Dividends and surplus funds of reserve banks
Stockholder dividends
Dividend amount
Dividend cumulative
The entitlement to dividends under subparagraph (A) shall be cumulative.
Inflation adjustment
The Board of Governors of the Federal Reserve System shall annually adjust the dollar amounts of total consolidated assets specified under subparagraph (A) to reflect the change in the Gross Domestic Product Price Index, published by the Bureau of Economic Analysis.
Deposit of net earnings in surplus fund
That portion of net earnings of each Federal reserve bank which remains after dividend claims under paragraph (1)(A) have been fully met shall be deposited in the surplus fund of the bank.
Limitation on surplus funds
In general
The aggregate amount of the surplus funds of the Federal reserve banks may not exceed $6,825,000,000.
Transfer to the general fund
Any amounts of the surplus funds of the Federal reserve banks that exceed, or would exceed, the limitation under subparagraph (A) shall be transferred to the Board of Governors of the Federal Reserve System for transfer to the Secretary of the Treasury for deposit in the general fund of the Treasury.
11 See Codification note below. Transfer for fiscal year 2000
In general
The Federal reserve banks shall transfer from the surplus funds of such banks to the Board of Governors of the Federal Reserve System for transfer to the Secretary of the Treasury for deposit in the general fund of the Treasury, a total amount of $3,752,000,000 in fiscal year 2000.
Allocated by Fed
Of the total amount required to be paid by the Federal reserve banks under paragraph (1) for fiscal year 2000, the Board shall determine the amount each such bank shall pay in such fiscal year.
Replenishment of surplus fund prohibited
During fiscal year 2000, no Federal reserve bank may replenish such bank’s surplus fund by the amount of any transfer by such bank under paragraph (1).
Dec. 23, 1913, ch. 6, § 7(a)38 Stat. 258Mar. 3, 1919, ch. 101, § 140 Stat. 1314June 16, 1933, ch. 89, § 448 Stat. 163Pub. L. 103–66, title III, § 3002(a)107 Stat. 337Pub. L. 103–325, title VI, § 602(d)108 Stat. 2291Pub. L. 106–113, div. B, § 1000(a)(5) [title III, § 302]113 Stat. 1536Pub. L. 114–94, div. C, title XXXII129 Stat. 1739Pub. L. 115–123, div. C, title II, § 30205132 Stat. 127Pub. L. 115–174, title II, § 217132 Stat. 1326(, (b), ; , ; , ; , , ; , , ; , , , 1501A–304; , §§ 32202, 32203(a), , ; , , ; , , .)
Editorial Notes
Codification
Pub. L. 106–113, div. B, § 1000(a)(5) [title III, § 302(2)]113 Stat. 1536section 290 of this titlesection 531 of this titleSection is comprised of subsec. (a) [formerly first undesignated par.] of section 7 of act , and subsec. (b) [enacted by , , , 1501A–304] of section 7. Another subsec. (b) of section 7 is classified to . Subsec. (c) of section 7 is classified to .
Amendments
Pub. L. 115–1742018—Subsec. (a)(3)(A). substituted “$6,825,000,000” for “$7,500,000,000”.
Pub. L. 115–123 substituted “$7,500,000,000” for “$10,000,000,000”.
Pub. L. 114–94, § 32203(a)(1)2015—Subsec. (a)(1)(A). , amended subpar. (A) generally. Prior to amendment, text read as follows: “After all necessary expenses of a Federal reserve bank have been paid or provided for, the stockholders of the bank shall be entitled to receive an annual dividend of 6 percent on paid-in capital stock.”
Pub. L. 114–94, § 32203(a)(2)Subsec. (a)(1)(C). , added subpar. (C).
Pub. L. 114–94, § 32202Subsec. (a)(3). , added par. (3).
Pub. L. 106–113, § 1000(a)(5) [title III, § 302(1)]1999—Subsec. (a)(3). , struck out heading and text of par. (3). Text read as follows: “During fiscal years 1997 and 1998, any amount in the surplus fund of any Federal reserve bank in excess of the amount equal to 3 percent of the total paid-in capital and surplus of the member banks of such bank shall be transferred to the Board for transfer to the Secretary of the Treasury for deposit in the general fund of the Treasury.”
Pub. L. 106–113, § 1000(a)(5) [title III, § 302(2)]Subsec. (b). , added subsec. (b).
Pub. L. 103–325, § 602(d)(1)1994—Par. (1)(B). , inserted “(A)” after “subparagraph”.
Pub. L. 103–325, § 602(d)(2)Par. (2). , substituted “paragraph (1)(A)” for “subparagraph (A)”.
Pub. L. 103–661993— inserted section catchline and amended section generally. Prior to amendment, section read as follows: “After all necessary expenses of a Federal reserve bank shall have been paid or provided for, the stockholders shall be entitled to receive an annual dividend of 6 per centum on the paid-in capital stock, which dividend shall be cumulative. After the aforesaid dividend claims have been fully met, the net earnings shall be paid into the surplus fund of the Federal reserve bank.”
1933—Act , provided that net earnings shall be paid into surplus instead of to the United States as a franchise tax.
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
Pub. L. 114–94, div. C, title XXXII, § 32203(b)129 Stat. 1740
Effective Date of 1933 Amendment
Act June 16, 1933, ch. 89, § 448 Stat. 163, , provided that the amendment made by that section is effective .
Discretionary Surplus Funds
Pub. L. 116–283, div. F, title LXV, § 6510134 Stat. 4633
Additional Transfers for Fiscal Years 1997 and 1998
Pub. L. 103–66, title III, § 3002(b)107 Stat. 337section 289(a)(3) of this title, , , provided that in addition to the amounts required to be transferred from the surplus funds of the Federal reserve banks pursuant to former , the Federal reserve banks should transfer $106,000,000 in fiscal year 1997 and $107,000,000 in fiscal year 1998 from their surplus funds to the Treasury for deposit in the general fund, and prohibited the banks from replenishing their surplus funds by the amount of such transfer.