§521 — Title 12 Banks and Banking | U.S. Code

Summary

The Board of Governors can let or require a Federal Reserve bank to open branch banks in its own district or in the district of a suspended Reserve bank. Each branch must have 3 to 7 directors; the local Federal Reserve bank names the majority and the Board of Governors appoints the rest. Directors serve until the Board removes them. The Board can order a branch closed and the bank must wind up its business under the Board’s rules. A Federal Reserve bank cannot sign contracts to build or start building a branch without the Board’s approval.

Title 12, §521

Banks and Banking — Source: USLM XML via OLRC

The Board of Governors of the Federal Reserve System may permit or require any Federal reserve bank to establish branch banks within the Federal reserve district in which it is located or within the district of any Federal reserve bank which may have been suspended. Such branches, subject to such rules and regulations as the Board of Governors of the Federal Reserve System may prescribe, shall be operated under the supervision of a board of directors to consist of not more than seven nor less than three directors, of whom a majority of one shall be appointed by the Federal reserve bank of the district, and the remaining directors by the Board of Governors of the Federal Reserve System. Directors of branch banks shall hold office during the pleasure of the Board of Governors of the Federal Reserve System. The Board of Governors of the Federal Reserve System may at any time require any Federal reserve bank to discontinue any branch of such Federal reserve bank established under this section. The Federal reserve bank shall thereupon proceed to wind up the business of such branch bank, subject to such rules and regulations as the Board of Governors of the Federal Reserve System may prescribe. No Federal Reserve bank shall have authority hereafter to enter into any contract or contracts for the erection of any branch bank building of any kind or character or to authorize the erection of any such building, except with the approval of the Board of Governors of the Federal Reserve System.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1962—Pub. L. 87–622 added par. providing that no Federal Reserve Bank shall have authority to enter into any contract for the erection of a branch bank building or to authorize the erection of such building, except with the approval of the Board of Governors of the Federal Reserve System. 1927—Act Feb. 25, 1927, added par. authorizing the Federal Reserve Board to discontinue and wind up the business of branch banks.

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.

§521 Reserve-bank Branches; Establishment; Directors; Discontinuance of Branches; Approval for Erection of Branch Bank Building