12 U.S.C. § 466 — Reserves of banks in dependencies or insular possessions

submitted 113 years ago by ch. 6 to r/title-12-BANKS-AND-BANKING · 97 words · no verdicts yet

in plain englishAI-generated · not legal advice

Banks in U.S. territories outside the mainland can choose to stay outside the Federal Reserve system. If they stay out, they must keep following the reserve rules already in place for them. With the Board's consent, they can instead join a reserve district and follow this chapter's rules.

This section is a single, undivided provision. National banks, and banks organized under local law, located in a U.S. dependency or insular possession — meaning outside the continental United States — may choose to remain "nonmember banks." If they do, they must keep maintaining reserves and following all the current legal conditions that already apply to them. Alternatively, with the consent of the Board of Governors of the Federal Reserve System, these banks may become member banks of one of the Federal Reserve districts. If they become member banks, they must buy stock in that reserve bank, maintain reserves, and follow every other provision of this chapter, just like other member banks.

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

National banks, or banks organized under local laws, located in a dependency or insular possession or any part of the United States outside the continental United States, may remain nonmember banks, and shall in that event maintain reserves and comply with all the conditions now provided by law regulating them; or said banks may with the consent of the Board of Governors of the Federal Reserve System, become member banks of any one of the reserve districts, and shall in that event take stock, maintain reserves, and be subject to all the other provisions of this chapter.

Source credit: (Dec. 23, 1913, ch. 6, § 19(h), formerly § 19 (par. 11), 38 Stat. 270; Aug. 15, 1914, ch. 252, 38 Stat. 692; June 21, 1917, ch. 32, § 10, 40 Stat. 240; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704; Pub. L. 86–70, § 8(b), June 25, 1959, 73 Stat. 142; renumbered § 19(h), Pub. L. 89–597, § 2(b), Sept. 21, 1966, 80 Stat. 824.)

history & why it existsrecord from the source credit

1913Enacted · Act of Dec. 23, 1913, ch. 6 · 38 Stat. 270
1914Amended · Act of Aug. 15, 1914, ch. 252 · 38 Stat. 692
1917Amended · Act of June 21, 1917, ch. 32 · 40 Stat. 240
1935Amended · Act of Aug. 23, 1935, ch. 614 · 49 Stat. 704
1959Amended · Pub. L. 86-70 · 73 Stat. 142
1966Amended · Pub. L. 89-597 · 80 Stat. 824

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

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