12 U.S.C. § 341 — General enumeration of powers

submitted 113 years ago by ch. 6 to r/title-12-BANKS-AND-BANKING · 530 words · no verdicts yet

in plain englishAI-generated · not legal advice

Once a Federal Reserve Bank files its organization certificate, it becomes a corporation with listed powers. Those powers include making contracts, suing and being sued, hiring officers led by a president who serves a five-year term, setting bylaws, and issuing circulating notes backed by U.S. bonds. It can't do business, beyond organizing itself, until the Comptroller of the Currency authorizes it to start.

Once a Federal Reserve Bank files its organization certificate with the Comptroller of the Currency, it becomes a body corporate under the name in that certificate, with these powers: First. To adopt and use a corporate seal. Second. To exist continuously ("have succession") after February 25, 1927, until Congress dissolves it by law or it forfeits its charter for breaking the law. Third. To make contracts. Fourth. To sue and be sued, and to bring or defend claims, in any court of law or equity. Fifth. To appoint, through its board of directors, a president, vice presidents, and other officers and employees not otherwise covered by this chapter; to define their duties; to require bonds from them and set the bond amounts; and to dismiss them at will. The president is the bank's chief executive officer, appointed by the Class B and Class C directors with the Board of Governors' approval, for a five-year term; every other officer and employee reports directly to the president. The first vice president is appointed the same way, for the same term, and serves as chief executive officer if the president is absent, disabled, or the office is vacant. A vacancy in either office is filled the same way as an original appointment, and the new appointee serves out the rest of the predecessor's term. Sixth. To adopt, through its board of directors, bylaws — not conflicting with the law — that govern how it conducts its general business and exercises its legal privileges. Seventh. To exercise, through its board of directors or authorized officers or agents, every power this chapter specifically grants, plus whatever incidental powers are necessary to carry on the business of banking within this chapter's limits. Eighth. After depositing U.S. government bonds with the Treasurer of the United States, the same way national banks do, to receive blank circulating notes from the Secretary of the Treasury — registered and countersigned as required by law — equal in value to the bonds deposited. These notes are issued under the same conditions as national banks' bond-secured circulating notes, except that the amount a Federal Reserve Bank can issue is not capped by its capital stock. Finally, a Federal Reserve Bank can't conduct any business — except what's incidental and necessarily preliminary to getting organized — until the Comptroller of the Currency authorizes it to begin business under this chapter.

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

Upon the filing of the organization certificate with the Comptroller of the Currency a Federal reserve bank shall become a body corporate and as such, and in the name designated in such organization certificate, shall have power—

First. To adopt and use a corporate seal.

Second. To have succession after February 25, 1927, until dissolved by Act of Congress or until forfeiture of franchise for violation of law.

Third. To make contracts.

Fourth. To sue and be sued, complain and defend, in any court of law or equity.

Fifth. To appoint by its board of directors a president, vice presidents, and such officers and employees as are not otherwise provided for in this chapter, to define their duties, require bonds for them and fix the penalty thereof, and to dismiss at pleasure such officers or employees. The president shall be the chief executive officer of the bank and shall be appointed by the Class B and Class C directors of the bank, with the approval of the Board of Governors of the Federal Reserve System, for a term of 5 years; and all other executive officers and all employees of the bank shall be directly responsible to the president. The first vice president of the bank shall be appointed in the same manner and for the same term as the president, and shall, in the absence or disability of the president or during a vacancy in the office of president, serve as chief executive officer of the bank. Whenever a vacancy shall occur in the office of the president or the first vice president, it shall be filled in the manner provided for original appointments; and the person so appointed shall hold office until the expiration of the term of his predecessor.

Sixth. To prescribe by its board of directors, bylaws not inconsistent with law, regulating the manner in which its general business may be conducted, and the privileges granted to it by law may be exercised and enjoyed.

Seventh. To exercise by its board of directors, or duly authorized officers or agents, all powers specifically granted by the provisions of this chapter and such incidental powers as shall be necessary to carry on the business of banking within the limitations prescribed by this chapter.

Eighth. Upon deposit with the Treasurer of the United States of any bonds of the United States in the manner provided by existing law relating to national banks, to receive from the Secretary of the Treasury circulating notes in blank, registered and countersigned as provided by law, equal in amount to the par value of the bonds so deposited, such notes to be issued under the same conditions and provisions of law as relate to the issue of circulating notes of national banks secured by bonds of the United States bearing the circulating privilege, except that the issue of such notes shall not be limited to the capital stock of such Federal reserve bank.

But no Federal reserve bank shall transact any business except such as is incidental and necessarily preliminary to its organization until it has been authorized by the Comptroller of the Currency to commence business under the provisions of this chapter.

Source credit: (Dec. 23, 1913, ch. 6, § 4 (pars.), 38 Stat. 254; Feb. 25, 1927, ch. 191, § 18, 44 Stat. 1234; Aug. 23, 1935, ch. 614, title II, § 201, 49 Stat. 703; Pub. L. 103–325, title VI, § 602(g)(1), Sept. 23, 1994, 108 Stat. 2293; Pub. L. 111–203, title XI, § 1107, July 21, 2010, 124 Stat. 2126.)

history & why it existsrecord from the source credit

1913Enacted · Act of Dec. 23, 1913, ch. 6 · 38 Stat. 254
1927Amended · Act of Feb. 25, 1927, ch. 191 · 44 Stat. 1234
1935Amended · Act of Aug. 23, 1935, ch. 614 · 49 Stat. 703
1994Amended · Pub. L. 103-325 · 108 Stat. 2293
2010Amended · Pub. L. 111-203 · 124 Stat. 2126

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

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