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Title 12 — Banks and BankingRelease 119-73not60

§244 Principal Offices of Board; Chairman of Board; Obligations and Expenses; Qualifications of Members; Vacancies

Title 12 › Chapter 3— FEDERAL RESERVE SYSTEM › Subchapter II— BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM › § 244

Last updated Apr 3, 2026|Official source

Summary

The Board must keep its main offices in the District of Columbia. At meetings the chair leads; if the chair is absent the vice chair leads; if both are absent the Board picks a temporary chair. The Board decides how to incur obligations and pay expenses. It may leave assessment money on deposit in Federal Reserve banks to pay its costs and salaries, and that money is not government appropriations. No Governor may be an officer, director, or stockholder of any bank or trust company; each must swear and file that before starting. If one of the seven presidentially appointed Governors leaves early, the President, with Senate approval, appoints someone to finish the term.

Full Legal Text

Title 12, §244

Banks and Banking — Source: USLM XML via OLRC

The principal offices of the Board shall be in the District of Columbia. At meetings of the Board the chairman shall preside, and, in his absence, the vice chairman shall preside. In the absence of the chairman and the vice chairman, the Board shall elect a member to act as chairman pro tempore. The Board shall determine and prescribe the manner in which its obligations shall be incurred and its disbursements and expenses allowed and paid, and may leave on deposit in the Federal Reserve banks the proceeds of assessments levied upon them to defray its estimated expenses and the salaries of its members and employees, whose employment, compensation, leave, and expenses shall be governed solely by the provisions of this chapter and rules and regulations of the Board not inconsistent therewith; and funds derived from such assessments shall not be construed to be Government funds or appropriated moneys. No member of the Board of Governors of the Federal Reserve System shall be an officer or director of any bank, banking institution, trust company, or Federal Reserve bank or hold stock in any bank, banking institution, or trust company; and before entering upon his duties as a member of the Board of Governors of the Federal Reserve System he shall certify under oath that he has complied with this requirement, and such certification shall be filed with the secretary of the Board. Whenever a vacancy shall occur, other than by expiration of term, among the seven members of the Board of Governors of the Federal Reserve System appointed by the President as above provided, a successor shall be appointed by the President, by and with the advice and consent of the Senate, to fill such vacancy, and when appointed he shall hold office for the unexpired term of his predecessor.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in text, was in the original “this Act, specific

Amendments

thereof”, meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, known as the Federal Reserve Act. For complete classification of this Act to the Code, see

References in Text

note set out under section 226 of this title and Tables. Codification Section is comprised of fourth par. of section 10 of act Dec. 23, 1913. For classification to this title of other pars. of section 10, see Codification note set out under section 241 of this title. Word “seven” was substituted for “six” in last sentence on authority of section 203(b) of act Aug. 23, 1935, which increased membership of the Board of Governors.

Amendments

1935—Act Aug. 23, 1935, § 203(c), substituted second and third sentences for former related provisions. 1933—Act June 16, 1933, fixed the principal offices of the Board, made the Secretary of the Treasury chairman, provided for chairman pro tempore, and referred to disbursements, obligations, salaries and leaves.

Statutory Notes and Related Subsidiaries

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.

Reference

Citations & Metadata

Citation

12 U.S.C. § 244

Title 12 — Banks and Banking

Last Updated

Apr 3, 2026

Release point: 119-73not60