Title 12 — Banks and Banking
Chapter 3 — Federal Reserve System
§ 241. Creation; membership; compensation and expenses
Statutory text
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 , 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 , and the Secretary of the Treasury and the Comptroller of the Currency shall continue to serve as members of the Board until . 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. In selecting members of the Board, the President shall appoint at least 1 member with demonstrated primary experience working in or supervising community banks having less than $10,000,000,000 in total assets. 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 $15,000 per annum, payable monthly, together with actual necessary traveling expenses.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 63–6 § 10 · 38 Stat. 103
Enacted · 12 U.S.C. § 241
Dec. 23, 1913, ch. 6, § 10 (par.), 38 Stat. 260
Source evidence
Code source credit
Dec. 23, 1913, ch. 6, § 10 (par.), 38 Stat. 260Enacted provision · exact public law section
Sec. 10. That each member of the board of arbitration created under the provisions of this Act shall receive such compensation as may be fixed by the Board of Mediation and Conciliation, together with his Appropriation for expenses. Post, p. 212. traveling and other necessary expenses. The sum of $25,000, or so much thereof as may be necessary, is hereby appropriated, to be immediately available and to continue available until the close of the fiscal year ending June thirtieth, nineteen hundred and fourteen, for the necessary and proper expenses incurred in connection with any arbitration or with the carrying on of the work of mediation and conciliation, including per diem, traveling, and other necessary expenses of members or employees of boards of arbitration and rent in the District of Columbia, furniture, office fixtures and supplies, books, salaries, traveling expenses, and other necessary expenses of members or employees of the Board of Mediation and Conciliation, to be approved by the chairman of said board and audited by the proper accounting officers of the Treasury.Terrorism Risk Insurance Program Reauthorization Act of 2015
Pub. L. 114–1 title I § 109(a) · 129 Stat. 3
Inserted · 12 U.S.C. § 241
Pub. L. 114–1 inserted after second sentence “In selecting members of the Board, the President shall appoint at least 1 member with demonstrated primary experience working in or supervising community banks having less than $10,000,000,000 in total assets.”
Source evidence
Code amendment note
Pub. L. 114–1 inserted after second sentence “In selecting members of the Board, the President shall appoint at least 1 member with demonstrated primary experience working in or supervising community banks having less than $10,000,000,000 in total assets.”Enacted provision · exact public law section
(a) In General.— The first undesignated paragraph of section 10 of the Federal Reserve Act (12 U.S.C. 241) is amended by inserting after the second sentence the following: “In selecting members of the Board, the President shall appoint at least 1 member with demonstrated primary experience working in or supervising community banks having less than $10,000,000,000 in total assets.”.Effective date note
Pub. L. 114–1, title I, § 109(b), Jan. 12, 2015, 129 Stat. 9, provided that: “The amendment made by this section [amending this section] shall take effect on the date of enactment of this Act [Jan. 12, 2015] and apply to appointments made on and after that effective date, excluding any nomination pending in the Senate on that date.”
2 of 2 references resolved to an enrolled provision
Editorial Notes
Codification
Section is comprised of first par. of section 10 of act . Pars. 2–7 and 8 of section 10; par. 9 of section 10, as added June 3, 1922, ch. 205, 42 Stat. 621; par. 10 of section 10, as added Aug. 23, 1935, ch. 614, § 203(d), 49 Stat. 705; and par. (12) of section 10, as added Pub. L. 111–203, title XI, § 1108(b), , 124 Stat. 2126, are classified to sections 242 to 247, 1, 522, 247a, and 247b, respectively, of this title. No par. between pars. (10) and (12) has been enacted.
Amendments1935–2015 · 2 rounds
2015
Pub. L. 114–1 inserted after second sentence “In selecting members of the Board, the President shall appoint at least 1 member with demonstrated primary experience working in or supervising community banks having less than $10,000,000,000 in total assets.”
1935
Act , § 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.
Statutory Notes and Related Subsidiaries
Change of Name
Act Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704, 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.”
Effective Date of 2015 Amendment
Pub. L. 114–1, title I, § 109(b), , 129 Stat. 9, provided that: “The amendment made by this section [amending this section] shall take effect on the date of enactment of this Act [] and apply to appointments made on and after that effective date, excluding any nomination pending in the Senate on that date.”
Repeals
Act Oct. 15, 1949, ch. 695, § 4, 63 Stat. 880, formerly cited as a credit to this section, which was used as authority to substitute “$16,000” for “$15,000” in the last sentence, was repealed by Pub. L. 89–554, § 8(a), , 80 Stat. 655.
General Accounting Office Study of Conflicts of Interest
Pub. L. 106–102, title VII, § 728, , 113 Stat. 1475, provided that the Comptroller General of the United States was to 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 and, before the end of the 1-year period beginning on , submit a report to the Congress, together with recommendations for such legislative or administrative actions as the Comptroller General determined to be appropriate.
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.
Credits
1913–2015 · 4 acts
- 1913Dec. 23, 1913, ch. 6, § 10 (par.), 38 Stat. 260
- 1922June 3, 1922, ch. 205, 42 Stat. 620
- 1935Aug. 23, 1935, ch. 614, title II, § 203(b), 49 Stat. 704
- 2015Pub. L. 114–1, title I, § 109(a), , 129 Stat. 9.
Show as published
(Dec. 23, 1913, ch. 6, § 10 (par.), 38 Stat. 260; June 3, 1922, ch. 205, 42 Stat. 620; Aug. 23, 1935, ch. 614, title II, § 203(b), 49 Stat. 704; Pub. L. 114–1, title I, § 109(a), , 129 Stat. 9.)