§ 416. — Withdrawal of collateral deposited to protect notes and substitution of other collateral; retirement of notes; payment of notes of series prior to 1928; recovery of collateral; reissue of deposited notes.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC416]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER XII--FEDERAL RESERVE NOTES
Sec. 416. Withdrawal of collateral deposited to protect notes
and substitution of other collateral; retirement of notes;
payment of notes of series prior to 1928; recovery of
collateral; reissue of deposited notes
Any Federal Reserve bank may at its discretion withdraw collateral
deposited with the local Federal Reserve agent for the protection of its
Federal Reserve notes issued to it, and shall at the same time
substitute therefor other collateral of equal amount with the approval
of the Federal Reserve agent under regulations to be prescribed by the
Board of Governors of the Federal Reserve System. Any Federal Reserve
bank may retire any of its Federal Reserve notes by depositing them with
the Federal Reserve agent or with the Treasurer of the United States,
and such Federal Reserve bank shall thereupon be entitled to receive
back the collateral deposited with the Federal Reserve agent for the
security of such notes. Any Federal Reserve bank shall further be
entitled to receive back the collateral deposited with the Federal
Reserve agent for the security of any notes with respect to which such
bank has made payment to the Secretary of the Treasury under section 4
of the Old Series Currency Adjustment Act. Federal Reserve notes so
deposited shall not be reissued except upon compliance with the
conditions of an original issue.
(Dec. 23, 1913, ch. 6, Sec. 16 (par.), 38 Stat. 267; June 21, 1917, ch.
32, Sec. 7, 40 Stat. 237; Aug. 23, 1935, ch. 614, title II, Sec. 203(a),
49 Stat. 704; Pub. L. 87-66, Sec. 8(b), June 30, 1961, 75 Stat. 147;
Pub. L. 90-269, Sec. 6, Mar. 18, 1968, 82 Stat. 50.)
References in Text
Section 4 of the Old Series Currency Adjustment Act, referred to in
text, which was classified to section 913 of former Title 31, was
repealed by Pub. L. 97-258, Sec. 5(b), Sept. 13, 1982, 96 Stat. 1068,
the first section of which enacted Title 31, Money and Finance.
Codification
Section is comprised of seventh 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
1968--Pub. L. 90-269 repealed fourth sentence which provided that
Federal Reserve banks shall not be required to maintain the reserve or
the redemption fund against Federal Reserve notes which have been
retired, or as to which payment has been made to the Secretary of the
Treasury under section 4 of the Old Series Currency Adjustment Act, on
notes of series prior to 1928.
1961--Pub. L. 87-66 provided for recovery of collateral upon payment
of notes of series prior to 1928 and removed requirement of reserve or
redemption fund for such notes.
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.
Transfer of Functions
For transfer of functions to Secretary of the Treasury, see note set
out under section 121 of this title.
Sections Referred to in Other Sections
This section is referred to in sections 348, 420, 421, 467 of this
title.
