12 U.S.C. § 411 — Issuance to reserve banks; nature of obligation; redemption

submitted 113 years ago by ch. 6 to r/title-12-BANKS-AND-BANKING · 109 words · no verdicts yet

in plain englishAI-generated · not legal advice

Federal Reserve notes may be issued only to make advances to Federal Reserve banks, at the Board of Governors' discretion, and for no other purpose. These notes are obligations of the United States, and banks and government agencies must accept them for debts, taxes, and customs. They must be redeemed in lawful money on demand at the Treasury or any Federal Reserve bank.

This section has no lettered subsections. Federal Reserve notes are authorized, to be issued whenever the Board of Governors of the Federal Reserve System decides, but only to make advances to Federal Reserve banks (through Federal Reserve agents) — for no other purpose. These notes count as obligations of the United States. All national banks, member banks, and Federal Reserve banks must accept them, and they must be accepted for all taxes, customs duties, and other public debts. They must be redeemed in lawful money on demand, either at the Treasury Department in Washington, D.C., or at any Federal Reserve bank.

the actual law source: uscode.house.gov ↗public domain

Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.

Source credit: (Dec. 23, 1913, ch. 6, § 16 (par.), 38 Stat. 265; Jan. 30, 1934, ch. 6, § 2(b)(1), 48 Stat. 337; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704.)

history & why it existsrecord from the source credit

1913Enacted · Act of Dec. 23, 1913, ch. 6 · 38 Stat. 265
1934Amended · Act of Jan. 30, 1934, ch. 6 · 48 Stat. 337
1935Amended · Act of Aug. 23, 1935, ch. 614 · 49 Stat. 704

A history note hasn’t been published yet. The record shows enactment by ch. 6 on 1913-12-23.

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