Title 12, Banks and BankingRelease 119-102
§290 Use of Earnings Transferred to the Treasury
Title 12 › CHAPTER 3 — FEDERAL RESERVE SYSTEM › SUBCHAPTER VI — CAPITAL AND STOCK OF FEDERAL RESERVE BANKS; DIVIDENDS AND EARNINGS › § 290
Summary
The Secretary of the Treasury may use the net earnings from Federal Reserve Banks either to add to the gold reserve that backs U.S. notes or to reduce the United States’ bonded debt, following rules the Secretary sets. If a Federal Reserve Bank is closed or liquidated, any leftover money after paying debts, required dividends, and the stock’s par value goes to the United States and is used the same way.
Full Legal Text
Title 12, §290
Banks and Banking, Source: USLM XML via OLRC
The net earnings derived by the United States from Federal reserve banks shall, in the discretion of the Secretary, be used to supplement the gold reserve held against outstanding United States notes, or shall be applied to the reduction of the outstanding bonded indebtedness of the United States under regulations to be prescribed by the Secretary of the Treasury. Should a Federal reserve bank be dissolved or go into liquidation, any surplus remaining, after the payment of all debts, dividend requirements as hereinbefore provided, and the par value of the stock, shall be paid to and become the property of the United States and shall be similarly applied.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Codification Section is comprised of subsec. (b) [formerly second undesignated par.] of section 7 of act Dec. 23, 1913. Subsec. (a) and another subsec. (b) [enacted by Pub. L. 106–113, div. B, § 1000(a)(5) [title III, § 302(2)], Nov. 29, 1999, 113 Stat. 1536, 1501A–304] of section 7 are classified to section 289 of this title. Subsec. (c) of section 7 is classified to section 531 of this title.
Amendments
1993—Pub. L. 103–66 inserted section catchline.
Reference
Citations & Metadata
Citation
12 U.S.C. § 290
Title 12, Banks and Banking
Last Updated
Aug 21, 2026
Release point: 119-102