12 U.S.C. § 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

Withdrawing and replacing collateral Any Federal Reserve bank may, at its own discretion, withdraw collateral it deposited with its local Federal Reserve agent — collateral that protects the Federal Reserve notes issued to that bank. At the same time, the bank must substitute other collateral of equal amount. The Federal Reserve agent must approve the swap, under regulations set by the Board of Governors of the Federal Reserve System. Getting collateral back by retiring notes A 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. Once it does, the bank is entitled to receive back the collateral deposited with the Federal Reserve agent for the security of those notes. Getting collateral back after paying the Treasury A Federal Reserve bank is also entitled to receive back collateral deposited for the security of any notes for which that bank has already made payment to the Secretary of the Treasury under section 4 of the Old Series Currency Adjustment Act. Reissuing deposited notes Federal Reserve notes deposited this way cannot be reissued unless the conditions for an original issue are met.