12 U.S.C. § 416 — Withdrawal of collateral deposited to pro-

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 L. 90–269 repealed first sentence provisions that Board of Governors require each Federal Reserve bank to maintain on deposit in the Treasury a sum in gold certificates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.) 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,