, 3712, 9101, and 9105

of Title 31, providing for future repeal of sections 1442a, 1467a,

and 1730i of this title, enacting provisions set out as notes under

sections 226, 248a, 619, 1437, 1441, 1464, 1467, 1467a, 1730,

1730a, 1751, 1811, 1841, and 4001 of this title and section 3328 of

Title 31, and amending provisions set out as a note under section

1729 of this title) may be cited as the 'Competitive Equality

Banking Act of 1987'.''

Pub. L. 100-86, title I, Sec. 100, Aug. 10, 1987, 101 Stat. 554,

provided that: ''This title (enacting section 371c-1 of this title,

amending sections 24, 619, 1430, 1730, 1730a, 1813, 1828, 1831d,

1832, 1841 to 1843, and 1846 of this title, and enacting provisions

set out as notes under sections 226, 619, 1730a, and 1841 of this

title) may be cited as the 'Competitive Equality Amendments of

1987'.''

Pub. L. 100-86, title III, Sec. 301, Aug. 10, 1987, 101 Stat.

585, provided that: ''This title (enacting section 1441 of this

title, amending sections 1430, 1436, 1725, 1727, and 1730 of this

title and section 9101 of Title 31, Money and Finance, and enacting

provisions set out as a note under section 1730 of this title) may

be cited as the 'Federal Savings and Loan Insurance Corporation

Recapitalization Act of 1987'.''

Pub. L. 100-86, title IV, Sec. 401, Aug. 10, 1987, 101 Stat. 604,

provided that: ''This title (enacting sections 1442a, 1467, 1467a,

1730h, and 1730i of this title, amending sections 1464, 1467, 1729

to 1730a, and 1730h of this title, and section 9105 of Title 31,

Money and Finance, providing for future repeal of sections 1442a,

1467a, and 1730i of this title, and enacting provisions set out as

notes under sections 1437, 1441, 1467, and 1467a of this title) may

be cited as the 'Thrift Industry Recovery Act'.''

SHORT TITLE OF 1982 AMENDMENT

Pub. L. 97-320, Sec. 1, Oct. 15, 1982, 96 Stat. 1469, provided

that: ''This Act (enacting sections 216 to 216d, 1701j-3, 1795j,

1866, 1867, 3208, and 3801 to 3805 of this title and section 1099

of Title 20, Education, amending sections 22, 24, 27, 29, 30, 84,

93, 94, 95, 371, 371c, 375a, 375b, 461, 484, 504, 505, 1425a, 1426,

1428a, 1430, 1431, 1436, 1437, 1462, 1464, 1718, 1719, 1725, 1726,

1727, 1728, 1729, 1730, 1730a, 1752, 1752a, 1753, 1755, 1757, 1760,

1761, 1761a, 1761b, 1761c, 1763, 1764, 1766, 1770, 1771, 1782,

1783, 1785, 1786, 1795f, 1813, 1814, 1815, 1817, 1818, 1820, 1821,

1822, 1823, 1828, 1831c, 1832, 1841, 1842, 1843, 1847, 1861, 1862,

1863, 1864, 1865, 1972, 3106, 3204, 3305, 3412, 3414, and 3503 of

this title, section 109 of Title 11, Bankruptcy, sections 1602 and

1603 of Title 15, Commerce and Trade, and sections 8103 and 8105 of

Title 42, The Public Health and Welfare, repealing section 82 of

this title and provisions set out as a note under section 461 of

this title, enacting provisions set out as notes under this

section, sections 84, 371, 371c, 1461, 1464, 1811, 1817, 1823,

3503, and 3801 of this title, and sections 1602 and 1603 of Title

15, and amending provisions set out as notes under sections 92 and

191 of this title) may be cited as the 'Garn-St Germain Depository

Institutions Act of 1982'.''

Pub. L. 97-320, title IV, Sec. 410(a), Oct. 15, 1982, 96 Stat.

1515, provided that: ''This section (amending sections 371c, 375b,

1820, 1828 and 1972 of this title, and enacting provisions set out

as a note under section 371c of this title) may be cited as the

'Banking Affiliates Act of 1982'.''

SHORT TITLE OF 1980 AMENDMENT

Pub. L. 96-221, Sec. 1, Mar. 31, 1980, 94 Stat. 132, provided

that: ''This Act (enacting sections 4a, 86a, 93a, 248a, 1730g,

1735f-7a, 1831d, and 3501 to 3524 of this title, and section 1646

of Title 15, Commerce and Trade, amending sections 24, 27, 29, 51b,

51b-1, 72, 85, 92, 95, 214a, 248, 342, 347b, 355, 360, 371a, 412,

461, 463, 481, 1425a, 1425b, 1431, 1464, 1724, 1726, 1728, 1752,

1757, 1763, 1785, 1787, 1795, to 1795i, 1813, 1817, 1821, 1828,

1832, 1842, and 1843 of this title, and sections 57a, 687, 1602 to

1607, 1610, 1612, 1613, 1631, 1632, 1635, 1637, 1638, 1640, 1641,

1643, 1663, 1664, 1665a, 1666, 1666d, 1667d, and 1691f of Title 15,

repealing sections 86a, 371b-1, 1730e, and 1831a of this title, and

sections 1614, 1636, and 1639 of Title 15, enacting provisions set

out as notes under this section, sections 27, 85, 86a, 191, 248,

355, 371a, 1425a, 1724, 1730g, 1735f-7, 1735f-7a, 1787, 1813, 1817,

3101, 3501, and 3521 of this title, and sections 1601, 1602, and

1607 of Title 15, and repealing provisions set out as notes under

sections 85, 86a, 371b-1, and 1831a of this title) may be cited as

the 'Depository Institutions Deregulation and Monetary Control Act

of 1980'.''

Pub. L. 96-221, title I, Sec. 101, Mar. 31, 1980, 94 Stat. 132,

provided that: ''This title (enacting section 248a of this title,

amending sections 248, 342, 347b, 355, 360, 412, 461, 463, and

1425a of this title and enacting provisions set out as notes under

sections 248 and 355 of this title) may be cited as the 'Monetary

Control Act of 1980'.''

Pub. L. 96-221, title III, Sec. 301, Mar. 31, 1980, 94 Stat. 145,

provided that: ''This title (amending sections 371a, 1431, 1464,

1724, 1728, 1752, 1757, 1763, 1785, 1787, 1795 to 1795i, 1813,

1817, 1821, 1828, and 1832 of this title and enacting provisions

set out as notes under sections 371a, 1724, 1787, 1813, and 1817 of

this title) may be cited as the 'Consumer Checking Account Equity

Act of 1980'.''

SHORT TITLE OF 1978 AMENDMENT

Pub. L. 95-630, Sec. 1, Nov. 10, 1978, 92 Stat. 3641, provided:

''That this Act (enacting sections 375b, 504, 505, 635a-1 to

635a-3, 1795 to 1795i, 1831c, 3106a, 3201 to 3207, 3301 to 3308,

and 3401 to 3422 of this title, sections 1693 to 1693r of Title 15,

Commerce and Trade, and section 2153e-1 of Title 42, The Public

Health and Welfare, amending sections 27, 93, 375a, 412, 635, 635e

to 635g, 1451, 1462, 1464, 1715z-10, 1726, 1728 to 1730a, 1752 to

1756, 1757 to 1759, 1761 to 1763, 1766, 1767, 1771, 1772a, 1781 to

1789, 1795b to 1795g, 1813, 1817 to 1821, 1828, 1832, 1843, 1844,

1847, 1865, 1972, and 2902 of this title, sections 5108, 5314, and

5315 of Title 5, Government Organization and Employees, sections

709 and 1114 of Title 18, Crimes and Criminal Procedure, and

sections 67 and 856 of former Title 31, Money and Finance, enacting

provisions set out as notes under sections 27, 93, 375b, 461, 601,

635, 1451, 1728, 1730, 1751, 1752, 1795, 1817, 1832, 3201, 3301,

3401, and 3415 of this title, and sections 1601 and 1693 of Title

15; and amending provisions set out as notes under this section,

section 461 of this title, and section 1666f of Title 15) may be

cited as the 'Financial Institutions Regulatory and Interest Rate

Control Act of 1978'.''

SHORT TITLE OF 1977 AMENDMENT

Pub. L. 95-188, title II, Sec. 201, Nov. 16, 1977, 91 Stat. 1387,

provided that: ''This title (enacting section 225a of this title,

amending sections 242 and 302 of this title and section 208 of

Title 18, Crimes and Criminal Procedure, and enacting provisions

set out as a note under section 242 of this title) may be cited as

the 'Federal Reserve Reform Act of 1977'.''

SHORT TITLE OF 1932 AMENDMENT

Act Feb. 27, 1932, ch. 58, 47 Stat. 56, which enacted sections

347a and 347b of this title, and amended section 412 of this title,

is popularly known as the Glass-Steagall Act, 1932.

SEPARABILITY; RIGHT TO AMEND, ALTER OR REPEAL

Pub. L. 100-86, title XII, Sec. 1205, Aug. 10, 1987, 101 Stat.

663, provided that: ''If any provision of this Act (see Short Title

of 1987 Amendment note above) or the application thereof to any

person or circumstances is held invalid, the remainder of the Act

and the application of the provision to other persons not similarly

situated or to other circumstances shall not be affected thereby.''

Sections 30 and 31, formerly 29 and 30, respectively, of act Dec.

23, 1913, as renumbered by act Nov. 10, 1978, Pub. L. 95-630, title

I, Sec. 101, 92 Stat. 3641, provided:

''Sec. 30. If any clause, sentence, paragraph, or part of this

Act shall for any reason be adjudged by any court of competent

jurisdiction to be invalid, such judgment shall not affect, impair,

or invalidate the remainder of this Act, but shall be confined in

its operation to the clause, sentence, paragraph, or part thereof

directly involved in the controversy in which such judgment shall

have been rendered.

''Sec. 31. The right to amend, alter, or repeal this Act is

hereby expressly reserved.''

-CITE-

12 USC Sec. 227 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER I - DEFINITIONS, ORGANIZATION, AND GENERAL PROVISIONS

AFFECTING SYSTEM

-HEAD-

Sec. 227. ''Banking Act of 1933''

-STATUTE-

The short title of the Act of June 16, 1933, ch. 89, 48 Stat.

162, shall be the ''Banking Act of 1933.''

-SOURCE-

(June 16, 1933, ch. 89, Sec. 1, 48 Stat. 162.)

-REFTEXT-

REFERENCES IN TEXT

The Banking Act of 1933, also known as the Glass-Steagall Act,

1933, referred to in text, is classified to sections 24, 33, 34a,

36, 51, 52, 61, 64a, 71a, 77, 78, 84, 85, 161, 197a, 221a, 227,

242, 244, 248, 289, 301, 304, 321, 329, 333 to 338, 347, 348a,

371a, 371b, 371c, 371d, 374a, 375a, 377, 378, 481, and 632 of this

title. For complete classification of this Act to the Code, see

Tables.

-MISC2-

RIGHT TO AMEND, ALTER OR REPEAL; SEPARABILITY

Section 34 of act June 16, 1933, provided: ''The right to alter,

amend, or repeal this Act is hereby expressly reserved. If any

provision of this act, or the application thereof to any person or

circumstances, is held invalid, the remainder of the act, and the

application of such provision to other persons or circumstances,

shall not be affected thereby''.

-CITE-

12 USC Sec. 228 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER I - DEFINITIONS, ORGANIZATION, AND GENERAL PROVISIONS

AFFECTING SYSTEM

-HEAD-

Sec. 228. ''Banking Act of 1935''

-STATUTE-

The act of August 23, 1935, ch. 614, 49 Stat. 684, may be cited

as the ''Banking Act of 1935.''

-SOURCE-

(Aug. 23, 1935, ch. 614, Sec. 1, 49 Stat. 684.)

-REFTEXT-

REFERENCES IN TEXT

The Banking Act of 1935, referred to in text, is classified to

sections 2, 24, 33 to 34c, 35, 36, 51, 51a, 51b-1, 52, 59 to 61,

64a, 71a, 78, 84, 85, 170, 181, 192, 221a, 228, 241, 242, 244,

247a, 248, 263, 287, 288, 321, 324, 336, 341, 343, 347b, 352a, 355,

357, 371, 371a, 371b, 371c, 375a, 377, 378, 461, 462a-1, 462b, 465,

481, 482, 486, 619, 1702, 1703, 1709, and 1713 of this title;

section 101 of Title 11, Bankruptcy; section 19 of Title 15,

Commerce and Trade. See, also, sections 217, 218, 334, 655, 656,

709, 1005, 1906, 1909, and 2113 of Title 18, Crimes and Criminal

Procedure. For complete classification of this Act to the Code see

Tables.

-MISC2-

SEPARABILITY

Section 346 of act Aug. 23, 1935, provided: ''If any provision of

this Act, or the application thereof to any person or

circumstances, is held invalid, the remainder of the Act, and the

application of such provision to other persons and circumstances,

shall not be affected thereby.''

-CITE-

12 USC SUBCHAPTER II - BOARD OF GOVERNORS OF THE FEDERAL

RESERVE SYSTEM 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER II - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

.

-HEAD-

SUBCHAPTER II - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

-CITE-

12 USC Sec. 241 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER II - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

-HEAD-

Sec. 241. Creation; membership; compensation and expenses

-STATUTE-

The Board of Governors of the Federal Reserve System (hereinafter

referred to as the ''Board'') shall be composed of seven members,

to be appointed by the President, by and with the advice and

consent of the Senate, after August 23, 1935, for terms of fourteen

years except as hereinafter provided, but each appointive member of

the Federal Reserve Board in office on such date shall continue to

serve as a member of the Board until February 1, 1936, and the

Secretary of the Treasury and the Comptroller of the Currency shall

continue to serve as members of the Board until February 1, 1936.

In selecting the members of the Board, not more than one of whom

shall be selected from any one Federal Reserve district, the

President shall have due regard to a fair representation of the

financial, agricultural, industrial, and commercial interests, and

geographical divisions of the country. The members of the Board

shall devote their entire time to the business of the Board and

shall each receive basic compensation at the rate of $16,000 per

annum, payable monthly, together with actual necessary traveling

expenses.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 10 (par.), 38 Stat. 260; June 3, 1922,

ch. 205, 42 Stat. 620; Aug. 23, 1935, ch. 614, title II, Sec.

203(b), 49 Stat. 704.)

-COD-

CODIFICATION

Section is comprised of first par. of section 10 of act Dec. 23,

1913. Pars. 2-7 and 8 of section 10; par. 9 of section 10, as added

June 3, 1922, ch. 205, 42 Stat. 621; and par. 10 of section 10, as

added Aug. 23, 1935, ch. 614, Sec. 203(d), 49 Stat. 705, are

classified to sections 242 to 247, 1, 522, and 247a, respectively,

of this title.

-MISC3-

AMENDMENTS

1935 - Act Aug. 23, 1935, Sec. 203(b), increased the appointive

membership from six to seven, terminated the membership of the

Secretary of the Treasury and the Comptroller of the Currency,

raised the tenure from twelve to fourteen years and increased the

annual salary from $12,000 to $15,000.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, provided that: ''Hereafter

the Federal Reserve Board shall be known as the 'Board of Governors

of the Federal Reserve System,' and the governor and the vice

governor of the Federal Reserve Board shall be known as the

'chairman' and the 'vice chairman,' respectively, of the Board of

Governors of the Federal Reserve System.''

-MISC4-

REPEALS

Act Oct. 15, 1949, ch. 695, Sec. 4, 63 Stat. 880, formerly cited

as a credit to this section, was repealed by Pub. L. 89-554, Sec.

8(a), Sept. 6, 1966, 80 Stat. 655.

GENERAL ACCOUNTING OFFICE STUDY OF CONFLICTS OF INTEREST

Pub. L. 106-102, title VII, Sec. 728, Nov. 12, 1999, 113 Stat.

1475, provided that:

''(a) Study Required. - The Comptroller General of the United

States shall conduct a study analyzing the conflict of interest

faced by the Board of Governors of the Federal Reserve System

between its role as a primary regulator of the banking industry and

its role as a vendor of services to the banking and financial

services industry.

''(b) Specific Conflict Required To Be Addressed. - In the course

of the study required under subsection (a), the Comptroller General

shall address the conflict of interest faced by the Board of

Governors of the Federal Reserve System between the role of the

Board as a regulator of the payment system, generally, and its

participation in the payment system as a competitor with private

entities who are providing payment services.

''(c) Report to the Congress. - Before the end of the 1-year

period beginning on the date of the enactment of this Act (Nov. 12,

1999), the Comptroller General shall submit a report to the

Congress containing the findings and conclusions of the Comptroller

General in connection with the study required under this section,

together with such recommendations for such legislative or

administrative actions as the Comptroller General may determine to

be appropriate, including recommendations for resolving any such

conflict of interest.''

COMPENSATION OF BOARD OF GOVERNORS

Annual basic compensation of Chairman and Members of Board of

Governors, see sections 5313 and 5314 of Title 5, Government

Organization and Employees.

-CITE-

12 USC Sec. 242 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER II - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

-HEAD-

Sec. 242. Ineligibility to hold office in member banks;

qualifications and terms of office of members; chairman and

vice chairman; oath of office

-STATUTE-

The members of the Board shall be ineligible during the time they

are in office and for two years thereafter to hold any office,

position, or employment in any member bank, except that this

restriction shall not apply to a member who has served the full

term for which he was appointed. Upon the expiration of the term

of any appointive member of the Federal Reserve Board in office on

August 23, 1935, the President shall fix the term of the successor

to such member at not to exceed fourteen years, as designated by

the President at the time of nomination, but in such manner as to

provide for the expiration of the term of not more than one member

in any two-year period, and thereafter each member shall hold

office for a term of fourteen years from the expiration of the term

of his predecessor, unless sooner removed for cause by the

President. Of the persons thus appointed, one shall be designated

by the President, by and with the advice and consent of the Senate,

to serve as Chairman of the Board for a term of four years, and one

shall be designated by the President, by and with the consent of

the Senate, to serve as Vice Chairman of the Board for a term of

four years. The Chairman of the Board, subject to its supervision,

shall be its active executive officer. Each member of the Board

shall within fifteen days after notice of appointment make and

subscribe to the oath of office. Upon the expiration of their

terms of office, members of the Board shall continue to serve until

their successors are appointed and have qualified. Any person

appointed as a member of the Board after August 23, 1935, shall not

be eligible for reappointment as such member after he shall have

served a full term of fourteen years.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 10 (par.), 38 Stat. 260; June 3, 1922,

ch. 205, 42 Stat. 620; June 16, 1933, ch. 89, Sec. 6(a), 48 Stat.

166; Aug. 23, 1935, ch. 614, title II, Sec. 203(b), 49 Stat. 704;

Pub. L. 95-188, title II, Sec. 204(a), Nov. 16, 1977, 91 Stat.

1388.)

-COD-

CODIFICATION

Section is comprised of second par. of section 10 of act Dec. 23,

1913. For classification to this title of other pars. of section

10, see note set out under section 241 of this title.

-MISC3-

AMENDMENTS

1977 - Pub. L. 95-188 substituted in third sentence ''one shall

be designated by the President, by and with the advice and consent

of the Senate, to serve as Chairman of the Board for a term of four

years, and one shall be designated by the President, by and with

the consent of the Senate, to serve as Vice Chairman of the Board

for a term of four years'' for ''one shall be designated by the

President as chairman and one as vice chairman of the Board, to

serve as such for a term of four years''.

1935 - Act Aug. 23, 1935, Sec. 203(b), extended term of

appointive members from twelve to fourteen years, and inserted

provisions for continuance in office until successor qualified and

against reappointment.

1933 - Act June 16, 1933, extended term of appointive members

from ten to twelve years.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-MISC4-

EFFECTIVE DATE OF 1977 AMENDMENT; APPLICABILITY

Section 204(b) of Pub. L. 95-188 provided that: ''The amendment

made by subsection (a) (amending this section) takes effect on

January 1, 1979, and applies to individuals who are designated by

the President on or after such date to serve as Chairman or Vice

Chairman of the Board of Governors of the Federal Reserve System.''

REPEALS

Act Mar. 3, 1919, ch. 101, Sec. 2, 40 Stat. 1315, formerly cited

as a credit to this section, was repealed by Pub. L. 89-554, Sec.

8(a), Sept. 6, 1966, 80 Stat. 644.

COMPENSATION OF CHAIRMAN OF BOARD

Annual basic compensation of Chairman of Board of Governors, see

section 5313 of Title 5, Government Organization and Employees.

-CITE-

12 USC Sec. 243 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER II - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

-HEAD-

Sec. 243. Assessments upon Federal reserve banks to pay expenses

-STATUTE-

The Board of Governors of the Federal Reserve System shall have

power to levy semiannually upon the Federal reserve banks, in

proportion to their capital stock and surplus, an assessment

sufficient to pay its estimated expenses and the salaries of its

members and employees for the half year succeeding the levying of

such assessment, together with any deficit carried forward from the

preceding half year and such assessments may include amounts

sufficient to provide for the acquisition by the Board in its own

name of such site or building in the District of Columbia as in its

judgement alone shall be necessary for the purpose of providing

suitable and adequate quarters for the performance of its

functions. After September 1, 2000, the Board may also use such

assessments to acquire, in its own name, a site or building (in

addition to the facilities existing on such date) to provide for

the performance of the functions of the Board. After approving such

plans, estimates, and specifications as it shall have caused to be

prepared, the Board may, notwithstanding any other provision of

law, cause to be constructed on any site so acquired by it a

building or buildings suitable and adequate in its judgement for

its purposes and proceed to take all such steps as it may deem

necessary or appropriate in connection with the construction,

equipment, and furnishing of such building or buildings. The Board

may maintain, enlarge, or remodel any building or buildings so

acquired or constructed and shall have sole control of such

building or buildings and space therein.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 10 (par.), 38 Stat. 261; June 3, 1922,

ch. 205, 42 Stat. 621; June 19, 1934, ch. 653, Sec. 4, 48 Stat.

1108; Aug. 23, 1935, ch. 614, title II, Sec. 203(a), 49 Stat. 704;

Pub. L. 106-569, title X, Sec. 1001, Dec. 27, 2000, 114 Stat.

3027.)

-COD-

CODIFICATION

Section is comprised of third par. of section 10 of act Dec. 23,

1913. For classification to this title of other pars. of section

10, see note set out under section 241 of this title.

-MISC3-

AMENDMENTS

2000 - Pub. L. 106-569 inserted ''After September 1, 2000, the

Board may also use such assessments to acquire, in its own name, a

site or building (in addition to the facilities existing on such

date) to provide for the performance of the functions of the

Board.'' after first sentence, inserted ''or buildings'' after

''building'' wherever appearing in third and fourth sentences, and

substituted ''constructed on any site'' for ''constructed on the

site'' in third sentence.

1934 - Act June 19, 1934, inserted provisions after ''the

preceding half year'' in first sentence and inserted second and

third sentences.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-CITE-

12 USC Sec. 244 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER II - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

-HEAD-

Sec. 244. Principal offices of Board; chairman of Board;

obligations and expenses; qualifications of members; vacancies

-STATUTE-

The principal offices of the Board shall be in the District of

Columbia. At meetings of the Board the chairman shall preside, and,

in his absence, the vice chairman shall preside. In the absence of

the chairman and the vice chairman, the Board shall elect a member

to act as chairman pro tempore. The Board shall determine and

prescribe the manner in which its obligations shall be incurred and

its disbursements and expenses allowed and paid, and may leave on

deposit in the Federal Reserve banks the proceeds of assessments

levied upon them to defray its estimated expenses and the salaries

of its members and employees, whose employment, compensation,

leave, and expenses shall be governed solely by the provisions of

this chapter and rules and regulations of the Board not

inconsistent therewith; and funds derived from such assessments

shall not be construed to be Government funds or appropriated

moneys. No member of the Board of Governors of the Federal Reserve

System shall be an officer or director of any bank, banking

institution, trust company, or Federal Reserve bank or hold stock

in any bank, banking institution, or trust company; and before

entering upon his duties as a member of the Board of Governors of

the Federal Reserve System he shall certify under oath that he has

complied with this requirement, and such certification shall be

filed with the secretary of the Board. Whenever a vacancy shall

occur, other than by expiration of term, among the seven members of

the Board of Governors of the Federal Reserve System appointed by

the President as above provided, a successor shall be appointed by

the President, by and with the advice and consent of the Senate, to

fill such vacancy, and when appointed he shall hold office for the

unexpired term of his predecessor.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 10 (par.), 38 Stat. 261; June 3, 1922,

ch. 205, 42 Stat. 621; June 16, 1933, ch. 89, Sec. 6(b), 48 Stat.

167; Aug. 23, 1935, ch. 614, title II, Sec. 203(a)-(c), 49 Stat.

704, 705.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in text, was in the original ''this

Act, specific amendments thereof'', meaning act Dec. 23, 1913, ch.

6, 38 Stat. 251, as amended, known as the Federal Reserve Act. For

complete classification of this Act to the Code, see References in

Text note set out under section 226 of this title and Tables.

-COD-

CODIFICATION

Section is comprised of fourth par. of section 10 of act Dec. 23,

1913. For classification to this title of other pars. of section

10, see Codification note set out under section 241 of this title.

Word ''seven'' was substituted for ''six'' in last sentence on

authority of section 203(b) of act Aug. 23, 1935, which increased

membership of the Board of Governors.

-MISC3-

AMENDMENTS

1935 - Act Aug. 23, 1935, Sec. 203(c), substituted second and

third sentences for former related provisions.

1933 - Act June 16, 1933, fixed the principal offices of the

Board, made the Secretary of the Treasury chairman, provided for

chairman pro tempore, and referred to disbursements, obligations,

salaries and leaves.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-CITE-

12 USC Sec. 245 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER II - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

-HEAD-

Sec. 245. Vacancies during recess of Senate

-STATUTE-

The President shall have power to fill all vacancies that may

happen on the Board of Governors of the Federal Reserve System

during the recess of the Senate by granting commissions which shall

expire with the next session of the Senate.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 10 (par.), 38 Stat. 260; June 3, 1922,

ch. 205, 42 Stat. 620; Aug. 23, 1935, ch. 614, title II, Sec.

203(a), 49, Stat. 704.)

-COD-

CODIFICATION

Section is comprised of fifth par. of section 10 of act Dec. 23,

1913. For classification to this title of other pars. of section

10, see Codification note set out under section 241 of this title.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-CITE-

12 USC Sec. 246 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER II - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

-HEAD-

Sec. 246. Powers of Secretary of the Treasury as affected by

chapter

-STATUTE-

Nothing in this chapter contained shall be construed as taking

away any powers heretofore vested by law in the Secretary of the

Treasury which relate to the supervision, management, and control

of the Treasury Department and bureaus under such department, and

wherever any power vested by this chapter in the Board of Governors

of the Federal Reserve System or the Federal reserve agent appears

to conflict with the powers of the Secretary of the Treasury, such

powers shall be exercised subject to the supervision and control of

the Secretary.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 10 (par.), 38 Stat. 261; June 3, 1922,

ch. 205, 42 Stat. 621; Aug. 23, 1935, ch. 614, title II, Sec.

203(a), 49 Stat. 704.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in text, was in the original ''this

Act'', meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, as amended,

known as the Federal Reserve Act. For complete classification of

this Act to the Code, see References in Text note set out under

section 226 of this title and Tables.

-COD-

CODIFICATION

Section is comprised of sixth par. of section 10 of act Dec. 23,

1913. For classification to this title of other pars. of section

10, see Codification note set out under section 241 of this title.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-CITE-

12 USC Sec. 247 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER II - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

-HEAD-

Sec. 247. Reports to Congress

-STATUTE-

The Board of Governors of the Federal Reserve System shall

annually make a full report of its operations to the Speaker of the

House of Representatives, who shall cause the same to be printed

for the information of the Congress. The report required under this

paragraph shall include the reports required under section 1691f of

title 15, section 57a(f)(7) of title 15, section 1613 of title 15,

and section 247a of this title.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 10 (par.), 38 Stat. 261; June 3, 1922,

ch. 205, 42 Stat. 621; Aug. 23, 1935, ch. 614, title II, Sec.

203(a), 49 Stat. 704; Pub. L. 106-569, title XI, Sec. 1103(b), Dec.

27, 2000, 114 Stat. 3030.)

-COD-

CODIFICATION

Section is comprised of seventh par. of section 10 of act Dec.

23, 1913. For classification to this title of other pars. of

section 10, see Codification note set out under section 241 of this

title.

-MISC3-

AMENDMENTS

2000 - Pub. L. 106-569 inserted at end ''The report required

under this paragraph shall include the reports required under

section 1691f of title 15, section 57a(f)(7) of title 15, section

1613 of title 15, and section 247a of this title.''

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-MISC4-

MEMBERSHIP OF INTERNATIONAL BANKS IN FEDERAL RESERVE SYSTEM; REPORT

TO CONGRESS

Pub. L. 95-369, Sec. 3(g), Sept. 17, 1978, 92 Stat. 610, provided

that the Board report to Congress not later than 270 days after

Sept. 17, 1978 recommendations with respect to permitting

corporations organized or operating under section 25 or 25(a) of

the Federal Reserve Act to become members of Federal Reserve Banks.

EFFECT OF INTERNATIONAL BANKING ACT OF 1978 ON INTERNATIONAL BANKS;

REPORT TO CONGRESS

Pub. L. 95-369, Sec. 3(h), Sept. 17, 1978, 92 Stat. 610, provided

that: ''As part of its annual report pursuant to section 10 of the

Federal Reserve Act (this section), the Board shall include its

assessment of the effects of the amendments made by this Act (see

Short Title note set out under section 3101 of this title) on the

capitalization and activities of corporations organized or

operating under section 25 or 25(a) of the Federal Reserve Act

(sections 601 to 604 and 611 to 631 of this title), and on

commercial banks and the banking system.''

-CITE-

12 USC Sec. 247a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER II - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

-HEAD-

Sec. 247a. Records of action on policy relating to open-market

operation and policies determined generally; inclusion in

report to Congress

-STATUTE-

The Board of Governors of the Federal Reserve System shall keep a

complete record of the action taken by the Board and by the Federal

Open Market Committee upon all questions of policy relating to

open-market operations and shall record therein the votes taken in

connection with the determination of open-market policies and the

reasons underlying the action of the Board and the Committee in

each instance. The Board shall keep a similar record with respect

to all questions of policy determined by the Board, and shall

include in its annual report to the Congress a full account of the

action so taken during the preceding year with respect to

open-market policies and operations and with respect to the

policies determined by it and shall include in such report a copy

of the records required to be kept under the provisions of this

section.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 10 (par.), as added Aug. 23, 1935, ch.

614, title II, Sec. 203(d), 49 Stat. 705.)

-COD-

CODIFICATION

Section is comprised of tenth par. of section 10 of act Dec. 23,

1913, as added Aug. 23, 1935. For classification to this title of

other pars. of section 10, see Codification note set out under

section 241 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 247 of this title.

-CITE-

12 USC Sec. 248 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER II - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

-HEAD-

Sec. 248. Enumerated powers

-STATUTE-

The Board of Governors of the Federal Reserve System shall be

authorized and empowered:

(a) Examination of accounts and affairs of banks; publication of

weekly statements; reports of liabilities and assets of

depository institutions; covered institutions

(1) To examine at its discretion the accounts, books, and affairs

of each Federal reserve bank and of each member bank and to require

such statements and reports as it may deem necessary. The said

board shall publish once each week a statement showing the

condition of each Federal reserve bank and a consolidated statement

for all Federal reserve banks. Such statements shall show in

detail the assets and liabilities of the Federal reserve banks,

single and combined, and shall furnish full information regarding

the character of the money held as reserve and the amount, nature,

and maturities of the paper and other investments owned or held by

Federal reserve banks.

(2) To require any depository institution specified in this

paragraph to make, at such intervals as the Board may prescribe,

such reports of its liabilities and assets as the Board may

determine to be necessary or desirable to enable the Board to

discharge its responsibility to monitor and control monetary and

credit aggregates. Such reports shall be made (A) directly to the

Board in the case of member banks and in the case of other

depository institutions whose reserve requirements under sections

461, 463, 464, 465, and 466 of this title exceed zero, and (B) for

all other reports to the Board through the (i) Federal Deposit

Insurance Corporation in the case of insured State nonmember banks,

savings banks, and mutual savings banks, (ii) National Credit Union

Administration Board in the case of insured credit unions, (iii)

the Director of the Office of Thrift Supervision in the case of any

savings association which is an insured depository institution (as

defined in section 1813 of this title) or which is a member as

defined in section 1422 of this title, and (iv) such State officer

or agency as the Board may designate in the case of any other type

of bank, savings and loan association, or credit union. The Board

shall endeavor to avoid the imposition of unnecessary burdens on

reporting institutions and the duplication of other reporting

requirements. Except as otherwise required by law, any data

provided to any department, agency, or instrumentality of the

United States pursuant to other reporting requirement shall be made

available to the Board. The Board may classify depository

institutions for the purposes of this paragraph and may impose

different requirements on each such class.

(b) Permitting or requiring rediscounting of paper at specified

rate

To permit, or, on the affirmative vote of at least five members

of the Board of Governors, to require Federal reserve banks to

rediscount the discounted paper of other Federal reserve banks at

rates of interest to be fixed by the Board.

(c) Suspending reserve requirements

To suspend for a period not exceeding thirty days, and from time

to time to renew such suspension for periods not exceeding fifteen

days, any reserve requirements specified in this chapter.

(d) Supervising and regulating issue and retirement of notes

To supervise and regulate through the Secretary of the Treasury

the issue and retirement of Federal Reserve notes, except for the

cancellation and destruction, and accounting with respect to such

cancellation and destruction, of notes unfit for circulation, and

to prescribe rules and regulations under which such notes may be

delivered by the Secretary of the Treasury to the Federal Reserve

agents applying therefor.

(e) Adding to or reclassifying reserve cities

To add to the number of cities classified as reserve cities under

existing law in which national banking associations are subject to

the reserve requirements set forth in section 20 of this Act, or to

reclassify existing reserve cities or to terminate their

designation as such.

(f) Suspending or removing officers or directors of reserve banks

To suspend or remove any officer or director of any Federal

reserve bank, the cause of such removal to be forthwith

communicated in writing by the Board of Governors of the Federal

Reserve System to the removed officer or director and to said bank.

(g) Requiring writing off of doubtful or worthless assets of banks

To require the writing off of doubtful or worthless assets upon

the books and balance sheets of Federal reserve banks.

(h) Suspending operations of or liquidating or reorganizing banks

To suspend, for the violation of any of the provisions of this

chapter, the operations of any Federal reserve bank, to take

possession thereof, administer the same during the period of

suspension, and, when deemed advisable, to liquidate or reorganize

such bank.

(i) Requiring bonds of agents; safeguarding property in hands of

agents

To require bonds of Federal reserve agents, to make regulations

for the safeguarding of all collateral, bonds, Federal reserve

notes, money, or property of any kind deposited in the hands of

such agents, and said board shall perform the duties, functions, or

services specified in this chapter, and make all rules and

regulations necessary to enable said board effectively to perform

the same.

(j) Exercising supervision over reserve banks

To exercise general supervision over said Federal reserve banks.

(k) Delegation of certain functions; power to delegate; review of

delegated activities

To delegate, by published order or rule and subject to subchapter

II of chapter 5, and chapter 7, of title 5, any of its functions,

other than those relating to rulemaking or pertaining principally

to monetary and credit policies, to one or more administrative law

judges, members or employees of the Board, or Federal Reserve

banks. The assignment of responsibility for the performance of any

function that the Board determines to delegate shall be a function

of the Chairman. The Board shall, upon the vote of one member,

review action taken at a delegated level within such time and in

such manner as the Board shall by rule prescribe.

(l) Employing attorneys, experts, assistants, and clerks; salaries

and fees

To employ such attorneys, experts, assistants, clerks, or other

employees as may be deemed necessary to conduct the business of the

board. All salaries and fees shall be fixed in advance by said

board and shall be paid in the same manner as the salaries of the

members of said board. All such attorneys, experts, assistants,

clerks, and other employees shall be appointed without regard to

the provisions of the Act of January sixteenth, eighteen hundred

and eighty-three (volume twenty-two, United States Statutes at

Large, page four hundred and three), and amendments thereto, or any

rule or regulation made in pursuance thereof: Provided, That

nothing herein shall prevent the President from placing said

employees in the classified service.

(m) (Repealed)

(n) Board's authority to examine depository institutions and

affiliates

To examine, at the Board's discretion, any depository

institution, and any affiliate of such depository institution, in

connection with any advance to, any discount of any instrument for,

or any request for any such advance or discount by, such depository

institution under this chapter.

(o) Authority to appoint conservator or receiver

The Board may appoint the Federal Deposit Insurance Corporation

as conservator or receiver for a State member bank under section

1821(c)(9) of this title.

(p) Authority

The Board may act in its own name and through its own attorneys

in enforcing any provision of this title, (FOOTNOTE 1) regulations

promulgated hereunder, or any other law or regulation, or in any

action, suit, or proceeding to which the Board is a party and which

involves the Board's regulation or supervision of any bank, bank

holding company (as defined in section 1841 of this title), or

other entity, or the administration of its operations.

(FOOTNOTE 1) See References in Text note below.

(q) Uniform protection authority for Federal reserve facilities

(1) Notwithstanding any other provision of law, to authorize

personnel to act as law enforcement officers to protect and

safeguard the premises, grounds, property, personnel, including

members of the Board, of the Board, or any Federal reserve bank,

and operations conducted by or on behalf of the Board or a reserve

bank.

(2) The Board may, subject to the regulations prescribed under

paragraph (5), delegate authority to a Federal reserve bank to

authorize personnel to act as law enforcement officers to protect

and safeguard the bank's premises, grounds, property, personnel,

and operations conducted by or on behalf of the bank.

(3) Law enforcement officers designated or authorized by the

Board or a reserve bank under paragraph (1) or (2) are authorized

while on duty to carry firearms and make arrests without warrants

for any offense against the United States committed in their

presence, or for any felony cognizable under the laws of the United

States committed or being committed within the buildings and

grounds of the Board or a reserve bank if they have reasonable

grounds to believe that the person to be arrested has committed or

is committing such a felony. Such officers shall have access to

law enforcement information that may be necessary for the

protection of the property or personnel of the Board or a reserve

bank.

(4) For purposes of this subsection, the term ''law enforcement

officers'' means personnel who have successfully completed law

enforcement training and are authorized to carry firearms and make

arrests pursuant to this subsection.

(5) The law enforcement authorities provided for in this

subsection may be exercised only pursuant to regulations prescribed

by the Board and approved by the Attorney General.

(r) Voting; documentation of determinations

(1) Any action that this chapter provides may be taken only upon

the affirmative vote of 5 members of the Board may be taken upon

the unanimous vote of all members then in office if there are fewer

than 5 members in office at the time of the action.

(2)(A) Any action that the Board is otherwise authorized to take

under the second paragraph of section 343 of this title may be

taken upon the unanimous vote of all available members then in

office, if -

(i) at least 2 members are available and all available members

participate in the action;

(ii) the available members unanimously determine that -

(I) unusual and exigent circumstances exist and the borrower

is unable to secure adequate credit accommodations from other

sources;

(II) action on the matter is necessary to prevent, correct,

or mitigate serious harm to the economy or the stability of the

financial system of the United States;

(III) despite the use of all means available (including all

available telephonic, telegraphic, and other electronic means),

the other members of the Board have not been able to be

contacted on the matter; and

(IV) action on the matter is required before the number of

Board members otherwise required to vote on the matter can be

contacted through any available means (including all available

telephonic, telegraphic, and other electronic means); and

(iii) any credit extended by a Federal reserve bank pursuant to

such action is payable upon demand of the Board.

(B) The available members of the Board shall document in writing

the determinations required by subparagraph (A)(ii), and such

written findings shall be included in the record of the action and

in the official minutes of the Board, and copies of such record

shall be provided as soon as practicable to the members of the

Board who were not available to participate in the action and to

the Chairman of the Committee on Banking, Housing, and Urban

Affairs of the Senate and to the Chairman of the Committee on

Financial Services of the House of Representatives.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 11, 38 Stat. 261; Sept. 7, 1916, ch.

461, 39 Stat. 752; Sept. 26, 1918, ch. 177, Sec. 2, 40 Stat. 968;

Mar. 3, 1919, ch. 101, Sec. 3, 40 Stat. 1315; Feb. 27, 1921, ch.

75, 41 Stat. 1146; June 26, 1930, ch. 612, 46 Stat. 814; Mar. 9,

1933, ch. 1, title I, Sec. 3, 48 Stat. 2; June 16, 1933, ch. 89,

Sec. 7, 48 Stat. 167; Aug. 23, 1935, ch. 614, title II, Sec.

203(a), title III, Sec. 321(a), 342, 49 Stat. 704, 713, 722; June

12, 1945, ch. 186, Sec. 1(c), 59 Stat. 237; Pub. L. 86-114, Sec.

3(b)(6), July 28, 1959, 73 Stat. 264; Pub. L. 86-251, Sec. 3(c),

Sept. 9, 1959, 73 Stat. 488; Pub. L. 87-722, Sec. 3, Sept. 28,

1962, 76 Stat. 670; Pub. L. 89-427, Sec. 2, May 20, 1966, 80 Stat.

161; Pub. L. 89-765, Nov. 5, 1966, 80 Stat. 1314; Pub. L. 90-269,

Sec. 1, Mar. 18, 1968, 82 Stat. 50; Pub. L. 95-251, Sec. 2(a)(3),

Mar. 27, 1978, 92 Stat. 183; Pub. L. 96-221, title I, Sec. 102,

Mar. 31, 1980, 94 Stat. 132; Pub. L. 97-258, Sec. 5(b), Sept. 13,

1982, 96 Stat. 1068; Pub. L. 97-457, Sec. 17(b), Jan. 12, 1983, 96

Stat. 2509; Pub. L. 101-73, title VII, Sec. 744(i)(1), Aug. 9,

1989, 103 Stat. 439; Pub. L. 102-242, title I, Sec. 133(f), 142(c),

Dec. 19, 1991, 105 Stat. 2273, 2281; Pub. L. 102-550, title XVI,

Sec. 1603(d)(9), Oct. 28, 1992, 106 Stat. 4080; Pub. L. 103-325,

title III, Sec. 322(d), 331(d), title VI, Sec. 602(g)(2), Sept. 23,

1994, 108 Stat. 2227, 2232, 2293; Pub. L. 106-102, title VII, Sec.

735, Nov. 12, 1999, 113 Stat. 1479; Pub. L. 107-56, title III, Sec.

364, Oct. 26, 2001, 115 Stat. 333; Pub. L. 107-297, title III, Sec.

301, Nov. 26, 2002, 116 Stat. 2340.)

-REFTEXT-

REFERENCES IN TEXT

Sections 461, 463, 464, 465, and 466 of this title, referred to

in subsec. (a)(2), was in the original ''section 19 of the Federal

Reserve Act''. Provisions of section 19 relating to reserve

requirements are classified to the cited sections. For complete

classification of section 19 to the Code, see References in Text

note set out under section 461 of this title.

This chapter, referred to in subsecs. (c), (h), (i), (n), and

(r)(1), was in the original ''this Act'', meaning act Dec. 23,

1913, ch. 6, 38 Stat. 251, as amended, known as the Federal Reserve

Act. For complete classification of this Act to the Code, see

References in Text note set out under section 226 of this title and

Tables.

Reference in subsec. (e) to ''section 20 of this Act'' means

section 20 of the Federal Reserve Act which is not classified to

the Code. Since section 20 does not set forth any reserve

requirements, section 19 of the Federal Reserve Act might have been

intended. For provisions of section 19 relating to reserve

requirements, see note above.

The Act of January sixteenth, eighteen hundred and eighty-three,

referred to in subsec. (l), is act Jan. 16, 1883, ch. 27, 22 Stat.

403, as amended, which enacted section 42 of former Title 40,

Public Buildings, Property, and Works, and sections 632, 633, 635,

637, 638, and 640 to 642a of former Title 5, Executive Departments

and Government Officers and Employees. For complete classification

of this Act to the Code, see Tables. Section 42 of former Title 40

was repealed and reenacted as section 8165 of Title 40, Public

Buildings, Property, and Works, by Pub. L. 107-217, Sec. 1, 6(b),

Aug. 21, 2002, 116 Stat. 1062, 1304. The sections that were

classified to former Title 5 were repealed by Pub. L. 89-554, Sec.

8(a), Sept. 6, 1966, 80 Stat. 632, the first section of which

enacted Title 5, Government Organization and Employees. For

distribution of former sections of Title 5 into the revised Title

5, see table at the beginning of Title 5.

This title, referred to in subsec. (p), probably should read

''this Act'', meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, as

amended, known as the Federal Reserve Act, which does not contain

titles. For complete classification of this Act to the Code, see

References in Text note set out under section 226 of this title and

Tables.

The second paragraph of section 343 of this title, referred to in

subsec. (r)(2)(A), was in the original ''section 13(3)'' meaning

section 13(3) of the Federal Reserve Act, which was translated as

if it referred to the third paragraph of section 13 of that Act to

reflect the probable intent of Congress. Section 13 of the Federal

Reserve Act does not contain a paragraph designated as ''(3)''.

-COD-

CODIFICATION

In subsec. (k), ''subchapter II of chapter 5, and chapter 7, of

title 5'' was substituted for ''the Administrative Procedure Act''

on authority of section 7(b) of Pub. L. 89-554, Sept. 6, 1966, 80

Stat. 631, the first section of which enacted Title 5, Government

Organization and Employees.

Section is comprised of section 11 of act Dec. 23, 1913. The

fourteenth par. of section 16 of act Dec. 23, 1913, which formerly

constituted subsec. (o) of this section, is now classified to

section 248-1 of this title.

-MISC3-

AMENDMENTS

2002 - Subsec. (r). Pub. L. 107-297 added subsec. (r).

2001 - Subsec. (q). Pub. L. 107-56 added subsec. (q).

1999 - Subsec. (m). Pub. L. 106-102 substituted ''(Repealed)''

for text of subsec. (m) which related to percentage of capital and

surplus represented by loans to be determined by the Federal

Reserve Board.

1994 - Subsec. (d). Pub. L. 103-325, Sec. 602(g)(2), substituted

''Secretary of the Treasury'' for ''bureau under the charge of the

Comptroller of the Currency'' before ''the issue and retirement''

and for ''Comptroller'' before ''to the Federal Reserve agents''.

Subsec. (m). Pub. L. 103-325, Sec. 322(d), which directed

substitution of ''15 percent'' for ''10 percentum'' wherever

appearing, was executed by substituting ''15 percent'' for ''10 per

centum'' in two places to reflect the probable intent of Congress.

Subsec. (p). Pub. L. 103-325, Sec. 331(d), added subsec. (p).

1992 - Subsecs. (o), (p). Pub. L. 102-550 redesignated subsec.

(p) as (o).

1991 - Subsec. (n). Pub. L. 102-242, Sec. 142(c), which directed

addition of subsec. (n) at end of section, was executed by adding

subsec. (n) after subsec. (m). See Construction of 1991 Amendment

note below.

Subsec. (p). Pub. L. 102-242, Sec. 133(f), added subsec. (p).

1989 - Subsec. (a)(2)(iii). Pub. L. 101-73 substituted ''the

Director of the Office of Thrift Supervision in the case of any

savings association which is an insured depository institution (as

defined in section 1813 of this title)'' for ''Federal Home Loan

Bank Board in the case of any institution insured by the Federal

Savings and Loan Insurance Corporation''.

1983 - Subsec. (m). Pub. L. 97-457 substituted ''under section

84(c)(4) of this title'' for ''under paragraph (8) of section 84 of

this title'' after ''in the case of national banks''.

1982 - Subsec. (n). Pub. L. 97-258 struck out subsec. (n) which

provided that, whenever in the judgment of the Secretary of the

Treasury such action was necessary to protect the currency system

of the United States, the Secretary of the Treasury, in his

discretion, could require any or all individuals, partnerships,

associations, and corporations to pay and deliver to the Treasurer

of the United States any or all gold coin, gold bullion, and gold

certificates owned by such individuals, partnerships, associations,

and corporations and that, upon receipt of such gold coin, gold

bullion or gold certificates, the Secretary of the Treasury would

pay therefor an equivalent amount of any other form of coin or

currency coined or issued under the laws of the United States.

1980 - Subsec. (a). Pub. L. 96-221 designated existing provisions

as par. (1) and added par. (2).

1978 - Subsec. (k). Pub. L. 95-251 substituted ''administrative

law judges'' for ''hearing examiners''.

1968 - Subsec. (c). Pub. L. 90-269 struck out requirements for

establishment by the Board of Governors of the Federal Reserve

System of a graduated tax on the deficiency in the gold reserve

whenever the reserve held against Federal Reserve notes fell below

25 percent and for an automatic increase in the rates of interest

or discount fixed by the Board in an amount equal to the graduated

tax imposed.

1966 - Subsec. (d). Pub. L. 89-427 excepted the cancellation and

destruction, and the accounting with respect to the cancellation

and destruction, of notes unfit for circulation from the area of

responsibility exercised by the Board of Governors of the Federal

Reserve System through the Bureau of the Comptroller of the

Currency over the issue and retirement of Federal Reserve notes.

Subsec. (k). Pub. L. 89-765 added subsec. (k). A former subsec.

(k) was repealed by Pub. L. 87-722, Sec. 3, Sept. 28, 1962, 76

Stat. 670.

1962 - Subsec. (k). Pub. L. 87-722 repealed subsec. (k) which

related to the authority of the Board of Governors of the Federal

Reserve System to permit national banks to act as trustees, etc.,

and is now covered by section 92a of this title.

1959 - Subsec. (e). Pub. L. 86-114 substituted ''reserve cities''

for ''reserve and central reserve cities'' in two places.

Subsec. (m). Pub. L. 86-251 struck out ''in the form of notes''

after ''represented by obligations'' in proviso.

1945 - Subsec. (c). Act June 12, 1945, substituted ''25 per

centum'' for ''40 per centum'', and ''20 per centum'' for ''32 1/2

per centum'' wherever appearing.

1935 - Subsec. (k). Act Aug. 23, 1935, Sec. 342, amended last

sentence of third par.

Subsec. (m). Act Aug. 23, 1935, Sec. 321(a), inserted proviso at

end of first sentence.

1933 - Subsec. (m). Act June 16, 1933, amended provisions

generally.

Subsec. (n). Act Mar. 9, 1933, added subsec. (n).

1930 - Subsec. (k). Act June 26, 1930, added last par.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-MISC4-

TERMINATION DATE OF 2001 AMENDMENT

Amendments by title III of Pub. L. 107-56 to terminate effective

on and after the first day of fiscal year 2005 if Congress enacts a

joint resolution that such amendments no longer have the force of

law, see section 303 of Pub. L. 107-56, set out as a Four-Year

Congressional Review; Expedited Consideration note under section

5311 of Title 31, Money and Finance.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-550 effective as if included in the

Federal Deposit Insurance Corporation Improvement Act of 1991, Pub.

L. 102-242, as of Dec. 19, 1991, except that where amendment is to

any provision of law added or amended by Pub. L. 102-242 effective

after Dec. 19, 1992, then amendment by Pub. L. 102-550 effective on

effective date of amendment by Pub. L. 102-242, see section 1609 of

Pub. L. 102-550, set out as a note under section 191 of this title.

EFFECTIVE DATE OF 1991 AMENDMENT

Amendment by section 133(f) of Pub. L. 102-242 effective 1 year

after Dec. 19, 1991, see section 133(g) of Pub. L. 102-242, set out

as a note under section 191 of this title.

EFFECTIVE DATE OF 1980 AMENDMENT

Section 108 of title I of Pub. L. 96-221 provided that: ''This

title (enacting section 248a of this title, amending this section

and sections 342, 347b, 355, 360, 412, 461, 463, 505, and 1425a of

this title, and enacting provisions set out as notes under sections

226 and 355 of this title) shall take effect on the first day of

the sixth month which begins after the date of the enactment of

this title (Mar. 31, 1980), except that the amendments regarding

sections 19(b)(7) and 19(b)(8)(D) of the Federal Reserve Act

(section 461(b)(7) and (b)(8)(D) of this title) shall take effect

on the date of enactment of this title.''

EFFECTIVE DATE OF 1959 AMENDMENT

Amendment by Pub. L. 86-114 effective three years after July 28,

1959, see section 3(b) of Pub. L. 86-114, set out as a Central

Reserve and Reserve Cities note under section 141 of this title.

CONSTRUCTION OF 1991 AMENDMENT

Section 1603(e)(2) of Pub. L. 102-550 provided that: ''The

amendment made by section 142(c) of the Federal Deposit Insurance

Corporation Improvement Act of 1991 (Pub. L. 102-242) (adding a

paragraph at the end of section 11 of the Federal Reserve Act (this

section)) shall be considered to have been executed before the

amendment made by section 133(f) of the Federal Deposit Insurance

Corporation Improvement Act of 1991 (amending this section).''

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of functions to Secretary of the Treasury, see note

set out under section 121 of this title.

-EXEC-

EXECUTIVE ORDER NO. 6359

Ex. Ord. No. 6359, Oct. 25, 1933, as amended by Ex. Ord. No.

11825, Dec. 31, 1974, 40 F.R. 1003, which provided for receipt on

consignment of gold by the United States mints and assay offices,

was revoked by Ex. Ord. No. 12553, Feb. 25, 1986, 51 F.R. 7237.

EX. ORD. NO. 10547. INSPECTION OF STATISTICAL TRANSCRIPT CARDS

Ex. Ord. No. 10547, July 27, 1954, 19 F.R. 4661, required

statistical transcript cards submitted with, or prepared by the

Internal Revenue Service from, corporation income tax returns for

the taxable years ending after June 30, 1951, and before July 1,

1952, to be open to inspection by the Board of Governors of the

Federal Reserve System as an aid in executing the powers conferred

upon such Board by this section, such inspection to be in

accordance and upon compliance with the rules and regulations

prescribed by the Secretary of the Treasury in T.D. 6081, 19 F.R.

4666.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 212, 501, 3105 of this

title; title 5 section 5373.

-CITE-

12 USC Sec. 248-1 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER II - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

-HEAD-

Sec. 248-1. Rules and regulations for transfer of funds and charges

therefor among banks; clearing houses

-STATUTE-

The Board of Governors of the Federal Reserve System shall make

and promulgate from time to time regulations governing the transfer

of funds and charges therefor among Federal reserve banks and their

branches, and may at its discretion exercise the functions of a

clearing house for such Federal reserve banks, or may designate a

Federal reserve bank to exercise such functions, and may also

require each such bank to exercise the functions of a clearing

house for depository institutions.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 16 (par.), 38 Stat. 268; Aug. 23, 1935,

ch. 614, Sec. 203(a), 49 Stat. 704; Pub. L. 96-221, title I, Sec.

105(d), Mar. 31, 1980, 94 Stat. 140.)

-COD-

CODIFICATION

Section is comprised of fourteenth par. of section 16 of act Dec.

23, 1913, which was formerly classified to section 248(o) of this

title. For classification to this title of other pars. of section

16, see Codification note set out under section 411 of this title.

-MISC3-

AMENDMENTS

1980 - Pub. L. 96-221 substituted ''depository institutions'' for

''its member banks''.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed the name of the

Federal Reserve Board to Board of Governors of the Federal Reserve

System.

-MISC4-

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-221 effective on first day of sixth month

which begins after Mar. 31, 1980, see section 108 of Pub. L.

96-221, set out as a note under section 248 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 348, 461 of this title.

-CITE-

12 USC Sec. 248a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER II - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

-HEAD-

Sec. 248a. Pricing of services

-STATUTE-

(a) Publication of pricing principles and proposed schedule of

fees; effective date of schedule of fees

Not later than the first day of the sixth month after March 31,

1980, the Board shall publish for public comment a set of pricing

principles in accordance with this section and a proposed schedule

of fees based upon those principles for Federal Reserve bank

services to depository institutions, and not later than the first

day of the eighteenth month after March 31, 1980, the Board shall

begin to put into effect a schedule of fees for such services which

is based on those principles.

(b) Covered services

The services which shall be covered by the schedule of fees under

subsection (a) of this section are -

(1) currency and coin services;

(2) check clearing and collection services;

(3) wire transfer services;

(4) automated clearinghouse services;

(5) settlement services;

(6) securities safekeeping services;

(7) Federal Reserve float; and

(8) any new services which the Federal Reserve System offers,

including but not limited to payment services to effectuate the

electronic transfer of funds.

(c) Criteria applicable

The schedule of fees prescribed pursuant to this section shall be

based on the following principles:

(1) All Federal Reserve bank services covered by the fee

schedule shall be priced explicitly.

(2) All Federal Reserve bank services covered by the fee

schedule shall be available to nonmember depository institutions

and such services shall be priced at the same fee schedule

applicable to member banks, except that nonmembers shall be

subject to any other terms, including a requirement of balances

sufficient for clearing purposes, that the Board may determine

are applicable to member banks.

(3) Over the long run, fees shall be established on the basis

of all direct and indirect costs actually incurred in providing

the Federal Reserve services priced, including interest on items

credited prior to actual collection, overhead, and an allocation

of imputed costs which takes into account the taxes that would

have been paid and the return on capital that would have been

provided had the services been furnished by a private business

firm, except that the pricing principles shall give due regard to

competitive factors and the provision of an adequate level of

such services nationwide.

(4) Interest on items credited prior to collection shall be

charged at the current rate applicable in the market for Federal

funds.

(d) Budgetary consequences of decline in volume of services

The Board shall require reductions in the operating budgets of

the Federal Reserve banks commensurate with any actual or projected

decline in the volume of services to be provided by such banks.

The full amount of any savings so realized shall be paid into the

United States Treasury.

(e) Parity in clearing

All depository institutions, as defined in section 461(b)(1) of

this title, may receive for deposit and as deposits any evidences

of transaction accounts, as defined by section 461(b)(1) of this

title from other depository institutions, as defined in section

461(b)(1) of this title or from any office of any Federal Reserve

bank without regard to any Federal or State law restricting the

number or the physical location or locations of such depository

institutions.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 11A, as added Pub. L. 96-221, title I,

Sec. 107, Mar. 31, 1980, 94 Stat. 140; amended Pub. L. 100-86,

title VI, Sec. 612(a), Aug. 10, 1987, 101 Stat. 652.)

-MISC1-

AMENDMENTS

1987 - Subsec. (e). Pub. L. 100-86 added subsec. (e).

EFFECTIVE DATE OF 1987 AMENDMENT

Section 612(b) of Pub. L. 100-86 provided that: ''The amendment

made by subsection (a) (amending this section) shall take effect on

the date of enactment of this title (Aug. 10, 1987).''

EFFECTIVE DATE

Section effective on first day of sixth month which begins after

Mar. 31, 1980, see section 108 of Pub. L. 96-221, set out as an

Effective Date of 1980 Amendment note under section 248 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 461, 1431, 1795f, 1841 of

this title.

-CITE-

12 USC Sec. 248b 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER II - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

-HEAD-

Sec. 248b. Annual independent audits of Federal reserve banks and

Board

-STATUTE-

The Board shall order an annual independent audit of the

financial statements of each Federal reserve bank and the Board.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 11B, as added Pub. L. 106-102, title

VII, Sec. 726, Nov. 12, 1999, 113 Stat. 1475.)

-CITE-

12 USC Sec. 249 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER II - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

-HEAD-

Sec. 249. Repealed. Pub. L. 94-412, title V, Sec. 501(c), Sept. 14,

1976, 90 Stat. 1258

-MISC1-

Section, act Aug. 8, 1947, ch. 517, 61 Stat. 921, dealt with

regulation of consumer credit.

SAVINGS PROVISION

Repeal by Pub. L. 94-412 not to affect any action taken or

proceeding pending at the time of repeal, see section 501(h) of

Pub. L. 94-412, set out as a note under section 1601 of Title 50,

War and National Defense.

-CITE-

12 USC Sec. 250 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER II - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

-HEAD-

Sec. 250. Independence of financial regulatory agencies

-STATUTE-

No officer or agency of the United States shall have any

authority to require the Securities and Exchange Commission, the

Board of Governors of the Federal Reserve System, the Federal

Deposit Insurance Corporation, the Comptroller of the Currency, the

Director of the Office of Thrift Supervision, the Federal Housing

Finance Board, or the National Credit Union Administration to

submit legislative recommendations, or testimony, or comments on

legislation, to any officer or agency of the United States for

approval, comments, or review, prior to the submission of such

recommendations, testimony, or comments to the Congress if such

recommendations, testimony, or comments to the Congress include a

statement indicating that the views expressed therein are those of

the agency submitting them and do not necessarily represent the

views of the President.

-SOURCE-

(Pub. L. 93-495, title I, Sec. 111, Oct. 28, 1974, 88 Stat. 1506;

Pub. L. 103-325, title III, Sec. 331(a), Sept. 23, 1994, 108 Stat.

2232; Pub. L. 106-102, title VI, Sec. 606(e)(2), Nov. 12, 1999, 113

Stat. 1455.)

-COD-

CODIFICATION

Section was not enacted as part of the Federal Reserve Act which

comprises this chapter.

-MISC3-

AMENDMENTS

1999 - Pub. L. 106-102 substituted ''Director of the Office of

Thrift Supervision, the Federal Housing Finance Board,'' for

''Federal Home Loan Bank Board,''.

1994 - Pub. L. 103-325 inserted ''the Comptroller of the

Currency,'' after ''Federal Deposit Insurance Corporation,''.

-CITE-

12 USC Sec. 251 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER II - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

-HEAD-

Sec. 251. Repealed. Pub. L. 104-208, div. A, title II, Sec.

2224(a), Sept. 30, 1996, 110 Stat. 3009-415

-MISC1-

Section, Pub. L. 102-242, title IV, Sec. 477, Dec. 19, 1991, 105

Stat. 2387; Pub. L. 102-550, title XVI, Sec. 1606(i)(3), Oct. 28,

1992, 106 Stat. 4089, required Board of Governors of Federal

Reserve System to collect and publish information on availability

of credit to small businesses.

-CITE-

12 USC Sec. 252 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER II - BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

-HEAD-

Sec. 252. Credit availability assessment

-STATUTE-

(a) Study

(1) In general

Not later than 12 months after September 30, 1996, and once

every 60 months thereafter, the Board, in consultation with the

Director of the Office of Thrift Supervision, the Comptroller of

the Currency, the Board of Directors of the Corporation, the

Administrator of the National Credit Union Administration, the

Administrator of the Small Business Administration, and the

Secretary of Commerce, shall conduct a study and submit a report

to the Congress detailing the extent of small business lending by

all creditors.

(2) Contents of study

The study required under paragraph (1) shall identify, to the

extent practicable, those factors which provide policymakers with

insights into the small business credit market, including -

(A) the demand for small business credit, including

consideration of the impact of economic cycles on the levels of

such demand;

(B) the availability of credit to small businesses;

(C) the range of credit options available to small

businesses, such as those available from insured depository

institutions and other providers of credit;

(D) the types of credit products used to finance small

business operations, including the use of traditional loans,

leases, lines of credit, home equity loans, credit cards, and

other sources of financing;

(E) the credit needs of small businesses, including, if

appropriate, the extent to which such needs differ, based upon

product type, size of business, cash flow requirements,

characteristics of ownership or investors, or other aspects of

such business;

(F) the types of risks to creditors in providing credit to

small businesses; and

(G) such other factors as the Board deems appropriate.

(b) Use of existing data

The studies required by this section shall not increase the

regulatory or paperwork burden on regulated financial institutions,

other sources of small business credit, or small businesses.

-SOURCE-

(Pub. L. 104-208, div. A, title II, Sec. 2227, Sept. 30, 1996, 110

Stat. 3009-417.)

-COD-

CODIFICATION

Section was enacted as part of the Economic Growth and Regulatory

Paperwork Reduction Act of 1996, and also as part of the Omnibus

Consolidated Appropriations Act, 1997, and not as part of the

Federal Reserve Act which comprises this chapter.

-MISC3-

STUDY OF FINANCIAL MODERNIZATION'S EFFECT ON THE ACCESSIBILITY OF

SMALL BUSINESS AND FARM LOANS

Pub. L. 106-102, title I, Sec. 109, Nov. 12, 1999, 113 Stat.

1362, provided that:

''(a) Study. - The Secretary of the Treasury, in consultation

with the Federal banking agencies (as defined in section 3(z) of

the Federal Deposit Insurance Act (12 U.S.C. 1813(z))), shall

conduct a study of the extent to which credit is being provided to

and for small businesses and farms, as a result of this Act (see

Tables for classification) and the amendments made by this Act.

''(b) Report. - Before the end of the 5-year period beginning on

the date of the enactment of this Act (Nov. 12, 1999), the

Secretary, in consultation with the Federal banking agencies, shall

submit a report to the Congress on the study conducted pursuant to

subsection (a) and shall include such recommendations as the

Secretary determines to be appropriate for administrative and

legislative action.''

-CROSS-

DEFINITIONS

Section 2001(c) of title II of div. A of Pub. L. 104-208,

provided that: ''Except as otherwise specified in this title (see

Tables for classification), the following definitions shall apply

for purposes of this title:

''(1) Appraisal subcommittee. - The term 'Appraisal

Subcommittee' means the Appraisal Subcommittee established under

section 1011 of the Federal Financial Institutions Examination

Council Act of 1978 (12 U.S.C. 3310) (as in existence on the day

before the date of enactment of this Act (Sept. 30, 1996)).

''(2) Appropriate Federal banking agency. - The term

'appropriate Federal banking agency' has the same meaning as in

section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).

''(3) Board. - The term 'Board' means the Board of Governors of

the Federal Reserve System.

''(4) Corporation. - The term 'Corporation' means the Federal

Deposit Insurance Corporation.

''(5) Council. - The term 'Council' means the Financial

Institutions Examination Council established under section 1004

of the Federal Financial Institutions Examination Council Act of

1978 (12 U.S.C. 3303).

''(6) Insured credit union. - The term 'insured credit union'

has the same meaning as in section 101 of the Federal Credit

Union Act (12 U.S.C. 1752).

''(7) Insured depository institution. - The term 'insured

depository institution' has the same meaning as in section 3 of

the Federal Deposit Insurance Act.''

-CITE-

12 USC SUBCHAPTER III - FEDERAL ADVISORY COUNCIL 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER III - FEDERAL ADVISORY COUNCIL

.

-HEAD-

SUBCHAPTER III - FEDERAL ADVISORY COUNCIL

-CITE-

12 USC Sec. 261 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER III - FEDERAL ADVISORY COUNCIL

-HEAD-

Sec. 261. Creation; membership; compensation; meetings; officers;

procedure; quorum; vacancies

-STATUTE-

There is created a Federal Advisory Council, which shall consist

of as many members as there are Federal reserve districts. Each

Federal reserve bank by its board of directors shall annually

select from its own Federal reserve district one member of said

council, who shall receive such compensation and allowances as may

be fixed by his board of directors subject to the approval of the

Board of Governors of the Federal Reserve System. The meetings of

said advisory council shall be held at Washington, District of

Columbia, at least four times each year, and oftener if called by

the Board of Governors of the Federal Reserve System. The council

may in addition to the meetings above provided for hold such other

meetings in Washington, District of Columbia, or elsewhere, as it

may deem necessary, may select its own officers and adopt its own

methods of procedure, and a majority of its members shall

constitute a quorum for the transaction of business. Vacancies in

the council shall be filled by the respective reserve banks, and

members selected to fill vacancies shall serve for the unexpired

term.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 12 (par.), 38 Stat. 263; Aug. 23, 1935,

ch. 614, title II, Sec. 203(a), 49 Stat. 704.)

-COD-

CODIFICATION

Section is comprised of first par. of section 12 of act Dec. 23,

1913. Second par. of section 12 is classified to section 262 of

this title.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-CITE-

12 USC Sec. 262 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER III - FEDERAL ADVISORY COUNCIL

-HEAD-

Sec. 262. Powers

-STATUTE-

The Federal Advisory Council shall have power, by itself or

through its officers, (1) to confer directly with the Board of

Governors of the Federal Reserve System on general business

conditions; (2) to make oral or written representations concerning

matters within the jurisdiction of said board; (3) to call for

information and to make recommendations in regard to discount

rates, rediscount business, note issues, reserve conditions in the

various districts, the purchase and sale of gold or securities by

reserve banks, open-market operations by said banks, and the

general affairs of the reserve banking system.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 12 (par.), 38 Stat. 263; Aug. 23, 1935,

ch. 614, title II, Sec. 203(a), 49 Stat. 704.)

-COD-

CODIFICATION

Section is comprised of second par. of section 12 of act Dec. 23,

1913. First par. of section 12 is classified to section 261 of this

title.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-CITE-

12 USC SUBCHAPTER IV - FEDERAL OPEN MARKET COMMITTEE 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER IV - FEDERAL OPEN MARKET COMMITTEE

.

-HEAD-

SUBCHAPTER IV - FEDERAL OPEN MARKET COMMITTEE

-CITE-

12 USC Sec. 263 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER IV - FEDERAL OPEN MARKET COMMITTEE

-HEAD-

Sec. 263. Federal Open Market Committee; creation; membership;

regulations governing open-market transactions

-STATUTE-

(a) There is hereby created a Federal Open Market Committee

(hereinafter referred to as the ''Committee''), which shall consist

of the members of the Board of Governors of the Federal Reserve

System and five representatives of the Federal Reserve banks to be

selected as hereinafter provided. Such representatives shall be

presidents or first vice presidents of Federal Reserve banks and,

beginning with the election for the term commencing March 1, 1943,

shall be elected annually as follows: One by the board of directors

of the Federal Reserve Bank of New York, one by the boards of

directors of the Federal Reserve Banks of Boston, Philadelphia, and

Richmond, one by the boards of directors of the Federal Reserve

Banks of Cleveland and Chicago, one by the boards of directors of

the Federal Reserve Banks of Atlanta, Dallas, and St. Louis, and

one by the boards of directors of the Federal Reserve Banks of

Minneapolis, Kansas City, and San Francisco. In such elections each

board of directors shall have one vote; and the details of such

elections may be governed by regulations prescribed by the

committee, which may be amended from time to time. An alternate to

serve in the absence of each such representative shall likewise be

a president or first vice president of a Federal Reserve bank and

shall be elected annually in the same manner. The meetings of said

Committee shall be held at Washington, District of Columbia, at

least four times each year upon the call of the chairman of the

Board of Governors of the Federal Reserve System or at the request

of any three members of the Committee.

(b) No Federal Reserve bank shall engage or decline to engage in

open-market operations under sections 348a and 353 to 359 of this

title except in accordance with the direction of and regulations

adopted by the Committee. The Committee shall consider, adopt, and

transmit to the several Federal Reserve banks, regulations relating

to the open-market transactions of such banks.

(c) The time, character, and volume of all purchases and sales of

paper described in sections 348a and 353 to 359 of this title as

eligible for open-market operations shall be governed with a view

to accommodating commerce and business and with regard to their

bearing upon the general credit situation of the country.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 12A, as added June 16, 1933, ch. 89,

Sec. 8, 48 Stat. 168; amended Aug. 23, 1935, ch. 614, title II,

Sec. 205, 49 Stat. 705; July 7, 1942, ch. 488, Sec. 1, 56 Stat.

647.)

-MISC1-

AMENDMENTS

1942 - Subsec. (a). Act July 7, 1942, substituted second, third,

and fourth sentences for former second and third sentences.

1935 - Act Aug. 23, 1935, amended provisions relating to

membership in subsec. (a), substituted ''Committee'' for ''Federal

Reserve Board'' and ''Board'' in subsec. (b), and omitted subsec.

(d).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 355 of this title.

-CITE-

12 USC SUBCHAPTER V - FEDERAL DEPOSIT INSURANCE

CORPORATION 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER V - FEDERAL DEPOSIT INSURANCE CORPORATION

.

-HEAD-

SUBCHAPTER V - FEDERAL DEPOSIT INSURANCE CORPORATION

-CITE-

12 USC Sec. 264 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER V - FEDERAL DEPOSIT INSURANCE CORPORATION

-HEAD-

Sec. 264. Transferred

-COD-

CODIFICATION

Section, act Dec. 23, 1913, ch. 6, Sec. 12B, as added June 16,

1933, ch. 89, Sec. 8, 48 Stat. 168; amended June 16, 1934, ch. 546,

Sec. 1 (1)-(10), 48 Stat. 969, 970; June 28, 1935, ch. 335, 49

Stat. 435; Aug. 23, 1935, ch. 614, title I, Sec. 101, 49 Stat. 684;

Apr. 21, 1936, ch. 244, 49 Stat. 1237; May 25, 1938, ch. 276, 52

Stat. 442; June 16, 1938, ch. 489, 52 Stat. 767; June 20, 1939, ch.

214, Sec. 2, 53 Stat. 842; Apr. 13, 1943, ch. 62, Sec. 1, 57 Stat.

65; Aug. 5, 1947, ch. 492, Sec. 2, 4, 61 Stat. 773; June 25, 1948,

ch. 645, Sec. 21, 62 Stat. 862; Oct. 15, 1949, ch. 695, Sec. 4, 63

Stat. 880; Aug. 17, 1950, ch. 729, Sec. 5-7, 64 Stat. 457, relating

to the Federal Deposit Insurance Corporation, was withdrawn from

the Federal Reserve Act and made a separate act to be known as the

Federal Deposit Insurance Act, by section 1 of act Sept. 21, 1950,

ch. 967, 64 Stat. 873. The Federal Deposit Insurance Act is

classified to chapter 16 (Sec. 1811 et seq.) of this title.

-CITE-

12 USC Sec. 265 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER V - FEDERAL DEPOSIT INSURANCE CORPORATION

-HEAD-

Sec. 265. Insured banks as depositaries of public money; duties;

security; discrimination between banks prohibited; repeal of

inconsistent laws

-STATUTE-

All insured banks designated for that purpose by the Secretary of

the Treasury shall be depositaries of public money of the United

States (including, without being limited to, revenues and funds of

the United States, and any funds the deposit of which is subject to

the control or regulation of the United States or any of its

officers, agents, or employees, and Postal Savings funds), and the

Secretary is authorized to deposit public money in such

depositaries, under such regulations as may be prescribed by the

Secretary; and they may also be employed as financial agents of the

Government; and they shall perform all such reasonable duties, as

depositaries of public money and financial agents of the Government

as may be required of them. The Secretary of the Treasury shall

require of the insured banks thus designated satisfactory security

by the deposit of United States bonds or otherwise, for the

safekeeping and prompt payment of public money deposited with them

and for the faithful performance of their duties as financial

agents of the Government: Provided, That no such security shall be

required for the safekeeping and prompt payment of such parts of

the deposits of the public money in such banks as are insured

deposits and each officer, employee, or agent of the United States

having official custody of public funds and lawfully depositing the

same in an insured bank shall, for the purpose of determining the

amount of the insured deposits, be deemed a depositor in such

custodial capacity separate and distinct from any other officer,

employee, or agent of the United States having official custody of

public funds and lawfully depositing the same in the same insured

bank in custodial capacity. Notwithstanding any other provision of

law, no department, board, agency, instrumentality, officer,

employee, or agent of the United States shall issue or permit to

continue in effect any regulations, rulings, or instructions or

enter into or approve any contracts or perform any other acts

having to do with the deposit, disbursement, or expenditure of

public funds, or the deposit, custody, or advance of funds subject

to the control of the United States as trustee or otherwise which

shall discriminate against or prefer national banking associations,

State banks members of the Federal Reserve System, or insured banks

not members of the Federal Reserve System, by class, or which shall

require those enjoying the benefits, directly or indirectly, of

disbursed public funds so to discriminate. All Acts or parts

thereof in conflict herewith are repealed. The terms ''insured

bank'' and ''insured deposit'' as used in this section shall be

construed according to the definitions of such terms in section

1813 of this title.

-SOURCE-

(June 11, 1942, ch. 404, Sec. 10, 56 Stat. 356; Sept. 3, 1954, ch.

1263, Sec. 26, 68 Stat. 1235.)

-COD-

CODIFICATION

Section was formerly classified to section 1110 of the Appendix

to Title 50, War and National Defense.

-MISC3-

AMENDMENTS

1954 - Act Sept. 3, 1954, substituted ''section 1813'' for

''section 264'' in last sentence.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 49 section 22106.

-CITE-

12 USC Sec. 266 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER V - FEDERAL DEPOSIT INSURANCE CORPORATION

-HEAD-

Sec. 266. State-chartered banks and other institutions as

depositaries of public money; fiscal agents; duties

-STATUTE-

Banks, savings banks, and savings and loan, building and loan,

homestead associations (including cooperative banks), and credit

unions created under the laws of any State and the deposits or

accounts of which are insured by a State or agency thereof or

corporation chartered pursuant to the laws of any State may be

depositaries of public money and may be employed as fiscal agents

of the United States. The Secretary of the Treasury is authorized

to deposit public money in any such institution, and shall

prescribe such regulations as may be necessary to enable such

institutions to become depositaries of public money and fiscal

agents of the United States. Each such institution shall perform

all such reasonable duties as depositary of public money and fiscal

agent of the United States as may be required of it including

services in connection with the collection of taxes and other

obligations owed the United States.

-SOURCE-

(Pub. L. 95-147, Sec. 2(d), Oct. 28, 1977, 91 Stat. 1228.)

-COD-

CODIFICATION

Section was not enacted as part of the Federal Reserve Act, which

comprises this chapter.

-CITE-

12 USC SUBCHAPTER VI - CAPITAL AND STOCK OF FEDERAL

RESERVE BANKS; DIVIDENDS AND EARNINGS 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VI - CAPITAL AND STOCK OF FEDERAL RESERVE BANKS;

DIVIDENDS AND EARNINGS

.

-HEAD-

SUBCHAPTER VI - CAPITAL AND STOCK OF FEDERAL RESERVE BANKS;

DIVIDENDS AND EARNINGS

-CITE-

12 USC Sec. 281 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VI - CAPITAL AND STOCK OF FEDERAL RESERVE BANKS;

DIVIDENDS AND EARNINGS

-HEAD-

Sec. 281. Capital

-STATUTE-

No Federal reserve bank shall commence business with a subscribed

capital less than $4,000,000.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 2, 38 Stat. 253.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 481 of this title.

-CITE-

12 USC Sec. 282 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VI - CAPITAL AND STOCK OF FEDERAL RESERVE BANKS;

DIVIDENDS AND EARNINGS

-HEAD-

Sec. 282. Subscription to capital stock by national banking

association

-STATUTE-

Every national banking association within each Federal reserve

district shall be required to subscribe to the capital stock of the

Federal reserve bank for that district in a sum equal to 6 per

centum of the paid-up capital stock and surplus of such bank,

one-sixth of the subscription to be payable on call of the Board of

Governors of the Federal Reserve System, one-sixth within three

months and one-sixth within six months thereafter, and the

remainder of the subscription, or any part thereof, shall be

subject to call when deemed necessary by the Board, said payments

to be in gold or gold certificates.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 2, 38 Stat. 252; Aug. 23, 1935, ch.

614, title II, Sec. 203(a), 49 Stat. 704.)

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 481 of this title.

-CITE-

12 USC Sec. 283 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VI - CAPITAL AND STOCK OF FEDERAL RESERVE BANKS;

DIVIDENDS AND EARNINGS

-HEAD-

Sec. 283. Public subscription to capital stock

-STATUTE-

No individual, copartnership, or corporation other than a member

bank of its district shall be permitted to subscribe for or to hold

at any time more than $25,000 par value of stock in any Federal

reserve bank. Such stock shall be known as public stock and may be

transferred on the books of the Federal reserve bank by the

chairman of the board of directors of such bank.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 2, 38 Stat. 253.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 481 of this title.

-CITE-

12 USC Sec. 284 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VI - CAPITAL AND STOCK OF FEDERAL RESERVE BANKS;

DIVIDENDS AND EARNINGS

-HEAD-

Sec. 284. Omitted

-COD-

CODIFICATION

Section, act Dec. 23, 1913, ch. 6, Sec. 2, 38 Stat. 251, was

omitted as obsolete pursuant to a communication from the Board of

Governors of the Federal Reserve System dated Mar. 7, 1941, which

stated ''As originally enacted the Federal Reserve Act provided for

a Reserve Bank Organization Committee to have charge of the initial

steps in organizing the Federal Reserve System and this Committee

was authorized to allot Federal Reserve Bank stock to the United

States in the event that subscriptions to such stock by banks and

by the public were inadequate. However, subscriptions by member

banks were adequate and there was no necessity or authority for the

allocation of any stock to the United States. Accordingly, (this

section) is now of no practical effect, and may be regarded as

obsolete.''

-CITE-

12 USC Sec. 285 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VI - CAPITAL AND STOCK OF FEDERAL RESERVE BANKS;

DIVIDENDS AND EARNINGS

-HEAD-

Sec. 285. Nonvoting stock

-STATUTE-

Stock not held by member banks shall not be entitled to voting

power.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 2, 38 Stat. 253.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 481 of this title.

-CITE-

12 USC Sec. 286 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VI - CAPITAL AND STOCK OF FEDERAL RESERVE BANKS;

DIVIDENDS AND EARNINGS

-HEAD-

Sec. 286. Transfers of stock; rules and regulations

-STATUTE-

The Board of Governors of the Federal Reserve System is empowered

to adopt and promulgate rules and regulations governing the

transfers of said stock.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 2, 38 Stat. 253; Aug. 23, 1935, ch.

614, title II, Sec. 203(a), 49 Stat. 704.)

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 481 of this title.

-CITE-

12 USC Sec. 287 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VI - CAPITAL AND STOCK OF FEDERAL RESERVE BANKS;

DIVIDENDS AND EARNINGS

-HEAD-

Sec. 287. Value of shares of stock; increase and decrease of stock;

member banks as shareholders; surrender of shares

-STATUTE-

The capital stock of each Federal reserve bank shall be divided

into shares of $100 each. The outstanding capital stock shall be

increased from time to time as member banks increase their capital

stock and surplus or as additional banks become members, and may be

decreased as member banks reduce their capital stock or surplus or

cease to be members. Shares of the capital stock of Federal

reserve banks owned by member banks shall not be transferred or

hypothecated. When a member bank increases its capital stock or

surplus, it shall thereupon subscribe for an additional amount of

capital stock of the Federal reserve bank of its district equal to

6 per centum of the said increase, one-half of said subscription to

be paid in the manner hereinbefore provided for original

subscription, and one-half subject to call of the Board of

Governors of the Federal Reserve System. A bank applying for stock

in a Federal reserve bank at any time after the organization

thereof must subscribe for an amount of the capital stock of the

Federal reserve bank equal to 6 per centum of the paid-up capital

stock and surplus of said applicant bank, paying therefor its par

value plus one-half of 1 per centum a month from the period of the

last dividend. When a member bank reduces its capital stock or

surplus it shall surrender a proportionate amount of its holdings

in the capital stock of said Federal Reserve bank. Any member bank

which holds capital stock of a Federal Reserve bank in excess of

the amount required on the basis of 6 per centum of its paid-up

capital stock and surplus shall surrender such excess stock. When

a member bank voluntarily liquidates it shall surrender all of its

holdings of the capital stock of said Federal Reserve bank and be

released from its stock subscription not previously called. In any

such case the shares surrendered shall be canceled and the member

bank shall receive in payment therefor, under regulations to be

prescribed by the Board of Governors of the Federal Reserve System,

a sum equal to its cash-paid subscriptions on the shares

surrendered and one-half of 1 per centum a month from the period of

the last dividend not to exceed the book value thereof, less any

liability of such member bank to the Federal Reserve bank.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 5, 38 Stat. 257; Aug. 23, 1935, ch.

614, title II, Sec. 203(a), title III, Sec. 319(a), 49 Stat. 704,

713.)

-MISC1-

AMENDMENTS

1935 - Act Aug. 23, 1935, Sec. 319(a), amended last four

sentences.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 321 of this title.

-CITE-

12 USC Sec. 288 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VI - CAPITAL AND STOCK OF FEDERAL RESERVE BANKS;

DIVIDENDS AND EARNINGS

-HEAD-

Sec. 288. Cancellation of stock held by member bank on insolvency

or discontinuance of banking operations for sixty days;

repayment of cash-paid subscriptions

-STATUTE-

If any member bank shall be declared insolvent and a receiver

appointed therefor, the stock held by it in said Federal reserve

bank shall be canceled, without impairment of its liability, and

all cash-paid subscriptions on said stock, with one-half of 1 per

centum per month from the period of last dividend, if earned, not

to exceed the book value thereof, shall be first applied to all

debts of the insolvent member bank to the Federal reserve bank, and

the balance, if any, shall be paid to the receiver of the insolvent

bank.

If any national bank which has not gone into liquidation as

provided in section 181 of this title, and for which a receiver has

not already been appointed for other lawful cause, shall

discontinue its banking operations for a period of sixty days the

Comptroller of the Currency may, if he deems it advisable, appoint

a receiver for such bank. The stock held by the said national bank

in the Federal reserve bank of its district shall thereupon be

canceled and said national bank shall receive in payment therefor,

under regulations to be prescribed by the Board of Governors of the

Federal Reserve System, a sum equal to its cash-paid subscriptions

on the shares canceled and one-half of 1 per centum a month from

the period of the last dividend, if earned, not to exceed the book

value thereof, less any liability of such national bank to the

Federal reserve bank.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 6, 38 Stat. 258; Apr. 23, 1930, ch.

207, Sec. 1, 46 Stat. 250; Aug. 23, 1935, ch. 614, title II, Sec.

203(a), title III, Sec. 319(b), 49 Stat. 704, 713.)

-MISC1-

AMENDMENTS

1935 - Act Aug. 23, 1935, Sec. 319(b), struck out provision

requiring execution of certificate of reduction of capital stock.

1930 - Act Apr. 23, 1930, among other changes, added second par.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-CITE-

12 USC Sec. 289 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VI - CAPITAL AND STOCK OF FEDERAL RESERVE BANKS;

DIVIDENDS AND EARNINGS

-HEAD-

Sec. 289. Dividends and surplus funds of reserve banks; transfer

for fiscal year 2000

-STATUTE-

(a) Dividends and surplus funds of reserve banks

(1) Stockholder dividends

(A) In general

After all necessary expenses of a Federal reserve bank have

been paid or provided for, the stockholders of the bank shall

be entitled to receive an annual dividend of 6 percent on

paid-in capital stock.

(B) Dividend cumulative

The entitlement to dividends under subparagraph (A) shall be

cumulative.

(2) Deposit of net earnings in surplus fund

That portion of net earnings of each Federal reserve bank which

remains after dividend claims under paragraph (1)(A) have been

fully met shall be deposited in the surplus fund of the bank.

(b) (FOOTNOTE 1) Transfer for fiscal year 2000

(FOOTNOTE 1) See Codification note below.

(1) In general

The Federal reserve banks shall transfer from the surplus funds

of such banks to the Board of Governors of the Federal Reserve

System for transfer to the Secretary of the Treasury for deposit

in the general fund of the Treasury, a total amount of

$3,752,000,000 in fiscal year 2000.

(2) Allocated by Fed

Of the total amount required to be paid by the Federal reserve

banks under paragraph (1) for fiscal year 2000, the Board shall

determine the amount each such bank shall pay in such fiscal

year.

(3) Replenishment of surplus fund prohibited

During fiscal year 2000, no Federal reserve bank may replenish

such bank's surplus fund by the amount of any transfer by such

bank under paragraph (1).

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 7(a), (b), 38 Stat. 258; Mar. 3, 1919,

ch. 101, Sec. 1, 40 Stat. 1314; June 16, 1933, ch. 89, Sec. 4, 48

Stat. 163; Pub. L. 103-66, title III, Sec. 3002(a), Aug. 10, 1993,

107 Stat. 337; Pub. L. 103-325, title VI, Sec. 602(d), Sept. 23,

1994, 108 Stat. 2291; Pub. L. 106-113, div. B, Sec. 1000(a)(5)

(title III, Sec. 302), Nov. 29, 1999, 113 Stat. 1536, 1501A-304.)

-COD-

CODIFICATION

Section is comprised of subsec. (a) (formerly first undesignated

par.) of section 7 of act Dec. 23, 1913, and subsec. (b) (enacted

by Pub. L. 106-113, div. B, Sec. 1000(a)(5) (title III, Sec.

302(2)), Nov. 29, 1999, 113 Stat. 1536, 1501A-304) of section 7.

Another subsec. (b) of section 7 is classified to section 290 of

this title. Subsec. (c) of section 7 is classified to section 531

of this title.

-MISC3-

AMENDMENTS

1999 - Subsec. (a)(3). Pub. L. 106-113, Sec. 1000(a)(5) (title

III, Sec. 302(1)), struck out heading and text of par. (3). Text

read as follows: ''During fiscal years 1997 and 1998, any amount in

the surplus fund of any Federal reserve bank in excess of the

amount equal to 3 percent of the total paid-in capital and surplus

of the member banks of such bank shall be transferred to the Board

for transfer to the Secretary of the Treasury for deposit in the

general fund of the Treasury.''

Subsec. (b). Pub. L. 106-113, Sec. 1000(a)(5) (title III, Sec.

302(2)), added subsec. (b).

1994 - Par. (1)(B). Pub. L. 103-325, Sec. 602(d)(1), inserted

''(A)'' after ''subparagraph''.

Par. (2). Pub. L. 103-325, Sec. 602(d)(2), substituted

''paragraph (1)(A)'' for ''subparagraph (A)''.

1993 - Pub. L. 103-66 inserted section catchline and amended

section generally. Prior to amendment, section read as follows:

''After all necessary expenses of a Federal reserve bank shall have

been paid or provided for, the stockholders shall be entitled to

receive an annual dividend of 6 per centum on the paid-in capital

stock, which dividend shall be cumulative. After the aforesaid

dividend claims have been fully met, the net earnings shall be paid

into the surplus fund of the Federal reserve bank.''

1933 - Act June 16, 1933, provided that net earnings shall be

paid into surplus instead of to the United States as a franchise

tax.

EFFECTIVE DATE OF 1933 AMENDMENT

Section 4 of act June 16, 1933, provided that the amendment made

by that section is effective July 1, 1932.

ADDITIONAL TRANSFERS FOR FISCAL YEARS 1997 AND 1998

Pub. L. 103-66, title III, Sec. 3002(b), Aug. 10, 1993, 107 Stat.

337, provided that:

''(1) In general. - In addition to the amounts required to be

transferred from the surplus funds of the Federal reserve banks

pursuant to section 7(a)(3) of the Federal Reserve Act (former 12

U.S.C. 289(a)(3)), the Federal reserve banks shall transfer from

such surplus funds to the Board of Governors of the Federal Reserve

System for transfer to the Secretary of the Treasury for deposit in

the general fund of the Treasury, a total amount of $106,000,000 in

fiscal year 1997 and a total amount of $107,000,000 in fiscal year

1998.

''(2) Allocation by fed. - Of the total amount required to be

paid by the Federal reserve banks under paragraph (1) for fiscal

year 1997 or 1998, the Board of Governors of the Federal Reserve

System shall determine the amount each such bank shall pay in such

fiscal year.

''(3) Replenishment of surplus fund prohibited. - No Federal

reserve bank may replenish such bank's surplus fund by the amount

of any transfer by such bank under paragraph (1) during fiscal

years 1997 and 1998.''

-CITE-

12 USC Sec. 290 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VI - CAPITAL AND STOCK OF FEDERAL RESERVE BANKS;

DIVIDENDS AND EARNINGS

-HEAD-

Sec. 290. Use of earnings transferred to Treasury

-STATUTE-

The net earnings derived by the United States from Federal

reserve banks shall, in the discretion of the Secretary, be used to

supplement the gold reserve held against outstanding United States

notes, or shall be applied to the reduction of the outstanding

bonded indebtedness of the United States under regulations to be

prescribed by the Secretary of the Treasury. Should a Federal

reserve bank be dissolved or go into liquidation, any surplus

remaining, after the payment of all debts, dividend requirements as

hereinbefore provided, and the par value of the stock, shall be

paid to and become the property of the United States and shall be

similarly applied.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 7(b), 38 Stat. 258; Pub. L. 103-66,

title III, Sec. 3002(c)(1), Aug. 10, 1993, 107 Stat. 337.)

-COD-

CODIFICATION

Section is comprised of subsec. (b) (formerly second undesignated

par.) of section 7 of act Dec. 23, 1913. Subsec. (a) and another

subsec. (b) (enacted by Pub. L. 106-113, div. B, Sec. 1000(a)(5)

(title III, Sec. 302(2)), Nov. 29, 1999, 113 Stat. 1536, 1501A-304)

of section 7 are classified to section 289 of this title. Subsec.

(c) of section 7 is classified to section 531 of this title.

-MISC3-

AMENDMENTS

1993 - Pub. L. 103-66 inserted section catchline.

-CITE-

12 USC SUBCHAPTER VII - DIRECTORS OF FEDERAL RESERVE

BANKS; RESERVE AGENTS AND ASSISTANTS 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VII - DIRECTORS OF FEDERAL RESERVE BANKS; RESERVE AGENTS

AND ASSISTANTS

.

-HEAD-

SUBCHAPTER VII - DIRECTORS OF FEDERAL RESERVE BANKS; RESERVE AGENTS

AND ASSISTANTS

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 442 of this title.

-CITE-

12 USC Sec. 301 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VII - DIRECTORS OF FEDERAL RESERVE BANKS; RESERVE AGENTS

AND ASSISTANTS

-HEAD-

Sec. 301. Powers and duties of board of directors; suspension of

member bank for undue use of bank credit

-STATUTE-

Every Federal reserve bank shall be conducted under the

supervision and control of a board of directors.

The board of directors shall perform the duties usually

appertaining to the office of directors of banking associations and

all such duties as are prescribed by law.

Said board of directors shall administer the affairs of said bank

fairly and impartially and without discrimination in favor of or

against any member bank or banks and may, subject to the provisions

of law and the orders of the Board of Governors of the Federal

Reserve System, extend to each member bank such discounts,

advancements, and accommodations as may be safely and reasonably

made with due regard for the claims and demands of other members

banks, the maintenance of sound credit conditions, and the

accommodation of commerce, industry, and agriculture. The Board of

Governors of the Federal Reserve System may prescribe regulations

further defining within the limitations of this chapter the

conditions under which discounts, advancements, and the

accommodations may be extended to member banks. Each Federal

reserve bank shall keep itself informed of the general character

and amount of the loans and investments of its member banks with a

view to ascertaining whether undue use is being made of bank credit

for the speculative carrying of or trading in securities, real

estate, or commodities, or for any other purpose inconsistent with

the maintenance of sound credit conditions; and, in determining

whether to grant or refuse advances, rediscounts, or other credit

accommodations, the Federal reserve bank shall give consideration

to such information. The chairman of the Federal reserve bank

shall report to the Board of Governors of the Federal Reserve

System any such undue use of bank credit by any member bank,

together with his recommendation. Whenever, in the judgment of the

Board of Governors of the Federal Reserve System, any member bank

is making such undue use of bank credit, the Board may, in its

discretion, after reasonable notice and an opportunity for a

hearing, suspend such bank from the use of the credit facilities of

the Federal Reserve System and may terminate such suspension or may

renew it from time to time.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 4 (pars.), 38 Stat. 255; June 16, 1933,

ch. 89, Sec. 3(a), 48 Stat. 163; Aug. 23, 1935, ch. 614, title II,

Sec. 203(a), 49 Stat. 704.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in text, was in the original ''this

Act'', meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, as amended,

known as the Federal Reserve Act. For complete classification of

this Act to the Code, see References in Text note set out under

section 226 of this title and Tables.

-COD-

CODIFICATION

Section is comprised of pars. 6 to 8 of section 4 of act Dec. 23,

1913.

Pars. 1 to 3 and 25 of section 4 were omitted from the code as

executed.

Pars. 4 and 5, 9 to 12, 13 to 15, 16 to 21, 22, 24, and 26 of

section 4, and par. 23 of section 4 as added June 21, 1917, ch. 32,

Sec. 2, 40, Stat. 232, are classified to sections 341, 302, 303,

304, 305, 307, 308, and 306, respectively, of this title.

-MISC3-

AMENDMENTS

1933 - Act June 16, 1933, among other changes, added all after

first sentence in third par.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 442 of this title.

-CITE-

12 USC Sec. 302 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VII - DIRECTORS OF FEDERAL RESERVE BANKS; RESERVE AGENTS

AND ASSISTANTS

-HEAD-

Sec. 302. Number of members; classes

-STATUTE-

Such board of directors shall be selected as hereinafter

specified and shall consist of nine members, holding office for

three years, and divided into three classes, designated as classes

A, B, and C.

Class A shall consist of three members, without discrimination on

the basis of race, creed, color, sex, or national origin, who shall

be chosen by and be representative of the stockholding banks.

Class B shall consist of three members, who shall represent the

public and shall be elected without discrimination on the basis of

race, creed, color, sex, or national origin, and with due but not

exclusive consideration to the interests of agriculture, commerce,

industry, services, labor, and consumers.

Class C shall consist of three members who shall be designated by

the Board of Governors of the Federal Reserve System. They shall be

elected to represent the public, without discrimination on the

basis of race, creed, color, sex, or national origin, and with due

but not exclusive consideration to the interests of agriculture,

commerce, industry, services, labor, and consumers.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 4 (pars.), 38 Stat. 255; Aug. 23, 1935,

ch. 614, title II, Sec. 203(a), 49 Stat. 704; Pub. L. 95-188, title

II, Sec. 202, Nov. 16, 1977, 91 Stat. 1387.)

-COD-

CODIFICATION

Section is comprised of pars. 9 to 12 of section 4 of act Dec.

23, 1913. For classification to this title of other pars. of

section 4, see Codification note set out under section 301 of this

title.

Provisions of section which related to appointment of Class C

directors when the necessary subscriptions to the capital stock

have been obtained for the organization of any Federal Reserve Bank

and which required the organization committee to exercise the

powers and duties appertaining to the office of chairman in the

organization of such Federal Reserve Bank pending the designation

of a chairman, were omitted as obsolete.

Another section 202 of Pub. L. 95-188 enacted section 225a of

this title.

-MISC3-

AMENDMENTS

1977 - Second par. Pub. L. 95-188, Sec. 202(a), required Class A

members to be chosen without discrimination on the basis of race,

creed, color, sex or national origin.

Third par. Pub. L. 95-188, Sec. 202(b), substituted requirement

that Class B members represent the public and be elected without

discrimination on the basis of race, creed, color, sex, or national

origin, and with due but not exclusive consideration to the

interests of agriculture, commerce, industry, services, labor, and

consumers for prior requirement that such Class B members, at the

time of their election, be actively engaged in their district in

commerce, agriculture or some other industrial pursuit.

Fourth par. Pub. L. 95-188, Sec. 202(c), required Class C

members to be elected to represent the public, without

discrimination on the basis of race, creed, color, sex, or national

origin, and with due but not exclusive consideration to the

interests of agriculture, commerce, industry, services, labor, and

consumers.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 442 of this title.

-CITE-

12 USC Sec. 303 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VII - DIRECTORS OF FEDERAL RESERVE BANKS; RESERVE AGENTS

AND ASSISTANTS

-HEAD-

Sec. 303. Qualifications and disabilities

-STATUTE-

No Senator or Representative in Congress shall be a member of the

Board of Governors of the Federal Reserve System or an officer or a

director of a Federal reserve bank.

No director of class B shall be an officer, director, or employee

of any bank.

No director of class C shall be an officer, director, employee,

or stockholder of any bank.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 4 (pars.), 38 Stat. 255; Aug. 23, 1935,

ch. 614, title II, Sec. 203(a), 49 Stat. 704.)

-COD-

CODIFICATION

Section is comprised of pars. 13 to 15 of section 4 of act Dec.

23, 1913. For classification to this title of other pars. of

section 4, see Codification note set out under section 301 of this

title.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 442 of this title.

-CITE-

12 USC Sec. 304 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VII - DIRECTORS OF FEDERAL RESERVE BANKS; RESERVE AGENTS

AND ASSISTANTS

-HEAD-

Sec. 304. Class A and class B directors; selection

-STATUTE-

Directors of class A and class B shall be chosen in the following

manner: The Board of Governors of the Federal Reserve System shall

classify the member banks of the district into three general groups

or divisions designating each group by number. Each group shall

consist as nearly as may be of banks of similar capitalization.

Each member bank shall be permitted to nominate to the chairman of

the board of directors of the Federal reserve bank of the district

one candidate for director of class A and one candidate for

director of class B. The candidates so nominated shall be listed by

the chairman, indicating by whom nominated, and a copy of said list

shall, within fifteen days after its completion, be furnished by

the chairman to each member bank. Each member bank by a resolution

of the board or by an amendment to its bylaws shall authorize its

president, cashier, or some other officer to cast the vote of the

member bank in the elections of class A and class B directors:

Provided, That whenever any member banks within the same Federal

Reserve district are subsidiaries of the same bank holding company

within the meaning of the Bank Holding Company Act of 1956 (12

U.S.C. 1841 et seq.), participation in any such nomination or

election by such member banks, including such bank holding company

if it is also a member bank, shall be confined to one of such

banks, which may be designated for the purpose by such holding

company.

Within fifteen days after receipt of the list of candidates the

duly authorized officer of a member bank shall certify to the

chairman his first, second, and other choices for director of class

A and class B, respectively, upon a preferential ballot upon a form

furnished by the chairman of the board of directors of the Federal

reserve bank of the district. Each such officer shall make a cross

opposite the name of the first, second, and other choices for a

director of class A and for a director of class B, but shall not

vote more than one choice for any one candidate. No officer or

director of a member bank shall be eligible to serve as a class A

director unless nominated and elected by banks which are members of

the same group as the member bank of which he is an officer or

director.

Any person who is an officer or director of more than one member

bank shall not be eligible for nomination as a class A director

except by banks in the same group as the bank having the largest

aggregate resources of any of those of which such person is an

officer or director.

Any candidate having a majority of all votes cast in the column

of first choice shall be declared elected. If no candidate have a

majority of all the votes in the first column, then there shall be

added together the votes cast by the electors for such candidates

in the second column and the votes cast for the several candidates

in the first column. The candidate then having a majority of the

electors voting and the highest number of combined votes shall be

declared elected. If no candidate have a majority of electors

voting and the highest number of votes when the first and second

choices shall have been added, then the votes cast in the third

column for other choices shall be added together in like manner,

and the candidate then having the highest number of votes shall be

declared elected. An immediate report of election shall be

declared.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 4 (pars.), 38 Stat. 256; Sept. 26,

1918, ch. 177, Sec. 1, 40 Stat. 968; June 26, 1930, ch. 614, 46

Stat. 815; June 16, 1933, ch. 89, Sec. 3(b), 48 Stat. 163; Aug. 23,

1935, ch. 614, title II, Sec. 203(a), 49 Stat. 704; Pub. L. 89-485,

Sec. 13(e), July 1, 1966, 80 Stat. 243.)

-REFTEXT-

REFERENCES IN TEXT

The Bank Holding Company Act of 1956, referred to in text, is act

May 9, 1956, ch. 240, 70 Stat. 133, as amended, which is classified

principally to chapter 17 (Sec. 1841 et seq.) of this title. For

complete classification of this Act to the Code, see Short Title

note set out under section 1841 of this title and Tables.

-COD-

CODIFICATION

Section is comprised of pars. 16 to 21 of section 4 of act Dec.

23, 1913. For classification to this title of other pars. of

section 4, see Codification note set out under section 301 of this

title.

-MISC3-

AMENDMENTS

1966 - Pub. L. 89-485 substituted proviso restricting

participation in nomination or election of directors by member

banks to one member bank whenever any member banks within the same

Federal reserve district are subsidiaries of the same bank holding

company, such member bank to be designated for the purpose by the

holding company for former proviso restricting the selection of

directors by member banks to one member bank when two or more

member banks within the same Federal reserve district are

affiliated with the same holding company affiliate, such member

bank to be designated for such purpose by the holding company

affiliate.

1933 - Act June 16, 1933, inserted proviso at end of second par.

1930 - Act June 26, 1930, amended last par.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 442 of this title.

-CITE-

12 USC Sec. 305 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VII - DIRECTORS OF FEDERAL RESERVE BANKS; RESERVE AGENTS

AND ASSISTANTS

-HEAD-

Sec. 305. Class C directors; selection; ''Federal reserve agent''

-STATUTE-

Class C directors shall be appointed by the Board of Governors of

the Federal Reserve System. They shall have been for at least two

years residents of the district for which they are appointed, one

of whom shall be designated by said board as chairman of the board

of directors of the Federal reserve bank and as ''Federal reserve

agent.'' He shall be a person of tested banking experience and in

addition to his duties as chairman of the board of directors of the

Federal reserve bank he shall be required to maintain, under

regulations to be established by the Board of Governors of the

Federal Reserve System, a local office of said board on the

premises of the Federal reserve bank. He shall make regular

reports to the Board of Governors of the Federal Reserve System and

shall act as its official representative for the performance of the

functions conferred upon it by this chapter. He shall receive an

annual compensation to be fixed by the Board of Governors of the

Federal Reserve System and paid monthly by the Federal reserve bank

to which he is designated. One of the directors of class C shall

be appointed by the Board of Governors of the Federal Reserve

System as deputy chairman to exercise the powers of the chairman of

the board when necessary. In case of the absence of the chairman

and deputy chairman, the third class C director shall preside at

meetings of the board.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 4 (par.), 38 Stat. 256; June 21, 1917,

ch. 32, Sec. 2, 40 Stat. 232; Aug. 23, 1935, ch. 614, title II,

Sec. 203(a), 49 Stat. 704.)

-COD-

CODIFICATION

Section is comprised of par. 22 of section 4 of act Dec. 23,

1913. For classification to this title of other pars. of section 4,

see Codification note set out under section 301 of this title.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 442 of this title.

-CITE-

12 USC Sec. 306 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VII - DIRECTORS OF FEDERAL RESERVE BANKS; RESERVE AGENTS

AND ASSISTANTS

-HEAD-

Sec. 306. Assistants to Federal reserve agent

-STATUTE-

Subject to the approval of the Board of Governors of the Federal

Reserve System, the Federal reserve agent shall appoint one or more

assistants. Such assistants, who shall be persons of tested

banking experience, shall assist the Federal reserve agent in the

performance of his duties and shall also have power to act in his

name and stead during his absence or disability. The Board of

Governors of the Federal Reserve System shall require such bonds of

the assistant Federal reserve agents as it may deem necessary for

the protection of the United States. Assistants to the Federal

reserve agent shall receive an annual compensation, to be fixed and

paid in the same manner as that of the Federal reserve agent.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 4 (par.), as added June 21, 1917, ch.

32, Sec. 2, 40 Stat. 232; amended Aug. 23, 1935, ch. 614, title II,

Sec. 203(a), 49 Stat. 704.)

-COD-

CODIFICATION

Section is comprised of par. 23 of section 4 of act Dec. 23,

1913, as added June 21, 1917. For classification to this title of

other pars. of section 4, see Codification note set out under

section 301 of this title.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 442 of this title.

-CITE-

12 USC Sec. 307 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VII - DIRECTORS OF FEDERAL RESERVE BANKS; RESERVE AGENTS

AND ASSISTANTS

-HEAD-

Sec. 307. Compensation of directors

-STATUTE-

Directors of Federal reserve banks shall receive, in addition to

any compensation otherwise provided, a reasonable allowance for

necessary expenses in attending meetings of their respective

boards, which amount shall be paid by the respective Federal

reserve banks. Any compensation that may be provided by boards of

directors of Federal reserve banks for directors, officers, or

employees shall be subject to the approval of the Board of

Governors of the Federal Reserve System.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 4 (par.), 38 Stat. 257; Aug. 23, 1935,

ch. 614, title II, Sec. 203(a), 49 Stat. 704.)

-COD-

CODIFICATION

Section is comprised of par. 24 of section 4 of act Dec. 23,

1913. For classification to this title of other pars. of section 4,

see Codification note set out under section 301 of this title.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 442 of this title.

-CITE-

12 USC Sec. 308 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VII - DIRECTORS OF FEDERAL RESERVE BANKS; RESERVE AGENTS

AND ASSISTANTS

-HEAD-

Sec. 308. Terms of directors; vacancies

-STATUTE-

At the first meeting of the full board of directors of each

Federal reserve bank, it shall be the duty of the directors of

classes A, B, and C, respectively, to designate one of the members

of each class whose term of office shall expire in one year from

the 1st of January nearest to date of such meeting, one whose term

of office shall expire at the end of two years from said date, and

one whose term of office shall expire at the end of three years

from said date. Thereafter every director of a Federal reserve

bank chosen as hereinbefore provided shall hold office for a term

of three years. Vacancies that may occur in the several classes of

directors of Federal reserve banks may be filled in the manner

provided for the original selection of such directors, such

appointees to hold office for the unexpired terms of their

predecessors.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 4 (par.), 38 Stat. 257.)

-COD-

CODIFICATION

Section is comprised of par. 26 of section 4 of act Dec. 23,

1913. For classification to this title of other pars. of section 4,

see Codification note set out under section 301 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 442 of this title.

-CITE-

12 USC SUBCHAPTER VIII - STATE BANKS AS MEMBERS OF SYSTEM 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VIII - STATE BANKS AS MEMBERS OF SYSTEM

.

-HEAD-

SUBCHAPTER VIII - STATE BANKS AS MEMBERS OF SYSTEM

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 349, 501, 1818 of this

title; title 7 section 6f; title 15 sections 78o-5, 78q.

-CITE-

12 USC Sec. 321 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VIII - STATE BANKS AS MEMBERS OF SYSTEM

-HEAD-

Sec. 321. Application for membership

-STATUTE-

Any bank incorporated by special law of any State, or organized

under the general laws of any State or of the United States,

including Morris Plan banks and other incorporated banking

institutions engaged in similar business, desiring to become a

member of the Federal Reserve System, may make application to the

Board of Governors of the Federal Reserve System, under such rules

and regulations as it may prescribe, for the right to subscribe to

the stock of the Federal Reserve bank organized within the district

in which the applying bank is located. Such application shall be

for the same amount of stock that the applying bank would be

required to subscribe to as a national bank. For the purposes of

membership of any such bank the terms ''capital'' and ''capital

stock'' shall include the amount of outstanding capital notes and

debentures legally issued by the applying bank and purchased by the

Reconstruction Finance Corporation. The Board of Governors of the

Federal Reserve System, subject to the provisions of this chapter

and to such conditions as it may prescribe pursuant thereto may

permit the applying bank to become a stockholder of such Federal

Reserve bank.

Upon the conversion of a national bank into a State bank, or the

merger or consolidation of a national bank with a State bank which

is not a member of the Federal Reserve System, the resulting or

continuing State bank may be admitted to membership in the Federal

Reserve System by the Board of Governors of the Federal Reserve

System in accordance with the provisions of this section, but,

otherwise, the Federal Reserve bank stock owned by the national

bank shall be canceled and paid for as provided in section 287 of

this title. Upon the merger or consolidation of a national bank

with a State member bank under a State charter, the membership of

the State bank in the Federal Reserve System shall continue.

Any such State bank which on February 25, 1927, has established

and is operating a branch or branches in conformity with the State

law, may retain and operate the same while remaining or upon

becoming a stockholder of such Federal Reserve bank; but no such

State bank may retain or acquire stock in a Federal Reserve bank

except upon relinquishment of any branch or branches established

after February 25, 1927, beyond the limits of the city, town, or

village in which the parent bank is situated: Provided, however,

That nothing herein contained shall prevent any State member bank

from establishing and operating branches in the United States or

any dependency or insular possession thereof or in any foreign

country, on the same terms and conditions and subject to the same

limitations and restrictions as are applicable to the establishment

of branches by national banks except that the approval of the Board

of Governors of the Federal Reserve System, instead of the

Comptroller of the Currency, shall be obtained before any State

member bank may hereafter establish any branch and before any State

bank hereafter admitted to membership may retain any branch

established after February 25, 1927, beyond the limits of the city,

town, or village in which the parent bank is situated. The

approval of the Board shall likewise be obtained before any State

member bank may establish any new branch within the limits of any

such city, town, or village (except within the District of

Columbia).

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 9 (pars.), 38 Stat. 259; June 21, 1917,

ch. 32, Sec. 3, 40 Stat. 232; Feb. 25, 1927, ch. 191, Sec. 9, 44

Stat. 1229; June 16, 1933, ch. 89, Sec. 5(a), (b), 48 Stat. 164;

June 16, 1934, ch. 546, Sec. 2, 48 Stat. 971; Aug. 23, 1935, ch.

614, title II, Sec. 203(a), title III, Sec. 338, 49 Stat. 704, 721;

Aug. 17, 1950, ch. 729, Sec. 8, 64 Stat. 458; July 15, 1952, ch.

753, Sec. 2(a), 66 Stat. 633.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in text, was in the original ''this

Act'', meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, as amended,

known as the Federal Reserve Act. For complete classification of

this Act to the Code, see References in Text note set out under

section 226 of this title and Tables.

-COD-

CODIFICATION

Section is comprised of the first three pars. of section 9 of act

Dec. 23, 1913, as amended. The first par. of this section is

comprised of the first par. of section 9 as amended in 1917 (40

Stat. 232). The second par. of this section was added as a new par.

to follow the first par. of section 9, by act Aug. 17, 1950. The

third par. of this section originally constituted the second par.

of section 9, as amended by act Feb. 25, 1927, and became the third

par. when act Aug. 17, 1950 added the new second par. The fourth

to twenty-third pars. of section 9, as amended, are classified to

sections 322 to 338a of this title. Section 329a of this title,

which was based on par. twelve of section 9, was omitted from the

Code. Paragraph twenty-two of section 9, which was classified to

section 337 of this title, was repealed by Pub. L. 89-485, Sec.

13(g), July 1, 1966, 80 Stat. 243.

-MISC3-

AMENDMENTS

1952 - Act July 15, 1952, inserted last sentence to third par.

1950 - Act Aug. 17, 1950, inserted second par., permitting

application for membership in the Federal Reserve System by the

State bank resulting from a conversion, merger, or consolidation

transaction involving a national bank, except where the national

bank merges or consolidates with a State bank already a member of

System in which case the membership continues.

1935 - Act Aug. 23, 1935, Sec. 338, inserted phrase in third

(formerly second) par. beginning ''except that the approval of the

Board of Governors''.

1934 - Act June 16, 1934, inserted third sentence in first par.

1933 - Act June 16, 1933, inserted ''including Morris Plan banks

and other incorporated banking institutions engaged in similar

business'' in first par. and inserted proviso to third (formerly

second) par. through ''branches of national banks''.

1927 - Act Feb. 25, 1927, inserted second par. which became third

par. in 1950. See Codification note above.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

ABOLITION OF RECONSTRUCTION FINANCE CORPORATION

Section 6(a) of Reorg. Plan No. 1 of 1957, eff. June 30, 1957,

22 F.R. 4633, 71 Stat. 647, set out in the Appendix to Title 5,

Government Organization and Employees, abolished Reconstruction

Finance Corporation.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 7 section 6f.

-CITE-

12 USC Sec. 322 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VIII - STATE BANKS AS MEMBERS OF SYSTEM

-HEAD-

Sec. 322. Determination on application

-STATUTE-

In acting upon such applications the Board of Governors of the

Federal Reserve System shall consider the financial condition of

the applying bank, the general character of its management, and

whether or not the corporate powers exercised are consistent with

the purposes of this chapter.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 9 (par.), as added June 21, 1917, ch.

32, Sec. 3, 40 Stat. 233; amended Aug. 23, 1935, ch. 614, title II,

Sec. 203(a), 49 Stat. 704.)

-COD-

CODIFICATION

Section is comprised of the fourth par. of section 9 of act Dec.

23, 1913, as amended. The fourth par. constituted the second par.

of section 9 in 1917 (40 Stat. 232), became the third par. in 1927

(44 Stat. 1229), and became the fourth par. in 1950 (64 Stat. 458).

For further details, see Codification note set out under section

321 of this title.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-CITE-

12 USC Sec. 323 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VIII - STATE BANKS AS MEMBERS OF SYSTEM

-HEAD-

Sec. 323. Stock in Federal reserve banks; method of payment

-STATUTE-

Whenever the Board of Governors of the Federal Reserve System

shall permit the applying bank to become a stockholder in the

Federal reserve bank of the district its stock subscription shall

be payable on call of the Board of Governors of the Federal Reserve

System, and stock issued to it shall be held subject to the

provisions of this chapter.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 9 (par.), 38 Stat. 259; June 21, 1917,

ch. 32, Sec. 3, 40 Stat. 233; Aug. 23, 1935, ch. 614, title II,

Sec. 203(a), 49 Stat. 704.)

-COD-

CODIFICATION

Section is comprised of the fifth par. of section 9 of act Dec.

23, 1913, as amended. The fifth par. constituted the third par. of

section 9 in 1917 (40 Stat. 232), became the fourth par. in 1927

(44 Stat. 1229), and became the fifth par. in 1950 (64 Stat. 458).

For further details, see Codification note set out under section

321 of this title.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-CITE-

12 USC Sec. 324 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 3 - FEDERAL RESERVE SYSTEM

SUBCHAPTER VIII - STATE BANKS AS MEMBERS OF SYSTEM

-HEAD-

Sec. 324. Laws applicable on becoming members

-STATUTE-

All banks admitted to membership under authority of this section

shall be required to comply with the reserve and capital

requirements of this chapter, to conform to those provisions of law

imposed on national banks which prohibit such banks from lending on

or purchasing their own stock and which relate to the withdrawal or

impairment of their capital stock, and to conform to the provisions

of sections 56 and 60(b) of this title with respect to the payment

of dividends; except that any reference in any such provision to

the Comptroller of the Currency shall be deemed for the purposes of

this sentence to be a reference to the Board of Governors of the

Federal Reserve System. Such banks and the officers, agents, and

employees thereof shall also be subject to the provisions of and to

the penalties prescribed by sections 334, 656, and 1005 of title

18, and shall be required to make reports of condition and of the

payment of dividends to the Federal Reserve bank of which they

become a member. Not less than three of such reports shall be made

annually on call of the Federal Reserve bank on dates to be fixed

by the Board of Governors of the Federal Reserve System. Any bank

which (A) maintains procedures reasonably adapted to avoid any

inadvertent error and, unintentionally and as a result of such an

error, fails to make or publish any report required under this

paragraph, within the period of time specified by the Board, or

submits or publishes any false or misleading report or information,

or (B) inadvertently transmits or publishes any report which is

minimally late, shall be subject to a penalty of not more than

$2,000 for each day during which such failure continues or such

false or misleading information is not corrected. The bank shall

have the burden of proving that an error was inadvertent and that a

report was inadvertently transmitted or published late. Any bank

which fails to make or publish such reports within the period of

time specified by the Board, or submits or publishes any false or

misleading report or information, in a manner not described in the

2nd preceding sentence shall be subject to a penalty of not more

than $20,000 for each day during which such failure continues or

such false or misleading information is not corrected.

Notwithstanding the preceding sentence, if any bank knowingly or

with reckless disregard for the accuracy of any information or

report described in such sentence submits or publishes any false or

misleading report or information, the Board may assess a penalty of

not more than $1,000,000 or 1 percent of total assets of such bank,

whichever is less, per day for each day during which such failure

continues or such false or misleading information is not

corrected. Any penalty imposed under any of the 4 preceding

sentences shall be assessed and collected by the Board in the

manner provided in subparagraphs (E), (F), (G), and (I) of section

1818(i)(2) of this title (for penalties imposed under such section)

and any such assessment (including the determination of the amount

of the penalty) shall be subject to the provisions of such

section. Any bank against which any penalty is assessed under this

subsection shall be afforded an agency hearing if such bank submits

a request for such hearing within 20 days after