§ 412. — Application for notes; collateral required.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC412]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER XII--FEDERAL RESERVE NOTES
Sec. 412. Application for notes; collateral required
Any Federal Reserve bank may make application to the local Federal
Reserve agent for such amount of the Federal Reserve notes hereinbefore
provided for as it may require. Such application shall be accompanied
with a tender to the local Federal Reserve agent of collateral in amount
equal to the sum of the Federal Reserve notes thus applied for and
issued pursuant to such application. The collateral security thus
offered shall be notes, drafts, bills of exchange, or acceptances
acquired under section 92, 342 to 348, 349 to 352, 361, 372, or 373 of
this title, or bills of exchange endorsed by a member bank of any
Federal Reserve district and purchased under the provisions of sections
348a and 353 to 359 of this title, or bankers' acceptances purchased
under the provisions of said sections 348a and 353 to 359 of this title,
or gold certificates, or Special Drawing Right certificates, or any
obligations which are direct obligations of, or are fully guaranteed as
to principal and interest by, the United States or any agency thereof,
or assets that Federal Reserve banks may purchase or hold under sections
348a and 353 to 359 of this title. In no event shall such collateral
security be less than the amount of Federal Reserve notes applied for.
The Federal Reserve agent shall each day notify the Board of Governors
of the Federal Reserve System of all issues and withdrawals of Federal
Reserve notes to and by the Federal Reserve bank to which he is
accredited. The said Board of Governors of the Federal Reserve System
may at any time call upon a Federal Reserve bank for additional security
to protect the Federal Reserve notes issued to it. Collateral shall not
be required for Federal Reserve notes which are held in the vaults of
Federal Reserve banks.
(Dec. 23, 1913, ch. 6, Sec. 16 (par.), 38 Stat. 265; Sept. 7, 1916, ch.
461, 39 Stat. 754; June 21, 1917, ch. 32, Sec. 7, 40 Stat. 236; Feb. 27,
1932, ch. 58, Sec. 3, 47 Stat. 57; Feb. 3, 1933, ch. 34, 47 Stat. 794;
Jan. 30, 1934, ch. 6, Sec. 2(b)(2), 48 Stat. 338; Mar. 6, 1934, ch. 47,
48 Stat. 398; Aug. 23, 1935, ch. 614, title II, Sec. 203(a), 49 Stat.
704; Mar. 1, 1937, ch. 20, 50 Stat. 23; June 30, 1939, ch. 256, 53 Stat.
991; June 30, 1941, ch. 264, 55 Stat. 395; May 25, 1943, ch. 102, 57
Stat. 85; June 12, 1945, ch. 186, Sec. 2, 59 Stat. 237; Pub. L. 90-349,
Sec. 5(a), June 19, 1968, 82 Stat. 189; Pub. L. 95-630, title I,
Sec. 113, Nov. 10, 1978, 92 Stat. 3671; Pub. L. 96-221, title I,
Sec. 105(b)(1), Mar. 31, 1980, 94 Stat. 140; Pub. L. 106-122, Dec. 6,
1999, 113 Stat. 1638.)
Codification
Section is comprised of second par. of section 16 of act Dec. 23,
1913. For classification to this title of other pars. of section 16, see
Codification note set out under section 411 of this title.
Amendments
1999--Pub. L. 106-122 substituted ``acceptances acquired under
section 92, 342 to 348, 349 to 352, 361, 372, or 373 of this title'' for
``acceptances acquired under the provisions of sections 92, 342 to 347,
347c, 347d, 361, 372, and 373 of this title''.
1980--Pub. L. 96-221 inserted provisions relating to purchase, etc.,
of assets by Federal Reserve banks, and eliminating collateral
requirement for Federal Reserve notes held in Federal Reserve bank
vaults.
1978--Pub. L. 95-630 substituted ``any obligations which are direct
obligations of, or are fully guaranteed as to principal and interest by,
the United States or any agency thereof'' of ``direct obligations of the
United States''.
1968--Pub. L. 90-349 added Special Drawing Right certificates to the
types of allowable collateral security which may be tendered for Federal
Reserve notes.
1945--Act June 12, 1945, substituted ``, or direct obligations of
the United States.'' for proviso after ``gold certificates'' in first
sentence which limited period during which direct obligations of the
United States could be accepted as collateral security.
1943--Act May 25, 1943, substituted ``June 30, 1945'' for ``June 30,
1943,'' in proviso.
1941--Act June 30, 1941, substituted ``June 30, 1943'' for ``June
30, 1941'' in proviso.
1939--Act June 30, 1939, substituted ``June 30, 1941'' for ``June
30, 1939'' in proviso.
1937--Act Mar. 1, 1937, extended until June 30, 1939, period within
which direct obligations of the United States may be accepted as
collateral security under this section, and struck out provision
authorizing President to extend period.
1934--Act Mar. 6, 1934, amended proviso and two sentences
immediately following.
Act Jan. 30, 1934, amended portion of third sentence before proviso.
1933--Act Feb. 3, 1933, substituted ``March 3, 1934'' for ``March 3,
1933'' wherever appearing.
1932--Act Feb. 27, 1932, inserted proviso and two sentences
immediately following.
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 1980 Amendment
Amendment by Pub. L. 96-221 effective on first day of sixth month
which begins after Mar. 31, 1980, see section 108 of Pub. L. 96-221, set
out as a note under section 248 of this title.
Effective Date of 1978 Amendment
Amendment effective upon expiration of 120 days after Nov. 10, 1978,
see sec. 2101 of Pub. L. 95-630 set out as an Effective Date note under
section 375b of this title.
United States Obligations as Collateral; Extension of Period
The period within which direct obligations of the United States
could be accepted as collateral security under this section was extended
to Mar. 3, 1937, by Proclamation No. 2117, of Feb. 14, 1935, 49 Stat.
3437; extended to June 30, 1939, by act Mar. 1, 1937; extended to June
30, 1941, by act June 30, 1939; extended to June 30, 1943, by act June
30, 1941; and extended to June 30, 1945, by act May 25, 1943. Act June
12, 1945, amended section to remove the time limitation.
Section Referred to in Other Sections
This section is referred to in sections 347a, 348, 420, 421, 461,
467 of this title.
