Title 12 — Banks and Banking
Chapter 3 — Federal Reserve System
§ 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
Statutory text
Any Federal Reserve bank may at any time reduce its liability for outstanding Federal Reserve notes by depositing with the Federal Reserve agent its Federal Reserve notes, gold certificates, Special Drawing Right certificates, or lawful money of the United States. Federal Reserve notes so deposited shall not be reissued, except upon compliance with the conditions of an original issue. The liability of a Federal Reserve bank with respect to its outstanding Federal Reserve notes shall be reduced by an amount paid by such bank to the Secretary of the Treasury under section 4 of the Old Series Currency Adjustment Act.
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. § 415
Dec. 23, 1913, ch. 6, § 16 (par.), 38 Stat. 267
Source evidence
Code source credit
Dec. 23, 1913, ch. 6, § 16 (par.), 38 Stat. 267Old Series Currency Adjustment Act
Pub. L. 87–66 § 8(a) · 75 Stat. 146
Changed · 12 U.S.C. § 415
Pub. L. 87–66 provided for reduction of liability for outstanding notes by payment of notes of series prior to 1928
Source evidence
Code amendment note
Pub. L. 87–66 provided for reduction of liability for outstanding notes by payment of notes of series prior to 1928.Enacted provision · exact public law section
(a) The fifth paragraph of section 16 of the Federal Reserve Federal Reserve Act, amendment. 38 Stat. 251; 48 Stat. 339. Act (12 U.S.C., sec. 415) is amended by adding at the end thereof the following new sentence: “The liability of a Federal Reserve bank with respect to its outstanding Federal Reserve notes shall be reduced by any amount paid by such bank to the Secretary of the Treasury under section 4 of the Old Series Currency Adjustment Act.”Pub. L. 90–269 § 5 · 82 Stat. 50
Struck · 12 U.S.C. § 415
Pub. L. 90–269 struck out second par. (sixth par. of section 16 of Act Dec. 23, 1913), which read as follows: “The Federal Reserve agent shall hold such gold certificates or lawful money available exclusively for exchange for the outstanding Federal Reserve notes when offered by the Reserve bank of which he is a director. Upon the request of the Secretary of the Treasury the Board of Governors of the Federal Reserve System shall require the Federal Reserve agent to transmit to the Treasurer of the United States so much of the gold certificates held by him as collateral security for Federal Reserve notes as may be required for the exclusive purpose of the redemption of such Federal Reserve notes, but such gold certificates when deposited with the Treasurer shall be counted and considered as if collateral security on deposit with the Federal Reserve agent.”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 90–269 struck out second par. (sixth par. of section 16 of Act Dec. 23, 1913), which read as follows: “The Federal Reserve agent shall hold such gold certificates or lawful money available exclusively for exchange for the outstanding Federal Reserve notes when offered by the Reserve bank of which he is a director. Upon the request of the Secretary of the Treasury the Board of Governors of the Federal Reserve System shall require the Federal Reserve agent to transmit to the Treasurer of the United States so much of the gold certificates held by him as collateral security for Federal Reserve notes as may be required for the exclusive purpose of the redemption of such Federal Reserve notes, but such gold certificates when deposited with the Treasurer shall be counted and considered as if collateral security on deposit with the Federal Reserve agent.”Enacted provision · exact public law section
Sec. 5. The sixth paragraph of section 16 of the Federal Reserve Act (12 U.S.C. 415) is repealed.Special Drawing Rights Act
Pub. L. 90–349 § 5(b) · 82 Stat. 188
Added · 12 U.S.C. § 415
Pub. L. 90–349 added Special Drawing Right certificates to the types of deposits which Federal Reserve banks may use in reducing their liability for outstanding Federal Reserve notes
Source evidence
Code amendment note
Pub. L. 90–349 added Special Drawing Right certificates to the types of deposits which Federal Reserve banks may use in reducing their liability for outstanding Federal Reserve notes.Enacted provision · exact public law section
(b) The first sentence of the fifth paragraph of section 16 of the Federal Reserve Act, as amended (12 U.S.C. 415), is amended by 40 Stat. 237. inserting “Special Drawing Right certificates,” after “gold certificates,”.
3 of 4 references resolved to an enrolled provision · 1 partial
Editorial Notes
References in Text
Section 4 of the Old Series Currency Adjustment Act, referred to in text, which was classified to section 913 of former Title 31, was repealed by Pub. L. 97–258, § 5(b), , 96 Stat. 1068, the first section of which enacted Title 31, Money and Finance.
Codification
Section is comprised of the fifth par. of section 16 of act . Section was formerly comprised of the fifth and sixth pars. of section 16 of act , before repeal of the sixth par. by Pub. L. 90–269, see 1968 Amendment note below. 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. 90–349 added Special Drawing Right certificates to the types of deposits which Federal Reserve banks may use in reducing their liability for outstanding Federal Reserve notes.
Pub. L. 90–269 struck out second par. (sixth par. of section 16 of Act ), which read as follows: “The Federal Reserve agent shall hold such gold certificates or lawful money available exclusively for exchange for the outstanding Federal Reserve notes when offered by the Reserve bank of which he is a director. Upon the request of the Secretary of the Treasury the Board of Governors of the Federal Reserve System shall require the Federal Reserve agent to transmit to the Treasurer of the United States so much of the gold certificates held by him as collateral security for Federal Reserve notes as may be required for the exclusive purpose of the redemption of such Federal Reserve notes, but such gold certificates when deposited with the Treasurer shall be counted and considered as if collateral security on deposit with the Federal Reserve agent.”
1961
Pub. L. 87–66 provided for reduction of liability for outstanding notes by payment of notes of series prior to 1928.
1934
Act , struck out “gold” wherever it appeared before “gold certificates,” and inserted “certificates” after “gold” wherever latter stood alone.
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 · 7 acts
- 1913Dec. 23, 1913, ch. 6, § 16 (par.), 38 Stat. 267
- 1917June 21, 1917, ch. 32, § 7, 40 Stat. 237
- 1934Jan. 30, 1934, ch. 6, § 2(b)(5), 48 Stat. 339
- 1935Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704
- 1961Pub. L. 87–66, § 8(a), , 75 Stat. 147
- 1968Pub. L. 90–269, § 5, , 82 Stat. 50
- 1968Pub. L. 90–349, § 5(b), , 82 Stat. 189.
Show as published
(Dec. 23, 1913, ch. 6, § 16 (par.), 38 Stat. 267; June 21, 1917, ch. 32, § 7, 40 Stat. 237; Jan. 30, 1934, ch. 6, § 2(b)(5), 48 Stat. 339; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704; Pub. L. 87–66, § 8(a), , 75 Stat. 147; Pub. L. 90–269, § 5, , 82 Stat. 50; Pub. L. 90–349, § 5(b), , 82 Stat. 189.)