§ 289. — Dividends and surplus funds of reserve banks; transfer for fiscal year 2000.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC289]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER VI--CAPITAL AND STOCK OF FEDERAL RESERVE BANKS; DIVIDENDS AND
EARNINGS
Sec. 289. Dividends and surplus funds of reserve banks; transfer
for fiscal year 2000
(a) Dividends and surplus funds of reserve banks
(1) Stockholder dividends
(A) In general
After all necessary expenses of a Federal reserve bank have
been paid or provided for, the stockholders of the bank shall be
entitled to receive an annual dividend of 6 percent on paid-in
capital stock.
(B) Dividend cumulative
The entitlement to dividends under subparagraph (A) shall be
cumulative.
(2) Deposit of net earnings in surplus fund
That portion of net earnings of each Federal reserve bank which
remains after dividend claims under paragraph (1)(A) have been fully
met shall be deposited in the surplus fund of the bank.
(b) \1\ Transfer for fiscal year 2000
---------------------------------------------------------------------------
\1\ See Codification note below.
---------------------------------------------------------------------------
(1) In general
The Federal reserve banks shall transfer from the surplus funds
of such banks to the Board of Governors of the Federal Reserve
System for transfer to the Secretary of the Treasury for deposit in
the general fund of the Treasury, a total amount of $3,752,000,000
in fiscal year 2000.
(2) Allocated by Fed
Of the total amount required to be paid by the Federal reserve
banks under paragraph (1) for fiscal year 2000, the Board shall
determine the amount each such bank shall pay in such fiscal year.
(3) Replenishment of surplus fund prohibited
During fiscal year 2000, no Federal reserve bank may replenish
such bank's surplus fund by the amount of any transfer by such bank
under paragraph (1).
(Dec. 23, 1913, ch. 6, Sec. 7(a), (b), 38 Stat. 258; Mar. 3, 1919, ch.
101, Sec. 1, 40 Stat. 1314; June 16, 1933, ch. 89, Sec. 4, 48 Stat. 163;
Pub. L. 103-66, title III, Sec. 3002(a), Aug. 10, 1993, 107 Stat. 337;
Pub. L. 103-325, title VI, Sec. 602(d), Sept. 23, 1994, 108 Stat. 2291;
Pub. L. 106-113, div. B, Sec. 1000(a)(5) [title III, Sec. 302], Nov. 29,
1999, 113 Stat. 1536, 1501A-304.)
Codification
Section is comprised of subsec. (a) [formerly first undesignated
par.] of section 7 of act Dec. 23, 1913, and subsec. (b) [enacted by
Pub. L. 106-113, div. B, Sec. 1000(a)(5) [title III, Sec. 302(2)], Nov.
29, 1999, 113 Stat. 1536, 1501A-304] of section 7. Another subsec. (b)
of section 7 is classified to section 290 of this title. Subsec. (c) of
section 7 is classified to section 531 of this title.
Amendments
1999--Subsec. (a)(3). Pub. L. 106-113, Sec. 1000(a)(5) [title III,
Sec. 302(1)], struck out heading and text of par. (3). Text read as
follows: ``During fiscal years 1997 and 1998, any amount in the surplus
fund of any Federal reserve bank in excess of the amount equal to 3
percent of the total paid-in capital and surplus of the member banks of
such bank shall be transferred to the Board for transfer to the
Secretary of the Treasury for deposit in the general fund of the
Treasury.''
Subsec. (b). Pub. L. 106-113, Sec. 1000(a)(5) [title III,
Sec. 302(2)], added subsec. (b).
1994--Par. (1)(B). Pub. L. 103-325, Sec. 602(d)(1), inserted ``(A)''
after ``subparagraph''.
Par. (2). Pub. L. 103-325, Sec. 602(d)(2), substituted ``paragraph
(1)(A)'' for ``subparagraph (A)''.
1993--Pub. L. 103-66 inserted section catchline and amended section
generally. Prior to amendment, section read as follows: ``After all
necessary expenses of a Federal reserve bank shall have been paid or
provided for, the stockholders shall be entitled to receive an annual
dividend of 6 per centum on the paid-in capital stock, which dividend
shall be cumulative. After the aforesaid dividend claims have been fully
met, the net earnings shall be paid into the surplus fund of the Federal
reserve bank.''
1933--Act June 16, 1933, provided that net earnings shall be paid
into surplus instead of to the United States as a franchise tax.
Effective Date of 1933 Amendment
Section 4 of act June 16, 1933, provided that the amendment made by
that section is effective July 1, 1932.
Additional Transfers for Fiscal Years 1997 and 1998
Pub. L. 103-66, title III, Sec. 3002(b), Aug. 10, 1993, 107 Stat.
337, provided that:
``(1) In general.--In addition to the amounts required to be
transferred from the surplus funds of the Federal reserve banks pursuant
to section 7(a)(3) of the Federal Reserve Act [former 12 U.S.C.
289(a)(3)], the Federal reserve banks shall transfer from such surplus
funds to the Board of Governors of the Federal Reserve System for
transfer to the Secretary of the Treasury for deposit in the general
fund of the Treasury, a total amount of $106,000,000 in fiscal year 1997
and a total amount of $107,000,000 in fiscal year 1998.
``(2) Allocation by fed.--Of the total amount required to be paid by
the Federal reserve banks under paragraph (1) for fiscal year 1997 or
1998, the Board of Governors of the Federal Reserve System shall
determine the amount each such bank shall pay in such fiscal year.
``(3) Replenishment of surplus fund prohibited.--No Federal reserve
bank may replenish such bank's surplus fund by the amount of any
transfer by such bank under paragraph (1) during fiscal years 1997 and
1998.''
