12 U.S.C. § 392 — Depositaries of Government funds as con-

Page 156 TITLE 12—BANKS AND BANKING § 391 derwriting, purchasing, and selling investment securities, or issuing securities, to the extent permitted to national banking associations by the provisions of section 24 of this title: Pro- vided further, That nothing in this paragraph shall be construed as affecting in any way such right as any bank, banking association, savings bank, trust company, or other banking institution, may otherwise possess to sell, without recourse or agreement to repurchase, obligations evidencing loans on real estate; or (2) For any person, firm, corporation, asso- ciation, business trust, or other similar orga- nization to engage, to any extent whatever with others than his or its officers, agents or employees, in the business of receiving depos- its subject to check or to repayment upon presentation of a pass book, certificate of de- posit, or other evidence of debt, or upon re- quest of the depositor, unless such person, firm, corporation, association, business trust, or other similar organization (A) shall be in- corporated under, and authorized to engage in such business by, the laws of the United States or of any State, Territory, or District, and subjected, by the laws of the United States, or of the State, Territory, or District wherein lo- cated, to examination and regulation, or (B) shall be permitted by the United States, any State, territory, or district to engage in such business and shall be subjected by the laws of the United States, or such State, territory, or district to examination and regulations or, (C) shall submit to periodic examination by the banking authority of the State, Territory, or District where such business is carried on and shall make and publish periodic reports of its condition, exhibiting in detail its resources and liabilities, such examination and reports to be made and published at the same times and in the same manner and under the same conditions as required by the law of such State, Territory, or District in the case of in- corporated banking institutions engaged in such business in the same locality. (b) Whoever shall willfully violate any of the provisions of this section shall upon conviction be fined not more than $5,000 or imprisoned not more than five years, or both, and any officer, director, employee, or agent of any person, firm, corporation, association, business trust, or other similar organization who knowingly partici- pates in any such violation shall be punished by a like fine or imprisonment or both. (June 16, 1933, ch. 89, § 21, 48 Stat. 189; Aug. 23, 1935, ch. 614, title III, § 303, 49 Stat. 707; Pub. L. 86–230, § 23, Sept. 8, 1959, 73 Stat. 466; Pub. L. 90–448, title VIII, § 804(d), Aug. 1, 1968, 82 Stat. 543; Pub. L. 95–369, § 12, Sept. 17, 1978, 92 Stat. 624.) Editorial Notes AMENDMENTS 1978—Subsec. (a)(2)(B). Pub. L. 95–369 inserted ref- erence to permission by the United States to engage in such business and subjection by the laws of the United States to examination and regulation. 1968—Subsec. (a)(1). Pub. L. 90–448 inserted ‘‘, or issuing securities’’ in first proviso. 1959—Subsec. (a). Pub. L. 86–230 inserted ‘‘and sub- jected, by the laws of the United States, or of the State, Territory, or District wherein located, to exam- ination and regulation,’’ after ‘‘District,’’ in cl. (2)(A). 1935—Subsec. (a). Act Aug. 23, 1935, added two pro- visos to end of par. (1) and amended par. (2) generally. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1968 AMENDMENT For effective date of amendment by Pub. L. 90–448, see section 808 of Pub. L. 90–448, set out as a note under section 1716b of this title. SUBCHAPTER XI—DEPOSITARIES AND FISCAL AGENTS § 391. Federal reserve banks as Government de- positaries and fiscal agents The moneys held in the general fund of the Treasury, except the 5 per centum fund for the redemption of outstanding national-bank notes may, upon the direction of the Secretary of the Treasury, be deposited in Federal reserve banks, which banks, when required by the Secretary of the Treasury, shall act as fiscal agents of the United States; and the revenues of the Govern- ment or any part thereof may be deposited in such banks, and disbursements may be made by checks drawn against such deposits. (Dec. 23, 1913, ch. 6, § 15 (par.), 38 Stat. 265; Pub. L. 90–269, § 2, Mar. 18, 1968, 82 Stat. 50.) Editorial Notes CODIFICATION Section is comprised of first par. of section 15 of act Dec. 23, 1913. Par. 2 of section 15 and par. 3 of section 15, as added Mar. 4, 1923, ch. 252, title IV, § 406, 42 Stat. 1480, are classified to sections 392 and 393, respectively, of this title. AMENDMENTS 1968—Pub. L. 90–269 struck out provision which ex- cepted funds provided in this chapter for the redemp- tion of Federal Reserve notes from deposit in Federal reserve banks. § 391a. Reimbursement of Federal Reserve Banks Beginning in fiscal year 1998 and thereafter, there are appropriated such sums as may be nec- essary to reimburse Federal Reserve Banks in their capacity as depositaries and fiscal agents for the United States for all services required or directed by the Secretary of the Treasury to be performed by such banks on behalf of the Treas- ury or other Federal agencies. (Pub. L. 105–61, title I, Oct. 10, 1997, 111 Stat. 1276.) § 392. Depositaries of Government funds as con- fined to banks in Federal reserve system; member banks as depositaries No public funds of the postal savings, or any Government funds, shall be deposited in the con- tinental United States in any bank not belong- ing to the system established by this chapter: Provided, however, That nothing in this chapter shall be construed to deny the right of the Sec- retary of the Treasury to use member banks as depositaries. (Dec. 23, 1913, ch. 6, § 15 (par.), 38 Stat. 265; Proc. No. 2695, eff. July 4, 1946, 11 F.R. 7517, 60 Stat. 1352.) Page 157 TITLE 12—BANKS AND BANKING § 411 Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’, meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, known as the Federal Reserve Act. For complete classi- fication of this Act to the Code, see References in Text note set out under section 226 of this title and Tables. CODIFICATION Words ‘‘of the Philippine Islands, or’’ after ‘‘No public funds’’ were deleted on authority of 1946 Proc. No. 2695, which granted independence to the Philippine Islands pursuant to section 1394 of Title 22. Proc. No. 2695 is set out as a note under section 1394 of Title 22, Foreign Re- lations and Intercourse. Section is comprised of second par. of section 15 of act Dec. 23, 1913. Par. 1 of section 15 and par. 3 of sec- tion 15, as added Mar. 4, 1923, ch. 252, title IV, § 406, 42 Stat. 1480, are classified to sections 391 and 393, respec- tively, of this title. § 393. Federal reserve banks as depositaries for Farm Credit System The Federal Reserve banks are authorized to act as depositaries for and fiscal agents of any Federal land bank, Federal intermediate credit bank, bank for cooperatives, or other institu- tions of the Farm Credit System. (Dec. 23, 1913, ch. 6, § 15 (par.), as added Mar. 4, 1923, ch. 252, title IV, § 406, 42 Stat. 1480; amended Pub. L. 92–181, title V, § 5.41, formerly § 5.27(b), Dec. 10, 1971, 85 Stat. 625; renumbered § 5.41(b), Pub. L. 99–205, title II, § 205(a)(2), Dec. 23, 1985, 99 Stat. 1703; renumbered § 5.41, Pub. L. 100–233, title VIII, § 805(ff)(2), Jan. 6, 1988, 101 Stat. 1717.) Editorial Notes CODIFICATION Section is comprised of third par. of section 15 of act Dec. 23, 1913, as added Mar. 4, 1923. Pars. 1 and 2 of sec- tion 15 are classified to sections 391 and 392, respec- tively, of this title. AMENDMENTS 1971—Pub. L. 92–181 substituted ‘‘Federal land bank, Federal intermediate credit bank, bank for coopera- tives, or other institutions of the Farm Credit System’’ for ‘‘national agricultural credit corporation or Federal intermediate credit bank’’. § 394. Federal reserve banks as depositaries for and fiscal agents of Home Owners’ Loan Cor- poration The Federal Reserve banks are authorized, with the approval of the Secretary of the Treas- ury, to act as depositaries, custodians, and fiscal agents for the Home Owners’ Loan Corporation. (Apr. 27, 1934, ch. 168, § 8, 48 Stat. 646.) Statutory Notes and Related Subsidiaries ABOLITION OF HOME OWNERS’ LOAN CORPORATION For dissolution and abolishment of Home Owners’ Loan Corporation, referred to in this section, by act June 30, 1953, ch. 170, § 21, 67 Stat. 126, see note set out under section 1463 of this title. § 395. Federal reserve banks as depositaries, custodians and fiscal agents for Commodity Credit Corporation The Federal Reserve banks are authorized to act as depositaries, custodians, and fiscal agents for the Commodity Credit Corporation. (July 16, 1943, ch. 241, § 3, 57 Stat. 566.) Executive Documents TRANSFER OF FUNCTIONS Administration of program of Commodity Credit Cor- poration transferred to Secretary of Agriculture by Reorg. Plan No. 3 of 1946, § 501, eff. July 16, 1946, 11 F.R. 7877, 60 Stat. 1100. See Appendix to Title 5, Government Organization and Employees. EXCEPTIONS FROM TRANSFER OF FUNCTIONS Functions of Corporations of Department of Agri- culture, boards of directors and officers of such cor- porations, Advisory Board of Commodity Credit Cor- poration, and Farm Credit Administration or any agen- cy, officer or entity of, under, or subject to supervision of Administration were excepted from functions of offi- cers, agencies, and employees transferred to Secretary of Agriculture by Reorg. Plan No. 2 of 1953, § 1, eff. June 4, 1953, 18 F.R. 3219, 67 Stat. 633, set out in the Appendix to Title 5, Government Organization and Employees. SUBCHAPTER XII—FEDERAL RESERVE NOTES § 411. Issuance to reserve banks; nature of obliga- tion; redemption Federal reserve notes, to be issued at the dis- cretion of the Board of Governors of the Federal Reserve System for the purpose of making ad- vances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, Dis- trict of Columbia, or at any Federal Reserve bank. (Dec. 23, 1913, ch. 6, § 16 (par.), 38 Stat. 265; Jan. 30, 1934, ch. 6, § 2(b)(1), 48 Stat. 337; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704.) Editorial Notes REFERENCES IN TEXT Phrase ‘‘hereinafter set forth’’ is from section 16 of the Federal Reserve Act, act Dec. 23, 1913. Reference probably means as set forth in sections 17 et seq. of the Federal Reserve Act. For classification of these sec- tions to the Code, see Tables. CODIFICATION Section is comprised of first par. of section 16 of act Dec. 23, 1913. Pars. 2 to 5, 6 (formerly 7), 7 to 10 (for- merly 8 to 11, respectively), 12 (formerly 13), 13 (for- merly 14), and 14 to 16 (formerly 15, 16, and 18, respec- tively) of section 16 of act Dec. 23, 1913, are classified to sections 412 to 415, 416, 418 to 421, 360, 248–1, and 467, re- spectively, of this title. Former pars. 6 and 17 of section 16 of act Dec. 23, 1913, formerly classified to sections 415 and 467, respectively, of this title, were repealed by Pub. L. 90–269, §§ 5, 7, Mar. 18, 1968, 82 Stat. 50. Par. 11 (formerly 12) of section 16 of act Dec. 23, 1913, formerly classified to section 422 of this title, was su- perseded by act June 26, 1934, ch. 756, § 1(a), (b)(3), 48 Stat. 1225. AMENDMENTS 1934—Act Jan. 30, 1934, struck out from last sentence provision permitting redemption in gold.