Volume 80 · 162
Public Law 89–427
To authorize revised procedures for the destruction of unfit Federal Reserve notes, and for other purposes.
Approved May 20, 1966
Statutory text
AN ACT
To authorize revised procedures for the destruction of unfit Federal Reserve notes, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
Section 1.
The first sentence of section 324 of the Revised Statutes (12 U.S.C. 1) is amended by inserting “except for the cancellation and destruction, and accounting with respect to such cancellation and destruction, of Federal Reserve notes unfit for circulation,” immediately after “of all Federal Reserve notes,”.
Sec. 2.
Paragraph (d) of section 11 of the Federal Reserve Act (12 U.S.C. 248(d)) is amended by inserting “except for the cancellation
and destruction, and accounting with respect to such cancellation and destruction, of notes unfit for circulation,” immediately after “To supervise and regulate through the Bureau under the charge of the Comptroller of the Currency the issue and retirement of Federal Reserve notes,”.
Sec. 3.
The third paragraph of section 16 of the Federal Reserve Act (12 U.S.C. 413) is amended by striking the last sentence and
inserting: “Federal Reserve notes unfit for circulation shall be canceled, destroyed, and accounted for under procedures prescribed and at locations designated by the Secretary of the Treasury. Upon destruction of such notes, credit with respect thereto shall be apportioned among the twelve Federal Reserve banks as determined by the Board of Governors of the Federal Reserve System.”
Sec. 4.
The first section of the Act of June 13, 1933 (48 Stat. 127, 12 U.S.C. 121a), is amended by inserting “, other than Federal Reserves notes,” immediately before “so redeemed shall be forwarded to the Comptroller of the Currency for cancellation and destruction.”
Section 2 of such Act (12 U.S.C. 122a) is amended by changing “in proportion to the amount of Federal Reserve notes of each Federal Reserve bank in circulation on the 31st day of December of the year preceding the date of redemption, and the amount so apportioned to each bank shall be charged by the Treasurer of the United States against deposit in the gold-redemption fund made by such bank or its Federal Reserve agent” to read “as determined by the Board of Governors of the Federal Reserve System”.
Sec. 5.
The Comptroller General of the United States shall audit
Audit by U.S. Comptroller General.
the cancellation and destruction, and the accounting with respect to such cancellation and destruction, of any currency of the United States unfit for circulation, regardless of who is responsible for, and regardless of who performs, such cancellation, destruction, or accounting. The Comptroller General shall have access to any books, documents, papers, and records which he deems necessary to facilitate an effective audit pursuant to this section.
Approved May 20, 1966.