US Code

Public Law 119-73 (01/23/2026)

12 U.S.C. § 414

Authority of Board of Governors respecting issuance of notes; interest; lien

1

1 See References in Text note below.
The Board of Governors of the Federal Reserve System shall have the right, acting through the Federal Reserve agent, to grant in whole or in part, or to reject entirely the application of any Federal Reserve bank for Federal Reserve notes; but to the extent that such application may be granted the Board of Governors of the Federal Reserve System shall, through its local Federal Reserve agent, supply Federal Reserve notes to the banks so applying, and such bank shall be charged with the amount of the notes issued to it and shall pay such rate of interest as may be established by the Board of Governors of the Federal Reserve System on only that amount of such notes which equals the total amount of its outstanding Federal Reserve notes less the amount of gold certificates held by the Federal Reserve agent as collateral security. Federal Reserve notes issued to any such bank shall, upon delivery, together with such notes of such Federal Reserve bank as may be issued under subchapter XIII  of this chapter upon security of United States 2 per centum Government bonds, become a first and paramount lien on all the assets of such bank.

Dec. 23, 1913, ch. 6, § 1638 Stat. 266June 21, 1917, ch. 32, § 740 Stat. 237Jan. 30, 1934, ch. 6, § 2(b)(5)48 Stat. 338Aug. 23, 1935, ch. 61449 Stat. 704June 12, 1945, ch. 186, § 1(b)59 Stat. 237Pub. L. 90–269, § 482 Stat. 50( (par.), ; , ; , ; , title II, § 203(a), ; , ; , , .)

Editorial Notes

References in Text

act Dec. 23, 1913, ch. 638 Stat. 251Subchapter XIII of this chapter, referred to in text, was in the original “section 18 of this Act”, meaning section 18 of , , known as the Federal Reserve Act. Section 18 of the act was classified generally to subchapter XIII (§ 441 et seq.) of this chapter.

Codification

section 411 of this titleSection is comprised of fourth 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 L. 90–269section 413 of this title1968— repealed first sentence provisions that Board of Governors require each Federal Reserve bank to maintain on deposit in the Treasury a sum in gold certificates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 Secretary of the Treasury, for redemption of Federal Reserve notes issued to such bank, but not less than 5 percent 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 deposit of gold certificates as part of the 25 percent reserve formerly required by to be maintained against Federal Reserve notes in actual circulation and substituted in the first, formerly second sentence, “Board of Governors of the Federal Reserve System” for “Board”.

section 413 of this titlesection 413 of this title1945—Act , substituted in first sentence “25 per centum reserve required by to be maintained against Federal Reserve notes in actual circulation” for “40 per centum reserve required by ”.

1934—Act , amended first sentence.

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.