Notes on 12 U.S.C. § 461 : US Code - Notes

Search Notes on 12 U.S.C. § 461 : US Code - Notes

(Dec. 23, 1913, ch. 6, Sec. 19(a)-(c), formerly Sec. 19 (pars.), 38
Stat. 270; June 21, 1917, ch. 32, Sec. 10, 40 Stat. 239; Aug. 23,
1935, ch. 614, title III, Sec. 324(a), 49 Stat. 714; renumbered
Sec. 19(a)-(c) and amended Pub. L. 89-597, Sec. 2(a), Sept. 21,
1966, 80 Stat. 823; Pub. L. 91-151, title I, Secs. 4(a), 5, Dec.
23, 1969, 83 Stat. 374, 375; Pub. L. 93-501, title I, Sec. 101(a),
Oct. 29, 1974, 88 Stat. 1557; Pub. L. 96-221, title I, Secs. 103,
104(a), Mar. 31, 1980, 94 Stat. 133, 138; Pub. L. 97-35, title III,
Sec. 385, Aug. 13, 1981, 95 Stat. 433; Pub. L. 97-320, title IV,
Sec. 411, title VII, Sec. 708, Oct. 15, 1982, 96 Stat. 1520, 1540;
Pub. L. 101-73, title VII, Sec. 744(i)(2), (3), Aug. 9, 1989, 103
Stat. 439; Pub. L. 109-351, title II, Secs. 201, 202, title VI,
Sec. 603, Oct. 13, 2006, 120 Stat. 1968, 1969, 1980.)
AMENDMENT OF SUBSECTIONS (B) AND (C)
Pub. L. 109-351, title II, Secs. 201-203, Oct. 13, 2006, Secs.
201-203, 120 Stat. 1968, provided that, effective Oct. 1, 2011,
this section is amended -
(1) in subsection (b)(2)(A), by striking "the ratio of 3 per
centum" and inserting "a ratio of not greater than 3 percent (and
which may be zero)" in clause (i) and by striking "and not less
than 8 per centum," and inserting "(and which may be zero)," in
clause (ii);
(2) in subsection (b)(4), by striking subparagraph (C) and
redesignating subparagraphs (D) and (E) as subparagraphs (C) and
(D), respectively;
(3) in subsection (b), by adding at the end the following:
"(12) Earnings on balances. -
"(A) In general. - Balances maintained at a Federal Reserve
bank by or on behalf of a depository institution may receive
earnings to be paid by the Federal Reserve bank at least once
each calendar quarter, at a rate or rates not to exceed the
general level of short-term interest rates.
"(B) Regulations relating to payments and distributions. - The
Board may prescribe regulations concerning -
"(i) the payment of earnings in accordance with this
paragraph;
"(ii) the distribution of such earnings to the depository
institutions which maintain balances at such banks, or on whose
behalf such balances are maintained; and
"(iii) the responsibilities of depository institutions,
Federal Home Loan Banks, and the National Credit Union
Administration Central Liquidity Facility with respect to the
crediting and distribution of earnings attributable to balances
maintained, in accordance with subsection (c)(1)(A), in a
Federal Reserve bank by any such entity on behalf of depository
institutions.
"(C) Depository institutions defined. - For purposes of this
paragraph, the term 'depository institution', in addition to the
institutions described in paragraph (1)(A), includes any trust
company, corporation organized under section 25A [12 U.S.C. 611
et seq.] or having an agreement with the Board under section 25
[12 U.S.C. 601 et seq.], or any branch or agency of a foreign
bank (as defined in section 3101 of this title).";
(4) in subsection (c)(1)(A), by striking "subsection (b)(4)(C)"
and inserting "subsection (b)".
REFERENCES IN TEXT
This section, referred to in subsec. (a), means section 19 of act
Dec. 23, 1913, as amended, which is classified to sections 142,
371a, 371b, 371b-1, 374, 374a, 461, 463 to 466, 505, and 506 of
this title.
The Federal Deposit Insurance Act, referred to in subsec.
(b)(1)(A)(vi), is act Sept. 21, 1950, ch. 967, Sec. 2, 64 Stat.
873, as amended, which is classified generally to chapter 16 (Sec.
1811 et seq.) of this title. For complete classification of this
Act to the Code, see Short Title note set out under section 1811 of
this title and Tables.
Section 25 of this Act, referred to in subsec. (b)(6), means
section 25 of act Dec. 23, 1913, ch. 6, 38 Stat. 273, as amended,
popularly known as the Federal Reserve Act. Section 25 is
classified to subchapter I (Sec. 601 et seq.) of chapter 6 of this
title.
For the effective date of the Monetary Control Act of 1980,
referred to in subsec. (b)(8), see section 108 of Pub. L. 96-221,
set out as an Effective Date of 1980 Amendment note under section
248 of this title.
Section 404 of the National Housing Act (12 U.S.C. 1727),
referred to in subsec. (c)(1)(B), was repealed by Pub. L. 101-73,
title IV, Sec. 407, Aug. 9, 1989, 103 Stat. 363.
CODIFICATION
Section is comprised of subsecs. (a) to (c), formerly first six
pars., of section 19 of act Dec. 23, 1913 (such first, second
through fifth, and sixth pars. formerly classified to sections 461,
462, and 462b of this title, respectively), as redesignated by Pub.
L. 89-597. For credits prior to enactment of Pub. L. 89-597 on
Sept. 21, 1966, see notes set out under sections 462 and 462b of
this title.
AMENDMENTS
2006 - Subsec. (c)(1)(B). Pub. L. 109-351, Sec. 603, struck out
"which is not a member bank" after "balances maintained by a
depository institution".
1989 - Subsec. (b)(1)(A)(vi). Pub. L. 101-73, Sec. 744(i)(2),
amended cl. (vi) generally. Prior to amendment, cl. (vi) read as
follows: "any insured institution as defined in section 1724 of
this title or any institution which is eligible to make application
to become an insured institution under section 1726 of this title;
and".
Subsec. (b)(1)(F), (4)(B). Pub. L. 101-73, Sec. 744(i)(3),
substituted "Director of the Office of Thrift Supervision" for
"Federal Home Loan Bank Board".
1982 - Subsec. (b)(1)(E), (F). Pub. L. 97-320, Sec. 411(c), added
subpar. (E) and redesignated former subpar. (E) as (F).
Subsec. (b)(4)(A)(iv). Pub. L. 97-320, Sec. 411(b), inserted
"except as provided in paragraph (11)".
Subsec. (b)(8)(D)(i). Pub. L. 97-320, Sec. 708(1), substituted
provisions relating to reserve requirements for banks which
withdraw from the Federal Reserve System for provision that any
bank which was a member bank on July 1, 1979, and which withdrew
from membership in the Federal Reserve System during the period
beginning on July 1, 1979, and ending on the day before March 31,
1980, would maintain reserves beginning on March 31, 1980, in an
amount equal to the amount of reserves it would have been required
to maintain if it had been a member bank on March 31, 1980, and
that after March 31, 1980, any such bank was directed to maintain
reserves in the same amounts as member banks were required to
maintain under this subsection, pursuant to subparagraphs (B) and
(C)(i).
Subsec. (b)(8)(D)(ii). Pub. L. 97-320, Sec. 708(2), struck out
"on or" after "Reserve System".
Subsec. (b)(11). Pub. L. 97-320, Sec. 411(a), added par. (11).
1981 - Subsec. (b)(8)(E). Pub. L. 97-35 substituted provisions
relating to applicability to any depository institution that was on
Aug. 1, 1978, engaged in such business in a State outside the
continental limits and was not a member of the Federal Reserve
System at any time on or after such date, for provisions relating
to applicability to any depository institution that was on Aug. 1,
1978, engaged in such business under the laws of a State, was not a
member of the Federal Reserve System on that date, and the
principal office of which was outside the continental limits on
that date and has remained outside ever since.
1980 - Subsec. (b). Pub. L. 96-221, Sec. 103, substituted
provisions setting forth additional definitions applicable to
reserve requirements and requirements respecting amounts of
reserves maintained against transaction accounts, waiver of ratio
limits in extraordinary circumstances, supplemental reserves,
reserves related to foreign obligations or assets, exemptions for
certain deposits, discounts and borrowings, transitional
adjustments, and additional exemptions and waivers, for provisions
relating to determinations respecting maintenance of reserves
against deposits.
Subsec. (c). Pub. L. 96-221, Sec. 104(a), substituted provisions
relating to the promulgation of rules and regulations respecting
maintenance of balances, for provisions relating to form of
reserves held by member banks.
1974 - Subsec. (a). Pub. L. 93-501 substituted "and, regardless
of the use of the proceeds, shall be deemed a deposit" for "shall
be deemed a deposit".
1969 - Subsec. (a). Pub. L. 91-151, Sec. 4(a), authorized Board
to determine type of obligations that would be deemed deposits.
Subsec. (b). Pub. L. 91-151, Sec. 5, authorized Board to
prescribe ratio of indebtedness of member banks to foreign banks,
up to a maximum of 22 percent.
1966 - Pub. L. 89-597 designated first par. provisions of section
19 of act Dec. 23, 1913, as subsec. (a), substituted a general
provision authorizing Board to define terms used in sections 142,
371a, 371b, 374, 374a, and 463 to 466 of this title for former
provisions defining terms "demand deposits", "gross demand
deposits", "deposits payable on demand", "time deposits", "savings
deposits", and "trust funds", struck out inclusion of "savings
deposits" in term "time deposits" in regard to reserve requirements
of member banks, and added subsecs. (b) and (c) to such section 19,
superseding second through sixth pars., which authorized Board to
fix reserve requirements against time deposits between the limits
of 3 and 10 percent, in lieu of prior limits of 3 and 6 percent,
and struck out provision for modification of reserve requirements
to prevent injurious credit to expansion or contraction.
1935 - Act Aug. 23, 1935, abrogated statutory construction of
demand deposits.
EFFECTIVE DATE OF 2006 AMENDMENT
Pub. L. 109-351, title II, Sec. 203, Oct. 13, 2006, 120 Stat.
1969, provided that: "The amendments made by this title [amending
this section] shall take effect October 1, 2011."
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-221 effective on first day of sixth month
which begins after Mar. 31, 1980, except that the amendments
regarding subsec. (b)(7) and (8)(D) effective on Mar. 31, 1980, see
section 108 of Pub. L. 96-221, set out as a note under section 248
of this title.
EFFECTIVE DATE OF 1974 AMENDMENT
Section 101(b) of Pub. L. 93-501 provided that: "The amendment
made by subsection (a) [amending this section] shall not apply to
any bank holding company which has filed prior to the date of
enactment of this Act [Oct. 29, 1974], an irrevocable declaration
with the Board of Governors of the Federal Reserve System to divest
itself of all of its banks under section 4 of the Bank Holding
Company Act [12 U.S.C. 1843], or to any debt obligation which is an
exempted security under section 3(a)(3) of the Securities Act of
1933 [15 U.S.C. 77c(a)(3)]."
EFFECTIVE AND TERMINATION DATES OF 1966 AMENDMENT
Section 7 of Pub. L. 89-597, as amended by Pub. L. 90-87, Sept.
21, 1967, 81 Stat. 226; Pub. L. 90-505, Sec. 1, Sept. 21, 1968, 82
Stat. 856; Pub. L. 91-71, Sept. 22, 1969, 83 Stat. 115; Pub. L. 91-
151, title I, Sec. 1, Dec. 23, 1969, 83 Stat. 371; Pub. L. 92-8,
Sec. 1, Mar. 31, 1971, 85 Stat. 13; Pub. L. 92-15, Sec. 1, May 18,
1971, 85 Stat. 38; Pub. L. 93-63, July 6, 1973, 87 Stat. 147; Pub.
L. 93-100, Sec. 1, Aug. 16, 1973, 87 Stat. 342; Pub. L. 93-495,
title I, Sec. 107, Oct. 28, 1974, 88 Stat. 1505; Pub. L. 94-200,
title I, Sec. 101, Dec. 31, 1975, 89 Stat. 1124; Pub. L. 95-22,
title I, Sec. 101, Apr. 19, 1977, 91 Stat. 49; Pub. L. 95-188,
title I, Sec. 101, Nov. 16, 1977, 91 Stat. 1387; Pub. L. 95-630,
title XVI, Sec. 1601, Nov. 10, 1978, 92 Stat. 3713, which provided
effective and termination dates for 1966 amendments by Pub. L. 89-
597 (affecting sections 371b, 1425b, and 1828(g) of this title),
was repealed by section 207(a) of Pub. L. 96-221.
ELIMINATION OR REDUCTION OF INTEREST RATE DIFFERENTIAL BETWEEN
SAVINGS BANKS AND SAVINGS AND LOAN, BUILDING AND LOAN, OR HOMESTEAD
ASSOCIATIONS
Pub. L. 94-200, title I, Sec. 102, Dec. 31, 1975, 89 Stat. 1124,
as amended by Pub. L. 95-630, title XVI, Sec. 1602, Nov. 10, 1978,
92 Stat. 3713, which had provided that an interest rate
differential for any category of deposits or accounts which was in
effect on December 10, 1975, between (1) any bank (other than a
savings bank) the deposits of which were insured by the Federal
Deposit Insurance Corporation and (2) any savings and loan,
building and loan, or homestead association (including cooperative
banks) the deposits or accounts of which were insured by the
Federal Savings and Loan Insurance Corporation or any mutual
savings bank as defined in section 3(f) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(j)) [section 1813(f) of this title]
could not be eliminated or reduced unless (A) written notification
was given by the Board of Governors of the Federal Reserve System
to the Congress; and (B) the House of Representatives and the
Senate approved, by concurrent resolution, the proposed elimination
or reduction of the interest rate differential, was repealed by
Pub. L. 97-320, title III, Sec. 326(a), Oct. 15, 1982, 96 Stat.
1500. See section 326(b)-(d) of Pub. L. 97-320, set out as a note
under section 1828 of this title. See, also, section 207(b)(1) of
Pub. L. 96-221 providing for repeal of section 102 of Pub. L. 94-
200 effective 6 years after Mar. 31, 1980.
INTEREST RATES: CONTROLS
Section 1 of Pub. L. 89-597 provided that: "The Secretary of the
Treasury, the Board of Governors of the Federal Reserve System, the
Board of Directors of the Federal Deposit Insurance Corporation,
and the Federal Home Loan Bank Board, in implementation of their
respective powers under existing law and this Act [enacting section
1425b of this title, amending this section, sections 355, 371b, and
1828 of this title, and section 771 of former Title 31, Money and
Finance, repealing section 462a-1 of this title and enacting
provisions set out as notes under this section], shall take action
to bring about the reduction of interest rates to the maximum
extent feasible in the light of prevailing money market and general
economic conditions."
Effective and termination dates of control of interest rates
provisions, see Effective and Termination Dates of 1966 Amendment
note above.
OUTSTANDING RATE REGULATIONS
Section 5 of Pub. L. 89-597 provided that: "Any regulation
prescribed by the Board of Governors of the Federal Reserve System
or the Board of Directors of the Federal Deposit Insurance
Corporation with respect to the payment of deposits and interest
thereon by member banks or insured nonmember banks which is in
effect when this Act is enacted [Sept. 21, 1966] shall continue in
effect unless and until it is modified or rescinded after
consultation with the Board of Directors or the Board of Governors,
as the case may be, and the Federal Home Loan Bank Board."
Effective and termination dates of existing rate regulations, see
Effective and Termination Dates of 1966 Amendment note under this
section.
(!1) See References in Text note below.