Volume 68 · 495
Public Law 83–514
To repeal the provisions of section 16 of the Federal Reserve Act which prohibits a Federal Reserve bank from paying out notes of another Federal Reserve bank.
Approved July 19, 1954
Statutory text
AN ACT
To repeal the provisions of section 16 of the Federal Reserve Act which prohibits a Federal Reserve bank from paying out notes of another Federal Reserve bank.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That the third paragraph
Federal Reserve notes.
of section 16 of the Federal Reserve Act, as amended, is amended by striking out the sentences thereof which read as follows: “Whenever Federal reserve notes issued through one Federal Reserve bank shall be received by another Federal Reserve bank, they shall be promptly returned for credit or redemption to the Federal Reserve bank through which they were originally issued or, upon direction of such Federal Reserve bank, they shall be forwarded direct to the Treasurer of the United States to be retired. No Federal Reserve bank shall pay out notes issued through another under penalty of a tax of 10 per centum upon the face value of notes so paid out.”
Approved July 19, 1954.