§ 301. — Powers and duties of board of directors; suspension of member bank for undue use of bank credit.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC301]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER VII--DIRECTORS OF FEDERAL RESERVE BANKS; RESERVE AGENTS AND
ASSISTANTS
Sec. 301. Powers and duties of board of directors; suspension of
member bank for undue use of bank credit
Every Federal reserve bank shall be conducted under the supervision
and control of a board of directors.
The board of directors shall perform the duties usually appertaining
to the office of directors of banking associations and all such duties
as are prescribed by law.
Said board of directors shall administer the affairs of said bank
fairly and impartially and without discrimination in favor of or against
any member bank or banks and may, subject to the provisions of law and
the orders of the Board of Governors of the Federal Reserve System,
extend to each member bank such discounts, advancements, and
accommodations as may be safely and reasonably made with due regard for
the claims and demands of other members banks, the maintenance of sound
credit conditions, and the accommodation of commerce, industry, and
agriculture. The Board of Governors of the Federal Reserve System may
prescribe regulations further defining within the limitations of this
chapter the conditions under which discounts, advancements, and the
accommodations may be extended to member banks. Each Federal reserve
bank shall keep itself informed of the general character and amount of
the loans and investments of its member banks with a view to
ascertaining whether undue use is being made of bank credit for the
speculative carrying of or trading in securities, real estate, or
commodities, or for any other purpose inconsistent with the maintenance
of sound credit conditions; and, in determining whether to grant or
refuse advances, rediscounts, or other credit accommodations, the
Federal reserve bank shall give consideration to such information. The
chairman of the Federal reserve bank shall report to the Board of
Governors of the Federal Reserve System any such undue use of bank
credit by any member bank, together with his recommendation. Whenever,
in the judgment of the Board of Governors of the Federal Reserve System,
any member bank is making such undue use of bank credit, the Board may,
in its discretion, after reasonable notice and an opportunity for a
hearing, suspend such bank from the use of the credit facilities of the
Federal Reserve System and may terminate such suspension or may renew it
from time to time.
(Dec. 23, 1913, ch. 6, Sec. 4 (pars.), 38 Stat. 255; June 16, 1933, ch.
89, Sec. 3(a), 48 Stat. 163; Aug. 23, 1935, ch. 614, title II,
Sec. 203(a), 49 Stat. 704.)
References in Text
This chapter, referred to in text, 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.
Codification
Section is comprised of pars. 6 to 8 of section 4 of act Dec. 23,
1913.
Pars. 1 to 3 and 25 of section 4 were omitted from the code as
executed.
Pars. 4 and 5, 9 to 12, 13 to 15, 16 to 21, 22, 24, and 26 of
section 4, and par. 23 of section 4 as added June 21, 1917, ch. 32,
Sec. 2, 40, Stat. 232, are classified to sections 341, 302, 303, 304,
305, 307, 308, and 306, respectively, of this title.
Amendments
1933--Act June 16, 1933, among other changes, added all after first
sentence in third 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.
Section Referred to in Other Sections
This section is referred to in section 442 of this title.
