Any Federal Reserve bank may make application to the local Federal Reserve agent for such amount of the Federal Reserve notes hereinbefore provided for as it may require. Such application shall be accompanied with a tender to the local Federal Reserve agent of collateral in amount equal to the sum of the Federal Reserve notes thus applied for and issued pursuant to such application. The collateral security thus offered shall be notes, drafts, bills of exchange, or acceptances acquired under section 92, 342 to 348, 349 to 352, 361, 372, or 373 of this title, or bills of exchange endorsed by a member bank of any Federal Reserve district and purchased under the provisions of sections 348a and 353 to 359 of this title, or bankers’ acceptances purchased under the provisions of said sections 348a and 353 to 359 of this title, or gold certificates, or Special Drawing Right certificates, or any obligations which are direct obligations of, or are fully guaranteed as to principal and interest by, the United States or any agency thereof, or assets that Federal Reserve banks may purchase or hold under sections 348a and 353 to 359 of this title or any other asset of a Federal Reserve bank. In no event shall such collateral security be less than the amount of Federal Reserve notes applied for. The Federal Reserve agent shall each day notify the Board of Governors of the Federal Reserve System of all issues and withdrawals of Federal Reserve notes to and by the Federal Reserve bank to which he is accredited. The said Board of Governors of the Federal Reserve System may at any time call upon a Federal Reserve bank for additional security to protect the Federal Reserve notes issued to it. Collateral shall not be required for Federal Reserve notes which are held in the vaults of, or are otherwise held by or on behalf of, Federal Reserve banks.
Dec. 23, 1913, ch. 6, § 1638 Stat. 265Sept. 7, 1916, ch. 46139 Stat. 754June 21, 1917, ch. 32, § 740 Stat. 236Feb. 27, 1932, ch. 58, § 347 Stat. 57Feb. 3, 1933, ch. 3447 Stat. 794Jan. 30, 1934, ch. 6, § 2(b)(2)48 Stat. 338Mar. 6, 1934, ch. 4748 Stat. 398Aug. 23, 1935, ch. 61449 Stat. 704Mar. 1, 1937, ch. 2050 Stat. 23June 30, 1939, ch. 25653 Stat. 991June 30, 1941, ch. 26455 Stat. 395May 25, 1943, ch. 10257 Stat. 85June 12, 1945, ch. 186, § 259 Stat. 237Pub. L. 90–349, § 5(a)82 Stat. 189Pub. L. 95–630, title I, § 11392 Stat. 3671Pub. L. 96–221, title I, § 105(b)(1)94 Stat. 140Pub. L. 106–122113 Stat. 1638Pub. L. 108–100, § 19(d)117 Stat. 1193( (par.), ; , ; , ; , ; , ; , ; , ; , title II, § 203(a), ; , ; , ; , ; , ; , ; , , ; , , ; , , ; , , ; , , .)
Editorial Notes
Codification
section 411 of this titleSection is comprised of second par. of section 16 of act . For classification to this title of other pars. of section 16, see Codification note set out under .
Amendments
Pub. L. 108–1002003— inserted “or any other asset of a Federal Reserve bank” before period at end of third sentence and “, or are otherwise held by or on behalf of,” after “in the vaults of” in last sentence.
Pub. L. 106–1221999— substituted “acceptances acquired under section 92, 342 to 348, 349 to 352, 361, 372, or 373 of this title” for “acceptances acquired under the provisions of sections 92, 342 to 347, 347c, 347d, 361, 372, and 373 of this title”.
Pub. L. 96–2211980— inserted provisions relating to purchase, etc., of assets by Federal Reserve banks, and eliminating collateral requirement for Federal Reserve notes held in Federal Reserve bank vaults.
Pub. L. 95–6301978— substituted “any obligations which are direct obligations of, or are fully guaranteed as to principal and interest by, the United States or any agency thereof” of “direct obligations of the United States”.
Pub. L. 90–3491968— added Special Drawing Right certificates to the types of allowable collateral security which may be tendered for Federal Reserve notes.
1945—Act , substituted “, or direct obligations of the United States.” for proviso after “gold certificates” in first sentence which limited period during which direct obligations of the United States could be accepted as collateral security.
1943—Act , substituted “” for “,” in proviso.
1941—Act , substituted “” for “” in proviso.
1939—Act , substituted “” for “” in proviso.
1937—Act , extended until , period within which direct obligations of the United States may be accepted as collateral security under this section, and struck out provision authorizing President to extend period.
1934—Act , amended proviso and two sentences immediately following.
Act , amended portion of third sentence before proviso.
1933—Act , substituted “” for “” wherever appearing.
1932—Act , inserted proviso and two sentences immediately following.
Statutory Notes and Related Subsidiaries
Change of Name
Section 203(a) of act , changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System.
Effective Date of 1980 Amendment
Pub. L. 96–221section 108 of Pub. L. 96–221section 248 of this titleAmendment by effective on first day of sixth month which begins after , see , set out as a note under .
Effective Date of 1978 Amendment
Pub. L. 95–630section 375b of this titleAmendment effective upon expiration of 120 days after , see sec. 2101 of set out as an Effective Date note under .
United States Obligations as Collateral; Extension of Period
49 Stat. 3437The period within which direct obligations of the United States could be accepted as collateral security under this section was extended to , by Proclamation No. 2117, of , ; extended to , by act ; extended to , by act ; extended to , by act ; and extended to , by act . Act , amended section to remove the time limitation.