12 U.S.C. § 228 — ‘‘Banking Act of 1935’’

Page 88 TITLE 12—BANKS AND BANKING § 227 SHORT TITLE OF 1980 AMENDMENT Pub. L. 96–221, § 1, Mar. 31, 1980, 94 Stat. 132, provided that: ‘‘This Act [enacting sections 4a, 86a, 93a, 248a, 1730g, 1735f–7a, 1831d, and 3501 to 3524 of this title, and section 1646 of Title 15, Commerce and Trade, amending sections 24, 27, 29, 51b, 51b–1, 72, 85, 92, 95, 214a, 248, 342, 347b, 355, 360, 371a, 412, 461, 463, 481, 1425a, 1425b, 1431, 1464, 1724, 1726, 1728, 1752, 1757, 1763, 1785, 1787, 1795, to 1795i, 1813, 1817, 1821, 1828, 1832, 1842, and 1843 of this title, and sections 57a, 687, 1602 to 1607, 1610, 1612, 1613, 1631, 1632, 1635, 1637, 1638, 1640, 1641, 1643, 1663, 1664, 1665a, 1666, 1666d, 1667d, and 1691f of Title 15, repealing sec- tions 86a, 371b–1, 1730e, and 1831a of this title, and sec- tions 1614, 1636, and 1639 of Title 15, enacting provisions set out as notes under this section, sections 27, 85, 86a, 191, 248, 355, 371a, 1425a, 1724, 1730g, 1735f–7, 1735f–7a, 1787, 1813, 1817, 3101, 3501, and 3521 of this title, and sections 1601, 1602, and 1607 of Title 15, and repealing provisions set out as notes under sections 85, 86a, 371b–1, and 1831a of this title] may be cited as the ‘Depository Institu- tions Deregulation and Monetary Control Act of 1980’.’’ Pub. L. 96–221, title I, § 101, Mar. 31, 1980, 94 Stat. 132, provided that: ‘‘This title [enacting section 248a of this title, amending sections 248, 342, 347b, 355, 360, 412, 461, 463, and 1425a of this title and enacting provisions set out as notes under sections 248 and 355 of this title] may be cited as the ‘Monetary Control Act of 1980’.’’ Pub. L. 96–221, title III, § 301, Mar. 31, 1980, 94 Stat. 145, provided that: ‘‘This title [amending sections 371a, 1431, 1464, 1724, 1728, 1752, 1757, 1763, 1785, 1787, 1795 to 1795i, 1813, 1817, 1821, 1828, and 1832 of this title and enacting provisions set out as notes under sections 371a, 1724, 1787, 1813, and 1817 of this title] may be cited as the ‘Consumer Checking Account Equity Act of 1980’.’’ SHORT TITLE OF 1978 AMENDMENT Pub. L. 95–630, § 1, Nov. 10, 1978, 92 Stat. 3641, provided: ‘‘That this Act [enacting sections 375b, 504, 505, 635a–1 to 635a–3, 1795 to 1795i, 1831c, 3106a, 3201 to 3207, 3301 to 3308, and 3401 to 3422 of this title, sections 1693 to 1693r of Title 15, Commerce and Trade, and section 2153e–1 of Title 42, The Public Health and Welfare, amending sec- tions 27, 93, 375a, 412, 635, 635e to 635g, 1451, 1462, 1464, 1715z–10, 1726, 1728 to 1730a, 1752 to 1756, 1757 to 1759, 1761 to 1763, 1766, 1767, 1771, 1772a, 1781 to 1789, 1795b to 1795g, 1813, 1817 to 1821, 1828, 1832, 1843, 1844, 1847, 1865, 1972, and 2902 of this title, sections 5108, 5314, and 5315 of Title 5, Government Organization and Employees, sec- tions 709 and 1114 of Title 18, Crimes and Criminal Pro- cedure, and sections 67 and 856 of former Title 31, Money and Finance, enacting provisions set out as notes under sections 27, 93, 375b, 461, 601, 635, 1451, 1728, 1730, 1751, 1752, 1795, 1817, 1832, 3201, 3301, 3401, and 3415 of this title, and sections 1601 and 1693 of Title 15; and amending provisions set out as notes under this sec- tion, section 461 of this title, and section 1666f of Title 15] may be cited as the ‘Financial Institutions Regu- latory and Interest Rate Control Act of 1978’.’’ SHORT TITLE OF 1977 AMENDMENT Pub. L. 95–188, title II, § 201, Nov. 16, 1977, 91 Stat. 1387, provided that: ‘‘This title [enacting section 225a of this title, amending sections 242 and 302 of this title and section 208 of Title 18, Crimes and Criminal Procedure, and enacting provisions set out as a note under section 242 of this title] may be cited as the ‘Federal Reserve Reform Act of 1977’.’’ SHORT TITLE OF 1932 AMENDMENT Act Feb. 27, 1932, ch. 58, 47 Stat. 56, which enacted sections 347a and 347b of this title, and amended section 412 of this title, is popularly known as the Glass- Steagall Act, 1932. SEPARABILITY; RIGHT TO AMEND, ALTER OR REPEAL Pub. L. 100–86, title XII, § 1205, Aug. 10, 1987, 101 Stat. 663, provided that: ‘‘If any provision of this Act [see Short Title of 1987 Amendment note above] or the ap- plication thereof to any person or circumstances is held invalid, the remainder of the Act and the application of the provision to other persons not similarly situated or to other circumstances shall not be affected thereby.’’ Act Dec. 23, 1913, ch. 6, §§ 30, 31, formerly §§ 29, 30, 38 Stat. 275, renumbered §§ 30, 31, Pub. L. 95–630, title I, § 101, Nov. 10, 1978, 92 Stat. 3641, provided: ‘‘SEC. 30. If any clause, sentence, paragraph, or part of this Act shall for any reason be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the re- mainder of this Act, but shall be confined in its oper- ation to the clause, sentence, paragraph, or part there- of directly involved in the controversy in which such judgment shall have been rendered. ‘‘SEC. 31. The right to amend, alter, or repeal this Act is hereby expressly reserved.’’ § 227. ‘‘Banking Act of 1933’’ The short title of the Act of June 16, 1933, ch. 89, 48 Stat. 162, shall be the ‘‘Banking Act of 1933.’’ (June 16, 1933, ch. 89, § 1, 48 Stat. 162.) Editorial Notes REFERENCES IN TEXT The Banking Act of 1933, also known as the Glass- Steagall Act, 1933, referred to in text, is classified to sections 24, 33, 34a, 36, 51, 52, 61, 64a, 71a, 77, 78, 84, 85, 161, 197a, 221a, 227, 242, 244, 248, 289, 301, 304, 321, 329, 333 to 338, 347, 348a, 371b, 371c, 371d, 374a, 375a, 377, 378, 481, and 632 of this title. For complete classification of this Act to the Code, see Tables. Statutory Notes and Related Subsidiaries RIGHT TO AMEND, ALTER OR REPEAL; SEPARABILITY Act June 16, 1933, ch. 89, § 34, 48 Stat. 195, provided: ‘‘The right to alter, amend, or repeal this Act is hereby expressly reserved. If any provision of this act, or the application thereof to any person or circumstances, is held invalid, the remainder of the act, and the applica- tion of such provision to other persons or cir- cumstances, shall not be affected thereby’’. § 228. ‘‘Banking Act of 1935’’ The act of August 23, 1935, ch. 614, 49 Stat. 684, may be cited as the ‘‘Banking Act of 1935.’’ (Aug. 23, 1935, ch. 614, § 1, 49 Stat. 684.) Editorial Notes REFERENCES IN TEXT The Banking Act of 1935, referred to in text, is classi- fied to sections 2, 24, 33 to 34c, 35, 36, 51, 51a, 51b–1, 52, 59 to 61, 64a, 71a, 78, 84, 85, 170, 181, 192, 221a, 228, 241, 242, 244, 247a, 248, 263, 287, 288, 321, 324, 336, 341, 343, 347b, 352a, 355, 357, 371, 371b, 371c, 375a, 377, 378, 461, 462a–1, 462b, 465, 481, 482, 486, 619, 1702, 1703, 1709, and 1713 of this title; section 101 of Title 11, Bankruptcy; section 19 of Title 15, Commerce and Trade. See, also, sections 217, 218, 334, 655, 656, 709, 1005, 1906, 1909, and 2113 of Title 18, Crimes and Criminal Procedure. For complete classi- fication of this Act to the Code see Tables. Statutory Notes and Related Subsidiaries SEPARABILITY Act Aug. 23, 1935, ch. 614, title III, § 346, 49 Stat. 723, provided: ‘‘If any provision of this Act, or the applica- tion thereof to any person or circumstances, is held in- valid, the remainder of the Act, and the application of such provision to other persons and circumstances, shall not be affected thereby.’’ Page 89 TITLE 12—BANKS AND BANKING § 242 SUBCHAPTER II—BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM § 241. Creation; membership; compensation and expenses The Board of Governors of the Federal Reserve System (hereinafter referred to as the ‘‘Board’’) shall be composed of seven members, to be ap- pointed by the President, by and with the advice and consent of the Senate, after August 23, 1935, 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 February 1, 1936, and the Secretary of the Treasury and the Comptroller of the Cur- rency shall continue to serve as members of the Board until February 1, 1936. 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 inter- ests, and geographical divisions of the country. In selecting members of the Board, the Presi- dent shall appoint at least 1 member with dem- onstrated primary experience working in or su- pervising 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. (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), Jan. 12, 2015, 129 Stat. 9.) Editorial Notes CODIFICATION Section is comprised of first par. of section 10 of act Dec. 23, 1913. Pars. 2–7 and 8 of section 10; par. 9 of sec- tion 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), July 21, 2010, 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. AMENDMENTS 2015—Pub. L. 114–1 inserted after second sentence ‘‘In selecting members of the Board, the President shall ap- point at least 1 member with demonstrated primary ex- perience working in or supervising community banks having less than $10,000,000,000 in total assets.’’ 1935—Act Aug. 23, 1935, § 203(b), increased the appoint- ive 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 sal- ary 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 Fed- eral 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 Sys- tem.’’ EFFECTIVE DATE OF 2015 AMENDMENT 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 ap- pointments made on and after that effective date, ex- cluding 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 au- thority to substitute ‘‘$16,000’’ for ‘‘$15,000’’ in the last sentence, was repealed by Pub. L. 89–554, § 8(a), Sept. 6, 1966, 80 Stat. 655. GENERAL ACCOUNTING OFFICE STUDY OF CONFLICTS OF INTEREST Pub. L. 106–102, title VII, § 728, Nov. 12, 1999, 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 pri- mary regulator of the banking industry and its role as a vendor of services to the banking and financial serv- ices industry and, before the end of the 1-year period beginning on Nov. 12, 1999, submit a report to the Con- gress, together with recommendations for such legisla- tive or administrative actions as the Comptroller Gen- eral determined to be appropriate. COMPENSATION OF BOARD OF GOVERNORS Annual basic compensation of Chairman and Mem- bers of Board of Governors, see sections 5313 and 5314 of Title 5, Government Organization and Employees. § 242. Ineligibility to hold office in member banks; qualifications and terms of office of members; chairman and vice chairman; oath of office The members of the Board shall be ineligible during the time they are in office and for two years thereafter to hold any office, position, or employment in any member bank, except that this restriction shall not apply to a member who has served the full term for which he was ap- pointed. Upon the expiration of the term of any appointive member of the Federal Reserve Board in office on August 23, 1935, the President shall fix the term of the successor to such member at not to exceed fourteen years, as designated by the President at the time of nomination, but in such manner as to provide for the expiration of the term of not more than one member in any two-year period, and thereafter each member shall hold office for a term of fourteen years from the expiration of the term of his prede- cessor, unless sooner removed for cause by the President. Of the persons thus appointed, 1 shall be designated by the President, by and with the advice and consent of the Senate, to serve as Chairman of the Board for a term of 4 years, and 2 shall be designated by the President, by and with the advice and consent of the Senate, to serve as Vice Chairmen of the Board, each for a term of 4 years, 1 of whom shall serve in the ab- sence of the Chairman, as provided in section 244 of this title, and 1 of whom shall be designated Vice Chairman for Supervision. The Vice Chair- man for Supervision shall develop policy rec-