§ 241. — Creation; membership; compensation and expenses.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC241]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER II--BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
Sec. 241. Creation; membership; compensation and expenses
The Board of Governors of the Federal Reserve System (hereinafter
referred to as the ``Board'') shall be composed of seven members, to be
appointed by the President, by and with the advice and consent of the
Senate, after August 23, 1935, for terms of fourteen years except as
hereinafter provided, but each appointive member of the Federal Reserve
Board in office on such date shall continue to serve as a member of the
Board until February 1, 1936, and the Secretary of the Treasury and the
Comptroller of the Currency shall continue to serve as members of the
Board until February 1, 1936. In selecting the members of the Board, not
more than one of whom shall be selected from any one Federal Reserve
district, the President shall have due regard to a fair representation
of the financial, agricultural, industrial, and commercial interests,
and geographical divisions of the country. The members of the Board
shall devote their entire time to the business of the Board and shall
each receive basic compensation at the rate of $16,000 per annum,
payable monthly, together with actual necessary traveling expenses.
(Dec. 23, 1913, ch. 6, Sec. 10 (par.), 38 Stat. 260; June 3, 1922, ch.
205, 42 Stat. 620; Aug. 23, 1935, ch. 614, title II, Sec. 203(b), 49
Stat. 704.)
Codification
Section is comprised of first par. of section 10 of act Dec. 23,
1913. Pars. 2-7 and 8 of section 10; par. 9 of section 10, as added June
3, 1922, ch. 205, 42 Stat. 621; and par. 10 of section 10, as added Aug.
23, 1935, ch. 614, Sec. 203(d), 49 Stat. 705, are classified to sections
242 to 247, 1, 522, and 247a, respectively, of this title.
Amendments
1935--Act Aug. 23, 1935, Sec. 203(b), increased the appointive
membership from six to seven, terminated the membership of the Secretary
of the Treasury and the Comptroller of the Currency, raised the tenure
from twelve to fourteen years and increased the annual salary from
$12,000 to $15,000.
Change of Name
Section 203(a) of act Aug. 23, 1935, provided that: ``Hereafter the
Federal Reserve Board shall be known as the `Board of Governors of the
Federal Reserve System,' and the governor and the vice governor of the
Federal Reserve Board shall be known as the `chairman' and the `vice
chairman,' respectively, of the Board of Governors of the Federal
Reserve System.''
Repeals
Act Oct. 15, 1949, ch. 695, Sec. 4, 63 Stat. 880, formerly cited as
a credit to this section, was repealed by Pub. L. 89-554, Sec. 8(a),
Sept. 6, 1966, 80 Stat. 655.
General Accounting Office Study of Conflicts of Interest
Pub. L. 106-102, title VII, Sec. 728, Nov. 12, 1999, 113 Stat. 1475,
provided that:
``(a) Study Required.--The Comptroller General of the United States
shall conduct a study analyzing the conflict of interest faced by the
Board of Governors of the Federal Reserve System between its role as a
primary regulator of the banking industry and its role as a vendor of
services to the banking and financial services industry.
``(b) Specific Conflict Required To Be Addressed.--In the course of
the study required under subsection (a), the Comptroller General shall
address the conflict of interest faced by the Board of Governors of the
Federal Reserve System between the role of the Board as a regulator of
the payment system, generally, and its participation in the payment
system as a competitor with private entities who are providing payment
services.
``(c) Report to the Congress.--Before the end of the 1-year period
beginning on the date of the enactment of this Act [Nov. 12, 1999], the
Comptroller General shall submit a report to the Congress containing the
findings and conclusions of the Comptroller General in connection with
the study required under this section, together with such
recommendations for such legislative or administrative actions as the
Comptroller General may determine to be appropriate, including
recommendations for resolving any such conflict of interest.''
Compensation of Board of Governors
Annual basic compensation of Chairman and Members of Board of
Governors, see sections 5313 and 5314 of Title 5, Government
Organization and Employees.
