§ 287. — Value of shares of stock; increase and decrease of stock; member banks as shareholders; surrender of shares.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC287]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER VI--CAPITAL AND STOCK OF FEDERAL RESERVE BANKS; DIVIDENDS AND
EARNINGS
Sec. 287. Value of shares of stock; increase and decrease of
stock; member banks as shareholders; surrender of shares
The capital stock of each Federal reserve bank shall be divided into
shares of $100 each. The outstanding capital stock shall be increased
from time to time as member banks increase their capital stock and
surplus or as additional banks become members, and may be decreased as
member banks reduce their capital stock or surplus or cease to be
members. Shares of the capital stock of Federal reserve banks owned by
member banks shall not be transferred or hypothecated. When a member
bank increases its capital stock or surplus, it shall thereupon
subscribe for an additional amount of capital stock of the Federal
reserve bank of its district equal to 6 per centum of the said increase,
one-half of said subscription to be paid in the manner hereinbefore
provided for original subscription, and one-half subject to call of the
Board of Governors of the Federal Reserve System. A bank applying for
stock in a Federal reserve bank at any time after the organization
thereof must subscribe for an amount of the capital stock of the Federal
reserve bank equal to 6 per centum of the paid-up capital stock and
surplus of said applicant bank, paying therefor its par value plus one-
half of 1 per centum a month from the period of the last dividend. When
a member bank reduces its capital stock or surplus it shall surrender a
proportionate amount of its holdings in the capital stock of said
Federal Reserve bank. Any member bank which holds capital stock of a
Federal Reserve bank in excess of the amount required on the basis of 6
per centum of its paid-up capital stock and surplus shall surrender such
excess stock. When a member bank voluntarily liquidates it shall
surrender all of its holdings of the capital stock of said Federal
Reserve bank and be released from its stock subscription not previously
called. In any such case the shares surrendered shall be canceled and
the member bank shall receive in payment therefor, under regulations to
be prescribed by the Board of Governors of the Federal Reserve System, a
sum equal to its cash-paid subscriptions on the shares surrendered and
one-half of 1 per centum a month from the period of the last dividend
not to exceed the book value thereof, less any liability of such member
bank to the Federal Reserve bank.
(Dec. 23, 1913, ch. 6, Sec. 5, 38 Stat. 257; Aug. 23, 1935, ch. 614,
title II, Sec. 203(a), title III, Sec. 319(a), 49 Stat. 704, 713.)
Amendments
1935--Act Aug. 23, 1935, Sec. 319(a), amended last four sentences.
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.
Section Referred to in Other Sections
This section is referred to in section 321 of this title.
