12 U.S.C. § 417 — Custody and safe-keeping of notes issued

Page 161 TITLE 12—BANKS AND BANKING § 418 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Old Series Currency Adjustment Act, referred to in text, which was classified to section 913 of former Title 31, was repealed by Pub.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), Sept. 13, 1982, 96 Stat. 1068, the first section of which enacted Title 31, Money and Finance. CODIFICATION Section is comprised of the sixth par. (formerly the seventh par.) of section 16 of act Dec. 23, 1913. For clas- sification to this title of other pars. of section 16, see Codification note set out under section 411 of this title. AMENDMENTS 1968—Pub. L. 90–269 repealed fourth sentence which provided that Federal Reserve banks shall not be re- quired to maintain the reserve or the redemption fund against Federal Reserve notes which have been retired, or as to which payment has been made to the Secretary of the Treasury under section 4 of the Old Series Cur- rency Adjustment Act, on notes of series prior to 1928. 1961—Pub. L. 87–66 provided for recovery of collateral upon payment of notes of series prior to 1928 and re- moved requirement of reserve or redemption fund for such notes. Statutory Notes and Related Subsidiaries CHANGE OF NAME Section 203(a) of act Aug. 23, 1935, changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System. Executive Documents TRANSFER OF FUNCTIONS For transfer of functions to Secretary of the Treas- ury, see note set out under section 55 of this title. § 417. Custody and safe-keeping of notes issued to and collateral deposited with Reserve agent All Federal Reserve notes and all gold certifi- cates, Special Drawing Right certificates, and lawful money issued to or deposited with any Federal Reserve agent under the provisions of the Federal Reserve Act shall hereafter be held for such agent, under such rules and regulations as the Board of Governors of the Federal Re- serve System may prescribe, in the joint cus- tody of himself and the Federal Reserve bank to which he is accredited. Such agent and such Federal Reserve bank shall be jointly liable for the safe-keeping of such Federal Reserve notes, gold certificates, Special Drawing Right certifi- cates, and lawful money. Nothing herein con- tained, however, shall be construed to prohibit a Federal Reserve agent from depositing gold cer- tificates and Special Drawing Right certificates with the Board of Governors of the Federal Re- serve System, to be held by such Board subject to his order, or with the Treasurer of the United States for the purposes authorized by law. (June 21, 1917, ch. 32, § 7 (par.), 40 Stat. 238; Jan. 30, 1934, ch. 6, § 2(b)(6), 48 Stat. 339; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704; Pub. L. 90–349, § 5(c), June 19, 1968, 82 Stat. 189.) Editorial Notes REFERENCES IN TEXT The Federal Reserve Act, referred to in text, is act Dec. 23, 1913, ch. 6, 38 Stat. 251. For complete classifica- tion of this Act to the Code, see References in Text note set out under section 226 of this title and Tables. Hereafter, referred to in text, probably means on and after June 21, 1917. CODIFICATION Section is comprised of last par. of section 7 of act June 21, 1917. The preceding pars. of section 7 amended pars. two, three, four, five, six, and seven of section 16 of act Dec. 23, 1913. For classification to this title of section 16, see Codification note set out under section 411 of this title. AMENDMENTS 1968—Pub. L. 90–349, which directed amendment of ‘‘[t]he seventh paragraph of section 16 of the Federal Reserve Act, as amended (12 U.S.C. 417)’’ by inserting ‘‘, Special Drawing Right certificates,’’ after ‘‘gold cer- tificates’’ in the first sentence, ‘‘Special Drawing Right certificates,’’ after ‘‘gold certificates,’’ in the second sentence, and ‘‘and Special Drawing Right certificates’’ after ‘‘gold certificates’’ in the third sentence, was exe- cuted by making the insertions in this section, to re- flect the probable intent of Congress. 1934—Act Jan. 30, 1934, which directed general amend- ment of the eighth par. of section 16 of the Federal Re- serve Act, was executed to this section, to reflect the probable intent of Congress. Prior to amendment, text read as follows: ‘‘All Federal reserve notes and all gold, gold certificates, and lawful money issued to or depos- ited with any Federal reserve agent under the provi- sions of the Federal reserve Act shall hereafter be held for such agent, under such rules and regulations as the Federal Reserve Board may prescribe, in the joint cus- tody of himself and the Federal reserve bank to which he is accredited. Such agent and such Federal reserve bank shall be jointly liable for the safe-keeping of such Federal reserve notes, gold, gold certificates, and law- ful money. Nothing herein contained, however, shall be construed to prohibit a Federal reserve agent from de- positing gold or gold certificates with the Federal Re- serve Board, to be held by such board subject to his order, or with the Treasurer of the United States for the purposes authorized by law.’’ Statutory Notes and Related Subsidiaries CHANGE OF NAME Section 203(a) of act Aug. 23, 1935, changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System. Executive Documents TRANSFER OF FUNCTIONS For transfer of functions to Secretary of the Treas- ury, see note set out under section 55 of this title. § 418. Printing of notes; denomination and form In order to furnish suitable notes for circula- tion as Federal reserve notes, the Secretary of the Treasury shall cause plates and dies to be engraved in the best manner to guard against counterfeits and fraudulent alterations, and shall have printed therefrom and numbered such quantities of such notes of the denominations of $1, $2, $5, $10, $20, $50, $100, $500, $1,000, $5,000, $10,000 as may be required to supply the Federal Reserve banks. Such notes shall be in form and tenor as directed by the Secretary of the Treas- ury under the provisions of this chapter and shall bear the distinctive numbers of the several Federal reserve banks through which they are issued. (Dec. 23, 1913, ch. 6, § 16 (par.), 38 Stat. 267; Sept. 26, 1918, ch. 177, § 3, 40 Stat. 969; Pub. L. 88–36,