12 U.S.C. § 415 — Reduction of liability for outstanding notes

Page 160 TITLE 12—BANKS AND BANKING § 415 AMENDMENTS 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 L. 90–269 repealed first sentence provisions that Board of Governors require each Federal Reserve bank to maintain on deposit in the Treasury a sum in gold certificates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 Sec- retary of the Treasury, for redemption of Federal Re- serve notes issued to such bank, but not less than 5 per- cent 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 de- posit of gold certificates as part of the 25 percent re- serve formerly required by section 413 of this title to be maintained against Federal Reserve notes in actual cir- culation and substituted in the first, formerly second sentence, ‘‘Board of Governors of the Federal Reserve System’’ for ‘‘Board’’. 1945—Act June 12, 1945, 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 Jan. 30, 1934, amended first sentence. 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. § 415. Reduction of liability for outstanding notes by depositing notes and collateral and pay- ment of notes of series prior to 1928; reissue of deposited notes Any Federal Reserve bank may at any time re- duce its liability for outstanding Federal Re- serve notes by depositing with the Federal Re- serve agent its Federal Reserve notes, gold cer- tificates, Special Drawing Right certificates, or lawful money of the United States. Federal Re- serve notes so deposited shall not be reissued, except upon compliance with the conditions of an original issue. The liability of a Federal Re- serve bank with respect to its outstanding Fed- eral 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. (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), June 30, 1961, 75 Stat. 147; Pub. L. 90–269, § 5, Mar. 18, 1968, 82 Stat. 50; Pub. L. 90–349, § 5(b), June 19, 1968, 82 Stat. 189.) 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 fifth par. of section 16 of act Dec. 23, 1913. Section was formerly comprised of the fifth and sixth pars. of section 16 of act Dec. 23, 1913, be- fore 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. AMENDMENTS 1968—Pub. L. 90–349 added Special Drawing Right cer- tificates to the types of deposits which Federal Reserve banks may use in reducing their liability for out- standing Federal Reserve notes. 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 cer- tificates or lawful money available exclusively for ex- change 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 Fed- eral 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 col- lateral 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 Jan. 30, 1934, struck out ‘‘gold’’ wherever it appeared before ‘‘gold certificates,’’ and inserted ‘‘cer- tificates’’ after ‘‘gold’’ wherever latter stood alone. 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. § 416. Withdrawal of collateral deposited to pro- tect notes and substitution of other collat- eral; retirement of notes; payment of notes of series prior to 1928; recovery of collateral; reissue of deposited notes Any Federal Reserve bank may at its discre- tion withdraw collateral deposited with the local Federal Reserve agent for the protection of its Federal Reserve notes issued to it, and shall at the same time substitute therefor other col- lateral of equal amount with the approval of the Federal Reserve agent under regulations to be prescribed by the Board of Governors of the Fed- eral Reserve System. Any Federal Reserve bank may retire any of its Federal Reserve notes by depositing them with the Federal Reserve agent or with the Treasurer of the United States, and such Federal Reserve bank shall thereupon be entitled to receive back the collateral deposited with the Federal Reserve agent for the security of such notes. Any Federal Reserve bank shall further be entitled to receive back the collateral deposited with the Federal Reserve agent for the security of any notes with respect to which such bank has made payment to the Secretary of the Treasury under section 4 of the Old Series Cur- rency Adjustment Act. Federal Reserve notes so deposited shall not be reissued except upon com- pliance with the conditions of an original issue. (Dec. 23, 1913, ch. 6, § 16 (par.), 38 Stat. 267; June 21, 1917, ch. 32, § 7, 40 Stat. 237; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704; Pub. L. 87–66, § 8(b), June 30, 1961, 75 Stat. 147; Pub. L. 90–269, § 6, Mar. 18, 1968, 82 Stat. 50.)