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Code · BILL · 116th Congress · H.R. 8721 (Introduced in House) — To provide for the Federal charter of certain public banks, and for other purposes. · Sec. 103

Sec. 103. Federal Reserve System membership

152 words·~1 min read·/bill/116/hr/8721/ih/section-103

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A covered bank shall be eligible for membership in the Federal Reserve System as a public member bank and, except as provided in subsection (c), shall be treated in the same manner as a member bank under section 4 of the Federal Reserve Act ( 12 U.S.C. 308 ). The Board of Governors shall establish a special category of public member bank, called a conditional public member bank , for persons that are in the process of applying for becoming a covered bank. Such conditional public member banks shall be subject to such conditions and restrictions as the Board of Governors determines to be necessary and appropriate to promote public welfare, provided that such conditions and restrictions are not arbitrary, punitive, or unduly burdensome.
The Board of Governors may not require a covered bank to purchase stock in a Federal Reserve Bank or otherwise maintain paid-in capital in the Federal Reserve System.
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Sec. 103
Federal Reserve System membership
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