12 U.S.C. § 283 — Public subscription to capital stock

Page 104 TITLE 12—BANKS AND BANKING § 266 performance of their duties as financial agents of the Government: Provided, That no such secu- rity shall be required for the safekeeping and prompt payment of such parts of the deposits of the public money in such banks as are insured deposits and each officer, employee, or agent of the United States having official custody of pub- lic funds and lawfully depositing the same in an insured bank shall, for the purpose of deter- mining the amount of the insured deposits, be deemed a depositor in such custodial capacity separate and distinct from any other officer, em- ployee, or agent of the United States having of- ficial custody of public funds and lawfully depos- iting the same in the same insured bank in cus- todial capacity. Notwithstanding any other pro- vision of law, no department, board, agency, in- strumentality, officer, employee, or agent of the United States shall issue or permit to continue in effect any regulations, rulings, or instruc- tions or enter into or approve any contracts or perform any other acts having to do with the de- posit, disbursement, or expenditure of public funds, or the deposit, custody, or advance of funds subject to the control of the United States as trustee or otherwise which shall discriminate against or prefer national banking associations, State banks members of the Federal Reserve System, or insured banks not members of the Federal Reserve System, by class, or which shall require those enjoying the benefits, directly or indirectly, of disbursed public funds so to dis- criminate. All Acts or parts thereof in conflict herewith are repealed. The terms ‘‘insured bank’’ and ‘‘insured deposit’’ as used in this sec- tion shall be construed according to the defini- tions of such terms in section 1813 of this title. (June 11, 1942, ch. 404, § 10, 56 Stat. 356; Sept. 3, 1954, ch. 1263, § 26, 68 Stat. 1235.) Editorial Notes CODIFICATION Section was formerly classified to section 1110 of the former Appendix to Title 50, War and National Defense. AMENDMENTS 1954—Act Sept. 3, 1954, substituted ‘‘section 1813’’ for ‘‘section 264’’ in last sentence. § 266. State-chartered banks and other institu- tions as depositaries of public money; fiscal agents; duties Banks, savings banks, and savings and loan, building and loan, homestead associations (in- cluding cooperative banks), and credit unions created under the laws of any State and the de- posits or accounts of which are insured by a State or agency thereof or corporation char- tered pursuant to the laws of any State may be depositaries of public money and may be em- ployed as fiscal agents of the United States. The Secretary of the Treasury is authorized to de- posit public money in any such institution, and shall prescribe such regulations as may be nec- essary to enable such institutions to become de- positaries of public money and fiscal agents of the United States. Each such institution shall perform all such reasonable duties as depositary of public money and fiscal agent of the United States as may be required of it including serv- ices in connection with the collection of taxes and other obligations owed the United States. (Pub. L. 95–147, § 2(d), Oct. 28, 1977, 91 Stat. 1228.) Editorial Notes CODIFICATION Section was not enacted as part of the Federal Re- serve Act, which comprises this chapter. SUBCHAPTER VI—CAPITAL AND STOCK OF FEDERAL RESERVE BANKS; DIVIDENDS AND EARNINGS § 281. Capital No Federal reserve bank shall commence busi- ness with a subscribed capital less than $4,000,000. (Dec. 23, 1913, ch. 6, § 2 (part), 38 Stat. 253.) Editorial Notes CODIFICATION Section is comprised of part of the thirteenth par. of section 2 of act Dec. 23, 1913. Some of the other provi- sions of the thirteenth par. are classified to section 224 of this title, and some were not included in the Code. For classification of other pars. of section 2 of this Act, see Codification note set out under section 222 of this title. § 282. Subscription to capital stock by national banking association Every national banking association within each Federal reserve district shall be required to subscribe to the capital stock of the Federal re- serve bank for that district in a sum equal to six per centum of the paid-up capital stock and sur- plus of such bank, one-sixth of the subscription to be payable on call of the Board of Governors of the Federal Reserve System, one-sixth within three months and one-sixth within six months thereafter, and the remainder of the subscrip- tion, or any part thereof, shall be subject to call when deemed necessary by the Board, said pay- ments to be in gold or gold certificates. (Dec. 23, 1913, ch. 6, § 2 (part), 38 Stat. 252; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704.) Editorial Notes CODIFICATION Section is based on part of the third par. of section 2 of act Dec. 23, 1913. The rest of the third par. was not included in the Code. For classification of other pars. of section 2 of this Act, see Codification note set out under section 222 of this title. 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. § 283. Public subscription to capital stock No individual, copartnership, or corporation other than a member bank of its district shall be permitted to subscribe for or to hold at any time more than $25,000 par value of stock in any Federal reserve bank. Such stock shall be Page 105 TITLE 12—BANKS AND BANKING § 287 known as public stock and may be transferred on the books of the Federal reserve bank by the chairman of the board of directors of such bank. (Dec. 23, 1913, ch. 6, § 2 (par.), 38 Stat. 253.) Editorial Notes CODIFICATION Section is comprised of the ninth par. of section 2 of act Dec. 23, 1913. For classification of other pars. of sec- tion 2 of this Act, see Codification note set out under section 222 of this title. § 284. Omitted Editorial Notes CODIFICATION Section, act Dec. 23, 1913, ch. 6, § 2 (part), 38 Stat. 253, was omitted as obsolete pursuant to a communication from the Board of Governors of the Federal Reserve System dated Mar. 7, 1941, which stated ‘‘As originally enacted the Federal Reserve Act provided for a Reserve Bank Organization Committee to have charge of the initial steps in organizing the Federal Reserve System and this Committee was authorized to allot Federal Re- serve Bank stock to the United States in the event that subscriptions to such stock by banks and by the public were inadequate. However, subscriptions by member banks were adequate and there was no necessity or au- thority for the allocation of any stock to the United States. Accordingly, [this section] is now of no prac- tical effect, and may be regarded as obsolete.’’ This section was based on part of the tenth par. of section 2 of act Dec. 23, 1913. The rest of the tenth par. was not included in the Code. For classification of other pars. of section 2 of this Act, see Codification note set out under section 222 of this title. § 285. Nonvoting stock Stock not held by member banks shall not be entitled to voting power. (Dec. 23, 1913, ch. 6, § 2 (par.), 38 Stat. 253.) Editorial Notes CODIFICATION Section is comprised of the eleventh par. of section 2 of act Dec. 23, 1913. For classification of other pars. of section 2 of this Act, see Codification note set out under section 222 of this title. § 286. Transfers of stock; rules and regulations The Board of Governors of the Federal Reserve System is empowered to adopt and promulgate rules and regulations governing the transfers of said stock. (Dec. 23, 1913, ch. 6, § 2 (par.), 38 Stat. 253; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704.) Editorial Notes CODIFICATION Section is based on the twelfth par. of section 2 of act Dec. 23, 1913. For classification of other pars. of section 2 of this Act, see Codification note set out under sec- tion 222 of this title. 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. § 287. Value of shares of stock; increase and de- crease of stock; member banks as share- holders; surrender of shares The capital stock of each Federal reserve bank shall be divided into shares of $100 each. The outstanding capital stock shall be increased from time to time as member banks increase their capital stock and surplus or as additional banks become members, and may be decreased as member banks reduce their capital stock or surplus or cease to be members. Shares of the capital stock of Federal reserve banks owned by member banks shall not be transferred or hy- pothecated. When a member bank increases its capital stock or surplus, it shall thereupon sub- scribe for an additional amount of capital stock of the Federal reserve bank of its district equal to 6 per centum of the said increase, one-half of said subscription to be paid in the manner here- inbefore provided for original subscription, and one-half subject to call of the Board of Gov- ernors of the Federal Reserve System. A bank applying for stock in a Federal reserve bank at any time after the organization thereof must subscribe for an amount of the capital stock of the Federal reserve bank equal to 6 per centum of the paid-up capital stock and surplus of said applicant bank, paying therefor its par value plus one-half of 1 per centum a month from the period of the last dividend. When a member bank reduces its capital stock or surplus it shall surrender a proportionate amount of its hold- ings in the capital stock of said Federal Reserve bank. Any member bank which holds capital stock of a Federal Reserve bank in excess of the amount required on the basis of 6 per centum of its paid-up capital stock and surplus shall sur- render such excess stock. When a member bank voluntarily liquidates it shall surrender all of its holdings of the capital stock of said Federal Reserve bank and be released from its stock sub- scription not previously called. In any such case the shares surrendered shall be canceled and the member bank shall receive in payment therefor, under regulations to be prescribed by the Board of Governors of the Federal Reserve System, a sum equal to its cash-paid subscriptions on the shares surrendered and one-half of 1 per centum a month from the period of the last dividend not to exceed the book value thereof, less any liabil- ity of such member bank to the Federal Reserve bank. (Dec. 23, 1913, ch. 6, § 5, 38 Stat. 257; Aug. 23, 1935, ch. 614, title II, § 203(a), title III, § 319(a), 49 Stat. 704, 713.) Editorial Notes AMENDMENTS 1935—Act Aug. 23, 1935, § 319(a), amended last four sen- tences. 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.