§ 242. — Ineligibility to hold office in member banks; qualifications and terms of office of members; chairman and vice chairman; oath of office.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC242]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER II--BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
Sec. 242. Ineligibility to hold office in member banks;
qualifications and terms of office of members; chairman and vice
chairman; oath of office
The members of the Board shall be ineligible during the time they
are in office and for two years thereafter to hold any office, position,
or employment in any member bank, except that this restriction shall not
apply to a member who has served the full term for which he was
appointed. Upon the expiration of the term of any appointive member of
the Federal Reserve Board in office on August 23, 1935, the President
shall fix the term of the successor to such member at not to exceed
fourteen years, as designated by the President at the time of
nomination, but in such manner as to provide for the expiration of the
term of not more than one member in any two-year period, and thereafter
each member shall hold office for a term of fourteen years from the
expiration of the term of his predecessor, unless sooner removed for
cause by the President. Of the persons thus appointed, one shall be
designated by the President, by and with the advice and consent of the
Senate, to serve as Chairman of the Board for a term of four years, and
one shall be designated by the President, by and with the consent of the
Senate, to serve as Vice Chairman of the Board for a term of four years.
The Chairman of the Board, subject to its supervision, shall be its
active executive officer. Each member of the Board shall within fifteen
days after notice of appointment make and subscribe to the oath of
office. Upon the expiration of their terms of office, members of the
Board shall continue to serve until their successors are appointed and
have qualified. Any person appointed as a member of the Board after
August 23, 1935, shall not be eligible for reappointment as such member
after he shall have served a full term of fourteen years.
(Dec. 23, 1913, ch. 6, Sec. 10 (par.), 38 Stat. 260; June 3, 1922, ch.
205, 42 Stat. 620; June 16, 1933, ch. 89, Sec. 6(a), 48 Stat. 166; Aug.
23, 1935, ch. 614, title II, Sec. 203(b), 49 Stat. 704; Pub. L. 95-188,
title II, Sec. 204(a), Nov. 16, 1977, 91 Stat. 1388.)
Codification
Section is comprised of second par. of section 10 of act Dec. 23,
1913. For classification to this title of other pars. of section 10, see
note set out under section 241 of this title.
Amendments
1977--Pub. L. 95-188 substituted in third sentence ``one shall be
designated by the President, by and with the advice and consent of the
Senate, to serve as Chairman of the Board for a term of four years, and
one shall be designated by the President, by and with the consent of the
Senate, to serve as Vice Chairman of the Board for a term of four
years'' for ``one shall be designated by the President as chairman and
one as vice chairman of the Board, to serve as such for a term of four
years''.
1935--Act Aug. 23, 1935, Sec. 203(b), extended term of appointive
members from twelve to fourteen years, and inserted provisions for
continuance in office until successor qualified and against
reappointment.
1933--Act June 16, 1933, extended term of appointive members from
ten to twelve years.
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.
Effective Date of 1977 Amendment; Applicability
Section 204(b) of Pub. L. 95-188 provided that: ``The amendment made
by subsection (a) [amending this section] takes effect on January 1,
1979, and applies to individuals who are designated by the President on
or after such date to serve as Chairman or Vice Chairman of the Board of
Governors of the Federal Reserve System.''
Repeals
Act Mar. 3, 1919, ch. 101, Sec. 2, 40 Stat. 1315, formerly cited as
a credit to this section, was repealed by Pub. L. 89-554, Sec. 8(a),
Sept. 6, 1966, 80 Stat. 644.
Compensation of Chairman of Board
Annual basic compensation of Chairman of Board of Governors, see
section 5313 of Title 5, Government Organization and Employees.
