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Board of Governors of the Federal Reserve System
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Federal Reserve Board of Governors

Federal Reserve Act

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."]

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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.]

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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: May 23, 2013