§ 301. Powers and duties of board of directors; suspension of member bank for undue use of bank credit

583 words·~3 min read·/usc/title-12/section-301

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Every Federal reserve bank shall be conducted under the supervision and control of a board of directors.

The board of directors shall perform the duties usually appertaining to the office of directors of banking associations and all such duties as are prescribed by law.

Said board of directors shall administer the affairs of said bank fairly and impartially and without discrimination in favor of or against any member bank or banks and may, subject to the provisions of law and the orders of the Board of Governors of the Federal Reserve System, extend to each member bank such discounts, advancements, and accommodations as may be safely and reasonably made with due regard for the claims and demands of other member banks, the maintenance of sound credit conditions, and the accommodation of commerce, industry, and agriculture.

The Board of Governors of the Federal Reserve System may prescribe regulations further defining within the limitations of this chapter the conditions under which discounts, advancements, and the accommodations may be extended to member banks. Each Federal reserve bank shall keep itself informed of the general character and amount of the loans and investments of its member banks with a view to ascertaining whether undue use is being made of bank credit for the speculative carrying of or trading in securities, real estate, or commodities, or for any other purpose inconsistent with the maintenance of sound credit conditions; and, in determining whether to grant or refuse advances, rediscounts, or other credit accommodations, the Federal reserve bank shall give consideration to such information.

The chairman of the Federal reserve bank shall report to the Board of Governors of the Federal Reserve System any such undue use of bank credit by any member bank, together with his recommendation. Whenever, in the judgment of the Board of Governors of the Federal Reserve System, any member bank is making such undue use of bank credit, the Board may, in its discretion, after reasonable notice and an opportunity for a hearing, suspend such bank from the use of the credit facilities of the Federal Reserve System and may terminate such suspension or may renew it from time to time.

(Dec. 23, 1913, ch. 6, § 4 (pars.), 38 Stat. 255; June 16, 1933, ch. 89, § 3(a), 48 Stat. 163; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704.)

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Cited by 27 sections · top 22

U.S. Code

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Sec. 4
federal reserve banks

statutes-at-large

Public Law 95–188
To extend the authority for the flexible regulation of interest rates on deposits and accounts in depository institutions, to promote the accountability of the Federal Reserve System, and for other purposes

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U.S. Code

“Federal Reserve Act”
§ 226

9 references not yet in our index

Dec. 23, 1913, ch. 6, § 4
38 Stat. 255
June 16, 1933, ch. 89, § 3(a)
48 Stat. 163
Aug. 23, 1935, ch. 614
49 Stat. 704
act Dec. 23, 1913, ch. 6
38 Stat. 251
June 21, 1917, ch. 32, § 2

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§ 301

Powers and duties of board of directors; suspension of member bank for undue use of bank credit

Fed. Reg.×10

U.S.C.×8

Bills×3

Stat. Comp.×3

C.F.R.×2

Stat.×1

U.S.C.§ 226

ActDec. 23, 1913, ch. 6, § 4

Stat.38 Stat. 255

ActJune 16, 1933, ch. 89, § 3(a)

Stat.48 Stat. 163

ActAug. 23, 1935, ch. 614

Cites 10 · showing 6Cited by 27 across 6 sources