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Federal Reserve Act

Official titleSection 1. Short title and definitionsSection 2. Federal Reserve DistrictsSection 2A. Monetary policy objectivesSection 2B. Appearances Before and Reports to the CongressSection 3. Branch OfficesSection 4. Federal Reserve BanksSection 5. Stock Issues; Increase and Decrease of CapitalSection 6. Insolvency of member banksSection 7. Division of EarningsSection 8. Conversion of state banks into national banksSection 9. State Banks as MembersSection 9A. Participation in lotteries prohibitedSection 9B. Resolution of Clearing BanksSection 10. Board of Governors of the Federal Reserve SystemSection 10A. Emergency advances to groups of member banks*Section 10B. Advances to Individual Member Banks*Section 11. Powers of Board of Governors of the Federal Reserve SystemSection 11A. Pricing of ServicesSection 11B. Annual Independent Audits of Federal Reserve Banks and BoardSection 11C. Master Account and Services DatabaseSection 12. Federal Advisory CouncilSection 12A. Federal Open Market CommitteeSection 13. Powers of Federal Reserve BanksSection 13A.* Discount of agricultural paperSection 14. Open-Market OperationsSection 15. Government DepositsSection 16. Note IssuesSection 17. Deposit of bonds by national banksSection 18. Refunding BondsSection 19. Bank ReservesSection 20. National bank notes redemption fund as reserveSection 21. Bank ExaminationsSection 22. Offenses of examiners, member banks, officers, and directorsSection 23. Interbank Liabilities*Section 23A. Relations with affiliatesSection 23B. Restrictions on Transactions with AffiliatesSection 24. Real Estate LoansSection 24A. Investment in Bank Premises or Stock of Corporation Holding PremisesSection 25. Foreign BranchesSection 25A. Banking Corporations Authorized to Do Foreign Banking Business*Section 25B. Jurisdiction of suits*Section 25C. Potential Liability on Foreign AccountsSection 26. [Repealed]Section 27. Tax on national bank notesSection 28. Reduction of capital of national banksSection 29. Civil Money PenaltySection 30. Saving clauseSection 31. Reservation of right to amend

Section 15. Government Deposits

1. Federal Reserve banks as depositaries and fiscal agents of United States

The moneys held in the general fund of the Treasury, except the five per centum fund for the redemption of outstanding national-bank notes may, upon the direction of the Secretary of the Treasury, be deposited in Federal reserve banks, which banks, when required by the Secretary of the Treasury, shall act as fiscal agents of the United States; and the revenues of the Government or any part thereof may be deposited in such banks, and disbursements may be made by checks drawn against such deposits.

[12 USC 391. As amended by the act of March 18, 1968 (82 Stat. 50). Also, in effect amended by act of May 29, 1920 (41 Stat. 654).

Reimbursement as fiscal agents is provided by 31 USC 3302(f) as follows:

"(f) When authorized by the Secretary, an official or agent of the Government having custody or possession of public money, or performing other fiscal agent services, may be allowed necessary expenses to collect, keep, transfer, and pay out public money and to perform those services. However, money appropriated for those expenses may not be used to employ or pay officers and employees of the Government."]

2. Nonmember banks as depositaries of United States

No public funds of the Philippine Islands, or of the postal savings, or any Government funds, shall be deposited in the continental United States in any bank not belonging to the system established by this Act: Provided, however, That nothing in this Act shall be construed to deny the right of the Secretary of the Treasury to use member banks as depositaries.

[12 USC 392. Part of original Federal Reserve Act; not specifically amended, but amended in effect by the following statutes permitting the deposit of government funds in nonmember banks: Under section 10 of the act of June 11, 1942, all insured banks designated for the purpose by the Secretary of the Treasury may be depositaries of public moneys of the United States under the Liberty Bond Acts, the proceeds of sales of Liberty bonds may be deposited in nonmember banks; and under the Internal Revenue Code, the Secretary of the Treasury may authorize banks or trust companies to receive taxes. For designation of state member banks as depositaries of public money, see section 9 of the Federal Reserve Act; for designation of national banks as depositaries of public money, see section 5153 of the Revised Statutes. "Continental United States" means "the States of the United States and the District of Columbia." (Federal Reserve Act, section 1, third paragraph.) Presidential Proclamation No. 2695 of July 4, 1946 (60 Stat. 1352; 12 USC 1394 note) recognizes the independence of the Philippine Islands. Therefore the words "of the Philippine Islands or" have been omitted from the U.S. Code.]

3. Depositaries and fiscal agents of Federal Intermediate Credit Banks

The Federal Reserve banks are authorized to act as depositaries for and fiscal agents of any Federal land bank, Federal intermediate credit bank, bank for cooperatives, or other institutions of the Farm Credit System.

[12 USC 393. As added by act of March 4, 1923 (42 Stat. 1480); and amended by act of Dec. 10, 1971 (85 Stat. 625).]

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Last Update: March 13, 2017