12 U.S.C. § 418 — Printing of notes; denomination and form

Page 161 TITLE 12—BANKS AND BANKING § 418 Editorial Notes REFERENCES IN TEXT Section 4 of the Old Series Currency Adjustment Act, referred to in text, which was classified to section 913 of former Title 31, was repealed by Pub. L. 97–258, § 5(b), Sept. 13, 1982, 96 Stat. 1068, the first section of which enacted Title 31, Money and Finance. CODIFICATION Section is comprised of the sixth par. (formerly the seventh par.) of section 16 of act Dec. 23, 1913. For clas- sification to this title of other pars. of section 16, see Codification note set out under section 411 of this title. AMENDMENTS 1968—Pub. L. 90–269 repealed fourth sentence which provided that Federal Reserve banks shall not be re- quired to maintain the reserve or the redemption fund against Federal Reserve notes which have been retired, or as to which payment has been made to the Secretary of the Treasury under section 4 of the Old Series Cur- rency Adjustment Act, on notes of series prior to 1928. 1961—Pub. L. 87–66 provided for recovery of collateral upon payment of notes of series prior to 1928 and re- moved requirement of reserve or redemption fund for such notes. 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. Executive Documents TRANSFER OF FUNCTIONS For transfer of functions to Secretary of the Treas- ury, see note set out under section 55 of this title. § 417. Custody and safe-keeping of notes issued to and collateral deposited with Reserve agent All Federal Reserve notes and all gold certifi- cates, Special Drawing Right certificates, and lawful money issued to or deposited with any Federal Reserve agent under the provisions of the Federal Reserve Act shall hereafter be held for such agent, under such rules and regulations as the Board of Governors of the Federal Re- serve System may prescribe, in the joint cus- tody of himself and the Federal Reserve bank to which he is accredited. Such agent and such Federal Reserve bank shall be jointly liable for the safe-keeping of such Federal Reserve notes, gold certificates, Special Drawing Right certifi- cates, and lawful money. Nothing herein con- tained, however, shall be construed to prohibit a Federal Reserve agent from depositing gold cer- tificates and Special Drawing Right certificates with the Board of Governors of the Federal Re- serve System, to be held by such Board subject to his order, or with the Treasurer of the United States for the purposes authorized by law. (June 21, 1917, ch. 32, § 7 (par.), 40 Stat. 238; Jan. 30, 1934, ch. 6, § 2(b)(6), 48 Stat. 339; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704; Pub. L. 90–349, § 5(c), June 19, 1968, 82 Stat. 189.) Editorial Notes REFERENCES IN TEXT The Federal Reserve Act, referred to in text, is act Dec. 23, 1913, ch. 6, 38 Stat. 251. For complete classifica- tion of this Act to the Code, see References in Text note set out under section 226 of this title and Tables. Hereafter, referred to in text, probably means on and after June 21, 1917. CODIFICATION Section is comprised of last par. of section 7 of act June 21, 1917. The preceding pars. of section 7 amended pars. two, three, four, five, six, and seven of section 16 of act Dec. 23, 1913. For classification to this title of section 16, see Codification note set out under section 411 of this title. AMENDMENTS 1968—Pub. L. 90–349, which directed amendment of ‘‘[t]he seventh paragraph of section 16 of the Federal Reserve Act, as amended (12 U.S.C. 417)’’ by inserting ‘‘, Special Drawing Right certificates,’’ after ‘‘gold cer- tificates’’ in the first sentence, ‘‘Special Drawing Right certificates,’’ after ‘‘gold certificates,’’ in the second sentence, and ‘‘and Special Drawing Right certificates’’ after ‘‘gold certificates’’ in the third sentence, was exe- cuted by making the insertions in this section, to re- flect the probable intent of Congress. 1934—Act Jan. 30, 1934, which directed general amend- ment of the eighth par. of section 16 of the Federal Re- serve Act, was executed to this section, to reflect the probable intent of Congress. Prior to amendment, text read as follows: ‘‘All Federal reserve notes and all gold, gold certificates, and lawful money issued to or depos- ited with any Federal reserve agent under the provi- sions of the Federal reserve Act shall hereafter be held for such agent, under such rules and regulations as the Federal Reserve Board may prescribe, in the joint cus- tody of himself and the Federal reserve bank to which he is accredited. Such agent and such Federal reserve bank shall be jointly liable for the safe-keeping of such Federal reserve notes, gold, gold certificates, and law- ful money. Nothing herein contained, however, shall be construed to prohibit a Federal reserve agent from de- positing gold or gold certificates with the Federal Re- serve Board, to be held by such board subject to his order, or with the Treasurer of the United States for the purposes authorized by law.’’ 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. Executive Documents TRANSFER OF FUNCTIONS For transfer of functions to Secretary of the Treas- ury, see note set out under section 55 of this title. § 418. Printing of notes; denomination and form In order to furnish suitable notes for circula- tion as Federal reserve notes, the Secretary of the Treasury shall cause plates and dies to be engraved in the best manner to guard against counterfeits and fraudulent alterations, and shall have printed therefrom and numbered such quantities of such notes of the denominations of $1, $2, $5, $10, $20, $50, $100, $500, $1,000, $5,000, $10,000 as may be required to supply the Federal Reserve banks. Such notes shall be in form and tenor as directed by the Secretary of the Treas- ury under the provisions of this chapter and shall bear the distinctive numbers of the several Federal reserve banks through which they are issued. (Dec. 23, 1913, ch. 6, § 16 (par.), 38 Stat. 267; Sept. 26, 1918, ch. 177, § 3, 40 Stat. 969; Pub. L. 88–36, Page 162 TITLE 12—BANKS AND BANKING § 419 title I, § 3, June 4, 1963, 77 Stat. 54; Pub. L. 103–325, title VI, § 602(g)(3), Sept. 23, 1994, 108 Stat. 2293.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’, meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, known as the Federal Reserve Act. For complete classi- fication of this Act to the Code, see References in Text note set out under section 226 of this title and Tables. CODIFICATION Section is comprised of the seventh par. (formerly the eighth par.) of section 16 of act Dec. 23, 1913. For classification to this title of other pars. of section 16, see Codification note set out under section 411 of this title. AMENDMENTS 1994—Pub. L. 103–325, which directed amendment of ‘‘[t]he 1st sentence of the 8th undesignated paragraph of section 16 of the Federal Reserve Act (12 U.S.C. 418)’’ by substituting ‘‘the Secretary of the Treasury shall’’ for ‘‘the Comptroller of the Currency shall under the direction of the Secretary of the Treasury,’’ was exe- cuted by making the substitution in this section for ‘‘the Comptroller of the Currency shall, under the di- rection of the Secretary of the Treasury,’’ to reflect the probable intent of Congress. 1963—Pub. L. 88–36, which directed amendment of ‘‘[t]he first sentence of the ninth paragraph of section 16 of the Federal Reserve Act (12 U.S.C. 418)’’ by insert- ing ‘‘$1, $2,’’ after ‘‘notes of the denominations of’’, was executed by making the insertion in this section, to re- flect the probable intent of Congress. 1918—Act Sept. 26, 1918, which directed general amendment of ‘‘the ninth paragraph of section sixteen of the Federal reserve Act, as amended by the Acts ap- proved September seventh, nineteen hundred and six- teen, and June twenty-first, nineteen hundred and sev- enteen,’’ was executed to the eighth par. of section 16 of act Dec. 23, 1913 (now classified to this section), to reflect the probable intent of Congress. Prior to amend- ment, text read as follows: ‘‘In order to furnish suitable notes for circulation as Federal reserve notes, the Comptroller of the Currency shall, under the direction of the Secretary of the Treasury, cause plates and dies to be engraved in the best manner to guard against counterfeits and fraudulent alterations, and shall have printed therefrom and numbered such quantities of such notes of the denominations of $5, $10, $20, $50, $100, as may be required to supply the Federal reserve banks. Such notes shall be in form and tenor as directed by the Secretary of the Treasury under the provisions of this Act and shall bear the distinctive numbers of the several Federal reserve banks through which they are issued.’’ § 419. Delivery of notes prior to delivery to banks When such notes have been prepared, the notes shall be delivered to the Board of Governors of the Federal Reserve System subject to the order of the Secretary of the Treasury for the delivery of such notes in accordance with this chapter. (Dec. 23, 1913, ch. 6, § 16 (par.), 38 Stat. 267; May 29, 1920, ch. 214, § 1, 41 Stat. 654; Pub. L. 103–325, title VI, § 602(g)(4), Sept. 23, 1994, 108 Stat. 2293.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’, meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, as amended, known as the Federal Reserve Act. For complete classification of this Act to the Code, see Ref- erences in Text note set out under section 226 of this title and Tables. CODIFICATION Section is comprised of the eighth par. (formerly the ninth par.) of section 16 of act Dec. 23, 1913. For classi- fication to this title of other pars. of section 16, see Codification note set out under section 411 of this title. On authority of act May 29, 1920, which abolished of- fices of Assistant Treasurers and distributed their func- tions, ‘‘designated depositary’’ substituted for ‘‘sub- treasury’’ in 1926 ed. of the Code. AMENDMENTS 1994—Pub. L. 103–325, which directed general amend- ment of ‘‘[t]he 9th undesignated paragraph of section 16 of the Federal Reserve Act (12 U.S.C. 419)’’, was exe- cuted to this section to reflect the probable intent of Congress. Prior to amendment, section read as follows: ‘‘When such notes have been prepared, they shall be de- posited in the Treasury, or in the designated depositary or mint of the United States nearest the place of busi- ness of each Federal reserve bank and shall be held for the use of such bank subject to the order of the Comp- troller of the Currency for their delivery, as provided by this chapter.’’ § 420. Control and direction of plates and dies; expense of issue and retirement of notes paid by banks The plates and dies to be procured by the Sec- retary of the Treasury for the printing of such circulating notes shall remain under his control and direction, and the expenses necessarily in- curred in executing the laws relating to the pro- curing of such notes, and all other expenses inci- dental to their issue and retirement, shall be paid by the Federal reserve banks, and the Board of Governors of the Federal Reserve Sys- tem shall include in its estimate of expenses lev- ied against the Federal reserve banks a suffi- cient amount to cover the expenses herein pro- vided for. (Dec. 23, 1913, ch. 6, § 16 (par.), 38 Stat. 267; Pub. L. 103–325, title VI, § 602(g)(5), Sept. 23, 1994, 108 Stat. 2293.) Editorial Notes REFERENCES IN TEXT Phrase ‘‘herein provided for’’, referred to in text, probably means as provided for in section 16 of act Dec. 23, 1913. For classification to this title of section 16, see Codification note set out under section 411 of this title. CODIFICATION Section is comprised of the ninth par. (formerly the tenth par.) of section 16 of act Dec. 23, 1913. For classi- fication to this title of other pars. of section 16, see Codification note set out under section 411 of this title. AMENDMENTS 1994—Pub. L. 103–325, which directed amendment of ‘‘[t]he 10th undesignated paragraph of section 16 of the Federal Reserve Act (12 U.S.C. 420)’’ by substituting ‘‘Secretary of the Treasury’’ for ‘‘Comptroller of the Currency’’ and ‘‘Board of Governors of the Federal Re- serve System’’ for ‘‘Federal Reserve Board’’, was exe- cuted by making the substitutions in this section to re- flect the probable intent of Congress. § 421. Examination of plates and dies The Secretary of the Treasury may examine the plates, dies, bed pieces, and other material