PRIA, Government Policy, Made Personal

Summary

The Federal Reserve Board can issue Federal Reserve notes only to lend money to Federal Reserve banks through reserve agents. These notes are obligations of the United States. All national and member banks and Federal Reserve banks must accept them, and they can be used to pay taxes, customs, and other public dues. They can be exchanged for lawful money on demand at the U.S. Treasury in Washington, D.C., or at any Federal Reserve Bank.

Title 12, §411

Banks and Banking, Source: USLM XML via OLRC

Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.

Notes & Related Subsidiaries

Editorial Notes

References in Text

Phrase “hereinafter set forth” is from section 16 of the Federal Reserve Act, act Dec. 23, 1913. Reference probably means as set forth in section 17 et seq. of the Federal Reserve Act. For classification of these sections to the Code, see Tables. Codification Section is comprised of first par. of section 16 of act Dec. 23, 1913. Pars. 2 to 5, 6 (formerly 7), 7 to 10 (formerly 8 to 11, respectively), 12 (formerly 13), 13 (formerly 14), and 14 to 16 (formerly 15, 16, and 18, respectively) of section 16 of act Dec. 23, 1913, are classified to sections 412 to 415, 416, 418 to 421, 360, 248–1, and 467, respectively, of this title. Former pars. 6 and 17 of section 16 of act Dec. 23, 1913, formerly classified to section 415 and 467, respectively, of this title, were repealed by Pub. L. 90–269, §§ 5, 7, Mar. 18, 1968, 82 Stat. 50. Par. 11 (formerly 12) of section 16 of act Dec. 23, 1913, formerly classified to section 422 of this title, was superseded by act June 26, 1934, ch. 756, § 1(a), (b)(3), 48 Stat. 1225.

Amendments

1934—Act Jan. 30, 1934, struck out from last sentence provision permitting redemption in gold.

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.

§411 Issuance to Reserve Banks; Nature of Obligation; Redemption