§341 General Enumeration of Powers

Summary

When a Federal Reserve Bank files its organization certificate with the Comptroller of the Currency, it becomes a corporation and gets a set of basic powers. It can adopt a corporate seal, exist in succession after February 25, 1927 until Congress dissolves it or it forfeits its franchise for breaking the law, make contracts, and sue or be sued. Its board names a president, a first vice president, and other officers and employees, sets their duties, may require bonds for them, and may fire them. The president is the bank’s chief executive. The president is chosen by the bank’s Class B and Class C directors and must have the approval of the Board of Governors of the Federal Reserve System for a term of 5 years. The first vice president is appointed the same way and serves as chief executive if the president is absent or unable to serve. Any vacancy is filled in the same manner, and the new appointee serves until the former term ends. The board makes bylaws that follow the law. The board or its authorized officers may use all powers the law gives and any needed incidental powers to run the bank’s business under the chapter’s limits. The bank may deposit U.S. bonds with the Treasurer and receive circulating notes equal to the bonds’ par value under the same conditions that apply to national banks, except those notes are not limited by the bank’s capital stock. The bank must not do business beyond organization steps until the Comptroller authorizes it to begin.