§ 521. — Reservebank branches; establishment; directors; discontinuance of branches; approval for erection of branch bank building.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC521]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER XVII--RESERVE-BANK BRANCHES
Sec. 521. Reserve-bank branches; establishment; directors;
discontinuance of branches; approval for erection of branch bank
building
The Board of Governors of the Federal Reserve System may permit or
require any Federal reserve bank to establish branch banks within the
Federal reserve district in which it is located or within the district
of any Federal reserve bank which may have been suspended. Such
branches, subject to such rules and regulations as the Board of
Governors of the Federal Reserve System may prescribe, shall be operated
under the supervision of a board of directors to consist of not more
than seven nor less than three directors, of whom a majority of one
shall be appointed by the Federal reserve bank of the district, and the
remaining directors by the Board of Governors of the Federal Reserve
System. Directors of branch banks shall hold office during the pleasure
of the Board of Governors of the Federal Reserve System.
The Board of Governors of the Federal Reserve System may at any time
require any Federal reserve bank to discontinue any branch of such
Federal reserve bank established under this section. The Federal reserve
bank shall thereupon proceed to wind up the business of such branch
bank, subject to such rules and regulations as the Board of Governors of
the Federal Reserve System may prescribe.
No Federal Reserve bank shall have authority hereafter to enter into
any contract or contracts for the erection of any branch bank building
of any kind or character or to authorize the erection of any such
building, except with the approval of the Board of Governors of the
Federal Reserve System.
(Dec. 23, 1913, ch. 6, Sec. 3, 38 Stat. 253; June 21, 1917, ch. 32,
Sec. 1, 40 Stat. 232; Feb. 25, 1927, ch. 191, Sec. 19, 44 Stat. 1234;
Aug. 23, 1935, ch. 614, title II, Sec. 203(a), 49 Stat. 704; Pub. L. 87-
622, Sec. 2, Aug. 31, 1962, 76 Stat. 418.)
Amendments
1962--Pub. L. 87-622 added par. providing that no Federal Reserve
Bank shall have authority to enter into any contract for the erection of
a branch bank building or to authorize the erection of such building,
except with the approval of the Board of Governors of the Federal
Reserve System.
1927--Act Feb. 25, 1927, added par. authorizing the Federal Reserve
Board to discontinue and wind up the business of branch banks.
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.
