§ 248. — Enumerated powers.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC248]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER II--BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
Sec. 248. Enumerated powers
The Board of Governors of the Federal Reserve System shall be
authorized and empowered:
(a) Examination of accounts and affairs of banks; publication of weekly
statements; reports of liabilities and assets of depository
institutions; covered institutions
(1) To examine at its discretion the accounts, books, and affairs of
each Federal reserve bank and of each member bank and to require such
statements and reports as it may deem necessary. The said board shall
publish once each week a statement showing the condition of each Federal
reserve bank and a consolidated statement for all Federal reserve banks.
Such statements shall show in detail the assets and liabilities of the
Federal reserve banks, single and combined, and shall furnish full
information regarding the character of the money held as reserve and the
amount, nature, and maturities of the paper and other investments owned
or held by Federal reserve banks.
(2) To require any depository institution specified in this
paragraph to make, at such intervals as the Board may prescribe, such
reports of its liabilities and assets as the Board may determine to be
necessary or desirable to enable the Board to discharge its
responsibility to monitor and control monetary and credit aggregates.
Such reports shall be made (A) directly to the Board in the case of
member banks and in the case of other depository institutions whose
reserve requirements under sections 461, 463, 464, 465, and 466 of this
title exceed zero, and (B) for all other reports to the Board through
the (i) Federal Deposit Insurance Corporation in the case of insured
State nonmember banks, savings banks, and mutual savings banks, (ii)
National Credit Union Administration Board in the case of insured credit
unions, (iii) the Director of the Office of Thrift Supervision in the
case of any savings association which is an insured depository
institution (as defined in section 1813 of this title) or which is a
member as defined in section 1422 of this title, and (iv) such State
officer or agency as the Board may designate in the case of any other
type of bank, savings and loan association, or credit union. The Board
shall endeavor to avoid the imposition of unnecessary burdens on
reporting institutions and the duplication of other reporting
requirements. Except as otherwise required by law, any data provided to
any department, agency, or instrumentality of the United States pursuant
to other reporting requirement shall be made available to the Board. The
Board may classify depository institutions for the purposes of this
paragraph and may impose different requirements on each such class.
(b) Permitting or requiring rediscounting of paper at specified rate
To permit, or, on the affirmative vote of at least five members of
the Board of Governors, to require Federal reserve banks to rediscount
the discounted paper of other Federal reserve banks at rates of interest
to be fixed by the Board.
(c) Suspending reserve requirements
To suspend for a period not exceeding thirty days, and from time to
time to renew such suspension for periods not exceeding fifteen days,
any reserve requirements specified in this chapter.
(d) Supervising and regulating issue and retirement of notes
To supervise and regulate through the Secretary of the Treasury the
issue and retirement of Federal Reserve notes, except for the
cancellation and destruction, and accounting with respect to such
cancellation and destruction, of notes unfit for circulation, and to
prescribe rules and regulations under which such notes may be delivered
by the Secretary of the Treasury to the Federal Reserve agents applying
therefor.
(e) Adding to or reclassifying reserve cities
To add to the number of cities classified as reserve cities under
existing law in which national banking associations are subject to the
reserve requirements set forth in section 20 of this Act, or to
reclassify existing reserve cities or to terminate their designation as
such.
(f) Suspending or removing officers or directors of reserve banks
To suspend or remove any officer or director of any Federal reserve
bank, the cause of such removal to be forthwith communicated in writing
by the Board of Governors of the Federal Reserve System to the removed
officer or director and to said bank.
(g) Requiring writing off of doubtful or worthless assets of banks
To require the writing off of doubtful or worthless assets upon the
books and balance sheets of Federal reserve banks.
(h) Suspending operations of or liquidating or reorganizing banks
To suspend, for the violation of any of the provisions of this
chapter, the operations of any Federal reserve bank, to take possession
thereof, administer the same during the period of suspension, and, when
deemed advisable, to liquidate or reorganize such bank.
(i) Requiring bonds of agents; safeguarding property in hands of agents
To require bonds of Federal reserve agents, to make regulations for
the safeguarding of all collateral, bonds, Federal reserve notes, money,
or property of any kind deposited in the hands of such agents, and said
board shall perform the duties, functions, or services specified in this
chapter, and make all rules and regulations necessary to enable said
board effectively to perform the same.
(j) Exercising supervision over reserve banks
To exercise general supervision over said Federal reserve banks.
(k) Delegation of certain functions; power to delegate; review of
delegated activities
To delegate, by published order or rule and subject to subchapter II
of chapter 5, and chapter 7, of title 5, any of its functions, other
than those relating to rulemaking or pertaining principally to monetary
and credit policies, to one or more administrative law judges, members
or employees of the Board, or Federal Reserve banks. The assignment of
responsibility for the performance of any function that the Board
determines to delegate shall be a function of the Chairman. The Board
shall, upon the vote of one member, review action taken at a delegated
level within such time and in such manner as the Board shall by rule
prescribe.
(l) Employing attorneys, experts, assistants, and clerks; salaries and
fees
To employ such attorneys, experts, assistants, clerks, or other
employees as may be deemed necessary to conduct the business of the
board. All salaries and fees shall be fixed in advance by said board and
shall be paid in the same manner as the salaries of the members of said
board. All such attorneys, experts, assistants, clerks, and other
employees shall be appointed without regard to the provisions of the Act
of January sixteenth, eighteen hundred and eighty-three (volume twenty-
two, United States Statutes at Large, page four hundred and three), and
amendments thereto, or any rule or regulation made in pursuance thereof:
Provided, That nothing herein shall prevent the President from placing
said employees in the classified service.
(m) [Repealed]
(n) Board's authority to examine depository institutions and affiliates
To examine, at the Board's discretion, any depository institution,
and any affiliate of such depository institution, in connection with any
advance to, any discount of any instrument for, or any request for any
such advance or discount by, such depository institution under this
chapter.
(o) Authority to appoint conservator or receiver
The Board may appoint the Federal Deposit Insurance Corporation as
conservator or receiver for a State member bank under section 1821(c)(9)
of this title.
(p) Authority
The Board may act in its own name and through its own attorneys in
enforcing any provision of this title,\1\ regulations promulgated
hereunder, or any other law or regulation, or in any action, suit, or
proceeding to which the Board is a party and which involves the Board's
regulation or supervision of any bank, bank holding company (as defined
in section 1841 of this title), or other entity, or the administration
of its operations.
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\1\ See References in Text note below.
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(q) Uniform protection authority for Federal reserve facilities
(1) Notwithstanding any other provision of law, to authorize
personnel to act as law enforcement officers to protect and safeguard
the premises, grounds, property, personnel, including members of the
Board, of the Board, or any Federal reserve bank, and operations
conducted by or on behalf of the Board or a reserve bank.
(2) The Board may, subject to the regulations prescribed under
paragraph (5), delegate authority to a Federal reserve bank to authorize
personnel to act as law enforcement officers to protect and safeguard
the bank's premises, grounds, property, personnel, and operations
conducted by or on behalf of the bank.
(3) Law enforcement officers designated or authorized by the Board
or a reserve bank under paragraph (1) or (2) are authorized while on
duty to carry firearms and make arrests without warrants for any offense
against the United States committed in their presence, or for any felony
cognizable under the laws of the United States committed or being
committed within the buildings and grounds of the Board or a reserve
bank if they have reasonable grounds to believe that the person to be
arrested has committed or is committing such a felony. Such officers
shall have access to law enforcement information that may be necessary
for the protection of the property or personnel of the Board or a
reserve bank.
(4) For purposes of this subsection, the term ``law enforcement
officers'' means personnel who have successfully completed law
enforcement training and are authorized to carry firearms and make
arrests pursuant to this subsection.
(5) The law enforcement authorities provided for in this subsection
may be exercised only pursuant to regulations prescribed by the Board
and approved by the Attorney General.
(r) Voting; documentation of determinations
(1) Any action that this chapter provides may be taken only upon the
affirmative vote of 5 members of the Board may be taken upon the
unanimous vote of all members then in office if there are fewer than 5
members in office at the time of the action.
(2)(A) Any action that the Board is otherwise authorized to take
under the second paragraph of section 343 of this title may be taken
upon the unanimous vote of all available members then in office, if--
(i) at least 2 members are available and all available members
participate in the action;
(ii) the available members unanimously determine that--
(I) unusual and exigent circumstances exist and the borrower
is unable to secure adequate credit accommodations from other
sources;
(II) action on the matter is necessary to prevent, correct,
or mitigate serious harm to the economy or the stability of the
financial system of the United States;
(III) despite the use of all means available (including all
available telephonic, telegraphic, and other electronic means),
the other members of the Board have not been able to be
contacted on the matter; and
(IV) action on the matter is required before the number of
Board members otherwise required to vote on the matter can be
contacted through any available means (including all available
telephonic, telegraphic, and other electronic means); and
(iii) any credit extended by a Federal reserve bank pursuant to
such action is payable upon demand of the Board.
(B) The available members of the Board shall document in writing the
determinations required by subparagraph (A)(ii), and such written
findings shall be included in the record of the action and in the
official minutes of the Board, and copies of such record shall be
provided as soon as practicable to the members of the Board who were not
available to participate in the action and to the Chairman of the
Committee on Banking, Housing, and Urban Affairs of the Senate and to
the Chairman of the Committee on Financial Services of the House of
Representatives.
(Dec. 23, 1913, ch. 6, Sec. 11, 38 Stat. 261; Sept. 7, 1916, ch. 461, 39
Stat. 752; Sept. 26, 1918, ch. 177, Sec. 2, 40 Stat. 968; Mar. 3, 1919,
ch. 101, Sec. 3, 40 Stat. 1315; Feb. 27, 1921, ch. 75, 41 Stat. 1146;
June 26, 1930, ch. 612, 46 Stat. 814; Mar. 9, 1933, ch. 1, title I,
Sec. 3, 48 Stat. 2; June 16, 1933, ch. 89, Sec. 7, 48 Stat. 167; Aug.
23, 1935, ch. 614, title II, Sec. 203(a), title III, Secs. 321(a), 342,
49 Stat. 704, 713, 722; June 12, 1945, ch. 186, Sec. 1(c), 59 Stat. 237;
Pub. L. 86-114, Sec. 3(b)(6), July 28, 1959, 73 Stat. 264; Pub. L. 86-
251, Sec. 3(c), Sept. 9, 1959, 73 Stat. 488; Pub. L. 87-722, Sec. 3,
Sept. 28, 1962, 76 Stat. 670; Pub. L. 89-427, Sec. 2, May 20, 1966, 80
Stat. 161; Pub. L. 89-765, Nov. 5, 1966, 80 Stat. 1314; Pub. L. 90-269,
Sec. 1, Mar. 18, 1968, 82 Stat. 50; Pub. L. 95-251, Sec. 2(a)(3), Mar.
27, 1978, 92 Stat. 183; Pub. L. 96-221, title I, Sec. 102, Mar. 31,
1980, 94 Stat. 132; Pub. L. 97-258, Sec. 5(b), Sept. 13, 1982, 96 Stat.
1068; Pub. L. 97-457, Sec. 17(b), Jan. 12, 1983, 96 Stat. 2509; Pub. L.
101-73, title VII, Sec. 744(i)(1), Aug. 9, 1989, 103 Stat. 439; Pub. L.
102-242, title I, Secs. 133(f), 142(c), Dec. 19, 1991, 105 Stat. 2273,
2281; Pub. L. 102-550, title XVI, Sec. 1603(d)(9), Oct. 28, 1992, 106
Stat. 4080; Pub. L. 103-325, title III, Secs. 322(d), 331(d), title VI,
Sec. 602(g)(2), Sept. 23, 1994, 108 Stat. 2227, 2232, 2293; Pub. L. 106-
102, title VII, Sec. 735, Nov. 12, 1999, 113 Stat. 1479; Pub. L. 107-56,
title III, Sec. 364, Oct. 26, 2001, 115 Stat. 333; Pub. L. 107-297,
title III, Sec. 301, Nov. 26, 2002, 116 Stat. 2340.)
References in Text
Sections 461, 463, 464, 465, and 466 of this title, referred to in
subsec. (a)(2), was in the original ``section 19 of the Federal Reserve
Act''. Provisions of section 19 relating to reserve requirements are
classified to the cited sections. For complete classification of section
19 to the Code, see References in Text note set out under section 461 of
this title.
This chapter, referred to in subsecs. (c), (h), (i), (n), and
(r)(1), was in the original ``this Act'', meaning act Dec. 23, 1913, ch.
6, 38 Stat. 251, as amended, known as the Federal Reserve Act. For
complete classification of this Act to the Code, see References in Text
note set out under section 226 of this title and Tables.
Reference in subsec. (e) to ``section 20 of this Act'' means section
20 of the Federal Reserve Act which is not classified to the Code. Since
section 20 does not set forth any reserve requirements, section 19 of
the Federal Reserve Act might have been intended. For provisions of
section 19 relating to reserve requirements, see note above.
The Act of January sixteenth, eighteen hundred and eighty-three,
referred to in subsec. (l), is act Jan. 16, 1883, ch. 27, 22 Stat. 403,
as amended, which enacted section 42 of former Title 40, Public
Buildings, Property, and Works, and sections 632, 633, 635, 637, 638,
and 640 to 642a of former Title 5, Executive Departments and Government
Officers and Employees. For complete classification of this Act to the
Code, see Tables. Section 42 of former Title 40 was repealed and
reenacted as section 8165 of Title 40, Public Buildings, Property, and
Works, by Pub. L. 107-217, Secs. 1, 6(b), Aug. 21, 2002, 116 Stat. 1062,
1304. The sections that were classified to former Title 5 were repealed
by Pub. L. 89-554, Sec. 8(a), Sept. 6, 1966, 80 Stat. 632, the first
section of which enacted Title 5, Government Organization and Employees.
For distribution of former sections of Title 5 into the revised Title 5,
see table at the beginning of Title 5.
This title, referred to in subsec. (p), probably should read ``this
Act'', meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, as amended, known
as the Federal Reserve Act, which does not contain titles. For complete
classification of this Act to the Code, see References in Text note set
out under section 226 of this title and Tables.
The second paragraph of section 343 of this title, referred to in
subsec. (r)(2)(A), was in the original ``section 13(3)'' meaning section
13(3) of the Federal Reserve Act, which was translated as if it referred
to the third paragraph of section 13 of that Act to reflect the probable
intent of Congress. Section 13 of the Federal Reserve Act does not
contain a paragraph designated as ``(3)''.
Codification
In subsec. (k), ``subchapter II of chapter 5, and chapter 7, of
title 5'' was substituted for ``the Administrative Procedure Act'' on
authority of section 7(b) of Pub. L. 89-554, Sept. 6, 1966, 80 Stat.
631, the first section of which enacted Title 5, Government Organization
and Employees.
Section is comprised of section 11 of act Dec. 23, 1913. The
fourteenth par. of section 16 of act Dec. 23, 1913, which formerly
constituted subsec. (o) of this section, is now classified to section
248-1 of this title.
Amendments
2002--Subsec. (r). Pub. L. 107-297 added subsec. (r).
2001--Subsec. (q). Pub. L. 107-56 added subsec. (q).
1999--Subsec. (m). Pub. L. 106-102 substituted ``[Repealed]'' for
text of subsec. (m) which related to percentage of capital and surplus
represented by loans to be determined by the Federal Reserve Board.
1994--Subsec. (d). Pub. L. 103-325, Sec. 602(g)(2), substituted
``Secretary of the Treasury'' for ``bureau under the charge of the
Comptroller of the Currency'' before ``the issue and retirement'' and
for ``Comptroller'' before ``to the Federal Reserve agents''.
Subsec. (m). Pub. L. 103-325, Sec. 322(d), which directed
substitution of ``15 percent'' for ``10 percentum'' wherever appearing,
was executed by substituting ``15 percent'' for ``10 per centum'' in two
places to reflect the probable intent of Congress.
Subsec. (p). Pub. L. 103-325, Sec. 331(d), added subsec. (p).
1992--Subsecs. (o), (p). Pub. L. 102-550 redesignated subsec. (p) as
(o).
1991--Subsec. (n). Pub. L. 102-242, Sec. 142(c), which directed
addition of subsec. (n) at end of section, was executed by adding
subsec. (n) after subsec. (m). See Construction of 1991 Amendment note
below.
Subsec. (p). Pub. L. 102-242, Sec. 133(f), added subsec. (p).
1989--Subsec. (a)(2)(iii). Pub. L. 101-73 substituted ``the Director
of the Office of Thrift Supervision in the case of any savings
association which is an insured depository institution (as defined in
section 1813 of this title)'' for ``Federal Home Loan Bank Board in the
case of any institution insured by the Federal Savings and Loan
Insurance Corporation''.
1983--Subsec. (m). Pub. L. 97-457 substituted ``under section
84(c)(4) of this title'' for ``under paragraph (8) of section 84 of this
title'' after ``in the case of national banks''.
1982--Subsec. (n). Pub. L. 97-258 struck out subsec. (n) which
provided that, whenever in the judgment of the Secretary of the Treasury
such action was necessary to protect the currency system of the United
States, the Secretary of the Treasury, in his discretion, could require
any or all individuals, partnerships, associations, and corporations to
pay and deliver to the Treasurer of the United States any or all gold
coin, gold bullion, and gold certificates owned by such individuals,
partnerships, associations, and corporations and that, upon receipt of
such gold coin, gold bullion or gold certificates, the Secretary of the
Treasury would pay therefor an equivalent amount of any other form of
coin or currency coined or issued under the laws of the United States.
1980--Subsec. (a). Pub. L. 96-221 designated existing provisions as
par. (1) and added par. (2).
1978--Subsec. (k). Pub. L. 95-251 substituted ``administrative law
judges'' for ``hearing examiners''.
1968--Subsec. (c). Pub. L. 90-269 struck out requirements for
establishment by the Board of Governors of the Federal Reserve System of
a graduated tax on the deficiency in the gold reserve whenever the
reserve held against Federal Reserve notes fell below 25 percent and for
an automatic increase in the rates of interest or discount fixed by the
Board in an amount equal to the graduated tax imposed.
1966--Subsec. (d). Pub. L. 89-427 excepted the cancellation and
destruction, and the accounting with respect to the cancellation and
destruction, of notes unfit for circulation from the area of
responsibility exercised by the Board of Governors of the Federal
Reserve System through the Bureau of the Comptroller of the Currency
over the issue and retirement of Federal Reserve notes.
Subsec. (k). Pub. L. 89-765 added subsec. (k). A former subsec. (k)
was repealed by Pub. L. 87-722, Sec. 3, Sept. 28, 1962, 76 Stat. 670.
1962--Subsec. (k). Pub. L. 87-722 repealed subsec. (k) which related
to the authority of the Board of Governors of the Federal Reserve System
to permit national banks to act as trustees, etc., and is now covered by
section 92a of this title.
1959--Subsec. (e). Pub. L. 86-114 substituted ``reserve cities'' for
``reserve and central reserve cities'' in two places.
Subsec. (m). Pub. L. 86-251 struck out ``in the form of notes''
after ``represented by obligations'' in proviso.
1945--Subsec. (c). Act June 12, 1945, substituted ``25 per centum''
for ``40 per centum'', and ``20 per centum'' for ``32\1/2\ per centum''
wherever appearing.
1935--Subsec. (k). Act Aug. 23, 1935, Sec. 342, amended last
sentence of third par.
Subsec. (m). Act Aug. 23, 1935, Sec. 321(a), inserted proviso at end
of first sentence.
1933--Subsec. (m). Act June 16, 1933, amended provisions generally.
Subsec. (n). Act Mar. 9, 1933, added subsec. (n).
1930--Subsec. (k). Act June 26, 1930, added last par.
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.
Termination Date of 2001 Amendment
Amendments by title III of Pub. L. 107-56 to terminate effective on
and after the first day of fiscal year 2005 if Congress enacts a joint
resolution that such amendments no longer have the force of law, see
section 303 of Pub. L. 107-56, set out as a Four-Year Congressional
Review; Expedited Consideration note under section 5311 of Title 31,
Money and Finance.
Effective Date of 1992 Amendment
Amendment by Pub. L. 102-550 effective as if included in the Federal
Deposit Insurance Corporation Improvement Act of 1991, Pub. L. 102-242,
as of Dec. 19, 1991, except that where amendment is to any provision of
law added or amended by Pub. L. 102-242 effective after Dec. 19, 1992,
then amendment by Pub. L. 102-550 effective on effective date of
amendment by Pub. L. 102-242, see section 1609 of Pub. L. 102-550, set
out as a note under section 191 of this title.
Effective Date of 1991 Amendment
Amendment by section 133(f) of Pub. L. 102-242 effective 1 year
after Dec. 19, 1991, see section 133(g) of Pub. L. 102-242, set out as a
note under section 191 of this title.
Effective Date of 1980 Amendment
Section 108 of title I of Pub. L. 96-221 provided that: ``This title
[enacting section 248a of this title, amending this section and sections
342, 347b, 355, 360, 412, 461, 463, 505, and 1425a of this title, and
enacting provisions set out as notes under sections 226 and 355 of this
title] shall take effect on the first day of the sixth month which
begins after the date of the enactment of this title [Mar. 31, 1980],
except that the amendments regarding sections 19(b)(7) and 19(b)(8)(D)
of the Federal Reserve Act [section 461(b)(7) and (b)(8)(D) of this
title] shall take effect on the date of enactment of this title.''
Effective Date of 1959 Amendment
Amendment by Pub. L. 86-114 effective three years after July 28,
1959, see section 3(b) of Pub. L. 86-114, set out as a Central Reserve
and Reserve Cities note under section 141 of this title.
Construction of 1991 Amendment
Section 1603(e)(2) of Pub. L. 102-550 provided that: ``The amendment
made by section 142(c) of the Federal Deposit Insurance Corporation
Improvement Act of 1991 [Pub. L. 102-242] (adding a paragraph at the end
of section 11 of the Federal Reserve Act [this section]) shall be
considered to have been executed before the amendment made by section
133(f) of the Federal Deposit Insurance Corporation Improvement Act of
1991 [amending this section].''
Transfer of Functions
For transfer of functions to Secretary of the Treasury, see note set
out under section 121 of this title.
Executive Order No. 6359
Ex. Ord. No. 6359, Oct. 25, 1933, as amended by Ex. Ord. No. 11825,
Dec. 31, 1974, 40 F.R. 1003, which provided for receipt on consignment
of gold by the United States mints and assay offices, was revoked by Ex.
Ord. No. 12553, Feb. 25, 1986, 51 F.R. 7237.
Ex. Ord. No. 10547. Inspection of Statistical Transcript Cards
Ex. Ord. No. 10547, July 27, 1954, 19 F.R. 4661, required
statistical transcript cards submitted with, or prepared by the Internal
Revenue Service from, corporation income tax returns for the taxable
years ending after June 30, 1951, and before July 1, 1952, to be open to
inspection by the Board of Governors of the Federal Reserve System as an
aid in executing the powers conferred upon such Board by this section,
such inspection to be in accordance and upon compliance with the rules
and regulations prescribed by the Secretary of the Treasury in T.D.
6081, 19 F.R. 4666.
Section Referred to in Other Sections
This section is referred to in sections 212, 501, 3105 of this
title; title 5 section 5373.
