Title 12 — Banks and BankingRelease 119-73not60
§327 Surrender of Stock and Cancellation of Memberships
Title 12 › Chapter 3— FEDERAL RESERVE SYSTEM › Subchapter VIII— STATE BANKS AS MEMBERS OF SYSTEM › § 327
Summary
After a hearing, the Board may require a member bank to give up its Federal Reserve Bank stock and lose membership if the bank breaks the rules or stops banking without a receiver. The Board can later restore membership if the bank proves it now follows the rules.
Full Legal Text
Title 12, §327
Banks and Banking — Source: USLM XML via OLRC
If at any time it shall appear to the Board of Governors of the Federal Reserve System that a member bank has failed to comply with the provisions of this subchapter, or the regulations of the Board of Governors of the Federal Reserve System made pursuant thereto, or has ceased to exercise banking functions without a receiver or liquidating agent having been appointed therefor, it shall be within the power of the board after hearing to require such bank to surrender its stock in the Federal reserve bank and to forfeit all rights and privileges of membership. The Board of Governors of the Federal Reserve System may restore membership upon due proof of compliance with the conditions imposed by this subchapter.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
This subchapter, referred to in text, was in the original “this section”, meaning section 9 of act Dec. 23, 1913, which is classified generally to this subchapter (§ 321 et seq.). Codification Section is comprised of the ninth par. of section 9 of act Dec. 23, 1913, as amended. The ninth par. constituted the seventh par. of section 9 in 1917 (40 Stat. 232), became the eighth par. in 1927 (44 Stat. 1229), and became the ninth par. in 1950 (64 Stat. 458). For further details, see Codification note set out under section 321 of this title.
Amendments
1930—Act Apr. 23, 1930, inserted “or has ceased to exercise banking functions without a receiver or liquidating agent having been appointed therefor,” to first sentence.
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. § 327
Title 12 — Banks and Banking
Last Updated
Apr 3, 2026
Release point: 119-73not60