Title 12 — Banks and Banking
Chapter 3 — Federal Reserve System
§ 414. Authority of Board of Governors respecting issuance of notes; interest; lien
Statutory text
The Board of Governors of the Federal Reserve System shall have the right, acting through the Federal Reserve agent, to grant in whole or in part, or to reject entirely the application of any Federal Reserve bank for Federal Reserve notes; but to the extent that such application may be granted the Board of Governors of the Federal Reserve System shall, through its local Federal Reserve agent, supply Federal Reserve notes to the banks so applying, and such bank shall be charged with the amount of the notes issued to it and shall pay such rate of interest as may be established by the Board of Governors of the Federal Reserve System on only that amount of such notes which equals the total amount of its outstanding Federal Reserve notes less the amount of gold certificates held by the Federal Reserve agent as collateral security. Federal Reserve notes issued to any such bank shall, upon delivery, together with such notes of such Federal Reserve bank as may be issued under subchapter XIII 1 of this chapter upon security of United States 2 per centum Government bonds, become a first and paramount lien on all the assets of such bank.
Footnotes
- 1 See References in Text note below.
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 § 16 · 38 Stat. 103
Enacted · 12 U.S.C. § 414
Dec. 23, 1913, ch. 6, § 16 (par.), 38 Stat. 266
Source evidence
Code source credit
Dec. 23, 1913, ch. 6, § 16 (par.), 38 Stat. 266Pub. L. 90–269 § 4 · 82 Stat. 50
Repealed · 12 U.S.C. § 414
Pub. L. 90–269 repealed first sentence provisions that Board of Governors require each Federal Reserve bank to maintain on deposit in the Treasury a sum in gold certificates sufficient, in the judgment of the Secretary of the Treasury, for redemption of Federal Reserve notes issued to such bank, but not less than 5 percent of total amount of notes issued less amount of gold certificates held by the Federal Reserve agent as collateral security, and counting and including such deposit of gold certificates as part of the 25 percent reserve formerly required by section 413 of this title to be maintained against Federal Reserve notes in actual circulation
Substituted · 12 U.S.C. § 414
Pub. L. 90–269 substituted in the first, formerly second sentence, “Board of Governors of the Federal Reserve System” for “Board”
Source evidence
Code amendment note
Pub. L. 90–269 repealed first sentence provisions that Board of Governors require each Federal Reserve bank to maintain on deposit in the Treasury a sum in gold certificates sufficient, in the judgment of the Secretary of the Treasury, for redemption of Federal Reserve notes issued to such bank, but not less than 5 percent of total amount of notes issued less amount of gold certificates held by the Federal Reserve agent as collateral security, and counting and including such deposit of gold certificates as part of the 25 percent reserve formerly required by section 413 of this title to be maintained against Federal Reserve notes in actual circulation and substituted in the first, formerly second sentence, “Board of Governors of the Federal Reserve System” for “Board”.Enacted provision · exact public law section
Sec. 4. (a) The first sentence of the fourth paragraph of section 16 of the Federal Reserve Act (12 U.S.C. 414) is repealed. (b) The sentence which, prior to the repeal made by this section, was the second sentence of such paragraph is amended by inserting immediately after “The Board” the following: “of Governors of the Federal Reserve System”.
2 of 3 references resolved to an enrolled provision · 1 partial
Editorial Notes
References in Text
Subchapter XIII of this chapter, referred to in text, was in the original “section 18 of this Act”, meaning section 18 of act Dec. 23, 1913, ch. 6, 38 Stat. 251, known as the Federal Reserve Act. Section 18 of the act was classified generally to subchapter XIII (§ 441 et seq.) of this chapter.
Codification
Section is comprised of fourth par. of section 16 of act . For classification to this title of other pars. of section 16, see Codification note set out under section 411 of this title.
Amendments1934–1968 · 3 rounds
1968
Pub. L. 90–269 repealed first sentence provisions that Board of Governors require each Federal Reserve bank to maintain on deposit in the Treasury a sum in gold certificates sufficient, in the judgment of the Secretary of the Treasury, for redemption of Federal Reserve notes issued to such bank, but not less than 5 percent of total amount of notes issued less amount of gold certificates held by the Federal Reserve agent as collateral security, and counting and including such deposit of gold certificates as part of the 25 percent reserve formerly required by section 413 of this title to be maintained against Federal Reserve notes in actual circulation and substituted in the first, formerly second sentence, “Board of Governors of the Federal Reserve System” for “Board”.
1945
Act , substituted in first sentence “25 per centum reserve required by section 413 of this title to be maintained against Federal Reserve notes in actual circulation” for “40 per centum reserve required by section 413 of this title”.
1934
Act , amended first sentence.
Statutory Notes and Related Subsidiaries
Change of Name
Section 203(a) of act , changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System.
Credits
1913–1968 · 6 acts
- 1913Dec. 23, 1913, ch. 6, § 16 (par.), 38 Stat. 266
- 1917June 21, 1917, ch. 32, § 7, 40 Stat. 237
- 1934Jan. 30, 1934, ch. 6, § 2(b)(5), 48 Stat. 338
- 1935Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704
- 1945June 12, 1945, ch. 186, § 1(b), 59 Stat. 237
- 1968Pub. L. 90–269, § 4, , 82 Stat. 50.
Show as published
(Dec. 23, 1913, ch. 6, § 16 (par.), 38 Stat. 266; June 21, 1917, ch. 32, § 7, 40 Stat. 237; Jan. 30, 1934, ch. 6, § 2(b)(5), 48 Stat. 338; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704; June 12, 1945, ch. 186, § 1(b), 59 Stat. 237; Pub. L. 90–269, § 4, , 82 Stat. 50.)